Newsroom

June 23, 2016

Monitor: 80% of CUs surveyed waived late fees

A survey report in the June NAFCU Economic & CU Monitor shows that 80 percent of responding credit unions have waived late fees, interest or fines for delinquent accounts due to member hardship during the last year.

These findings stand in stark contrast to the debt collection practices targeted by CFPB in its recent reports.

The Monitor also showed that 33 percent of respondents have forgiven debts to one or more members in the last year.

"While credit union themselves may not be guilty of such [CFPB-targeted] practices, it is important that they ensure that a collection agency acting on their behalf avoid them as well," the Monitor said. "Fortunately, survey respondents indicate that they are taking the necessary steps to safeguard their members from these harmful practices."

The survey also focused on the Financial Accounting Standards Board's new current expected credit loss (CECL) model. It found that more than half of respondents will need to invest in additional IT infrastructure because of the new standard. It also shows that many respondents expect a "sizable" impact on their allowance for loan and lease loss accounts.