Around the States: Recent News Stories
Feb. 28, 2025 News Around the States
- Current Credit Union Matters Unfolding in D.C.
- Protecting the Credit Union and Cooperative Model in a Year of Uncertainty
- InRoads Credit Union Donates Nearly $160,000 In Community Support During 2024
- Former Credit Union Employee Sentenced for Swapping Real Money for Counterfeit Currency
Current Credit Union Matters Unfolding in D.C.
Emily Claus, CUSO Magazine
It’s no secret that the last month in the nation’s capitol has been a flurry of activity, changes, and grand sweeping executive orders.
With the constantly shifting policies, organizational reforms, and shuttered departments, many are struggling to keep track of all the changes and how these modifications affect them. Credit unions have not been immune to these reforms either, and trying to figure out how each of these decisions may or may not affect credit union regulations now and in the future can be overwhelming. So today, let’s cover some of the larger credit union topics ongoing in D.C. right now.
The state of the CFPB and overdraft
We covered this topic in a recent article, but the changes to the CFPB came even faster than previously anticipated. While the CFPB staff was quickly laid off and the organization shuttered, credit union trade groups and advocates are not confident this is a permanent change and are continuing legal processes to halt the CFPB’s overdraft and credit card late fee rule.
America’s Credit Unions filed a lawsuit against the rule the day it was issued, though the CFPB has filed a motion to request a stay in these hearings, due to the agency’s change in leadership.
America’s Credit Union’s CEO and President, Jim Nussel, did not go so far as to agree with shuttering the agency, but he did call for it to return to its intended purpose: keeping consumers safe from bad actors and fraudulent financial institutions. Additionally, he called for the agency to use its power to exempt credit unions from these regulations and rulings.
Furthermore, an executive order from just last week would require the CFPB to entirely eliminate the Credit Union Advisory Council, which served as an essential source of communication between the organization and the credit union industry. The termination of this communication pathway would remove the seat at the table for credit union advocacy groups to share how CFPB rulings would impact credit unions and their members.
While America’s Credit Unions spoke out against this change as well, the order remains in place. Though should the CFPB remain stagnant and shuttered, it may not matter much in the end.
Fighting for tax exemption
Since the passing of the Federal Credit Union Act, credit unions have been fighting to keep their tax-exemption status. The newest attack came from Republican lawmakers last month, who in a 50-page document on ways to cut costs listed removing the credit union tax exemption as a means to increase revenue by $30 billion over ten years. Read more
Protecting the Credit Union and Cooperative Model in a Year of Uncertainty
Greg Neumann, World Council of Credit Unions
WOCCU International Advocacy releases 2025 Global Regulatory Update
With a vast amount of regulatory uncertainty resulting from an unprecedented number of newly elected officials across the globe and an International Year of Cooperatives’ mission to fulfill—2025 will be a critical year for credit union advocacy worldwide. That is the overriding theme of World Council of Credit Unions’ (WOCCU) 2025 Global Regulatory Update, which stresses how divergent messages relating to whether previously held financial laws will be honored or revoked, and how global leaders embrace or reject international standards will impact the regulatory landscape this year and beyond.
World Council’s Global Regulatory Update is put out on an annual basis to help credit unions and financial cooperatives prepare for the compliance issues most likely to impact them in the year ahead. The new edition also covers several other leading regulatory issues affecting credit unions across the globe, including:
- Digitalization and Developing Technologies.
- Climate-related Financial Risks.
- Strengthening Individual Frameworks.
Read World Council’s 2025 Global Regulatory Update here.
InRoads Credit Union Donates Nearly $160,000 In Community Support During 2024
InRoads Credit Union, in partnership with its members and employees, contributed $159,891 towards 52 local charitable organizations and schools in 2024.
While expanding its presence with a new branch in Hillsboro, InRoads directed its resources to make a positive impact in Columbia, Washington and Multnomah counties. Of the total contributions, $116,529 supported local schools and $43,362 benefited nonprofit organizations.
InRoads Credit Union offers three high school themed debit cards through its innovative Team Up for Schools program. InRoads automatically contributes five cents from each debit card transaction to the corresponding school. In 2024, the program raised $116,529 to support those local schools. In addition to financial contributions, InRoads employees volunteered their time to support local nonprofits. Strengthening its partnership with With Love Oregon, InRoads provided hair care kits for foster children, among other community initiatives. Read more
Former Credit Union Employee Sentenced for Swapping Real Money for Counterfeit Currency
MTN News, 8KPAX
A former Missoula credit union employee who admitted to embezzling approximately $389,000 from the vault by swapping real money with fake funds has been sentenced to prison.
Acting U.S. Attorney Timothy J. Racicot announced Edward Arthur Nurse, 35, of Missoula was sentenced Tuesday to six months in prison, to be followed by five years of supervised release, and ordered to pay $389,000 restitution. Nurse pleaded guilty in October 2024 to an indictment charging him with theft from a credit union.
