Keeping members healthy one Reg at-a-time!

On a recent Monday morning, sitting at my desk refilling my seven day vitamin dispenser; for each day I add one Natural Vitamin E 1000, soft gel Vitamin A, Vitamin C & D, triple strength Fish Oil for my Omega 3 fatty acid and of course a couple Garlic tablets for the immune system. While completing this process I look around viewing my desk overwhelmed of work for the week ahead with distinct resemblances to vitamin E, A, C & D when it comes to the financial health of our membership.

Scanning over emails that require registration for very important upcoming webinar’s on issues regarding Regulation E, (Reg E) Electronic Fund Transfer, Reg D – Reserve Requirements, Reg Z – Open End Lending, Reg E - ATM/Debit Card Overdraft Protection, Reg Z – Credit Card Accountability & Disclosure Act of 2009 and Reg Z – Credit Card Act 21-day rule.

In the last quarter of 2009 and overwhelmingly in the first quarter of 2010 the Federal Reserve Board has amended and made final rulings on many new Regulations that have a direct positive impact on consumers; but financial institutions are scrambling to keep abreast of requirements and meet deadlines along the way. The Federal Reserve, is the central bank of the United States, which provides the nation with a safe, flexible, and stable monetary and financial system.

Regulation Z – Credit Card Act 21 Day Rule requires institutions to "adopt reasonable procedures designed to ensure periodic statements are mailed or delivered no later than 21 days before the payment due date on open-end consumer credit accounts."  This ruling, primarily ruled upon credit card statements to arrive within a timeframe so members have adequate time to meet payment due dates. This was abused by large credit card issuers to trick consumers in making late payments, therefore receiving an extraordinary late fee. Your credit union has always been in compliance; our due dates and statement mailing schedule has always remained on or near the same date of each month for as long as we have issued credit card loans

Regulation E - ATM/Debit Card Overdraft Protection can be read in full detail on page two of this newsletter. One issue with meeting compliance deadlines on this ruling brings exciting news to SLECU members; we are currently working to convert our ATM/Debit card program to “real time” on or around July 1, 2010. What’s “real time?’ In a nutshell; when you swipe your debit card at Point Of Sale (POS) or purchase, it will debit your checking account immediately and if you do not have funds to cover the amount, your transaction will be denied. Additionally with “real time” transactions, if you have enough money in your savings account to cover the purchase it will approve the transaction and transfer from savings to checking with no fee, saving any embarrassment at the check out register! Additionally, any deposit in person, mail or ATM will be available immediately, along with online transfers from savings to checking through “It’s Me 247.’

Regulation Z – Credit Card Accountability Responsibility & Disclosure Act of 2009 prohibits an increase of an Annual Percentage Rate (APR) without a 45 day notice and applying rate increases retroactively to existing balances, also requires clear notice of the  right to cancel a credit card when an APR is raised. Credit card issuers are prohibited from imposing interest charges on any portion of a balance that is paid by the due date each month. Charging interest on credit card transaction fees, such as late fees and over-limit fees are restricted. Reg Z prohibits credit card issuers from charging a fee to allow a credit card holder to pay a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise. These all seem to be common sense issues, none of which your credit union has ever taken part of!

Regulation E – Electronic Funds Transfer Act is to ensure that electronic transfers are completed accurately, securely and in a timely manner. The regulation outlines the responsibilities and liabilities of both the credit union and the member. An electronic fund transfer (EFT) is any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a credit union to debit or credit an account.

Regulation D – Reserve Requirements states that a savings account may not have more than six withdrawals or transfers per calendar month to another account of the depositor at the same credit union or to a third party by means of pre-authorized or automatic transfer, telephone transfer, check, debit, debit card, or other means to a third party. Withdrawals by check or cash, and transfers to another account at the same credit union in person are not restricted. Withdrawal or transfers to another account at the same credit union from an Automated Teller Machine (ATM) are also not restricted.

In closing; many of these new regulations originate from large credit card issuers and banks that have abused consumers for many years, unfortunately “the good guys always pay for the bad guys” negligence. As in the past and in the future we will comply with any and all regulations as required. Our philosophy to put you – the member first as we continue to create and implement products and services that benefit you most!