Compliance

Compliance Q&A: Branch Office Closures

Must CUs go through a specific process before permanently closing branch offices?

January 13, 2012
/ PRINT / ShareShare / Text Size +

Q Does the credit union have to provide a negative information notice each time a member is late with a payment on the same loan account?

A No. The credit union doesn’t have to provide the notice each time a member is late with a payment on the same loan account.

The Fair Credit Reporting Act only requires that the credit union provide the negative information notice to the member prior to, or no later than, 30 days after furnishing the negative information to a nationwide consumer reporting agency.

After providing the notice, the credit union may submit additional derogatory information to the credit bureau with respect to the same transaction, extension of credit, account, or individual without providing additional notice to the member.

Credit unions that provide the notice to members before furnishing the negative information to credit bureaus would disclose: “We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.”

Credit unions that provide the notice to members after furnishing the negative information to credit bureaus would disclose: “We have told a credit bureau about a late payment, missed payment, or other default on your account. This information may be reflected in your credit report.”

Next: Garnishment orders

Post a comment to this story

heroes

What's Popular

Popular Stories

Recent Discussion

Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

Your Say: Who should be Credit Union Magazine's 2014 CU Hero of the Year?

View Results Poll Archive