The National Credit Union Administration (NCUA) is proposing a new rule to update the overdraft policy requirements for federal credit unions. This rule aims to remove the current 45-day limit for members to resolve overdrafts and instead require that the policy sets a reasonable and universally applicable time frame. This change is intended to provide more flexibility for credit unions and their members, especially considering the impacts of COVID-19. The proposal also introduces a cross-reference to Regulation E to ensure compliance with existing federal requirements for overdraft services.
Simple Explanation
The NCUA wants to change a rule for credit unions that helps people if they spend too much money and go negative in their account. Instead of giving everyone the same short time to fix it, they want credit unions to decide on a fair amount of time that works for everyone.