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Ahead of the House Financial Services Committee markup of various bills today, NAFCU Senior Vice President of Government Affairs Greg Mesack reiterated the association's thoughts on three bills up for consideration that would impact credit unions: the NAFCU-sought Credit Union Board Modernization Act, the NAFCU-opposed Overdraft Protection Act, and the Expanding Access to Credit through Consumer-Permissioned Data Act.

The Credit Union Board Modernization Act

Thaler reiterated the association’s support for the legislation, H.R. 6889, which would amend Federal Credit Union Act language that currently requires credit union boards to meet once a month, to instead require the board to meet no less than six times per year.  

In addition, Thaler detailed the benefits of modernizing outdated requirements that do not consider the connectivity and technology available today, noting “[…] credit union boards are able to communicate in an ongoing manner that has negated the necessity of monthly meetings.” 

The Overdraft Protection Act

Thaler highlighted the association’s continued opposition for the bill, H.R. 4277, which would significantly limit overdraft protection programs and hinder the ability to assess nonsufficient fund (NSF) fees. He reiterated the association’s main concern with new restrictions and the failure to recognize the “opt-in” feature many overdraft products have today. Thaler explained the opt-in feature “gives consumers control and the overdraft rule’s notice requirements have helped consumers to better understand the cost of overdraft programs.” 

Thaler also turned lawmakers’ attention to recent data on the topic, urging lawmakers to keep in mind that: 

• credit unions have surveyed their members and received results that show members highly value the protection and peace of mind courtesy pay programs provide and the assurance that their transaction will go through at the point of sale; 
• NAFCU surveys have found that a vast majority of credit unions report offering specialized intervention and financial education for those who frequently use courtesy pay programs, to ensure that consumers are not overly reliant on these programs and are able to improve their financial health; 
• many credit unions do not assess fees when an account is overdrawn by a de minimis amount and some place caps on the total number of NSF fees that can accumulate in a given period; and 
• a majority of credit unions also report that they routinely waive fees when a member incurred the overdraft on accident and requests a fee waiver. 

Expanding Access to Credit through Consumer-Permissioned Data Act  

Thaler expressed support for the intent of the Expanding Access to Credit through Consumer-Permissioned Data Act, H.R. 8485; however, he highlighted concerns that the legislation as written does not provide enough clarity and could require significant changes.  

NAFCU will monitor the markup and update credit unions on the outcome via NAFCU Today.