COVID-19 best practices for overdraft services

Given the mounting economic challenges facing many consumers since the coronavirus pandemic began, financial institutions have taken extraordinary measures to provide the services and advice necessary to help their account holders maintain financial stability.

Operating under the unprecedented conditions of a national emergency since mid-March, community banks and credit unions have had to make adjustments in operations and service delivery like never before—from providing services and advice while working from remote locations to administering emergency financial relief to consumers and businesses through government stimulus payments without the offset of fees or the repayment of overdrafts.

While regulators have eased some business requirements since the pandemic began to help community banks and credit unions address consumer financial needs, they are still focused on monitoring and analyzing operations, liquidity, capital, asset quality and consumer compliance risk.

Proven compliance expertise and resources support effective program management

As a trusted overdraft services provider for decades, JMFA has worked with more than 2,000 community banks and credit unions throughout the U. S. to ensure that their overdraft solution meets the ever-changing financial needs of their account holders. And while no new regulations have been introduced related to overdraft programs, it is extremely important in these challenging times to adhere to existing expectations and industry best practices to avoid any confusion for account holders that could lead to increased scrutiny by examiners or class action lawsuits.

 

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