FACT Act Delays Requested

CU Times
November 9, 2004

CU Times reported on November 3 that top bank and credit union trade associations teamed up on a letter to federal regulators requesting a delay in the effective date some FACT Act provisions due to become effective December 1.

“Our members are deeply concerned that the impending December 1, 2004 effective dates for many provisions of the . . .FACT Act . . .that are subject to agency rule writing will require institutions to implement temporary compliance procedures on December 1 that later will have to be changed when rules to implement those provisions become effective,” the letter read.

Though agency staff have made informal agreements not to enforce some of the provisions, banks and credit unions would like a more formal agreement leading up “until the compliance date specified in final regulations adopted by the designated agencies. In addition, we request that the agencies state that they recognize the compliance difficulties posed by the December 1, 2004 effective dates and that they will take these difficulties into account in considering whether to bring enforcement actions under these provisions.”

CUNA, NAFCU, ABA, ACB, Consumer Bankers of Association, Financial Services Roundtable, ICBA, and Mortgage Bankers Association signed onto the joint letter.

Reprinted with permission from CU Times.