Can your CU charge prepayment penalties on loans?

ANALYSIS:  Credit unions sometimes ask whether they can charge prepayment penalties on loans. Sometimes this may be allowed, at least for state-chartered credit unions, but it depends on the type of loan. This Courier summarizes state and federal laws that may limit, or prohibit, the credit union’s ability to charge such penalties.

Interest on certain car loans deductible; CU must report to IRS

NEWS:  You may have heard of the of the One Big Beautiful Bill, signed into law on July 4, 2025.  The bill introduces a new deduction for interest paid on auto loans, allowing taxpayers to write off a portion of their car loan interest, subject to income limits and strict rules about which cars qualify.  The new law also establishes a new reporting requirement for businesses, including credit unions, receiving $600 or more in interest on qualifying vehicle loans.

NCUA wants feedback on outdated, unnecessary, or burdensome rules

COMMENT CALL:  Do you wish that the NCUA would revisit some of its rules, changing requirements that are no longer needed or more trouble than they’re worth? The agency is giving you a chance to make your voice heard. It has issued a request for comment (RFC), seeking feedback on regulations that may be outdated, unnecessary, or unduly burdensome.

Federal court voids CFPB's medical debt reporting rule

NEWS:  A federal court in Texas has voided a CFPB rule that would have prohibited medical debts from appearing in credit reports.

“The [CFPB] has no such power to define what in a consumer report is ‘permissible,’” the judge wrote. “Congress has defined the permissible purposes of a consumer report, and a creditor has a permissible purpose if it intends to use the report for a credit transaction.”