Consumer Financial Protection Bureau (CFPB)

CFPB Newsroom: CFPB Bans Excessive Credit Card Late Fees, Lowers Typical Fee from $32 to $8

The CFPB released final rule to cut excessive credit card late fees by closing a loophole exploited by large card issuers. The CFPB estimates that American families will save more than $10 billion in late fees annually.  

This final rule applies to the largest credit card issuers, that have more than 1 million open accounts. Data shows that smaller issuers tend to charge lower rates and fees to their borrowers, while the vast majority of the largest issuers charge close to the maximum allowable late fee amount.  

This final rule will: 

• Lower the late fee amount to $8 

• End abuse of automatic annual inflation adjustment 

• Require credit card issuers to show their math 

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Financial Crimes Enforcement Network (FinCEN) 

Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Deficiencies 

FinCEN is informing financial institutions that the Financial Action Task Force (FATF), intergovernmental body that establishes international standards for anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation of weapons of mass destruction, has issued a statement highlighting potential risks to the international financial system, including growing financial connectivity of Russia with the Democratic People’s Republic of Korea (DPRK) and Iran, and risks of proliferation financing, malicious cyber activities, and ransomware attacks. In order to protect the international financial system, the FATF continues to urge all jurisdictions to remain vigilant to these risks. 

As part of the FATF’s monitoring process to ensure compliance with its international standards. The FATF issued the following statements: 

• Jurisdictions Under Increased Monitoring 

• High-Risk Jurisdictions Subject to a Call to Action 

Both statements can be read with this link. 

League InfoSight Highlight: InfoSight Has Resources for Even the Smallest Credit Unions 

Compliance is a part of every credit union, although it may look very different between organizations based on the credit union’s size, staffing levels and staffing experience, product and service offerings, and geographical location. Even though programs will differ, what is the same across all organizations is the need for employees to own a piece of compliance and know where to find accurate information and resources. 

A small credit union often has limited staff, all who juggle multiple roles. Compliance is not always top of mind while managing multiple priorities. New and changing laws and regulations are becoming increasingly more frequent and complex, while the implementation time is becoming shorter. These changes disproportionately affect smaller credit unions as they have to make time to research the changes, incorporate those changes into their policies and procedures, and educate staff as they implement those changes across the organization. 

League InfoSight offers powerful compliance tools that are just the right size for smaller credit unions! 

InfoSight 

• FREE for affiliated credit unions 

• Information on the impact of both state and federal laws 

• Several topics specific to small credit unions 

• Board of Directors channel to assist with board governance and succession planning 

CU PolicyPro  

• Access to 230+ model policies and procedures 

• Complete policy management system, including auditing tools, assignment features, file upload 

• Deeply discounted (and in some states FREE) for affiliated credit unions 

RecoveryPro 

• Complete guide to create, maintain, and test your business continuity plan 

• Includes model content, checklists, worksheets, business processes, and threat worksheets 

• As low as $249 annually for credit unions under $50 million 

• Single Sign On and utilizes the same technology as CU PolicyPro 

Glory LeDu,
CEO, League InfoSight and CU Risk Intelligence 

SAVE THE DATE 

REGISTRATION IS OPEN! League InfoSight's, three-session Business Continuity Planning (BCP) education series, is on its way! Login to your CU Policy Pro/RecoveryPro system to register! 

BCP 101 - Wednesday, March 6, 2024 (2pm Eastern)
This session will introduce the fundamental concepts and key components of business continuity planning. 

Building Your BCP - Wednesday, March 13, 2024 (2pm Eastern)  
Participants will be guided through a step-by-step process to develop a Business Continuity Plan using RecoveryPro. 

Testing & Maintenance of your BCP - Wednesday, March 20, 2024 (2pm Eastern)
Participants will gain a comprehensive understanding of the testing methodologies, techniques, and best practices required to ensure the BCP's effectiveness and readiness. 

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. 

Jury Convicts Former Navy Federal CU Employee for Running Fraud Scheme

U.S Department of Treasury Analysis on Inflation Reduction Act Benefits

Unlawful fees in the mortgage market 

U.S swindled out of $550 million in Covid tax 

Mar 11, 2024: Comments Due FTC Proposed COPPA Changes 

Mar 22, 2024: Last day to submit IRS ERC Voluntary Disclosure Program 

Mar 25, 2024: CFPB Proposed Rule on NSF (Declined Transaction) Fees 

Apr 1, 2024: Comments Due CFPB Overdraft Rule 

Apr. 30, 2024: 5300 Call Report Due 

May 12, 2024: FRB Interchange Fee Proposal Comments Due 

May 27, 2024: Memorial Day – Federal Holiday 

Do adverse action notices have to be sent in writing? 

The Fair Credit Reporting Act (FCRA) states that financial institutions can provide adverse action notices to consumers orally, in writing or electronically.  However, Regulation B requires that adverse actions be in writing for consumer credit.  Therefore, business credit may be given verbally or in writing, while consumer credit must be in writing.

For your individualized login, select your state below. 

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, 

Copyright © 2023 GoWest Credit Union Association. All Rights Reserved.

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

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