WASHINGTON — Seeking the same treatment as their state-chartered counterparts, NAFCU today asked NCUA to delay enforcement of the rules on identity theft protection from Nov. 1 until May 1.
"Since the Red Flags rule was finalized last year, NAFCU has received a significant number of inquiries from our credit union members regarding the rule. Many credit unions have sought compliance assistance and expressed concerns over their ability to meet the November 1 compliance deadline. The challenges in meeting this deadline have only been exacerbated with the recent turmoil affecting the U.S. financial system, as resources have been directed toward issues that are most vital to ensuring continued consumer confidence in, and safety and soundness of, the credit union, NAFCU Associate Director of Regulatory Compliance Pamela Yu wrote the NCUA board members.
The Federal Trade Commission said today it won't take any enforcement actions on state-chartered credit unions until May 1. The rule requires financial institutions to identify "red flags"that could make them vulnerable to security breaches and come up with plans to prevent them.
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The FTC said it was responding to complaints from financial institutions that they needed additional time to put their compliance packages in place.
Under the provisions of the law, that agency will oversee compliance by state-charted credit unions and the NCUA will oversee compliance by federal credit unions.
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