WASHINGTON—As the CFPB issues guidance on checking accounts and held a field hearing on the product Wednesday, NAFCU offered assurance that credit unions consistently offer the best consumer deals, as well as options for avoiding overdrafts.
“At credit unions, which are member-owned, not-for-profit financial cooperatives, members come first,” said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt. “Credit unions work every day to ensure that their members have the information and services that will help them meet their financial goals. Credit unions remain the best choice for consumers seeking low- or no-fee checking, and the majority of those offering overdraft services also offer alternatives such as overdraft lines of credit and linked savings accounts.”
Hunt reminded that credit unions return any “earnings” to their members in the form of lower fees and better rates.
“At most credit unions, you can open an account for as little as $5, and the majority still offer no-fee checking,” she said.
A recent Moebs $ervices study confirmed that not only do many more credit unions than banks offer free checking, CUs continue to hold the line on free while banks move to a relationship pricing model.
Last year, NAFCU surveyed its member credit unions on overdraft, and every respondent to that survey reported that they offer alternatives to overdraft or courtesy pay programs, NAFCU reported.
“Some 84% reported the most popular of these, among their own members, are overdraft lines of credit and linked savings accounts. And nearly every respondent – 97% – reported that they would reverse an overdraft charge on a case-by-case basis,” NAFCU explained.