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| Bills introduced to Combat Scams, add 7(a) Program Transparency |
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Two bills introduced Tuesday would help credit unions protect senior members and provide oversight over a key Small Business Administration (SBA) lending program.
Safeguarding Transactions to Outpace Predatory (STOP) Senior Fraud Act
Introduced by Reps. Don Davis (D-NC) and Zach Nunn (R-IA), it would help financial institutions protect older adults and vulnerable individuals from financial exploitation by authorizing them to refuse or temporarily delay certain transactions when they reasonably believe financial exploitation has occurred, is occurring, or is being attempted.
“America’s Credit Unions thanks Representatives Davis and Nunn for understanding the critical role credit unions play in protecting consumers and combatting fraud,” said Scott Simpson, president/CEO of America’s Credit Unions. “As fraudsters continue to innovate, the STOP Senior Fraud Act will allow credit unions to further protect the more than 146 million members across the country by establishing voluntary trusted contact programs. This legislation will help level the playing field and ensure a secure financial services ecosystem.”
“Credit unions have long been on the front lines of protecting members from financial fraud, particularly older adults who are increasingly targeted by sophisticated scams. The STOP Senior Fraud Act provides financial institutions with additional tools and legal certainty to intervene when financial exploitation is suspected, helping stop fraud before hard-earned savings are lost,” said Dan Schline, president/CEO of Carolinas Credit Union League. “The Carolinas Credit Union League is proud to support this bipartisan legislation and applauds Congressman Don Davis for his leadership in advancing commonsense protections for some of our most vulnerable citizens.”
7(a) Risk Oversight Act
Introduced by House Small Business Committee Ranking Member Nydia Velázquez (D-NY), it would require the SBA to examine (7a) loans by certain characteristics and add new reporting on enforcement actions and civil penalties tied to fraudulently made loans and loans falling behind on payments. The SBA would be required to publish the report within seven days of submitting to Congress.
“We applaud Ranking Member Velázquez for her work to provide more transparency on the SBA’s 7(a) lending program. This bill will help ensure that Congress has the information needed to address specific issues with the program and that the program remains an effective tool for small businesses and lenders such as credit unions,” said America's Credit Unions Chief Advocacy Officer Kathleen Coulombe.
Loans made through the SBA’s 7(a) program can be up to 85% guaranteed by the federal government, and the guaranteed portion does not count against a credit union’s member business lending cap of 12.25% of assets.
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