U.S. Senate FCU eliminates overdraft and NSF fees, prioritizing member financial well-being
USSFCU, earlier this year, made a significant announcement that caught the attention of its members and the banking industry as a whole. The credit union revealed its plans to eliminate overdraft and non-sufficient funds (NSF) fees by the second quarter of 2023. In a recent update, USSFCU confirmed that, as of April 17, 2023, its members will no longer incur these fees on their accounts.
Previously, overdraft and NSF fees were charged when a check, recurring debit card payment, or automatic payment was presented against a member’s account with insufficient available funds. However, USSFCU has now replaced this old practice with its all-new Courtesy Pay Program (CPP). This program provides a buffer for overspending without charging a fee, effectively eliminating the burden of fees for members. For more information on the program’s highlights, visit the USSFCU website.
Timothy L. Anderson, President & CEO of USSFCU, expressed the credit union’s commitment to its members and their financial well-being. “We made a commitment to our members that we would eliminate NSF and overdraft fees, and that is exactly what we have done,” Anderson stated. He emphasized that the core principle of USSFCU is “people helping people,” and if eliminating these fees can assist a family in meeting their financial needs, he is fully supportive of the initiative.
What sets USSFCU apart is its philosophy regarding fee income. Unlike many financial institutions, USSFCU does not prioritize earning income from fees and penalties. In fact, the credit union earns less fee income than most FIs. This focus on putting members’ financial well-being first sets USSFCU apart from its counterparts in the industry.
USSFCU’s decision to eliminate overdraft and NSF fees aligns with its mission to serve its members and ensure their financial success. By implementing the Courtesy Pay Program, the credit union aims to provide a buffer for overspending while promoting responsible financial practices among its members. This customer-centric approach reflects USSFCU’s dedication to helping its members achieve their financial goals and highlights its commitment to building a strong and supportive financial community.
