The National Credit Union Administration is planning to require credit unions with more than $1 billion in assets to report their overdraft fees and nonsufficient fund fees, NCUA Chairman Todd Harper said Tuesday. During a Q&A at the Brookings Institution, Harper announced the proposed policy change, although he didn’t provide a timeline for when it may be introduced or implemented.
“Overdraft and nonsufficient fund fees are a key component of the NCUA’s review,” Harper said in prepared remarks before the Q&A. “NCUA examiners this year will continue an expanded review of credit union overdraft programs, including website advertising, balance calculation methods and settlement processes. Problematic overdraft programs and nonsufficient funds alerts include fees that aren’t reasonable and proportional, rely on systems that authorize positive and settle negative, or impose multiple representment fees, often in one day.”
The proposed reporting requirements would apply to more than 420 credit unions that hold roughly 90% of the industry’s assets, Harper said. Credit unions would be required to report overdraft fees and NSF fees separately, so there would be “greater granularity” in the data, he added.
