On June 29, the Credit Union National Association (CUNA) filed a comment letter with the Consumer Financial Protection Bureau (CFPB) in response to its request for information on overdraft protection programs and practices.
While this is only a request for information and no rulemaking has been proposed at this point, CUNA emphasized in the letter that credit unions generally have a tradition of protecting consumer interests and that those credit unions that offer overdraft protection services do so as a convenience to their members. However, CUNA also asked the CFPB to recognize that the services offered by credit unions, such as overdraft programs, do have associated costs. Further, CUNA believes it is reasonable for credit unions to assess appropriate fees for such services, particularly in light of the fact that at a credit union, costs incurred by the institution related to one member’s account are borne by the rest of the members.
In addition, stressed to the agency in the letter that, even though no rulemaking has been proposed on overdraft protection, credit unions are reeling from the current regulatory burdens they already face and are seriously concerned with additional regulatory requirements that divert resources as well as attention away from their ability to meet their members’ financial needs.