Like any other business, credit unions need a website to establish a digital presence. However, credit union websites are subject to stricter regulatory standards than most other organizations. In the United States, credit unions are regulated by the National Credit Union Administration (NCUA). There are specific rules for credit union marketing, such as complying with laws requiring accurate interest rates and laws related to consumer privacy. Our checklist can help ensure that your credit union website complies with all applicable laws and regulations.
Based in Delaware, Inclind offers a full range of website design and development services to mid-sized organizations throughout the United States. We have particular experience with credit unions and understand the technological landscape and the regulatory requirements our clients must consider when building a website. Reach out today to talk to a member of our award-winning team about how we can help you create an outstanding credit union website.
Why Compliance Matters
The banking services industry is subject to a dizzying array of regulations designed to protect consumers and maintain overall financial stability. These laws also extend to all forms of advertising, including digital marketing and websites.
The primary purpose of these laws is to ensure consumers receive accurate, honest information to make informed choices about which products to use. These laws also protect consumers from discrimination and the unauthorized use of their information.
Failure to comply with these rules and regulations can erode customer trust and cause reputational damage. For example, if a financial institution advertises a significantly lower loan rate than it provides, customers may feel deceived. As a result, they may choose not to do business with you or recommend your services.
Non-compliance can also lead to legal consequences and substantial financial penalties. Government agencies take these issues seriously, which means that any type of false advertising, failure to disclose, or discrimination could result in sanctions. For this reason, it is necessary to ensure your website complies with all applicable laws.
Of course, credit union websites can often be quite large, with a significant number of pages. Our checklist is designed to help you go through each page to determine what should and should not be there. This will help streamline the compliance process.
Credit Union Regulatory Compliance Checklist for Websites
Credit unions are subject to a wide range of laws and regulations, including rules that govern how they advertise and market their services. While some of these requirements are simple, like including a logo, others require more work (such as ensuring that advertised rates are accurate). Below, we walk you through a checklist that can be used to make sure that your website complies with applicable laws. Remember that you should always consult with a compliance professional if you have any concerns.
NCUA Insurance Disclosures
Federal law requires credit unions to provide notice of insured status. Credit union websites must display the official NCUA sign and insurance statement on the home page and any page that promotes or explains insured deposit products. The insurance statement must also appear with the banner.
- Do the appropriate pages include the official NCUA sign and insurance statement?
Fair Housing Act
The Equal Housing logo and notice show commitment to complying with fair housing laws related to nondiscrimination based on race, color, religion, national origin, sex, handicap, or familial status. This logo and notice must be on all pages to advertise real estate-related loans.
- Do the appropriate pages include the official Equal Housing Lender logo and notice?
Truth in Savings
Credit unions must contain accurate information relevant to rates for any deposit product on any page advertising that product. This can be broken down into accurate statements for advertisements with and without rates.
Deposit Advertising - Without Rates:
- Is the page’s content accurate and not misleading?
- Is the credit union prepared to offer the products and services advertised?
- Are terms like “free” or “no-cost” only used when the product or service has no maintenance or activity fees?
- Is the term “profit” avoided when referring to interest paid on an account?
Deposit Advertising - With Rates:
- Are rates stated as an “Annual Percentage Yield”?
- If the abbreviation “APY” is used, has the term “Annual Percentage Yield” been stated at least once on the same page?
- If the page states the term “interest rate” in conjunction with the APY, is it no more prominent than the APY?
- Are the APYs and interest rates rounded to the nearest one-hundredth of one percentage point and expressed to two decimal places?
- If the page advertises tiered rate accounts and states an annual percentage yield, does it state all of the APYs for all tiers including the corresponding minimum balances required?
- If the page advertises stepped-rate accounts and mentions an interest rate, does it also list all applicable interest rates, APYs, and the duration each rate will apply?
- If the page states the APY, does it also clearly and conspicuously disclose the following:
- Variable-rate notice if applicable?
- Time APY is offered?
- Minimum balance required to obtain the APY?
