Michael Moebs, chairman of Moebs Services, Lake Bluff, IL, has two central messages for credit unions working to bring their overdraft programs in compliance with the new regulations: This exercise must go well beyond the compliance department, and reducing overdraft fees in line with the competition is essential to increase member opt-in rates. The impact of the Reg E opt-in requirements will vary based on how credit unions have been handling overdraft protection, suggests Heather Kline, product specialist with Velocity Solutions. Even credit unions that have not offered overdraft protection for shortfalls resulting from electronic transactions should assess how the new regulations might affect their response to occasional overdrafts that stem from debit card holds at the gas pump, for example. Though the deadlines for complying with the new Reg E rules are this summer, Kline adds that credit unions will be dealing with these rules on an ongoing basis as members encounter a problem down the road and oven new checking accounts.
Operations Opt in for Overdraft New regs pose challenges and opportunities for courtesy pay programs. By Karen Bankston F or credit unions that rely on overdraft protection as a
Pages to are hidden for
"Opt in for Overdraft"Please download to view full document