e-Weekly
May 27, 2009
Matz to be nominated as NCUA chair
Deborah Matz is President Barack Obama's choice to become the new chair of the National Credit Union Administration (NCUA), the White House announced Thursday.
Matz is a former member of the NCUA board, confirmed by the Senate on March 22, 2002 for a term ending August 2005, although she remained a few months longer to assure a smooth transition to a new member. She was executive vice president and chief operating officer of $800 million-in-assets Andrews FCU, in Suitland, Maryland, until June 2008. Matz also has an extensive background in public service, with past roles at the U.S. Department of Agriculture and the Congressional Joint Economic Committee.
She will join current NCUA Chairman Michael Fryzel, who took the position in August 2008 and whose term extends to 2013. He may continue to serve on the board. Gigi Hyland, whose term ends in 2011, could also continue to serve on the board. Vice chair Rodney Hood, who filled in following the departure of Dennis Dollar, will leave the board. Hood’s term expired in April.
Obama announced his intention to nominate several other nominees at the same time as Matz--including Winslow Sargeant, as chief counsel for advocacy for the U.S. Small Business Administration. The president's nominees must go through the confirmation process, which includes a nomination and confirmation hearing, and, if approved, a formal swearing in. If confirmed, Matz will chair the board until April 2015.
Four ways to attend the convention and save
Take advantage of this year's "too good, but yes they're true" offers and lower hotel rates to join in on the excitement at the League Convention in Boston!
1. Hotel rates have been slashed. Please reserve your room using CUNA’s links to the official conference hotels by May 27. All existing reservations for standard rooms will be adjusted to the new lower rates. Learn more: http://training.cuna.org/on_site/acuc_2009/hotel.html
3. Get $5,475 in bonus training. Get 5 FREE registrations for the Strategic Planning Institute, June 19-21 in Boston, when you register 5 or more attendees for ACUC and stay at one of the conference hotels. Hurry, offer ends May 31. Get details: http://training.cuna.org/on_site/acuc_2009/special_offer.html
4. Save $100 if you're a CUNA Council member. Simply check "yes" in the box that says "I am a member of a CUNA Council" on the online ACUC registration form (registration and fees step).
NCUA approves credit reporting act changes
A rule change to existing Fair Credit Reporting Act regulations that would allow consumers to take their disputes directly to the furnishers of credit report information rather than acting solely through a credit reporting agency was unanimously approved by the board of the National Credit Union Administration (NCUA). Overall, the final rule, as approved, will implement portions of the Fair and Accurate Credit Transactions Act that seek to improve the accuracy and integrity of credit reports.
At that meeting, NCUA staff said that reassessment and possible reform of the existing rule will begin immediately and will be ongoing. The rule will also be reexamined every three years, NCUA staff said. The resulting guidelines will be flexible and will allow organizations to determine which portions of the guidelines best apply to their individual needs.
The rule will apply to federally chartered credit unions, and a separate, nearly identical Federal Trade Commission rule will apply to state-chartered credit unions.
As a counterpart to the accuracy of information guidelines, the board also unanimously approved a sixty-day comment period to gather outside input on whether or not the furnishers of credit reports should promote the integrity of the information in those reports by disclosing the opening date of a given account. The NCUA will also ask for opinions on any additional information that could help ensure the integrity of the credit information.
Cardholder rights bill signed into law
A series of sweeping new credit card industry reforms aimed at protecting consumers become law when President Barack Obama signed H.R. 627, the Credit Cardholders' Bill of Rights on Friday, May 22.
The bill, which was approved by the Senate, will prevent lenders from making arbitrary changes to the interest rates and terms associated with a card that holds an existing balance.
Lenders will also be made to maintain low introductory rates for six months and may not increase the annual percentage rate on a credit card for the first year that the credit account is open.
Cardholders must be notified 45 days in advance if the lender chooses to raise their interest rate. However, lenders may increase interest rates on accounts that are over 60 days behind on their payments.
While the new rules should "help rein in" many abusive credit card practices, Credit Union National Association (CUNA) President/CEO Dan Mica has said that some portions of the bill could "have the unintended consequence of raising compliance costs and making credit more expensive and less available to consumers."
The bill does not address interchange fees, but commissions a Government Accountability Office study of interchange fees. CUNA has opposed any new regulations addressing interchange fees.
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