Prosecutors alleged in court documents that Nurse embezzled from Park Side Credit Union in Missoula from about July 2023 to June 2024. An employee found that $340,000 in cash in the credit union’s vault had been replaced with fake funds from a company that provides fake currency as props for movies and entertainment productions in June 2024. Nurse used his position as “team lead” for the vault to swap the credit union’s cash with fake money he purchased specifically for this purpose, according to a news release. Read more
Feb. 21, 2025 News Around the States
- Illinois Swipe Fee Injunction Extended to Cover Out-Of-State Banks, But Not Federal Credit Unions
- Report: Credit Union Credit Quality Hits 11-Year Low In 2024
- Kansas Bank Official Calls for Repeal of State Law Granting Charter to Unique Financial Entity
- Blue Federal Credit Union Donates Over $150,000 to Children’s Hospital Colorado
Illinois Swipe Fee Injunction Extended to Cover Out-Of-State Banks, But Not Federal Credit Unions
John Culhane Jr., Kristen Larson, Ronald Vaske; Ballard Spahr LLP/JD SUpra
Chief Judge Virginia Kendall of the Northern District of Illinois has extended her preliminary injunction prohibiting Illinois from enforcing the Illinois Interchange Fee Prohibition Act (the “IFPA”) to cover out-of-state banks conducting business in the state.
Judge Kendall already had ruled that Illinois could not enforce the IFPA on nationally chartered banks and federal savings associations but requested additional briefing with respect to federal credit unions and out-of-state banks.
In extending the preliminary injunction to out-of-state banks, she concluded that IFPA is also likely preempted under the Riegle-Neal Interstate Banking and Branching Efficiency Act since she had previously concluded that the National Bank Act likely preempts the IFPA. The Riegle-Neal Act ensures that out-of-state state banks can compete with nationally chartered banks and forcing out-of-state state banks to comply with the IFPA would violate the plain statutory language.
However, Judge Kendall refused to extend the preliminary injunction to cover federal credit unions, stating that after applying conflict preemption analysis, she was not persuaded that the Federal Credit Union Act likely preempts the IFPA. Read more
Report: Credit Union Credit Quality Hits 11-Year Low In 2024
Tyfone
Most of the largest credit unions in the U.S. reported an increase in problem assets last year, an S&P Global study found.
An early look at comprehensive U.S. credit union industry data for 2024 reveals some less-than-favorable trends. S&P Global Market Intelligence, which tracks the industry through call reports, reported that delinquent loan and charge-off ratios reached their highest levels since 2013 last year.
Loans delinquent for at least 60 days as a portion of total loans and leases rose to 0.97% at year end compared to 0.83% at the end of 2023. That marked the highest level that metric has reached since it hit 1.01% at the end of 2013. The National Credit Union Administration also compiles and distributes comprehensive industry data, but the final 2024 data has not yet been published.
The S&P analysis also found that net charge-offs as a percentage of average loans hit a 13-year high in 2024 at 0.80%. That figure sat at 0.61% a year earlier. Credit cards and used vehicle loans were the primary culprit, the firm found. Speaking of vehicle loans, balances for new cars were down $11.1 billion, or 6.3%, on a year-over-year basis. Used vehicle loans performed somewhat better last year, although balances declined $5.8 billion, or nearly 2%. Read more
Kansas Bank Official Calls for Repeal of State Law Granting Charter to Unique Financial Entity
Texas company requests bill broadening special regulatory treatment
Tim Carpenter, Kansas Reflector
The Kansas banking commissioner wants the Legislature to repeal a 2021 law creating a unique state-chartered financial institution that has repeatedly pleaded with lawmakers for greater operational independence and less regulatory oversight.
Commissioner David Herndon questioned viability of the alternative asset management company known as Beneficient Fiduciary Financial. It stands as the nation’s only TEFFI, or technology-enabled fiduciary financial institution. The Legislature awarded the charter to Beneficient Fiduciary Financial in anticipation of an influx of comparable TEFFIs in Kansas, but that surge didn’t occur.
Herndon’s frustration surfaced when Derek Fletcher, president and chief fiduciary officer of Beneficient Fiduciary Financial, asked the House Financial Institutions and Pensions Committee to endorse more state regulatory changes packaged in House Bill 2235.
Blue Federal Credit Union Donates Over $150,000 to Children’s Hospital Colorado
Blue Federal Credit Union is proud to announce a remarkable milestone in its ongoing commitment to community impact: over $150,000 has been donated to Children’s Hospital Colorado in the past five years.
In 2024 alone, over $45,000 was contributed to support the hospital’s mission of providing exceptional pediatric care.
