3 Things You Need to Know On a Rainy Friday Morning

May 10, 2019 at 7:53 am Leave a comment

Your faithful blogger has been busier than usual this week and fallen behind on fulfilling his oath to provide you with news you can use to stay on the straight and narrow in Credit Union Land. Here are some quick hits.

CFPB Releases FDCPA Proposal

In its first major foray into amending consumer regulations in the Kraninger Era, the CFPB used a town hall meeting to unveil its proposal to amend the Fair Debt Collection Practices Act. I haven’t gotten near finishing the 500+ page proposal but the first thing I did was make sure that the CFPB wasn’t trying to pull in creditors. So, I am happy to report that the regulation still only applies to third party debt collectors. That being said, there’s plenty in here of which you should be cognizant. Many credit unions seem to use the FDCPA as de facto guidance for their own collection practices.

The proposal that is getting the most push-back so far is one that places a hard cap of seven on the number of phone calls that a debt collector can place to one person in a week. To its credit, the CFPB is also looking for feedback on how the FDCPA impacts compliance with other regulations such as the TCPA, which does apply to credit unions, but is one of the few consumer regulations left not under the direct jurisdiction of the CFPB. The Association will be sending out a survey on this proposal.

Time to File that 990?

Everyone’s favorite government agency, the IRS, sent out this pleasant reminder the other day. It reminded tax exempt organizations that under IRS rules organizations that must file Form 990s typically must file with the IRS by the fifteenth day of the fifth month after the end of their accounting period. In other words, if your organization operates on a calendar year and you are a state chartered credit union, your tax day cometh. The IRS also reminded filers that it generally does not ask for or want to see social security numbers on the form. Since most of the form is going to be publicly disclosed, this is excellent advice.

Oh, that wacky AOC. . .

Now that she has explained to the world why Long Island City doesn’t need 25,000 high-paying tech jobs, and how she could guarantee a world free of pollution with full employment if only people would adopt her ideas, the inimitable Alexandria Ocasio-Cortez has teamed up with avowed Socialist Bernie Sanders to take on banking. If her past attempts at policy are any indication, her idea of capping credit card interest rates at 15% is sure to generate lots of enthusiasm but be devoid of any thoughtful explanation as to how this would actually work or acknowledgement that proposals such as these would actually negatively impact credit opportunities for many people. But then again, why let facts get in the way when your goal is to blow up the system.

So, let’s see. As a relatively moderate, middle-aged man, I may very well have to choose between an avowed socialist who thinks the country is broken and an allegedly Republican president who thinks America isn’t great enough. Isn’t it funny how the extremists have more in common with each other than they would like to acknowledge.


Entry filed under: Political, Regulatory. Tags: , , , .

If you’re responsible for handling member bankruptcies you should read this blog Facebook Has A New Pen Pal: The Senate Banks Committee

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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