On Compliance: The Strangling of Overdraft Protection
6/25/2015
Credit union overdraft protection programs have endured a long, slow strangling for years.
The Consumer Financial Protection Bureau's recent grip on overdraft programs is sure to squeeze these programs further. Is it time to just return NSF items and abandon member convenience and protection?
Not yet, but credit unions will continue to feel increased regulatory and legal pressure that will cut off consumer benefits and diminish fee income. This article examines the historical and recent regulatory and legal pressures that are slowly killing these programs.
The Consumer Financial Protection Bureau's recent grip on overdraft programs is sure to squeeze these programs further. Is it time to just return NSF items and abandon member convenience and protection?
Not yet, but credit unions will continue to feel increased regulatory and legal pressure that will cut off consumer benefits and diminish fee income. This article examines the historical and recent regulatory and legal pressures that are slowly killing these programs.
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