Invitation for Comments on Proposed Amendments to Rules (Texas SCUs)
Friday, August 24, 2018 8:30 AM

As part of the rulemaking process, the Department is currently seeking comments on proposed changes to the following rules:

  • 7 TAC Section 91.709 (Member Business and Commercial Loans). The proposed amendments to this rule would change the definition of member business loan to conform with recent amendments to 12 U.S.C. 1757a(c)(1)(B)(i) as the result of the passage S. 2155. In general, the proposed amendments would clarify that mortgage loans for non-owner occupied 1- to 4- family residential properties would no longer be considered commercial or member business loans.
  • 7 TAC Section 91.712 (Plastic Cards). The proposed amendment to this rule would allow a plastic card to be activated by logging on to the card issuer’s website to go through a member verification process. The current rule limits the member verification process to the telephone.
  • 7 TAC Section 91.121 (Compliant Notices and Procedures). The proposed amendments to this rule are explanatory in nature and generally relate to (1) how to file a complaint with the Department, (2) how such a complaint will be handled after receipt, (3) the authority of the Department in reviewing such a complaint, and (4) the privacy of information provided in a complaint.
  • 7 TAC Section 91.403 (Debt Cancellation Products; Federal Parity). The proposed amendments to this rule would (1) remove conflicting language that could be construed to prohibit the offering of a no refund debt cancellation product, and (2) designate certain standards that credit unions should look to for guidance and apply as best practices with respect to the offer and sale of debt cancellation products. The proposed amendment reflects an effort to preserve and promote parity with federal credit unions.

The proposed text for each rule is available at cud.texas.gov/credit-union-laws-rules/proposed-recently-adopted-commission-rules.

You may submit comments by email to CUDmail@CUD.texas.gov.

The deadline to submit comments is the close of business on August 27, 2018.

Source: TCUD