WASHINGTON — NCUA and two other federal agencies are set to propose rules that would label "unfair or deceptive" practices such as charging interest on repaid debt and not providing adequate notice on when payments are due.
The rules also would prohibit debit card issuers from imposing an overdraft charge if the overdraft is caused solely by a hold placed on funds exceeding the purchase amount. Similarly, credit card holders won't be charged for exceeding their credit limit if this only occurs because a hold was placed on their account.
The NCUA, the Federal Reserve and the Office of Thrift Supervision are scheduled to issue a full text of the rules at 2:30 p.m. E.S.T. There will be a 75-day public comment period before the final rules are issued.
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NAFCU Senior Counsel and Director of Regulatory Affairs Carrie Hunt praised the intent of rules but said her organization wants to be sure they don't unfairly hamper credit unions.
"We support full disclosure but want to be sure that the rules don't go too far in preventing credit unions from appropriately pricing credit. Though credit unions already have an 18% interest ceiling and haven't offered the types of abusive products that other issuers do," she said.
CUNA officials said they wanted to wait to read the full text of the proposed rules before commenting.
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