National Credit Union Administration (NCUA) 

Registration Open for May 2 NCUA Webinar on 2024 CDRLF Grant Round 

The NCUA will be hosting a webinar on May 2, 2024, covering the 2024 CDRLF grant round. Credit unions are encouraged to review the Notice of Funding Opportunity, which describes the 2024 grant initiatives. On the webinar, staff from the NCUA’s grants team will discuss the grant application process in detail, including: 

• CDRLF eligibility requirements. 

• Overview of available funding initiatives. 

• The components of a grant. 

• Demonstration of the grant application. 

• Examples of successful grant and loan applications. 

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NACHA 

Free Webinar Focuses on New Nacha Rules to Fight Credit-Push Fraud 

Nacha recently hosted a webinar to help end users understand what the Rules are and how to prepare for them.  If you missed the webinar don't’ worry, they have a recording available.  Scroll down to the “ACH Rules Briefings, Webinars and Other Resources” section and look for “Listen to March 27 Recording.”  You can also register for the next quarterly webinar, happening on May 29. 

Learn More About the New Rules 

Nacha has published information related to the rule amendments which are part of a larger Risk Management package intended to reduce the incidence of successful fraud attempts and improve the recovery of funds after frauds have occurred. 

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Financial Crimes Enforcement Network (FinCEN) 

FinCEN Issues Notice on the Use of Fake U.S. Passport Cards to Perpetuate Identity Theft and Fraud 

FinCEN has issued a notice to financial institutions urging them to be vigilant in identifying and reporting suspicious activity related to the use of counterfeit U.S. passport cards for identity theft and fraud schemes. Since 2018, FinCEN has identified a concerning increase in the use of counterfeit U.S. passport cards by individuals and fraud rings to gain access to victim accounts at financial institutions nationwide. This fraud occurs in person at financial institutions and involves an individual impersonating a victim by using a counterfeit U.S. passport card that contains the victim’s actual information. 

FinCEN issued the Notice to ensure that financial institutions identify and report suspicious activity potentially related to U.S. passport card fraud. The notice: (i) provides an overview of several typologies related to U.S. passport card fraud; (ii) highlights select technical, behavioral, and financial red flags to assist financial institutions in identifying and reporting suspicious activity; and (iii) reminds financial institutions of their reporting requirements under the Bank Secrecy Act (BSA). 

League InfoSight Highlight: Fair Credit Reporting Act Responsibilities 

I’ve written several articles these past few years showing the string of events and the history of guidance and bulletins coming out of the CFPB leading to proposed rulemaking. In this article, I want to highlight the emphasis over the past two years (I’m starting with 2022 because there seems to be a recent uptick, but publications have been coming out of the CFPB since 2012) on the Fair Credit Reporting Act (FCRA). 

This week the CFPB once again identified some trends in their latest edition of Supervisory Highlights specifically related to accuracy problems in the credit report system. Although this report highlights the inaccuracies and noncompliance found with both furnishers’ processes and the credit reporting companies’ processes, the issues identified are similar. There continues to be issues with the accuracy of information being reported, inadequate or non-existent dispute investigations, and deficiencies with identify theft requirements. Below are a few examples identified in the report: 

• Furnishers continued to report fraudulent accounts to credit reporting companies (CRCs) for several years after determining accounts were fraudulent. Even for accounts closed for fraudulent purposes, information was provided showing accounts were valid. There was also a failure to instruct the CRCs to delete the accounts after determining the account was fraudulent.  

• Furnishers who received direct disputes from consumers were continuing to furnish the disputed information to CRCs without notifying the CRCs that the information was subject to dispute.  

• Failure of furnishers to conduct a reasonable investigation of direct disputes. 

• Furnishers providing information to CRCs in cases where consumers submitted an identity theft report stating that the information maintained by the furnisher was the result of identity theft, yet furnishers continued to provide that information identified in the report before knowing or being informed by the consumer that the information was correct.  

Just last month, the CFPB wrote a blog on consumer reporting companies having an obligation to correct errors. 

While not all the communications coming out of the CFPB are directed at furnishers (many are related to credit reporting agencies), the emphasis on the law/regulation is evident. Here a few publications to review and consider: 

• November 1, 2021 – Advisory Opinion on consumer reporting agencies’ matching practices. 

• July 5, 2022 – Final Rule effective prohibiting consumer reporting agencies from furnishing a consumer report containing adverse item(s) of information that resulted from certain types of human trafficking. 

• July 7, 2022 - Advisory Opinion on the permissible purposes for furnishing, using, and obtaining consumer reports. 

•  July 11, 2022 – Interpretive Rule on FCRA’s limited preemption of state laws. 

• October 20, 2022 - Advisory Opinion on fair credit reporting and facially false data. 

• November 10, 2022 – CFPB Circular – Reasonable investigation of consumer reporting disputes. 

• January 11, 2024 – Advisory Opinion on fair credit reporting and file disclosure. 

• January 11, 2024 – Advisory Opinion on fair credit reporting and background screening. 

•  March 29, 2024 – Blog on consumer reporting companies having an obligation to correct errors. 

With all that in mind, it’s a good time to review your policies and procedures regarding the FCRA. CU PolicyPro model policies are also being reviewed and updates will be forthcoming in the next release. InfoSight also contains links and resources that might be helpful to provide to your credit union, so everyone is knowledgeable on the requirements of FCRA and its implementing Regulation V, especially related to credit reporting!  

Glory LeDu,  
CEO, League InfoSight and CU Risk Intelligence 

Whether you are a federal or state-chartered credit union, there are state laws that impact your operations. The most efficient and quickest way to find those laws is through InfoSight. This member benefit provides you with access to applicable state content for all 50 states, without you needing to search through tons of random online sources. Stop wasting time trying to research when InfoSight has aggregated all the information your credit union needs to stay compliant in an ever-changing and evolving federal and state environment. 

Nacha Blog: Fighting Credit-Push Fraud 

NCUA/MyCreditUnion.gov - April is National Financial Capability Month 

Ensuring Servicemembers Can Protect Themselves from Unlawful Financial Practices 

If Someone You Care About Paid a Scammer, Here’s How to Help 

Apr. 30, 2024: 5300 Call Report Due 

May 1, 2024: NCUA Opening 2024 CDRLF Grant Round 

May 2, 2024: NCUA webinar covering the 2024 CDRLF grant round 

May 12, 2024: FRB Interchange Fee Proposal Comments Due 

May 27, 2024: Memorial Day – Federal Holiday 

May 29, 2024: NACHA quarterly webinar Upcoming Nacha Operating Rules and How They Affect You  

If we are going to charge off a negative balance that includes overdraft fees, do we include the total of the fees in the charge off, or should we reverse the fees? 

Your credit union should only charge off the total amount of the overdrafts. You should not include the fees. Unpaid loan fees, which include overdraft fees, should be reversed against fee income and not included in the charged off amount. Reg E only applies to E 

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If you have questions about this communication, contact us at 800.546.4465, or via our shared email inbox at compliance@gowest.org.

Have a great week!

Your GoWest Compliance Team, 

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GoWest Credit Union Association, 18000 International Blvd Ste. 1102, SeaTac, WA 98188, United States
1.800.995.9064

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