- Is there a minimum opening deposit required?
- A statement that fees could reduce earnings on the account?
- Does the page advertise a time deposit (CD) and state an APY? If so, does it clearly and conspicuously disclose the following?
- Any time requirements?
- Disclose the early withdrawal penalties?
- If a bonus is stated, does the page also include the following information (if applicable)?
- “Annual Percentage Yield” using that term?
- Is there any time requirement to obtain the bonus?
- Minimum balance required to obtain the bonus?
- Minimum balance required to open the account (if greater than the balance necessary to obtain the bonus)?
- When will the bonus be provided?
- If the credit union advertises IRAs:
- Does the page refrain from reference to “tax-free” or “tax-exempt”?
- Does the page refrain from claims such as “You can be a millionaire at retirement”?
Privacy of Consumer Financial Information
Federal law also strictly mandates that consumer financial information be kept private. This privacy regulation requires that a notice be located on or linked from the home page.
- Are privacy notices clear, conspicuous, reasonably understandable, and designed to call attention to the nature and significance of the information contained in the notice?
Equal Credit Opportunity Act
The Equal Credit Opportunity Act (ECOA) prohibits credit unions from discriminating against applicants based on race, color, national origin, sex, marital status, age, or receipt of public assistance. If your credit union accepts credit applications online, then the application must not be discriminatory.
- Does the application refrain from requesting the following information:
- Information about the member’s spouse, unless the spouse will use or is contractually liable on the account or the applicant relies on the spouse’s income?
- Information about the member’s marital status when applying for unsecured credit? (When applying for secured credit, the application can only use the terms married, unmarried, or separated)
- Information about the member’s sex, race, color, religion, and national origin?
- Information about child rearing or childbearing such as birth control practices, intentions, or capability to bear children?
Home Mortgage Disclosure Act
If a credit union offers first-lien home mortgage loans online, specific disclosures are required under the Home Mortgage Disclosure Act (HMDA). If your credit union website originates these loans on your website,
- Does the website have a notice that tells consumers how to request the HMDA Disclosure Statement?
Consumer Leasing Act
Under the Consumer Leasing Act, financial institutions must ensure that consumers receive accurate and meaningful disclosure of lease terms before entering into a contract. If your credit union offers consumer leasing through its website,
- Does the advertisement include specific terms of the lease?
- Does the advertisement avoid “annual percentage rate” “annual lease rate” or any equivalent term?
Electronic Funds Transfer Act
The Electronic Funds Transfer Act (EFTA) protects consumers in electronic fund transfers (EFTs) such as point-of-sale transactions, ATM withdrawals, and online transfers. Credit unions that offer EFTs through their websites must include a disclosure per the EFTA. If your website offers EFTS, does the disclosure contain the following information:
- Liability of the member?
- Telephone number and address of the office to be notified in case of an unauthorized electronic funds transfer?
- Business days?
- Types of transactions and limitations?
- Fees?
- Is there a summary of the member’s right to receipts and periodic statements?
- Stop payment rights?
- Liability of the credit union?
- Circumstances in which the credit union may provide information about the member’s account to third parties?
- Error resolution?
- ATM fees?
Truth in Lending Act
The Truth in Lending Act is a federal law that requires lenders to provide clear and standardized disclosures about the terms and costs of credit. If your website includes advertisements for consumer credit, they must follow applicable laws.
For all consumer loan advertising, does the page set forth clearly and conspicuously:
- Any minimum, fixed, transaction, activity, or similar charge that could be imposed?
- If applicable, is that the APR variable?
- Loan rates expressed as an “Annual Percentage Rate” or “APR”?
- Any membership or participation fee that could be imposed?
For all closed-end consumer loan advertising:
- Are loan rates expressed as an “Annual Percentage Rate” or “APR”?
- If the page advertises variable-rate consumer credit, does it disclose that the interest rate may be increased after consummation?
- Does the page include any of the following “triggering terms:”
- Is the amount or percentage of down payment required?
