President Obama on Friday signed a bill giving credit unions and other financial institutions more flexibility on providing notification to consumers about non-credit card accounts.
At issue is a provision of the Credit Accountability Responsibility and Disclosure Act, which took effect on Aug. 21, that requires statements on open-end accounts be delivered 21 days before they are due. Some credit unions have said they are facing logistical and other obstacles that are making compliance difficult.
CUNA and NAFCU have been pushing hard to get the law changed, which NCUA endorsed. They tried without success to get the Federal Reserve to do it but the Fed said the change had to be done legislatively.
The trades said that to comply with the law as it is written requires credit unions to move all due dates on loans to later in the month because of the 21-day notice or send out separate periodic statements for every credit card account or line of credit. Those options require costly adjustments, especially because credit unions had only 90 days from the day the law took effect to comply.
The House and Senate both passed the measure by unanimous consent last month.
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