Norman E. D'Amours is the Chairman of the National Credit Union Administration. In his July 30 testimony before the Senate Banking Committee, he made it plain that the sallvation of the credit unions rests on the ability of vendors to repair their software.
Problem: no one has any sanctions, this side of the year 2000, to force vendors to make these changes. But he did not mention this.
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As previously mentioned, we have been working with the credit union vendors to assist credit unions in their conversion. At this time, there are approximately 40 major credit union electronic data processing vendors who are serving 76% of all federally insured credit unions representing 79% of the total assets of federally insured credit unions.
As previously stated, we plan to have future vendor meetings. We will use these meetings to identify non-compliant systems and determine vendor compliance status, as well as to develop contingency plans should a vendor and/or credit union not be able to become compliant in a reasonable period of time.
Part of our contingency planning includes evaluating the ability of vendors to handle new customers (credit unions) on short notice. This plan should allow us to help non-compliant credit unions locate a vendor who is compliant and who can assist in their conversion while maintaining sufficient customer service support, both to new and existing customers (p. 3).