ALEXANDRIA, Va. – NCUA said this afternoon it cancelled tomorrow’s Board meeting where it was scheduled to vote on a new CUSO rule, the third open Board meeting cancelled by the agency in the first six months of the year.
The proposed rule would have established new reporting requirements for CUSOs, including financials, customer lists and products and services offered.
It is not clear what caused the unusual cancellation, less than 24 hours before the scheduled vote, of the CUSO proposal, which has aroused significant opposition among credit unions and CUSO who see the proposed reporting requirements as expensive and intrusive. They have also argued that NCUA has no legal authority over such third-party vendors as CUSOs and have threatened to sue if NCUA implements its proposal.
“NAFCU applauds the NCUA’s decision to delay issuing the final rule,” said Fred Becker, president of the trade group. “From the beginning, NAFCU’s efforts have been focused on opposing the rule as a costly and unnecessary regulatory burden proposed under questionable legal authority.”
The agency did not say when the CUSO rule will be voted.