- Number of payments or period of repayment?
- Amount of any payment?
- Amount of any finance charge?
- If trigger terms are included, does the page also disclose:
- Amount or percentage of the down payment?
- Terms of repayment?
- The APR and, if applicable, a statement that the rate may increase after the loan is finalized.
For all housing-related consumer loan advertising:
- Does the page avoid pictures or characterizations that might suggest an unlawful preference for a specific group of people?
For all open-end home equity lines of credit:
- Does the page include any specific term of credit required to be disclosed affirmatively or negatively? If so, does the page include?
- The amount or percentage of any loan fee or estimates of other fees?
- Annual percentage rate?
- Maximum APR that may be imposed?
- Does the page advertise a discounted initial annual percentage rate? If so, does the page also include:
- How long the rate will remain in effect?
- Display the current APR—calculated using the index and margin—with the same emphasis as the initial rate.
- If the page contains a statement about any minimum monthly payments, does it also state, if applicable, that a balloon payment may result?
- If the page mentions interest may be claimed for tax purposes, does it include a statement like “consult a tax advisor regarding the deductibility of interest”?
- Does it refrain from using the phrase “free money” or other similar term?
Expedited Funds Availability Act
Under the Expedited Funds Availability Act (EFAA), financial institutions (including credit unions) must make funds from deposits available to customers within specified timeframes. They must also disclose funds availability policies. If your credit union advertises or opens deposit accounts online:
- Does the website disclose the credit union’s funds availability policy?
Non-Deposit Investment Products Advertising
If a financial institution advertises non-deposit investment products, they must differentiate them from insured deposits. This includes a requirement to disclose that these deposits are not NCUA-insured, are not deposits, and may lose value. If your credit union website mentions or contains any advertisements for non-deposit investment products:
- Is the page appropriately segregated from where retail deposits are solicited online?
- Does the “official NCUA sign and insurance statement” appear on the same page or simultaneously on the same screen as advertising for non-deposit investment products?
- Does the page disclose the following in boldface type, in a boxed format, and a conspicuous manner:
- Not NCUA insured?
- Not Credit Union Guaranteed?
- May Lose Value?
Children’s Online Privacy and Protection Act
The Children’s Online Privacy Protection Act (COPPA) is a federal law that protects children under the age of 13 by allowing parents to have control over what information websites can collect from their kids, requiring parental consent before collecting personal information, and offering ways for parents to review and delete their child’s data.
Does your credit union website contain the following information for accounts related to children:
- What types of personal information are collected from children and the procedures used for collecting the information?
- How does the credit union use personal information?
- Whether the credit union disclose the information to third parties?
- A notice informing the parent that they can allow the collection and use of their child’s information without agreeing to share it with third parties.
- Notification that the credit union may not require a child to disclose more information than is reasonably necessary to participate in an activity as a condition of participation?
- Notification that the parent can review the child’s personal information, ask to have it deleted and refuse to allow any further collection or use of the child’s information, along with the procedures for the parent to follow.
Compliance in the financial industry is incredibly crucial - and complex. Our checklist is a great place to start when ensuring your website is compliant. You should also consider consulting with an attorney or other compliance expert to ensure your website complies with the applicable federal laws based on the specific products you advertise on your website.
Build A Better, More Compliant Credit Union Site With Inclind
Credit union websites are a vital piece of any overall digital strategy. Yet, they also must comply with federal and state laws related to truth in lending, non-discrimination, and more. Our experienced website design and development team will work with you to ensure your website looks great, functions well, and complies with applicable regulations.
Inclind is proud to partner with credit unions across the United States, building innovative, effective websites. Our services include initial website design and development to redesigns, support and maintenance, accessibility compliance, custom integrations, and more. We also build credit union websites to make it as simple as possible to comply with the complex web of federal laws related to financial institutions.
We're available if you’d like to learn more about our web services for credit unions. You can fill out our online contact form or call us at 800-604-8139 to talk to one of our experts about your website.