Gentile: NCUA should focus on working with credit unions not late file fees
The National Credit Union Administration (NCUA) issued a letter to credit unions (14-CU-03), which detailed the agencies plans to impose fines on credit unions that file their quarterly reports late. In the letter, NCUA Chairman Matz stated, “Late filings of quarterly Call Report and Profile data have become a serious problem.” She indicated that more than 1,000 federally insured credit unions (FICU) filed their call reports after the deadline had passed.
The potential penalties that were cited in the letter ranged from a maximum of $2000 per day for “unintentional” delays to as high as $1 million per day if the “FICU knowingly or with reckless disregard for accuracy submits a false or misleading report.”
Association President/CEO Paul Gentile suggested that education would yield better results. He said, "NCUA's online Call Report filing system is still new. With any new technology-driven system, there are always bugs and issues. Rather than threaten fees, NCUA should be focused on working with credit unions to ensure the system is working properly and that credit unions are prepared. NCUA has tremendous human resources that they can use in educating credit unions on the new system. NCUA should also carefully consider circumstances when deciding on fines and ensure there is consistency on how they levy fines if they are going to do so."