League Notes Member Demand, Benefits of CUs' Overdraft Protection Programs

Your League has filed a comment letter with the House Financial Services Subcommittee on Consumer Protection and Financial Institutions, following a hearing last week on overdraft protection programs.

Legislators and regulators have recently targeted financial institutions' fees, particularly overdraft fees.

"We share Congress’ concern for the financial well-being of America’s consumers, especially those of who are underserved and thank you for holding this important hearing," notes our letter. However, "Virginia’s credit unions stand united in opposition to any federal or state legislation, or regulation which intentionally or unintentionally restricts credit unions’ ability to provide safe and fair services to their members to ease the burden of short-term financial difficulties."

We note credit unions have no interest in disadvantaging their members. In fact, credit unions continue to hear from their members that overdraft protection is an important part of the benefits they receive as part of their membership. We also note the protections already in place -- from opt-in requirements for such programs to linked accounts that serve to backstop an overdrawn account.

"It is important to note that each credit union must tailor their products and services to fit the needs of their members," states the letter.

Read the letter