Compliance

Navy Federal ordered to refund members and banned from charging certain overdraft fees

NEWS:  The Consumer Financial Protection Bureau (CFPB) ordered Navy Federal Credit Union to refund more than $80 million to members, stop charging certain overdraft fees, and pay a $15 million civil penalty. This is the largest amount the CFPB has ever obtained from a credit union for illegal activity.  The Consent Order identified the following violations:...

DOT announces end of paper lien release filings for motor vehicles; some CUs exempt

NEWS:  In June, The League alerted you about the Wisconsin Department of Transportation's (DOT's) plans to require that all motor vehicle lien releases be submitted electronically, ending the optional use of paper forms.

The DOT has now announced that this change will take effect in early January 2025, requiring all non-exempt secured parties to release liens electronically. Paper lien releases will no longer be accepted.

League & bankers join on appeals court brief in dispute over post-repo notice

NEWS:  The League and the Wisconsin Bankers Association (WBA) have filed a joint “friend of the court” brief in support of Simplicity Credit Union, in an appeals court case that raises important questions about a notice that lenders must send consumers after a repossession.

CFPB orders VyStar Credit Union to pay 1.5 million for a botched conversion

NEWS:  Last week, the Consumer Financial Protection Bureau (CFPB) took enforcement action against VyStar Credit Union (a Florida state-chartered credit union) for engaging in unfair acts and practices in violation of the Consumer Financial Protection Act.  The consent order is available here.