A long-awaited overdraft report, released June 11, featured some unflattering statistics related to credit union overdraft income.
According to the report, while bank and thrift service charges on deposit accounts have declined since 2008, credit union fee income has increased by 15%.
Because credit union fee income as reported to the NCUA includes several sources, the report said, defining how much comes from overdrafts and not-sufficient-funds fees is difficult. The CFPB sourced Strunk & Associates' as saying NSF and overdraft fees contributed 11.6% of credit union 2012 operating revenues, compared to 6.9% of bank and thrift revenue during the same period. However, Strunk also told CFPB that NSF and overdraft fees accounted for 51% of credit union fee income in 2012, compared to 78% for community banks and thrifts. Large banks report a small percentage of income from NSFs and overdrafts, the report said because they serve more large commercial accounts than small community-based institutions.
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