Pentagon Federal Credit Union President/CEO Frank Pollack told a Senate committee today that his credit union's overdraft protection program is completely opt in, operates as a line of credit and cost to consumer is fully disclosed and proportional to the amount of the overdraft.

He also explained that the credit union's program for military members allows them to waive fees for overdrafts twice over a three-month period. He said they are looking to expand that to all members.

Pollack described the program during a Senate Banking Committee hearing on legislation by Committee Chairman Christopher Dodd (D-Conn.) that would require credit unions and banks would have to gain a member's or customer's permission before enrolling them in an overdraft protection program and could only charge fees once a month or six times per year.