Limiting Overdraft Programs Could Harm Access to Responsible Services

CUNA strongly objects to legislation, regulation and other government intervention to restrict the ability of credit unions to offer overdraft protection plans that help members resolve short-term financial difficulties, CUNA wrote to a Senate Banking, Housing, and Urban Affairs Subcommittee. The committee conducted a hearing on overdraft fees.

“Credit unions offer overdraft programs as a convenience and accommodation to a members’ benefit, and members that choose to opt-in often do so for the peace-of-mind these services provide,” the letter reads. “In some cases, the opt-in decision was made precisely for the comfort of knowing that transactions would continue to be processed during an unexpected financial emergency or other cash shortfall.”

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