Overdraft services and mitigating your risks
As I have been visiting credit unions across the nation, several questions have been posed to me. Here’s one that may offer some helpful guidance: Question: Are we still at risk of penalties and [...]
Overdraft Archives
Algorithm-based overdraft protection lacks disclosure transparency
There’s no doubt that algorithms can reach levels of analysis that humans alone can’t make. In banking, AI might identify fraudulent activity or improve fair lending practices — both of which ultimately offer benefits. [...]
Spooky CFPB enforcement actions on remittance transfers and overdraft fees
It’s October! If you’re like me, you have already started decorating for Halloween. If you haven’t, it’s time to get into the spirit of things. In order to help you, I [...]
CFO Focus: Overdraft and offsetting the gap
Momentum is growing for banks and credit unions to eliminate or significantly reduce overdraft fees, and many institutions are hard at work planning how to navigate this revenue transition. What started with Ally and Capital [...]
Risks of a dynamic limit strategy
Any overdraft or courtesy pay program these days faces an intense level of scrutiny. On the one hand, you have regulators calling for overdraft reform and increased focus on overdraft practices during exams. The CFPB [...]
Whitepaper: Beyond overdraft
Download this comprehensive white paper from Cornerstone Advisors, based on a Q2 2022 online survey of 3,000 US consumers that explores consumers’ use of, experience with, and attitudes towards overdraft protection services and with [...]
Everybody loses without access to overdraft services
No overdraft fees may sound consumer-friendly — until you realize that people will still overdraw their accounts and need a way to meet short-term liquidity deficits. What does "no overdraft fees" really mean? For some consumers, [...]
“No surprises” is a great motto for a compliance department
If you’re responsible for regulatory compliance at your credit union, you probably often feel like Dorothy at the beginning of the Wizard Oz. Caught up in a whirlwind, unsure of what is going to [...]
The impact of delaying an overdraft evaluation
Is your overdraft program taking a backseat? Like many Americans, credit unions continue to face challenges related to a lack of time, money and/or the personnel to get things done. One thing that can [...]
Credit union organization misses the point again with Overdraft Protection Act
The back and forth between what’s best for underserved credit union members and consumers continues when conversation turns to near-universally disliked overdraft protection (ODP), its base and outdated function, and its dwindling future in [...]
Better knowledge creates better advocates
Leadership provided by outside community bank and credit union board members is critical in setting strategic direction and ensuring that established policies, compliance expectations, and state and federal laws and regulations are followed. In addition, [...]
Overdraft and alternatives – Fair and responsible liquidity options
In this podcast, we hear from Christopher Leonard, CEO of Velocity Solutions about the many changes in the overdraft landscape. He shares ideas for how credit unions can provide responsible and compliant liquidity options for [...]
Part 2: Death to overdraft fees? Not quite.
When a transaction exceeds the amount in the consumer’s account, financial institutions can allow the transaction to go through for a fee, called an overdraft fee. This is also often referred to as a [...]
Make financial literacy a year-round commitment
Amid the scrutiny of overdraft services by some lawmakers and regulators—and efforts by some large banks to distance themselves from the criticism of costly fees and undisclosed procedures—a strong case continues to be [...]
3 reasons people like paying overdraft fees
In the world of finances, the two most reviled words are almost certainly “overdraft fee”. Getting an overdraft fee is adding insult to injury, punishing you for paying with money you didn’t have in [...]