By: Jennifer Winston Jwinston@cusolaw.com Last month, the CFPB released Consumer Financial Protection Circular 2023-01 emphasizing unlawful negative option marketing practices. The CFPB has stated that engaging in negative option marketing practices violate the Consumer Financial Protection Act’s (CFPA) prohibition on unfair, deceptive, or abusive acts or practices (UDAAP). “Negative option” refers to either a term […]
By: Michael Mulvey mmulvey@cusolaw.com One of the benefits of forming a CUSO is the limited liability protection offered to a CUSO’s investor(s). In order to maintain this protection, the CUSO and investing credit union(s) must maintain corporate separateness. This means the two entities’ operations are separate and distinct from each other. The reason this […]
By: Michael J. Heller mheller@cusolaw.com Part 1: Contract Review As credit unions increasingly rely on third party relationships to remain operationally efficient and competitive and to provide the most innovative and up-to-date services to members, contract review, negotiation, and monitoring are, and will continue to be, critical aspects of an effective third party risk management […]
By: Michael Heller mheller@cusolaw.com The Federal Trade Commission (“FTC”) published a new proposed rule on January 19, 2023 to prohibit the use of non-compete clauses in certain agreements. The proposal is currently in the commentary period, which will end on March 20, 2023. If adopted, the proposed rule will require employers that use non-compete […]
By: Michael Mulvey mmulvey@cusolaw.com For our blockchain or cryptocurrency enthusiasts out there: Following the downfall of FTX and subsequent hearings in December, Senators Elizabeth Warren and Roger Marshall introduced the Digital Asset Anti-Money Laundering Act authorizing rule making, risk-focused examination and review processes and reporting for federal agencies. SIL22D55 (senate.gov) Additionally, the New […]
By: Jennifer Winston jwinston@cusolaw.com The Consumer Financial Protection Bureau (CFPB) has recently released another Circular addressing reasonable investigations of consumer reporting disputes. The CFPB is issuing this Circular to emphasize that certain practices involving the failure to conduct a reasonable investigation of disputes can violate the Fair Credit Reporting Act (FCRA). In Circular 2022-07, […]
By: Jennifer Winston jwinston@cusolaw.com There has been some uncertainty whether federal credit unions could continue to hold completely virtual annual meetings in 2023 under the emergency exception bylaw announced in 2020. We now know that the answer is NO. In a Letter to Credit Unions issued this week, the NCUA has announced the expiration […]
By: Michael Mulvey mmulvey@cusolaw.com In November 2021, the NCUA expanded the lending capabilities of CUSOs. CUSOs can now engage in all types of lending permitted for federal credit unions. The NCUA recently released a letter to credit unions providing guidance on the CUSO lending rule now that the rule has been in effect for […]
By: Jennifer Winston jwinston@cusolaw.com On March 15, 2022, Congress enacted the Credit Union Governance Modernization Act of 2022 (CUGMA). The CUGMA amended the Federal Credit Union Act to allow FCUs to expel members engaging in abusive, illegal, or violent behavior with a two-thirds vote of the FCU’s Board of Directors in accordance with a policy […]
By: Jennifer Winston jwinston@cusolaw.com In Letter to Credit Unions 23-CU-01, the NCUA has outlined its supervisory priorities for 2023. The NCUA’s primary areas of supervisory focus this year will be: Interest Rate Risk: The NCUA sees the sharp rise in rates as amplifying “market risk because a credit union’s assets and liabilities do not […]
