CUNA Comment Letter
Reimbursement of Financial Records
September 26, 2008
Ms. Jennifer J. Johnson
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, DC 20551
RE: Docket No. R-1325 Proposed Rule on Reimbursement of Financial Records
Dear Ms. Johnson:
The Credit Union National Association (CUNA) appreciates the opportunity to comment on the Federal Reserve Boards (Boards) proposed rule to amend Regulation S, the Right to Financial Privacy Act, which determines the rates and conditions in which a government agency must reimburse a financial institution for costs incurred in producing consumer financial records in response to government requests. These amendments update the fees that may be charged by financial institutions and incorporates recent advances in electronic document productions. By way of background, CUNA represents approximately 90% of our nations 8,100 federal and state-chartered credit unions, which serve 91 million members.
Summary of CUNAs Comments
- CUNA supports these changes that will update and modernize the costs incurred in producing financial records, although we believe the fees for microfiche duplication should not be eliminated at this time.
- Each position description, which will be updated periodically based on changes in the Bureau of Labor Statistics (BLS) survey data, should include the term or equivalent as this should eliminate the need to amend these rules if the BLS decides to change the position names and descriptions in the future.
CUNA supports these changes that will update the fees and costs incurred in producing financial records and agree that they accomplish the goal of modernizing the current fee structure by reflecting the increased costs of producing these records and the changes in technology that have occurred in recent years. These changes include a new per electronic production charge of $5, instead of the previous per diskette charge, that will cover the cost of all electronic media or email transmissions.
In the proposal, the Board requested comment as to whether the current fees for microfiche duplication are outdated and should be eliminated as part of this proposal. These fees should not be eliminated at this time as we believe there are credit unions that still retrieve and produce records in this manner. We anticipate that this method of producing records will eventually end for all financial institutions over time, but we do not believe this will occur in the near future.
The proposal will also implement a mechanism to update these reimbursement rates periodically, based on changes in the BLS survey data. We support this approach but suggest that each position description in the proposal add the term or equivalent as this should eliminate the requirement to amend these rules if the BLS changes these position names and descriptions in the future.
Thank you for the opportunity to comment on the proposed rule to amend Regulation S, the Right to Financial Privacy Act. If you have questions about our comments, please contact Senior Vice President and Deputy General Counsel Mary Dunn or me at (202) 638-5777.
Jeffrey P. Bloch
Senior Assistant General Counsel