NCUA’s LIBOR Transition Reminder
By: Shannon Basile, Compliance Analyst
In a recent NCUA Letter to Federally Insured Credit Unions (21-CU-03), NCUA reminds credit unions that as of December 31, 2021, the one-week and two-month London Inter-bank Offered Rate (LIBOR) settings will no longer be published. The remaining LIBOR settings will end immediately following the LIBOR publication on June 30, 2023. The ...
Eleventh Circuit Holds Use of Letter Vendors May Violate FDCPA
By: Kari Osier, Compliance Specialist
Recently, the Eleventh Circuit Court of Appeals ruled on an FDCPA case that could have farreaching implications in the collection industry. In Hunstein v. Preferred Collection and Management Services, Inc., the plaintiff incurred debt to a hospital for medical treatment, and the debt was transferred to the defendant to collect on. ...
Financial Exploitation is Not to Be Taken Lightly
By: Kevin Shaw, Senior Regional Director
The financial exploitation definition of “adults at risk” is an adult with disabilities between age 18-59 or a person that is 60 years of age or older. While Financial Exploitation training is required for a credit union’s member facing staff every three years, we are also talking about people’s wellbeing. ...
Military Lending Act Applicability to Purchase Money Vehicle Loans
By: Steve Olson, Attorney at Law
A. Background.
In the L&T Bulletin issued April 2, 2021, we discussed two measures Governor Pritzker signed into law implementing the Economic Equity pillar of the Legislative Black Caucus. One was the Illinois Community Reinvestment Act (SB 1608 now Public Act 101-0657) and the other was Predatory Loan Prevention Act (SB ...
By: Shannon Basile, Compliance Analyst
When a member notifies the credit union that a check with a fraudulent signature has cleared their account, the credit union should refer to the rules in Articles 3&4 of the Illinois Uniform Commercial Code (IL UCC). The check negotiation rules provided in Articles 3&4 of the IL UCC, will outline the ...
By: Kari Osier, Compliance Specialist
A credit union has discovered that it has been charging a lower APR on some of its credit cards than the APR disclosed in the credit card agreement provided at the time the account was opened. May the credit union increase the APR on existing balances to the originally disclosed rate?
Section 1026.55(a) ...
What the New ATDS Definition Means to Your CU
By: Shannon Basile, Compliance Analyst
On April 1st the U.S. Supreme Court (SCOTUS) clarified the Telephone Consumer Protection Act’s (TCPA’s) definition of an automated telephone dialing system (ATDS). The ruling provides a narrow definition of an ATDS, as equipment with the capacity to generate random or sequential numbers and to automatically call those numbers.
Although the recent SCOTUS ...
New Protections for Employees and Job-Seekers
By: Joni Senkpeil, SVP, Member Resources
On March 23, Governor Pritzker signed legislation (Senate Bill 1480) amending the Illinois Human Rights Act to add conviction record protections. The amendment is effective immediately.
Credit unions employing one or more employees within Illinois during 20 or more calendar weeks must comply with the new conviction record protections. Under the Act, ...
Small Estate Affidavit and Real Property
By: Shannon Basile, Compliance Analyst
According to Article XXV Section 1(a) of the Illinois Probate Act, a small estate affidavit may be accepted by anyone holding the personal estate of a decedent, controlling the right of access to the decedent’s safe deposit box, or acting as a registrar or transfer agent of any evidence of interest, ...
By: Kari Osier, Compliance Specialist
It looks like 2021 will be a very active year for data privacy legislation! Until there is federal data privacy legislation enacted, states will keep passing their own separate data privacy laws. California was the first to pass a data privacy law with the California Consumer Privacy Act of 2018 (CCPA), ...