CUs Eliminating or Reducing Fees: The List Grows

Power Financial Credit Union (PFCU) announced on Monday that it has decided to eliminate all overdraft and non-sufficient funds fees for members with personal or business accounts. The new policy went into effect on Oct. 1.

Headquartered in Pembroke Pines, Fla. ($921.3 million in assets, 33,029 members), PFCU has become the only credit union in South Florida to remove these fees.

According to a statement from PFCU, the decision appeared to revolve around the fact that overdraft and non-sufficient funds fees disproportionally hurt individuals and families already struggling financially.

“Banks and credit unions charged $30 billion in overdraft fees in 2020. But what is even more striking about overdraft fees is that they disproportionally hurt those individuals and families that are most vulnerable financially,” Allan Prindle, president/CEO of PFCU, said. “We don’t think that is right, so we decided to do what we always do and put the financial needs of our members above all else by taking the industry-leading step to get rid of all overdraft and non-sufficient funds fees.”

The statement from the credit union said, “With the elimination of overdraft and non-sufficient funds fees, Power Financial Credit Union is making banking more accessible, inclusive and forgiving.”

Prindle added, “We are helping our hard-working members keep more money for the things that matter most. This member-first commitment is what sets us apart from profit-driven financial institutions.”

According to reporting by CU Times, PFCU’s announcement marked the fourth credit union this year to publicly state that it had eliminated or reduced overdraft and non-sufficient funds fees. Those credit unions that made similar announcements included:

• The Oklahoma City-based WEOKIE Federal Credit Union ($1.3 billion in assets, 59,901 members) announced in September that it reduced its fees from $27.50 per occurrence to $15 per occurrence.
• The Chicago-based Alliant Credit Union ($14.2 billion in assets, 607,898 members) announced in August that it eliminated overdraft and non-sufficient funds fees on all checking and savings accounts.
• The Madison, Wis.-based UW Credit Union ($4.6 billion in assets, 300,320 members) stated in July that it cut its overdraft and non-sufficient funds fees from $30 per occurrence to $5.

According to PFCU’s FAQ page about the fee eliminations, the credit union stated, “By eliminating overdraft and non-sufficient funds fees, we’re putting almost $1 million annually back in our members’ pockets for the things that matter most.”

In July, one of the largest digital-only banks in the U.S., Ally Bank, eliminated overdraft fees on all accounts. At the time of the announcement, Ally Bank CEO Jeffrey Brown said of the fees, “It is time to end them.”