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National Credit Union Administration Chair Todd Harper.
National Credit Union Administration Chair Todd Harper.

NCUA’s Harper: Overdraft and NSF Call Report Data Collection

This week, National Credit Union Administration (NCUA) Chair Todd Harper addressed key themes during his speech at The Brookings Institution, including consumer financial protection issues such as overdraft and non-sufficient funds (NSF) fees.

His remarks outlined the agency’s plans for supervisory review, which include an expanded examination of credit union overdraft programs, covering aspects such as website advertising and settlement processes.

While specifics regarding reporting requirements were not provided, Harper revealed plans for requiring credit unions with assets over $1 billion to report data on overdraft and NSF fees separately to the NCUA during the question-and-answer session following his prepared remarks. The chairman shared that the NCUA is in the process of reviewing the Paperwork Reduction Act to amend call reports for data collection, which could mean a potential for a notice of proposed rulemaking with an opportunity for public comment.

However, the avenue the NCUA decides to take is unclear at this time.

Given the significant number of credit unions in California and Nevada above the $1 billion asset threshold, the California and Nevada Credit Union Leagues are concerned about the implications of data reporting. The Leagues will continue to work with the NCUA and other regulatory policymakers and legislators on the perception of overdraft and NSF fees, giving credit unions a voice in the state and national discussion.

In response to criticisms and regulatory developments — such as the Consumer Financial Protection Bureau’s (CFPB’s) proposed rules on overdraft and non-sufficient funds fees — the Leagues have recently circulated a survey among credit union CEOs to gather feedback. This important survey is designed to gather valuable insights from the credit union community to shape our advocacy efforts and help us address critical industry issues effectively.

As a reminder, the Leagues have also launched a Credit Union Overdraft Resources site for League members to access, which includes talking points, facts, research, a downloadable opinion-editorial template, and a regulatory timeline. The Leagues will routinely update this site and notify credit union leaders as the news media spotlights overdraft protection services, as well as federal and state regulators and legislators. Please take advantage of these resources to support credit union media relations efforts and internal conversations with staff.

The Leagues will stay vigilant on this matter and keep credit union leaders updated as it evolves. If you have any questions, email Leagues Vice President of Regulatory Advocacy and Compliance Lisa Quaranta.

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