Home News CURRENT Newsletter | October 17, 2023

CURRENT Newsletter | October 17, 2023

10/17/2023

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League Joins With National Trades on Amicus Brief in Critical Federal Court Case Involving Virginia-Based Credit Union

Today, the National Association of Federally-Insured Credit Unions (NAFCU), the Credit Union National Association (CUNA), and the Virginia Credit Union League (VACUL) filed an amicus brief in support of 1st Advantage Federal Credit Union in its 4th Circuit Court of Appeals case Studco Buildings Systems v. 1st Advantage Federal Credit Union.

At the center of the case is a rapidly growing and increasingly costly type of fraud – a business email compromised to fraudulently misdirect payments via ACH.

“Credit unions support their members but there must be a limit to liability for fraud that is out of the credit union’s control,” said NAFCU President and CEO Dan Berger, CUNA President and CEO Jim Nussle, and VACUL President and CEO Carrie Hunt in a joint statement. “We maintain that the judge got it wrong in this case. Financial institutions rely on automation to sort through billions of ACH transactions each year. For perspective, some 30 billion payments moved through the ACH network operators in 2022. While the ACH system is designed to flag transactions that warrant closer scrutiny, it is unrealistic to think any financial institution handling a significant volume of ACH transactions can manually monitor fraud. While fraud is on the rise and unfortunate, credit unions cannot be held accountable for events out of their control. Our financial system would collapse if that were the case.”

League-Supported Green Lending Initiative Continues to Draw Support

A green-lending initiative supported by your League continues to draw support in its pursuit of funding through the Environmental Protection Agency’s Greenhouse Gas Reduction Fund (GGRF).

League President/CEO Carrie Hunt is serving on an advisory board for Ecority, an independent nonprofit seeking to secure for credit unions and Community Development Financial Institutions a share of funding from a $20 billion fund at EPA. Ecority is composed of credit unions and CDFIs in 43 states, including Virginia’s own Langley Federal Credit Union.

“I’m proud of how credit unions and industry partners came together through Ecority to seize this unique opportunity. I wanted to ensure the Virginia League took a leadership role in this initiative, knowing what we could accomplish if credit unions are able to leverage GGRF funds in serving members and our communities,” said Hunt.

League's Carrie Hunt Notes Challenges for State Charters, Need to Modernize State Rules for CUs

In an article posted to CUToday.info, Virginia Credit Union League President/CEO Carrie Hunt notes her growing concern for the future of the dual chartering system in the Commonwealth.

"Your League remains committed to enhancing the state charter and advocating for the dual charter system as a means of contributing to a safe, sound and viable industry," said Hunt. "An effective, innovative and thriving state credit union system benefits the whole of the credit union community."

Navy Federal Credit Union's Michael Huff Joins Virginia Credit Union League Board of Directors

Michael Huff, vice president of government relations and public policy at Vienna, Virginia-based Navy Federal Credit Union, has been appointed to the Virginia Credit Union League’s Board of Directors. He will serve as an At-Large Director until the League Board’s 2024 elections.

“The League Board is pleased to welcome Michael, who has worked extensively within the broader financial services industry and in government,” said Virginia Credit Union League Board Vice Chairman Jeff Bentley, President/CEO of Herndon, Va.-based Northwest Federal Credit Union. “His experience as a government relations and public policy expert will serve the League well in our role as member credit unions’ best advocate, and as we strive to deliver resources and services that ensure credit unions’ success.”

Nomination Hearing Oct. 19 for NCUA Board Nominee Tanya Otsuka

The Senate Banking, Housing, and Urban Affairs Committee will meet Thursday to consider nominations, including a nominee for the NCUA Board, Tanya Otsuka. President Joe Biden nominated Otsuka — current senior counsel for the majority staff of the Senate Banking Committee — to take the place of current board member Rodney Hood. "The Virginia Credit Union League looks forward to working with Ms. Otsuka should she be confirmed," said League President/CEO Carrie Hunt. "We are very excited to see how she will bring her talents to the credit union industry." Your League will be monitoring the proceedings.

NCUA Board Meeting Oct. 19; League President/CEO Carrie Hunt to Attend

League President/CEO Carrie Hunt will be attending the NCUA Board Meeting on Thursday. On the Board’s agenda: a cybersecurity update and votes on proposals related to simplification of insurance rules and fair hiring in banking.

Credit Unions: How Will You Celebrate ICU Day?

On Oct. 19, credit unions will celebrate the 75^th Anniversary of International Credit Union Day! Credit unions from across the nation and around the globe will come together to celebrate the credit union industry. Please tag your League in any social posts on Thursday related to ICU Day! We’d love to help you celebrate …

In Other News …

Tags: state charters, dual charter system, NCUA, Bureau of Financial Institutions, Michael Huff, Virginia Credit Union League, Board of Directors, Tanya Otsuka, ICU Day, International Credit Union Day, Rodney Hood, Carrie Hunt

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