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NAFCU Seeks Stronger NCUA Statement on Preemption

ARLINGTON, Va. - NAFCU has sent a letter to NCUA recommending the agency strengthen its regulations in regards to federal preemption of state laws mandating credit card disclosures. Last year NAFCU joined a coalition of national banking groups, card issuers and CUNA to fight a California law that mandated credit...

By Staff Writer | Updated on February 11, 2003

ARLINGTON, Va. – NAFCU has sent a letter to NCUA recommending the agency strengthen its regulations in regards to federal preemption of state laws mandating credit card disclosures. Last year NAFCU joined a coalition of national banking groups, card issuers and CUNA to fight a California law that mandated credit card issuers face a series of expensive rate disclosures. In December a federal judge agreed with the coalition that federal law preempted California from regulating federally chartered card issuers in this manner. A stipulation agreement with the state extended that understanding to state chartered institutions as well. But NAFCU told the NCUA in a January 30 letter to Robert Fenner, NCUA general counsel, that NCUA regulations on federal preemption are not as clear and explicit as those of the Office of Thrift Supervision, which regulates federally chartered savings banks. The OTS regulations “preempt any state laws requiring specific statements, information or other content to be included in billing statements or other credit related documents,” the association wrote. “Timely review and revision of Part 701.21 would ensure that federal credit unions in the future continue to derive the full measure of that value as it relates to credit card disclosures,” NAFCU wrote.

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