Matz: Full Compliance Still the Goal; Agency Offers a Variety of Assistance
ALEXANDRIA, Va. (Oct. 22, 2014) – All 44 credit unions subject to civil money penalties for the late filing of their second-quarter Call Reports have consented to those penalties, the National Credit Union Administration announced today.
The late filers will pay a total of $17,111 in penalties. Individual penalties range from $52 to $1,824. The median penalty was $256. The Federal Credit Union Act requires NCUA to send any civil money penalties to the U.S. Treasury.
“The situation is improving, but full compliance remains the goal,” NCUA Board Chairman Debbie Matz said. “As most of the credit unions that file late are small credit unions, NCUA’s Office of Small Credit Union Initiatives has been working with smaller institutions, and we think that has helped several credit unions file on time. Our efforts on compliance and assistance will continue until we get to the point where no credit union files a late Call Report.”
Assessment of penalties primarily depends on three factors: the credit union’s asset size, its recent Call Report filing history and the length of the delay. Of the 44 credit unions paying penalties in the second quarter:
- Twenty-seven had assets of less than $10 million;
- Ten had assets between $10 million and $50 million;
- Five had assets between $50 million and $250 million; and
- Two had assets greater than $250 million.
Four of the credit unions assessed penalties had been late in the previous quarter. A list of credit unions that filed late in the second quarter and that have agreed to pay civil money penalties is available online here.
A total of 75 credit unions filed Call Reports late for the second quarter. During an initial review, NCUA consulted regional offices and, when appropriate, state supervisory authorities. This review determined mitigating circumstances in 19 cases justified waiving the penalty. NCUA informed the remaining 56 credit unions in mid-August of penalties they faced, and the agency advised them they could reduce their penalties by signing a consent agreement. NCUA also said the agency would initiate administrative hearings against credit unions that did not consent.
Twenty credit unions subsequently provided the agency with information about circumstances that led to the late filing. NCUA determined 12 of those credit unions would not be penalized. One credit union saw its penalty reduced.
NCUA in January sent a Letter to Credit Unions about assessing civil money penalties against credit unions that did not meet the Call Report filing deadlines. The agency now sends reminder messages about Call Report filing deadlines that include information on how to receive technical support to handle filing problems. OSCUI has dedicated an Economic Development Specialist to assist small credit unions in filing Call Reports on time. NCUA also has produced a video describing how to file Call Reports.
NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share
Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.