Goodbye to Redundant Interest Refund Rule in Credit Unions
Published Date: 2/25/2026
Proposed Rule
Summary
The National Credit Union Administration wants to remove a rule about refunding interest because it just repeats what credit union boards can already do by law. This change affects federal credit unions and their members, making things simpler without changing how or when refunds happen. If you want to share your thoughts, you’ve got until April 27, 2026, to speak up!
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
NCUA to Remove Interest-Refund Rule
The NCUA proposes to remove 12 CFR §701.24, which governs refunds of loan interest to members of federal credit unions (FCUs). The agency says this rule is redundant with section 113(9) of the Federal Credit Union Act and that removing it will simplify the rulebook and reduce regulatory burden for FCUs without changing when or how interest refunds happen; boards still may vary refunds by loan type and interest rate and exclude categories like delinquent loans.
NCUA Says Small FCUs Won't Be Hurt
The NCUA certified under the Regulatory Flexibility Act that eliminating §701.24 would not have a significant economic impact on a substantial number of small credit unions, where the agency defines small credit unions as those with under $100 million in assets. The Board states the removal simplifies regulation and therefore is not expected to impose new costs on small FCUs.
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Key Dates
Department and Agencies
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