ALEXANDRIA – The NCUA Board is scheduled to issue final rules to allow CUSOs to undertake additional activities and changes in credit card practices at its meeting next Thursday.
The original draft proposal would add two new permissible CUSO activity categories–credit card loan origination and payroll processing services–and broaden the reach of two service categories to include those eligible for credit union membership, and add new examples of permissible CUSO activities.
Through a companion amendment to Part 741, the proposal would also expand the scope of the CUSO rule by extending certain provisions to federally insured, state-chartered credit unions to ensure that regulators have access to books and records and that CUSOs operate as separate entities. Additionally, the proposal clarifies that CUSOs may buy and sell participations in loans they are currently authorized to originate, according to NCUA.
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