These donations are made possible through Blue’s Skip-a-Pay program, where members have the option to skip a loan payment for a small fee. For every Skip-a-Pay request, $5 of the fee charged is directly allocated to Children’s Hospital Colorado. This initiative not only offers members financial flexibility but also creates meaningful change in the local community by supporting a vital resource for children and families. Read more
Feb. 14, 2025 News Around the States
- PA Gov. Shapiro Looks to Legalize — and Tax — Marijuana to Balance State Budget
- Governor Newsom Announces Khalil “KC” Mohseni, of Sacramento, Appointed Commissioner of the California Department of Financial Protection and Innovation
- Idaho Department of Finance Information Technology Announcement
- Missouri CUs Merge to Cross Critical $1B Mark
- In Wisconsin: Credit Union Staff and Detectives Stop $25K Scam, Protect Residents’ Savings
- Sandia Area Federal Credit Union Raises 1.37 Million Meals for New Mexico Families
PA Gov. Shapiro Looks to Legalize — and Tax — Marijuana to Balance State Budget
Carmen Russell-Sluchansky, WHYY.org
Pennsylvania customers make up 60% of purchasers at some out-of-state cannabis shops, Shapiro said. He wants those buyers to stay in Pa.
In his third budget proposal, Pennsylvania Gov. Josh Shapiro has, once again, proposed legalizing recreational marijuana. “Twenty-four states have already legalized adult-use cannabis. That includes almost every single one of our neighbors,” Shapiro told legislators as he presented his budget Tuesday afternoon, adding that as much as “60%” of customers in New Jersey, Maryland and New York are from the commonwealth.
“Pennsylvanians who want to buy cannabis are just driving across the border to one of our neighbors,” he said. Shapiro said it was a “hard” decision to make “as a father of four and as the former chief law enforcement officer of this commonwealth,” but added that he “took the time to study it and understand the impacts.”
The governor argued that such legalization would generate $1.3 billion in new tax revenue over five years. He also proposed regulating and taxing “so-called skill games” — slot machines found in bars and other establishments around the state. The governor’s office estimates that there are as many as 70,000 machines across the commonwealth.
Unlike the official lottery, they are unregulated and provide no tax benefits. Shapiro wants to tax them at a rate of 52% with 47% going to the General Fund and the rest to the Lottery Fund, which is used for programs that benefit older residents such as rent rebates, transportation subsidies, low-cost prescriptions and care services. Read more
Governor Newsom Announces Khalil “KC” Mohseni, of Sacramento, Appointed Commissioner of the California Department of Financial Protection and Innovation
Governor Gavin Newsom today announced the following appointment: Khalil “KC” Mohseni, of Sacramento, has been appointed Commissioner of the California Department of Financial Protection and Innovation, where he has been the Chief Deputy Director since 2023.
Mohseni was the Chief Operating Officer at the State Controller’s Office from 2022 to 2023. He was the Deputy Director of Administration at the California Department of Housing and Community Development from 2020 to 2022.
Mohseni was a Project Director of Business at the Business, Consumer Services, and Housing Agency from 2018 to 2019. He was the Chief Fiscal officer at the Board of State and Community Corrections from 2015 to 2018. Mohseni earned a Juris Doctor degree from the University of California, Davis School of Law, and a Bachelor of Arts degree in Political Science from the University of California, Irvine. This position requires Senate confirmation, and the compensation is $224,868. Mohseni is registered without party preference.
Idaho Department of Finance Information Technology Announcement
The purpose of this notice is to inform you of an upcoming change in the manner in which the Idaho Department of Finance (Department) will assign ratings for certain Idaho state-chartered credit unions at examinations. Specifically, for credit unions with total assets at or above $50 million as of the most recent year-end period, the Department will assess “Information Technology” within its own component rating (“IT”) rather than as a factor within the “Management” or “M” component rating. The IT rating will conform to the enclosed composite IT rating definitions from the Uniform Rating System for Information Technology (URSIT). This change will go into effect for all examinations commencing after January 1, 2026.
The URSIT rating system was approved by the Federal Financial Institutions Examination Council (FFIEC) in 1978 and, shortly after that time, the IT rating system was adopted by all Federal supervisory agencies that comprise the FFIEC with the exception of the NCUA. The URSIT rating system is used to uniformly assess and rate IT-related risks of financial institutions. The rating system is used to evaluate the examined institution’s overall risk exposure and risk management performance and determine the degree of supervisory attention necessary to ensure weaknesses are addressed and risks are effectively managed. The assigned rating determines the degree of supervisory attention necessary. Read more
Missouri CUs Merge to Cross Critical $1B Mark
Tyfone
River Region Credit Union in Jefferson City and Missouri Credit Union in Columbia plan to merge and form an institution with 80,000 members and nearly $1.3 billion of assets.
The credit unions announced late last week that the National Credit Union Administration approved their proposed tie-up, which now heads to the members of Missouri Credit Union for a vote. Those ballots must be received by March 27. The organizations expect the merger to become official in April with their systems integrated by November.
