Credit Union News Blog by Oak Tree Business Systems, Inc. - Your fun and informative source for updates, regulations and more.
The month of February has one extra day this year, an event that only happens once every four years. Credit unions all over the United States are taking advantage of this extra day by running special Leap Year promotions for the month of February on their Auto and other Consumer Loans. Here are some ideas for your credit union for promotions you can run for your members:
If you’ve been keeping up with the news, you might have noticed that certain insurance carriers are leaving the credit union market. Transamerica was the first to make the announcement, and others are sure to follow suit. This is certain to create waves. Changing insurance carriers is a big deal after all. There is a lot involved, and the process can be daunting. While this might affect some credit unions, causing much stress and mild panic, it will not affect you. By using forms from Oak Tree Business Systems, Inc., you are protected. You also have options. Let me explain:
When you use Oak Tree Business Systems, Inc.'s products, you are not just using our forms and lending documents, you are also receiving first class customer service. Oak Tree provides unsurpassed personalized post sales support and direction that is specific to both your forms and your credit union. This includes email access, toll-free telephone support and online chat through our website. In addition, Oak Tree's WebEx Conference Training is a great way to get your staff interacting with your new forms right from the start. When new regulations come in town or examiners/auditors stop by your credit union, you can rely on Oak Tree to help you ensure your forms are compliant.
When the Military Lending Act (MLA) regulation was revised it specified that it would apply to consumers who, at the time they become obligated on a consumer credit transaction or establish an account for consumer credit, are a member of the armed forces serving on Active Duty under a call or order greater than 30 days, or on Active Guard and Reserve Duty, or a dependent of such individual, except to the extent that the following credit transactions would be exempt:
The 2016 presidential election has already stirred up a lot of interest and there are still 10 months until election day. The catty remarks between candidates such as Hillary Clinton, Jeb Bush, and Donald Trump are entertaining, but the matter of who is elected as President is a serious matter for credit unions. The President of the United States has the power to appoint the head of the CFPB and NCUA, and during this next presidential term, whoever is elected will have the power to appoint three new NCUA board members. It is too early in the election process for candidates to reveal their views on issues that relate to credit union operations. It is not until the primary elections when the candidates’ views on these issues will be discussed.
The Federal Reserve announced in December that they will raise the interest rate for the first time since the recession. Returns on savings accounts and CD yields will increase along with lending rates for home mortgages. Some items, however, will remain almost unaffected such as auto loans and checking accounts. The decision to raise interest is due to job growth and a good outlook on the economy’s recovery. This recent change will have no bearing on whether or not your forms from Oak Tree will be in compliance. It’s the primary thing we do to make your job easier.
By way of background the TCPA became law back in 1991, at which time its primary purpose was to protect consumers from telemarketers that did not have a pre-existing business relationship. That is to say that the initial iteration of the TCPA exempted callers from its requirements as long as they had a pre-existing business relationship. For example, a credit union that conducted a telemarketing campaign to its [own] members would have been exempt from the TCPA. Due to amendments to the original TCPA, along with declaratory rulings issued by the Federal Communications Commission, the pre-existing business relationship exemption was eliminated and its application has been narrowed such that some callers may now fall under the auspices of the TCPA due to their internal business practices.
The CFPB (the Consumer Financial Protection Bureau) issued a final rule that amended the regulatory text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). In particular, the Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; and this final rule reviewed the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), as well as the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).