The New York State Department of financial Services (DFS) recently provided New York State-chartered credit unions with guidance on the use of temporary facilities. The facilities can include mobile service units, tents, booths, tables, or similar stations, Maria Vullo, financial services superintendent, said in a June 28 DFS news release. Credit unions seeking to establish temporary […]
The New York State Department of financial Services (DFS) recently provided New York State-chartered credit unions with guidance on the use of temporary facilities.
The facilities can include mobile service units, tents, booths, tables, or similar stations, Maria Vullo, financial services superintendent, said in a June 28 DFS news release.
Credit unions seeking to establish temporary facilities to provide “limited” services may provide such services on notice to DFS without requiring a prior application with DFS.
Those services do not include certain monetary transactions, such as signing up new members, according to the DFS.
Under the new guidance, credit unions must provide DFS a schedule listing upcoming times and locations of the temporary facilities.
They also must provide the number and title of qualified individuals offering the services at any temporary facility located in New York, along with any further information that DFS may require.
“Temporary facilities can be useful tools for New York State-chartered credit unions to better service their existing members, attract new members, and extend the provision of financial products and services to underserved communities in New York State in an efficient manner,” Vullo said in the release. “The department remains committed to assisting the continued expansion of New York State-chartered financial institutions that offer vital resources to local communities and contribute to regional economic growth while providing strong state-based consumer protection through regulatory oversight by DFS.”
DFS developed the new guidance after it learned “that there may be a question” as to whether state-chartered credit unions are required to seek the department’s approval if they use temporary mobile-service units, tents, booths, tables or similar temporary facilities located in New York.
Credit unions would use those temporary facilities to sign up new members; receive loan and credit card applications; and/or advise members and potential members about the products and services offered by the credit union, provided they do not include or involve any wire-transfer transactions; accepting or contracting for deposit-type liabilities, withdrawals, dispersing, remitting or transmitting funds; issuing ATM, debit or credit cards; processing or executing any form of loan or financing; or accepting any payments.
The credit union must provide the department with information regarding the security procedures for the protection of confidential information and data.
In addition, the credit union is required to obtain any permit or authorization that may be required from any city or local governmental agency for operation or use of the temporary facility and “conspicuously display” the name and signage of the credit union on the temporary facility, according to DFS.
As with all other activities of state-chartered institutions, DFS requires that all services be conducted in accordance with all applicable New York State and federal laws and regulations, all of which will be subject to DFS examination.