“This merger represents one of the most promising opportunities for the credit union’s future in 45 years. Your ‘yes’ vote is a vote for growth, stability, and the long-term success of our community,” said Hal James, Missouri CU’s president and CEO. The jump above the $1 billion-asset mark cannot be discounted. Read more
In Wisconsin: Credit Union Staff and Detectives Stop $25K Scam, Protect Residents’ Savings
Chad Thompson, WKOW
Detectives with the Dane County Sheriff’s Office report they recently helped put a stop to an attempt to scam an elderly woman out of her savings.
This week, a Connexus Credit Union branch manager contacted a detective about an older woman attempting to withdraw $25,000 under suspicious circumstances, according to a press release. The detective quickly responded and found that the woman was being scammed. The scam began with a pop-up alert on her computer, instructing her to call a number supposedly for “Microsoft.”
The scammers convinced the woman that her computer was compromised and instructed her to withdraw a total of $35,000 from two bank branches. They planned for her to deposit the money into a cryptocurrency ATM to “protect” her funds. Thanks to the detective’s intervention and the credit union staff’s vigilance, the woman avoided losing a significant amount of money, according to the sheriff’s office. Read more
Sandia Area Federal Credit Union Raises 1.37 Million Meals for New Mexico Families
Sandia Area Federal Credit Union is proud to announce a major milestone in its mission to support local families and children in need, raising enough funds to provide over ONE MILLION MEALS in partnership with Storehouse New Mexico!
This remarkable achievement was made possible through the annual Storehouse New Mexico F.A.C.E. (Feeding Area Children Everyday) campaign—a heartfelt collaboration between the food pantry and Sandia Area designed to fight hunger and ensure New Mexico families can thrive year-round.
Fueled by the passion and generosity of Sandia Area members, employees, and community supporters, this year’s campaign raised an astounding $224,319. Combined with Sandia Area’s $50,000 donation match, the total reached a record $274,319. In addition, employees and members contributed more than 1,000 pounds in food donations. These contributions marked a 65% increase in funds raised compared to last year, despite the rising economic challenges faced by many New Mexicans. Read more
Feb. 7, 2025 News Around the States
- Scam Surge: How Credit Unions Are Tackling Rising Security Threats
- The Economic Impact of Credit Unions
- Virginia Bank Prescribes Cannabis to Close Revenue Gap
- Washington State Department of Financial Institutions 2025 Exam Focus Bulletin
- VyStar Credit Union Unveils ‘Through Your Life’ Campaign: Empowering Members to Bank Better at Every Life Stage
Scam Surge: How Credit Unions Are Tackling Rising Security Threats
Pymnts.com
As fraud incidents soar, credit unions are racing to implement cutting-edge technologies and forge partnerships to safeguard their finances and uphold member trust.
- CUs face surging fraud, including check scams and data breaches, costing millions. High-profile incidents highlight the impact, with 79% of CUs reporting substantial losses and many experiencing sharp rises in scam incidents.
- CUs are prioritizing innovative anti-fraud technologies, with 43% citing fraud mitigation as a top investment area. New solutions enhance security, addressing rising fraud and aligning with members’ growing demand for safety-focused innovations.
- CUs are increasingly leveraging partnerships to enhance security and fight fraud. With 42% prioritizing fraud reduction when collaborating with FinTechs, these partnerships are key to meeting member expectations and advancing innovation.
Fraud is becoming a costly and pervasive challenge for credit unions (CUs), eating into revenues. From check scams to cyber breaches, these attacks represent a growing issue, at times amplified by fraudsters sharing tactics online. The financial and reputational fallout is severe, with some CUs facing member dissatisfaction and widespread losses.
Now, many institutions are prioritizing investment in advanced fraud-fighting technologies and looking to external partnerships to bolster defenses. With fraudsters continually adapting their tactics, CUs face an urgent need to enhance security and reinforce trust to protect their communities and futures. Read more
The Economic Impact of Credit Unions
GoWest commissioned Oxford Economics for an analysis of credit unions’ economic impact in Arizona, Colorado, Idaho, Oregon, Washington, and Wyoming. The analysis measures credit unions’ economic impacts in terms of GDP, employment, and wages.
One-third of the American population has a credit union membership. Credit unions provide critically needed financial services to their members, such as savings and checking accounts, consumer loans, and mortgages. Unlike for-profit banks, earnings made by credit unions are returned to their members in the form of benefits such as reduced fees, higher savings rates, lower loan interest rates, and dividends.
GoWest Credit Union Association commissioned Oxford Economics to perform this study, which quantifies the economic impacts of credit unions in Arizona, Colorado, Idaho, Oregon, Washington, and Wyoming in terms of GDP, employment, and wages.
Each report documents the economic contribution of credit unions in one of the six states. Read more
Virginia Bank Prescribes Cannabis to Close Revenue Gap
John Reosti, American Banker
MainStreet Bancshares in Fairfax, Virginia, is pinning its hopes on cannabis as a solution to the revenue woes that have dampened the rollout of its banking-as-a-service subsidiary.
