As the news media increasingly spotlights overdraft protection, the California and Nevada Credit Union Leagues have launched a Credit Union Overdraft Resources site with talking points, facts, research, and regulatory information to help credit unions set the record straight on this essential service for members. (This site is secure and requires your credit union’s League member log-in username and password.)
The Leagues will routinely update this page and notify member credit unions as federal and state regulators and legislators continue analyzing overdraft practices at all types of financial institutions. Credit unions can utilize this site to support their media relations efforts and internal conversations with staff.
While the industry continues explaining what overdraft protection is and why members rely on this important service, unwarranted scrutiny of credit unions continues. This week, the Consumer Financial Protection Bureau (CFPB) released a report on consumers being “hit with unexpected overdraft and non-sufficient fund fees.”
In response, the Leagues remain on high alert on Capitol Hill as discussions surrounding consumer fees in the halls of Congress ramp up, and as Sacramento enters a new state legislative session on January 1st. The Leagues will continue monitoring these events and pivoting on behalf of credit unions across California and Nevada, as well as keeping a close eye on local news stories that may influence policymakers in 2024.
The Leagues oppose restrictions on access to overdraft protection services that consumers value and rely on for peace of mind, a fact that will continue to be leveraged in the ongoing strategic response. Any legislative or regulatory restrictions on credit union overdraft protection would inhibit the ability of credit unions to help their members resolve short-term financial difficulties. Credit unions have always served their members diligently, fostering trust by providing personalized financial services — which is why the Leagues oppose restrictions on access to overdraft protection services that consumers value and rely on for peace of mind.
As the Leagues showcase the unique qualities that set credit unions apart from traditional banking institutions, credit unions should stay proactive in the ever-evolving political and regulatory landscape so they can navigate 2024 with confidence. Over the coming weeks, the Leagues will continue alerting member credit unions with information and new developments on this evolving topic and the ongoing state and federal efforts.