ARLINGTON, Va.—NAFCU is asking the CFPB to avoid “unreasonable” overdraft rulemaking.
In a letter from Executive Vice President of Government Affairs and General Counsel Carrie Hunt to CFPB Director Richard Cordray, NAFCU urged the agency to avoid any rulemaking that would “unreasonably curtail overdraft programs and jeopardize the future of this popular product.”
"As member-owned not-for-profit cooperatives, credit unions consistently strive to provide their members with financial products and services designed to help each member achieve their individual financial needs and goals,” wrote Hunt. “To that end, credit unions have a vested interest in educating their member-owners on overdraft terms and conditions in addition to working closely with those members to resolve any disputes or concerns."
She cited the results of NAFCU's November/December 2015 Economic & CU Monitor survey which indicated that credit unions act in good faith when administering their overdraft programs and that their members value the service. Respondents noted that credit unions with an overdraft or courtesy pay program in place, 93.5% offer an alternative product. The most common offering is an overdraft line of credit (83.9%), followed by linked savings or money market accounts (61.3%), and short-term, small amount loans (22.6%).
Hunt encouraged the agency to consider the data in the letter. She emphasized, "Credit unions are unique and their track record as good actors within the financial services industry proves they should not be grouped together with entities that the Bureau seeks to restrict."