After unveiling it in 2021, the $2.2 billion-asset MainStreet touted its Avenu unit as a unique BaaS solution. MainStreet operates Avenu without third-party fintech partners. MainStreet maintains tight control of the ledger that records daily transactions, along with customer identification and other critical regulatory functions.
Though its compliance-centric mindset has helped MainStreet neatly sidestep issues that have vexed other bank embedded-finance ventures — pushing some out of the space altogether — market adoption has proven a different story. More than three years in, Avenu has one fully operational customer. While several more are advancing through the pipeline, bottom-line results have fallen short of projections. Read more
Washington State Department of Financial Institutions 2025 Exam Focus Bulletin
On January 30, the Division of Credit Unions issued its annual exam focus bulletin, Bulletin B-25-02. This bulletin details some of the areas of review the Division will focus on during examinations in 2025.
Topics include Succession Planning, Balance Sheet Management and Liquidity, Interest and Credit Risks, Consumer Compliance and Information Security & Technology (IS&T). The bulletin also explained what to expect on exams for those credit unions that bank cannabis.
VyStar Credit Union Unveils ‘Through Your Life’ Campaign: Empowering Members to Bank Better at Every Life Stage
VyStar Credit Union announced the launch of its inspiring new brand campaign, “Through Your Life,” designed to celebrate life’s moments – big and small – while reinforcing VyStar’s commitment to its members. At the heart of this campaign lies VyStar’s purpose to uplift and empower its members and communities it serves.
From a first savings account to planning for retirement, and all the moments in between, VyStar supports every milestone, helping members achieve financial confidence and a brighter future. “Through Your Life”highlights that banking is about shared experiences, meaningful connections and making a lasting difference. Read more
Jan. 31, 2025 News Around the States
- Merger Approval Creates Nearly $4 Billion Credit Union
- New York’s Superintendent Harris Launches Inaugural Transatlantic Regulatory Exchange with Bank of England
- New Mexico Seeks Additional Authority for Cannabis Regulation
- America’s Best Regional Banks and Credit Unions 2025
Merger Approval Creates Nearly $4 Billion Credit Union
Michael Ogden, CU Times
Nuvision and SafeAmerica Credit Unions receive regulatory and membership approval to merge.
A majority of members belonging to the Pleasanton, Calif.-based SafeAmerica Credit Union voted to approve the merger of their $530 million credit union into the $3.3 billion Nuvision Credit Union headquartered in Huntington Beach, Calif. According to a statement released Thursday, regulators also approved and the merger will become official on Feb. 1.
In a statement posted for its members on the SafeAmerica website, President/CEO Roger Ballard said, “We are very pleased to announce that the membership of SafeAmerica Credit Union resoundingly approved a resolution to merge with Nuvision Credit Union on January 13, 2025. Thank you to all the members who made your voice heard through your vote.”
Specific numbers from the membership vote were not disclosed. Read more
New York’s Superintendent Harris Launches Inaugural Transatlantic Regulatory Exchange with Bank of England
New York and British Regulators to Exchange Senior Experts in Emerging Payments and Digital Assets
Today, the New York Department of Financial Services (“DFS”) Superintendent Adrienne A. Harris launched the Transatlantic Regulatory Exchange (“TRE”), an international secondment program which allows DFS and other regulators to exchange staff, enabling greater sharing of resources, knowledge, and regulatory approaches. The first TRE secondment will commence in February with DFS and the Bank of England (“BOE”) exchanging senior staff with expertise in emerging payments and digital assets.
Superintendent Harris said, “We’re thrilled to partner with the Bank of England in this kind of exchange for the very first time, working together to strengthen regulatory frameworks, protect consumers, and support innovation. Connecting the two global financial capitals of New York and London is critical for regulatory harmonization in world where financial services are not defined by geography.” Read more
New Mexico Seeks Additional Authority for Cannabis Regulation
HB10 will create enforcement bureau necessary to stop illegal activity
A bill that would establish an enforcement bureau within the New Mexico Regulation and Licensing Department (NMRLD) and expand the Cannabis Control Division’s regulatory authority was introduced in the New Mexico Legislature today. House Bill 10, sponsored by Rep. Doreen Gallegos, and co-sponsored by Speaker Javier Martinez, Minority Floor Leader Gail Armstrong, Rep. Art De La Cruz, and Rep. Marian Matthews, would give the department in-house, certified peace officers to investigate and pursue criminal charges against individuals who violate licensing requirements and defy the Cannabis Regulation Act.
“To ensure that New Mexico’s growing cannabis industry continues to thrive, we need to reevaluate certain aspects of existing law to support the industry’s evolving needs,” said Gov. Lujan Grisham. “We must act now to stop those who knowingly subvert state regulations aimed at keeping the industry responsible and safe. I urge legislators to support House Bill 10.”
Currently, the Cannabis Control Division (CCD) is limited to administrative enforcement authority when enforcing laws under the Cannabis Regulation Act. Administrative actions taken against licensed operators include fines, suspension or revocation of a license. For unlicensed, illegal operators, the CCD is limited to issuing civil fines and referring all action under state criminal laws to local and state law enforcement. Read more
America’s Best Regional Banks and Credit Unions 2025
Newsweek
Regional banks and credit unions are the financial backbone of communities nationwide.
