From the Editors of CU Weekly
MAINTAIN YOUR OVERDRAFT COMPLIANCE
06/24/14 08:34 AM
Full Disclosure with JMFA
With the implementation of new consumer protection regulations and restrictions on overdraft fees, many credit unions’ existing overdraft programs are outdated or obsolete.
As a preferred provider of 100-percent compliant overdraft solutions, John M. Floyd & Associates (JMFA) is on the forefront of consumer education programs and a proponent of financial institutions having fully disclosed overdraft programs.
The company has built an all new overdraft program that includes new analytics, strategies, communication, and reporting and tracking to enable credit unions to stay compliant and recover lost revenue.
JMFA implements the following program safeguards:
- Reasonable, communicated fees
- Clearly established overdraft limits
- Transaction clearing policies that avoid maximizing account holder overdrafts and related fees created by the clearing order
- The ability to easily monitor excessive usage
- Communications materials that outline alternative financial products that more appropriately fit the needs of excessive overdraft users
The Consumer Financial Protection Bureau (CFPB) continues to discuss whether rules governing overdraft and related services are warranted, and, if so, what types of rules would be appropriate.
According to JMFA, it’s imperative for credit unions to maintain best practices and ensure their overdraft programs include the following:
- Updated communications materials for account holders to fully understand the benefits of the service and how to use it responsibly
- Improved analytics, and more robust data monitoring and analysis to support better program management
- Strong reporting and tracking capabilities to measure program performance and implement any necessary improvements
To learn more about JMFA’s overdraft solutions, visit www.JMFA.com.