TALLAHASSEE, Fla. — A new survey by The League of Credit Unions & Affiliates finds widespread concern among credit unions over regulatory burdens tied to the Electronic Fund Transfer Act, with industry leaders calling for modernization of Regulation E.
The findings were compiled by the organization’s Regulation E Task Force, which was formed in spring 2025 and includes credit union executives and subject-matter experts across compliance, payments, risk management, operations, accounting and retail services, the League said.
“Credit unions of every shape and size labor under the cumbersome weight of Reg E on a daily basis,” Maggie Sayer, CEO of Keys Federal Credit Union and chair of the task force, said in a statement. “As fraud has exploded, especially over the last five years, credit unions are spending more and more time chasing down bad actors. While fraudsters’ tactics and technology evolve at light speed, credit unions remain bound by outdated regulatory requirements first developed in 1978.”
The task force surveyed credit unions across the League’s four-state footprint to identify operational and compliance challenges tied to Regulation E, which governs electronic fund transfers.
The Findings
According to the League, the survey found:
- 96% of respondents believe Regulation E requires reform
- 84% identified fraud and unauthorized transaction liability as the greatest operational burden
- 59% spend at least 30% of their time each week on Regulation E compliance
- 74% support extending provisional credit and investigation periods to 30 days
- 96% favor establishing a new “gross negligence” clause in Regulation E
- 57% report encountering instances of gross negligence at least four times per month
“Reg E has been a major concern for credit unions for years, and our members are ready for action,” League President Samantha A. M. Beeler said in the statement. “As Washington looks to ease regulatory pressure across the financial system and crack down on fraud, credit unions are bringing practical, experience-driven solutions to the table.”
Recommendations Made
Based on the survey results, the task force is advancing several policy recommendations, the League said:
- Establish a clear and concise “gross negligence” clause in Regulation E
- Revise 12 CFR 1005.2(m)(3)
- Extend the time limit for provisional credit and investigations to 30 days
- Develop and support region-wide fraud-fighting task forces