They serve as vital engines at the local level as they support small businesses, fund projects and ensure easy access to essential banking services. With intimate knowledge of local economies, these banks often form strong bonds with customers, enabling them to better meet their needs.
Credit unions are operated as member-owned cooperatives, driven by a mission of service rather than profit. This approach often translates to lower fees, competitive loan rates and a genuine focus on member satisfaction. Credit unions serve as more than just financial institutions—they are partners in their neighborhoods, actively participating in local events and initiatives that strengthen bonds among members.
To honor the banks and credit unions positively impacting their communities, Newsweek and Plant-A Insights Group are proud to present America’s Best Regional Banks and Credit Unions 2025. Read more
Jan. 24, 2025 News Around the States
- CU Tax Fight: ACU Launches Digital Ads to Defend Credit Union Tax Status
- Protecting Consumers: Governor Hochul Cracks Down on Exploitative Overdraft Fees Targeting Low-Income New Yorkers
- Milestone: Corporate One Federal Credit Union Celebrates Connecting More Than 50 Credit Unions to Immediate Payment Rails in 2024
- Veridian Credit Union Awards $90K in Grants to 19 Organizations in Iowa and Nebraska
CU Tax Fight: ACU Launches Digital Ads to Defend Credit Union Tax Status
CUToday
America’s Credit Unions has launched a digital ad campaign targeting key members of Congress in an effort to further defend the credit union tax status.
As CUToday.info has extensively reported, Washington insiders believe this year’s tax fight—as the government rewrites the tax code—will be one of the toughest the movement has faced. CUToday.info also reported that a document is being circulated among House Republican members that identifies numerous ways the Trump Administration can find money to support the budget reconciliation bill—and the credit union tax exemption is on the paper.
ACU Chief Advocacy Officer Carrie Hunt emphasized the campaign focuses on ensuring policymakers understand the credit union difference and makes sure policymakers understand certain issues have been “politicized” by banks.
ACU’s effort takes two primary tacks: A video commercial that is running on streaming services in the home districts of key members of Congress, such as those on the Senate Finance Committee and the House Ways and Means Committee. The ads point out bankers want to take away credit unions’ tax exemption, and how that will hurt local communities and simply benefit Washington.
In addition, America’s Credit Unions, state leagues, and individual credit unions are holding targeted meetings with lawmakers to “ensure the impact of credit unions’ tax status is understood and to push back against any misinformed arguments coming from banks, others,” ACU said. Read more
Protecting Consumers: Governor Hochul Cracks Down on Exploitative Overdraft Fees Targeting Low-Income New Yorkers
Department of Financial Services Proposed New Regulations to Target Exploitative Fee Practices While Preserving Access to Overdraft Services
As part of Governor Hochul’s recently unveiled 2025 State of the State, Governor Hochul today announced the Department of Financial Services has posted proposed regulations to enhance consumer protections against unfair overdraft fees. These regulations ensure consumers will no longer be burdened with overdraft fees for minor transactions and require banks to provide timely notifications to consumers about overdraft fees to improve transparency.
“With hidden fees and unfair practices, it has become increasingly more difficult for hard-working New Yorkers to keep up,” Governor Hochul said. “It is time that we hold banks accountable and lighten the burden of high overdraft fees for minor transactions to keep New Yorkers’ hard-earned money in their pockets.”
New York State Department of Financial Services Superintendent Adrienne Harris said, “A healthy market grows when consumers have confidence and trust in the products offered and the providers offering them. Today’s proposed regulation ensures that consumers will no longer be taxed with surprising and disproportionate fees for using the overdraft services provided with their bank accounts.” Read more
Milestone: Corporate One Federal Credit Union Celebrates Connecting More Than 50 Credit Unions to Immediate Payment Rails in 2024
Corporate One Federal Credit Union announced today that it connected 48 credit unions to the RTP network and six credit unions to FedNow Service via its Third-Party Service Provider (TPSP) solution in 2024. Looking ahead, Corporate One has more than 35 credit unions in the queue to go live on the RTP network or FedNow Service in the first quarter of 2025. The corporate is also evolving its focus to empowering credit unions beyond receive-only capabilities to actively sending payments.
“This year has been a testament to the growing importance of immediate payments for credit unions,” President and CEO Melissa Ashley said. “The increasing adoption by credit unions highlights immediate payments’ vital role in delivering value to their members. The next step is empowering credit unions to send immediate payments and leverage requests for payment functionality.” Read more
Veridian Credit Union Awards $90K in Grants to 19 Organizations in Iowa and Nebraska
Veridian has distributed $90,000 in grants to 19 organizations across Iowa and eastern Nebraska. Our Successful Financial Future Grants award up to $5,000 each to nonprofit organizations who address barriers to financial stability through financial literacy or employment readiness.
