The 1.7 million member, $23.6 billion State Employees' Credit Union has written the Consumer Financial Protection Bureau with a description of its own checking overdraft program as an example of how a consumer-friendly program might be established.

The agency has announced an intent to look again at rules governing how overdraft protection programs work.

“SECU's regular overdraft option, utilized by more than 80% of the credit union's 900,000 checking account holders, protects against high fees associated with 'bounced checks,' “the North Carolina credit union wrote.

“This option provides members with the opportunity to select their deposit accounts, open-end loans or credit card to be used for automatic transfer of funds, when needed to 'pay' a checking account item. A $.50 transfer fee is debited from the protected checking account for the service,” SECU wrote.

But the CU also wrote that members can avoid fees altogether by using text messaging or going online to move money.

“As a not-for-profit financial cooperative, State Employees' Credit Union operates with a 'People Helping People' philosophy and 'Do the Right Thing' mentality, designing products and services that offer true consumer value and keep money where it belongs – in the pockets of consumers,” said Leigh Brady, SECU senior vice president of education services.

“This philosophy and mentality have helped to shaped what SECU considers industry-leading, consumer-friendly overdraft best practices,” Brady said.

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