NAFCU to CFPB: CUs’ overdraft services provide value to members
NAFCU’s Andrew Morris shared the association’s support of the CFPB’s recent efforts to relieve burdens imposed by its overdraft rule on credit unions, and also pushed the bureau to objectively consider the value of overdraft services to credit union members.
“Credit unions have a strong track record of working closely with their members to resolve any disputes or concerns, particularly regarding overdraft fees,” wrote Morris, NAFCU’s senior counsel for research and policy. “Virtually all credit unions (95%) are willing to waive overdraft fees on a case-by-case basis based on NAFCU surveys.”
Morris was responding to the bureau’s planned review of the overdraft rule under the Regulatory Flexibility Act. He asked that the bureau’s review consider not just the cost of participation in overdraft programs, but also consumer benefits – many which are associated with credit unions’ approach to member service – to correct assumptions regarding the value of overdraft products and consumer preferences.
continue reading »