“Financial literacy and employment readiness are vital to creating a successful financial future,” said Angela Weekley, Veridian’s Community Inclusion Manager. “It’s important for us to support organizations who are offering those tools in our communities.”
Veridian partners with the Community Foundation of Northeast Iowa (CFNEIA) to administer our Successful Financial Future Grants from the Veridian Credit Union Fund. The 2025 grant funding cycle will open on September 1, 2025. See the full list of winners here
Jan. 17, 2025 News Around the States
- State of Connecticut Department of Banking Receives NASCUS Reaccreditation
- Pennsylvania Department of Banking and Securities Receives NASCUS Reaccreditation
- New York State Hits $1B In Cannabis Retail Sales
- Desert Financial Pays Members $16 Million
- Video: Why South Bay Credit Union Launched Cannabis Banking Consultancy…
State of Connecticut Department of Banking Receives NASCUS Reaccreditation
The National Association of State Credit Union Supervisors (NASCUS) proudly announces that the State of Connecticut Department of Banking, Financial Institutions Division, has successfully achieved reaccreditation.
“This reaccreditation highlights the dedication and expertise of our staff in upholding the highest standards of regulatory and supervisory excellence,” said Connecticut Banking Commissioner Jorge Perez. “The NASCUS Accreditation program ensures that our practices are both rigorous and effective. It also offers valuable insights through independent peer reviews and ongoing monitoring, helping us to continuously improve and enhance our regulatory responsibilities. We greatly value our partnership with NASCUS and its support for our mission.”
The reaccreditation follows a thorough evaluation by the NASCUS Performance Standards Committee (PSC), comprised of seasoned regulators from accredited state agencies. The NASCUS Accreditation program provides an in-depth review and continuous oversight, ensuring that state regulatory agencies uphold the highest standards of excellence. Read more
Pennsylvania Department of Banking and Securities Receives NASCUS Reaccreditation
The National Association of State Credit Union Supervisors (NASCUS) is pleased to announce that the Pennsylvania Department of Banking and Securities (DoBS), Division of Credit Union and Trust Supervision, has successfully earned reaccreditation.
“The Pennsylvania Department of Banking and Securities’ Division of Credit Union and Trust Supervision is honored to receive reaccreditation from NASCUS,” stated DoBS Secretary Wendy Spicher. “This recognition is a testament to the dedication and expertise of our professional staff in upholding the highest standards of regulatory and supervisory excellence. The NASCUS Accreditation program provides a thorough review of our operations, ensuring our examination and supervision practices are both rigorous and effective while identifying opportunities for ongoing improvement to enhance our regulatory responsibilities.”
Secretary Spicher added, “The independent peer review conducted by industry experts, combined with continuous monitoring, is an invaluable resource. It helps us maintain and exceed standards for examinations, supervision, and overall operations. We deeply value our partnership with NASCUS and the support it provides in advancing our mission.” Read more
New York State Hits $1B In Cannabis Retail Sales
Dave Kovaleski, Financial Regulation News
New York State’s cannabis industry recently hit a huge milestone, surpassing more than $1 billion in retail sales, announced Gov. Kathy Hochul.
“Earlier this year, my administration took critical steps to promote progress and economic opportunity within New York’s budding cannabis industry, including signing new enforcement powers into law that expedited the closure of unlicensed storefronts and, as a result, bolstered our legal market,” Hochul said. “Today, we recognize the $1 billion milestone as more than just a number—it’s a testament to the hard work of those who helped build the strongest cannabis industry in the nation: one that prioritizes equity, ensures public safety, and empowers communities.”
Over the past decade, adult use of cannabis in the state has risen significantly. Specifically, about 19 percent of New Yorkers report annual use, which is up 30 percent, while 12 percent report monthly use, up 43 percent.
“This milestone is a testament to the resilience, hard work, and innovation of cannabis entrepreneurs across New York. As $1 billion is an incredible number,” Office of Cannabis Management Acting Executive Director Felicia A.B. Reid said. Read more
Desert Financial Pays Members $16 Million
Jim DuPlessis, Credit Union Times
Phoenix credit union is among six distributing nearly $37 million to 1.5 million members from Nevada to South Carolina.
Six credit unions have announced they are paying $36.7 million in special dividends to 1.5 million members spanning the nation.
Nearly half is from Desert Financial Credit Union, which is paying members $16 million in January as a Member Giveback Bonus. The Phoenix credit union ($8.9 billion in assets, 472,620 members as of Sept. 30) is paying $34 per member and 19 basis points of its 0.86% return on average assets for the 12 months ending Sept. 30.
