Have a question for your peers?
Email the Lagniappe Listserv at:
t
o get input on compliance related issues, share best practices, or share policies, procedures and the latest in fraud awareness.
|
ComplySight: FREE Recorded Webinars
|
Recorded Webinars - Watch on Demand!
|
|
|
|
InfoSight Highlight: New! League InfoSight Survey!
League InfoSight is asking for your input on a brief survey regarding the use of an OFAC Screening Tool.
Thank you!
|
|
|
Compliance Connection Video- New!
|
|
|
Reg CC changes effective July 1
The final rule creates a new Remote Deposit Capture Indemnity in Section 229.34(f) to address the allocation of liability when a depositary institution, such as a credit union accepts deposit of a check through "remote deposit capture." In other words, when the depositor/ member sends the credit union electronic information about a check, such as a photographic image, which the credit union uses to create an electronic check or substitute check for collection. The indemnity would be provided by a credit union that accepted a check by remote deposit capture to a financial institution that accepted the original check for deposit, in the event the financial institution that accepted the original check incurred a loss because the check had already been paid. The final rule also added an exception to the indemnity which would prevent a bank from making an indemnity claim if it accepted the original check containing a restrictive indorsement inconsistent with the means of deposit, such as "for mobile deposit only."
Some check vendors are now printing checks with a checkbox on the back which states, "check here if Mobile Deposit," but there has been some question as to whether simply checking that box fulfills the restrictive endorsement requirements.
Further Action If your credit union accepts checks by remote deposit capture, you may want to review the language in your Mobile check deposit agreement or Remote Deposit Capture Agreement (if the language isn't already there) that requires the credit union's member to add a specific restrictive indorsement to the check such as "For Mobile Deposit Only, at ABC FCU into account #123456789" and also require the new check box which identifies the check as "For Mobile Deposit" to be checked.
Source: CUNA Community
|
|
|
CUNA provides Second Quarter 2018 update to the MLA Fee Comparison Spreadsheet
In each location you will find the updated second-quarter spreadsheet from June 2018, the first quarter spreadsheet from March 2018 and the initial spreadsheet from September 2017, in case you need to refer to historical data.
The following is provided in case you need to refresh your memory regarding the MLA requirements for Reasonable and Bona fide credit card fees.
MLA Requirements for Reasonable and Bona Fide Credit Card Fees
Under a Safe Harbor in the MLA rule, a credit union may exclude a Bona Fide credit card fee from the MAPR if the fee is considered "reasonable." This means that the fee must be less than or equal to the average fee for the same or similar product charged by 5 separate card issuers, that each have at least $3 billion in outstanding credit card balances at any time during the three-year period preceding the time the average is determined.
Currently, there are approximately 20 large card issuers that meet this requirement and only one of those is a credit union---Navy FCU. Together these card issuers have about 260 card agreements in the CFPB's Card Agreement Database. However, many of the agreements are Private Label cards. Only about 85 of the agreements would appear to be useful for MLA purposes.
The exclusion generally applies to finance charges under Reg. Z such as cash advance fees, foreign transaction fees, balance transfer fees, transaction fees for purchases and minimum interest charges. Other charges, which are not finance charges under Reg. Z, such as a late fee or an over-limit fee are not included in the calculation of the MAPR anyway, so the exclusion would not apply to such fees. Also, the exclusion does not apply to fees or premiums for credit insurance, fees for a debt cancellation contract, fees for a debt suspension agreement, or to fees for a credit related ancillary product. Those fees must be included in the calculation of the MAPR.
|
|
|
Upcoming Educational Events
August 8
August 9
August 15
August 16
August 22-23
August 30
September 18-19
For a complete listing of educational opportunities available from LCUL and to register, visit the
League website
and click on "Education"
|
|
|
|
|