WASHINGTON–There are several developments of interest to credit unions that have either taken place in Congress or are about to.
The House passed bipartisan legislation addressing the end of penny production with a unanimous voice vote Tuesday. As the CU Daily reported here, America’s Credit Unions had earlier sent a letter to the House urging passage of the bill.
Specifically, the Common Cents Act (H.R. 3704) would:
- Establish a national framework for cash transaction rounding;
- Provide clarity regarding the treatment of federal, state, and Tribal laws on rounding;
- Require the Federal Reserve Board to develop a strategic plan and periodic reporting on coin terminal operations and the stability of the nation’s coin distribution system.
STOP Senior Fraud Act Introduced
The Safeguarding Transactions to Outpace Predatory (STOP) Senior Fraud Act has been introduced by Reps. Don Davis (D-NC) and Zach Nunn (R-IA), which seeks to help financial institutions protect older adults and vulnerable individuals from financial exploitation by authorizing them to refuse or temporarily delay certain transactions when they reasonably believe financial exploitation has occurred, is occurring, or is being attempted.
“America’s Credit Unions thanks Representatives Davis and Nunn for understanding the critical role credit unions play in protecting consumers and combatting fraud,” America’s Credit Unions President and CEO Scott Simpson said in a statement. “As fraudsters continue to innovate, the STOP Senior Fraud Act will allow credit unions to further protect the more than 146 million members across the country by establishing voluntary trusted contact programs. This legislation will help level the playing field and ensure a secure financial services ecosystem.”
“Credit unions have long been on the front lines of protecting members from financial fraud, particularly older adults who are increasingly targeted by sophisticated scams. The STOP Senior Fraud Act provides financial institutions with additional tools and legal certainty to intervene when financial exploitation is suspected, helping stop fraud before hard-earned savings are lost,” Dan Schline, president/CEO of Carolinas Credit Union League, added in a statement. “The Carolinas Credit Union League is proud to support this bipartisan legislation and applauds Congressman Don Davis for his leadership in advancing commonsense protections for some of our most vulnerable citizens.”
7(a) Risk Oversight Act Introduced
The 7(a) Risk Oversight Act has been Introduced by House Small Business Committee Ranking Member Nydia Velázquez (D-NY). The bill would require the SBA to examine (7a) loans by certain characteristics and add new reporting on enforcement actions and civil penalties tied to fraudulently made loans and loans falling behind on payments. The SBA would be required to publish the report within seven days of submitting to Congress.
“We applaud Ranking Member Velázquez for her work to provide more transparency on the SBA’s 7(a) lending program. This bill will help ensure that Congress has the information needed to address specific issues with the program and that the program remains an effective tool for small businesses and lenders such as credit unions,” America’s Credit Unions Chief Advocacy Officer Kathleen Coulombe said in a sstatement.
The trade group noted that loans made through the SBA’s 7(a) program can be up to 85% guaranteed by the federal government, and the guaranteed portion does not count against a credit union’s member business lending cap of 12.25% of assets.