The next largest amount is from CommunityAmerica Credit Union of Lenexa, Kans. ($5.4 billion, 336,484 members). The St. Louis area credit union announced Tuesday it had paid members $9.7 million this month as a Profit Payout. The amount represents about $29 per member and 19 bps of its ROA of 0.67% for the 12 months ending Sept. 30. Read more
Video: Why South Bay Credit Union Launched Cannabis Banking Consultancy…
CU Broadcast
South Bay Credit Union’s Board Chair Chris Otey and South Bay’s Executive Vice President & Chief Risk Officer and Emerald Beach Financial’s Frank Espinoza joined us on the show to share the news about the credit union launching a new cannabis consultancy to help other credit unions nationwide start and manage their own cannabis services.
South Bay has been providing cannabis banking services to its members since 2018 via its subsidiary Emerald Beach Financial and has the subsequent experience to share its knowledge and expertise to other credit unions that are looking to launch similar services to enhance their value as a financial resource.
Chris and Frank provided quick overview of South Bay’s cannabis banking consultancy, how it works, why launch something like this for other credit unions, and what they look to achieve with this cannabis consultancy.
Lastly, they talked about how significant is cannabis banking today for credit unions and what they foresee in 2025 for credit unions and cannabis banking.
Jan. 10, 2025 News Around the States
- State Regulators Levy $20 Million Penalty on Nation’s Largest Nonbank Mortgage Servicing Company
- Three Credit Union CEOs Detail Their Digital Strategies for 2025
- Washington DFI Issues Bulletin on Issuing Rating for Information Systems & Technology (IS&T) Exams
- Enbright Credit Union Unveils Cancer Care Debt Relief Program
- Great Things are Happening in New Mexico! Take a look at our 2024 Impact Report.
State Regulators Levy $20 Million Penalty on Nation’s Largest Nonbank Mortgage Servicing Company
Conference of State Bank Supervisors (CSBS)
Fifty-three state financial regulatory agencies have taken coordinated action against mortgage company Bayview Asset Management LLC and three of its affiliates, Lakeview Loan Servicing, Community Loan Servicing, and Pingora Holdings (collectively the Bayview Companies), for deficient cybersecurity practices and for not fully cooperating with state regulators following a data breach that impacted 5.8 million customers.
The $20 million fine and corrective plan underscore the importance of meeting state requirements to protect consumer data and complying with state supervisory demands.
State regulators in California, Maryland, North Carolina, and Washington State led the multistate effort, which found that Bayview Companies’ information technology and cybersecurity practices did not meet federal or state requirements. Furthermore, the Bayview Companies delayed the supervisory process by failing to comply with state requests in a timely and complete manner in the early stages of the examination. Read more
Three Credit Union CEOs Detail Their Digital Strategies for 2025
Matt Doffing, The Financial Brand
From major credit unions like PenFed to smaller institutions like Texas Trust and EFCU Financial, credit unions across the country are betting their budgets on digital upgrades, as they pursue growth among both existing and new members.
Pentagon Federal Credit Union is staffing up its data, privacy and artificial intelligence teams, as part of its pursuit of hyper-personalization. Texas Trust Credit Union intends to launch a new digital account-opening process and roll out Zelle.
And at EFCU Financial Federal Credit Union, the strategic initiatives include an internal ChatGPT-like tool to support its team with accurate information as needed, along with preparations for a core system conversion.
As these three credit unions illustrate, the focus for many financial institutions in the coming year is upgrading their members’ digital experience. But the path to progress is different for each one. Read more
Washington DFI Issues Bulletin on Issuing Rating for Information Systems & Technology (IS&T) Exams
Starting January 6, 2025, the Division of Credit Unions (DCU) will resume issuing a separate IS&T composite rating with the CAMELS ratings.
With the rise of cybersecurity threats, this rating should provide management a clear measure of the overall level of risk in the credit union’s Information Security Program and help to prioritize controls to protect member information.
The safety and soundness report will be modified to include the separate IS&T composite rating. The ratings detailed below will be used for the IS&T rating in the examination report. While the rating will be reflected separately in the report, we will continue to incorporate the IS&T rating under the Management component of the CAMELS rating, to maintain consistency with NCUA. IS&T composite ratings will only be given if DCU’s Information Security Examiners conduct the IS&T exam. Currently, the NCUA does not give a separate IS&T rating. Read more
Enbright Credit Union Unveils Cancer Care Debt Relief Program
Enbright Credit Union is proud to announce the launch of its Cancer Care Debt Relief Program, a groundbreaking initiative aimed at supporting members facing the financial challenges that come with cancer treatment and recovery.
This program provides relief on existing loans for 6 to 18 months, offering members a chance to focus on healing without the added stress of financial burdens. By suspending payments and reducing interest rates to 0%, the Cancer Care Debt Relief Program ensures members have the breathing room they need during their journey.
Program Benefits
- Loan Payment Relief: Members can pause payments and interest on secured and unsecured loans for up to 12 months based on their treatment and recovery needs.
- Tailored Solutions: A zero-interest Cancer Care Loan offers additional flexibility to support ongoing recovery.
- Personalized Support: Members work closely with dedicated Cancer Care Specialists and Member Experience Advisors to navigate their financial challenges. Read more