CUs May Be Headed for Showdown With Harper on Overdraft Rule

Under current National Credit Union Administration rules, negative balances need to be resolved in 45 days. In December, the board approved a proposed rule that allows credit unions to establish their own specific time limits to resolve negative balances. Credit unions argue this is good for credit unions and their members, but consumer advocacy groups and NCUA Chairman Todd Harper are not convinced.

Consumer Group Calls for Overdraft Moratorium During Pandemic; Affiliated Credit Union Only Offers Partial Waiver

Financial regulators, including the National Credit Union Administration, should “do the right thing” and prohibit banks and credit unions from charging any overdraft or insufficient fund fees during the pandemic, the Center for Responsible Lending said in a new report Wednesday.

But a credit union affiliated with the center is not following that recommendation and is only waiving insufficient fund fees for up to two items a month.