Now is the time to rethink your overdraft and non-sufficient funds fees strategy

Overdraft (OD) and non-sufficient funds (NSF) fees are once again coming under heavy scrutiny and criticism by the Consumer Financial Protection Bureau (CFPB), Congress and consumer advocates. While credit unions and banks with under $10 billion in assets are not directly regulated by the CFPB, their policies and actions may impact financial institutions of all sizes, and there will also be competitive pressure to make changes. In light of this, it is critical to start thinking about how your credit union can take proactive measures to address OD and NSF fees, stay competitive and, most importantly, put your members first.


Overdraft scrutiny has been looming in the market for over a decade. Rep. Carolyn Maloney (D-NY) introduced the Overdraft Protection Act of 2021 on June 30, 2021, proposing to “crack down on predatory overdraft fees and establish fair and transparent practices for overdraft coverage programs.” Maloney has pursued a version of this legislation since 2009.


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