The House Financial Services Committee passed the Credit Union Board Modernization Act (H.R. 6889) on July 27th on a voice vote to allow flexibility of federal credit union boards of directors to meet a minimum of six times annually rather than the current requirement of twelve. The bill would require de novo credit unions to hold monthly board meetings for the first five years and would require monthly board meetings for those credit unions with a composite rating of 4 or 5. There is a Senate companion bill S. 4325.
The House Financial Services Committee also passed a bill that would significantly limit overdraft protection programs with H.R. 4277. The bill would limit the number of overdraft fees a credit union or bank could charge a member/customer to six per year and no more than one in any given month. The League and credit union advocates recently expressed our opposition to the bill during the League’s Hike the Hill. “This legislation threatens overdraft protection programs that aim to assist credit union members, who affirmatively opt-in to the program, by covering a shortfall in their account balance,” said Scott Sullivan, President/CEO of the League. There is a Senate companion bill S. 2677.
