ViClarity Compliance Update

NCUA Issues Letters to Credit Unions on Overdraft and NSF Fee Practices; CFPB Closes Overdraft Loophole; Guidance on Elder Financial Exploitation

The Dakota Credit Union Association’s dues-supported compliance solution –  ViClarity – is a world leader in credit union compliance. To read the complete articles/answers that are linked, you will need to log in with your username and password. If you have questions about establishing your members-only account with ViClarity, click here for detailed instructions or contact DakCU's John Alexander.

​NCUA Issues Letters to Credit Unions on Overdraft and NSF Fee Practices
The National Credit Union Administration (NCUA) has finalized a Letter to Credit Unions, 24-CU-03. The letter advises credit unions that have overdraft or nonsufficient funds fees that its members cannot reasonably anticipate or avoid, it may be exposing itself to “heightened reputational, consumer compliance, third-party, and litigation risk”. Read the full article here.

​District Court Denies CFPB’s Attempt to Lift Stay on $8 Credit Card Late Fee Cap
The Consumer Financial Protection Bureau’s (CFPB) request to lift the order blocking the implementation of the cap on credit card late fees was rejected by the U.S. District Court for the Northern District of Texas. The court case began as a response to a final rule governing credit card late fees, which was finalized March 2024. More on the topic here.

​CFPB Closes Overdraft Loophole: What Credit Unions Need to Know
The Consumer Financial Protection Bureau (CFPB) has issued a final rule aimed at reforming overdraft fee practices for financial institutions with assets exceeding $10 billion. This action closes a decades-old loophole that previously exempted overdraft loans from lending laws. The new rule, effective October 1, 2025, is expected to save consumers up to $5 billion annually, or approximately $225 per household that pays overdraft fees. Read the full article here.

Federal Regulators Issue Guidance on Combating Elder Financial Exploitation
In a united effort to address the growing issue of elder financial exploitation, five federal financial regulatory agencies, the Financial Crimes Enforcement Network (FinCEN), and state financial regulators released a statement earlier this month outlining effective risk management and response practices for financial institutions. Full details can be found here.
​