As Check 21 Looms, NAFCU Finds Most Credit Unions Return Share Drafts Only Upon Request

ARLINGTON, Va.-NAFCU’s research staff delved into issues related to Check 21 in its latest Flash Report survey as the Oct. 28 implementation date draws closer. Only 1.4% of Flash respondents-a sampling of about 100 NAFCU member credit unions-said they return the original share drafts to their members. Most respondents (94%) said they provide copies of original share drafts upon request. Fifteen percent of those that provide copies of the original share drafts charge for the service, but 96% of those said they charge five dollars or less. Check images are popular in today’s high-tech society. Ninety-two percent said they offer share draft images, mostly through online banking (79%) or image statements (21%). All of the credit unions that did not yet provide images said they planned to in the next year. When there is an error claim with a share draft, credit unions work to resolve it quickly. The vast majority of respondents, 92%, resolve the claims within five business days. The remainder said the problem gets resolved in less than nine business days. Over half (54%) said they provide their members a temporary credit until the problem is fixed. Of those respondents, 50% offer a credit of up to $250, 33% provide a credit up to $1,000, and 17% offer credit for the amount of the member’s claim. Thirty-nine percent of respondents said they keep the original share drafts three months before they are destroyed, while 40% said they retain them between three and six months. Twenty-one percent keep them six months or longer. Credit unions use a variety of sources to process their share drafts. The majority (64%) use a corporate credit union, while the Federal Reserve was another popular choice at 18%. Another 15% use either a clearinghouse or correspondent bank. The last 3% either do their own processing or do it through their credit union service organization. -