Credit union trade organizations criticized the penalties theNCUA will impose against federally insured credit unions that failto meet filing deadlines for call reports.

NCUA Chairman Debbie Matz said the regulator is implementing thefines to deter late filing.

“Such late filing impacts NCUA's ability to conduct effectiveoff-site supervision anddelays the release of quarterly industry data to the generalpublic,” Matz wrote in a letter to credit unions on Wednesday. “Itis also a drain on NCUA resources, as field examiners are requiredto follow-up with tardy FICUs.”

NAFCU called the penalties of up to $1 million per day passed the April 25deadline extreme.

“NAFCU supports timely filings. However, on their face, themaximum penalties NCUA is permitted to assess seem extreme,” saidNAFCU Director of Regulatory Affairs Michael J. Coleman.

“NAFCU will be seeking additional feedback from our members onissues they may be having with filing and if changes are needed,urges the NCUA to continue to look at other avenues, such aschanges to the instructions to the call report, in lieu ofpenalties. Credit unions continue to face significantregulatory burden,” he added.

Mary Dunn, CUNA senior vice president and deputy generalcounsel, said the penalties are unnecessary.

“We do not agree these penalties are necessary. Educationand awareness of reporting requirements should be the keys toaddressing problems not punitive charges borne ultimately by themembers,” Dunn said.

Paul Gentile, president/CEO of the Massachusetts CreditUnion League, New Hampshire Credit Union League and Credit UnionAssociation of Rhode Island, told Credit Union Times thatthe NCUA should not threaten to enforce penalties.

“NCUA's online Call Report filing system is still new. With anynew technology-driven system, there are always bugs and issues.Rather than threaten fees, NCUA should be focused on working withcredit unions to ensure the system is working properly and thatcredit unions are prepared,” said Gentile.

“NCUA has tremendous human resources that they can use ineducating credit unions on the new system. NCUA should alsocarefully consider circumstances when deciding on fines and ensurethere is consistency on how they levy fines if they are going to doso,” he added.