More Regs On the Way
All’s quiet on the Western Front today, but there’s plenty of proposed regulations on the horizon that will keep your vendor on speed-dial and make small financial institutions wonder how they are supposed to generate income.
The Bureau that Never Sleeps (CFPB) published its semiannual list of rule-making priorities in a blog Wednesday. I won’t go over the whole list, as you can read it yourself, but I will point out a couple of areas that could really have an impact on your credit union’s operations.
The Bureau is still in the process of determining what additional regulations are needed for overdraft services for checking accounts. Depending on how this is drafted, this could be the one that requires your credit union to make the most significant changes. For instance, imagine if the CFPB proposes capping overdraft fees, requires additional opt it protection for members to access overdraft services, and mandates the order in which checks must be processed.
Another area it is considering regulating is one that hasn’t gotten a lot of attention in credit union land: debt collection. Most debt collection regulations currently apply to third party collectors. I wouldn’t be surprised to see the Bureau impose more debt collection requirements directly onto banks and credit unions. Even if they don’t, debt collection is fast becoming a regulatory land mine and its increased complexity will impact all lenders.
That’s all folks. Have a nice weekend.