Compliance Update with Amy K
by Amy Kleinschmit
Chief Compliance Officer

Fair Credit Reporting Act – Exam Focus

The National Credit Union Administration (NCUA) issued its 2020 Supervisory Priorities last month which include a number of consumer financial protection rules that will be the focus of examiners at your next examination. One of these consumer financial protection rules is the Fair Credit Reporting Act (FCRA). As noted in the Letter to Credit Unions 20-CU-01, examiners will review credit reporting policies and procedures. If applicable, examiners will also review the accuracy of reporting to credit bureaus, particularly the date of first delinquency.

You can learn more about the requirements of the FCRA here in your InfoSight resource – which is a dues-supported (FREE) compliance solution for affiliated credit unions. Find a summary of the FCRA requirements, checklist, FAQs, direct links to the Laws & Regulations, and additional resources so you can be prepared for your exam.

Your CU Policy Pro manual also has a number of model policies ready for use, some relevant policies available are listed below, but all FCRA policies can be found starting at 11000.  

            Policy 11001: Fair Credit Reporting Act

            Policy 11002: Furnishing Information to Credit Reporting Agencies

            Policy 11003: Accuracy and Integrity of Information Reported

            Policy 11005: FCRA Adverse Action Requirements

            Policy 11006: Receipt of Notice of Dispute of Accuracy Information


Questions about InfoSight and CU Policy Pro?

Join the Credit Union Association of the Dakotas and Mary Ann Koelzer, Product Manager, Technology Products for CU Solutions Group, as she walks you through both platforms so you can be sure you are getting the most out of these dues-supported products that are FREE for CUAD members. With these products, you have access to a wealth of information, no matter your role! Join us for a FREE webinar on Feb 20, 2020 at 10:00 a.m. (CT). Register for this webinar here.


The IRS has issued Notice 2020-6 to provide guidance to financial institutions on reporting required distributions for 2020. The Further Consolidated Appropriations Act was enacted on December 20, 2019. As discussed in the Notice, “Division O of the Act, titled “Setting Every Community Up for Retirement Enhancement Act of 2019” (SECURE Act), included a number of retirement savings provisions. Section 114 of the SECURE Act amended § 401(a)(9) to change the required beginning date applicable to § 401(a) plans and other eligible retirement plans described in § 402(c)(8), including individual retirement accounts and annuities (IRAs). The new required beginning date for an IRA owner is April 1 of the calendar year following the calendar year in which the individual attains age 72, rather than April 1 of the calendar year following the calendar year in which the individual attains age 70½.”

This guidance relates to the required minimum distribution (RMD) statement for 2020. If a financial institution provides an RMD statement to an IRA owner who will attain age 70½ in 2020 (including by providing a Form 5498), then the Internal Revenue Service (IRS) will not consider such a statement to have been provided incorrectly, but only if the IRA owner is notified by the financial institution no later than April 15, 2020, that no RMD is required for 2020.

The SECURE Act did not change the required beginning date for IRA owners who attained age 70½ prior to January 1, 2020. In order to reduce misunderstanding among IRA owners, the IRS encourages all financial institutions, in communicating these RMD changes, to remind IRA owners who attained age 70½ in 2019, and have not yet taken their 2019 RMDs, that they are still required to take those distributions by April 1, 2020.

Foreign IDs and the W-8BEN

In case you missed it, CUNA’s Colleen Kelly, Senior Federal Compliance Counsel, did a great re-cap on the IRS’s final rule addressing Foreign IDs on Form W-8BEN. You can find her article here.


As always, CUAD members may contact Amy Kleinschmit with any compliance related questions.



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