NACUSO says Congress should not give NCUA vendor exam powers
Change would require hundreds of new employees, trade group contends
Congress should not give the National Credit Union Administration the power to supervise and examine Credit Union Service Organizations (CUSOs), Ronaldo Hardy, president/CEO of the National Association of Credit Union Services Organizations wrote leaders of the House Financial Services Committee this week.
“Such expansive, new authorities would grant the NCUA virtually unlimited and unrestricted authority to regulate and examine any business that does business with a credit union,” Hardy wrote.
Hardy’s letter was in response to a letter from four former NCUA chairmen sent to the Financial Services Committee last month. In that letter, the chairmen called on Congress to provide the NCUA power to supervise and examine all third-party vendors working for credit unions.
Hardy said the NCUA cannot do an effective job of supervising vendors. “In our view, NCUA lacks the expertise to regulate and examine any and all businesses that interact with credit unions,” Hardy wrote. “CUSOs and other vendors that service credit unions are diverse entities, offering a wide array of business services.”
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