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MAX Credit Union has ended non-sufficient fund (NSF) fees and introduced a grace program for overdraft fees, the $1.9 billion, Montgomery, Ala.-based credit union announced Monday.
The decision was made in order to help ease the financial burden caused by fees for many members and support national movements designed to make banking more equitable, according to the credit union. With the overdraft fee grace program, members will not be charged an overdraft fee when they overdraw their account by $10 or less. The NSF and overdraft fee changes took effect Monday, Jan. 3.
"We understand NSF fees can be punitive and we will not charge members unnecessary fees and penalties," MAX CEO Martin Head stated. "Starting now, if we don't pay your transaction that overdraws your account, you don't pay any fees."
MAX Chief of Operational Excellence Cheryl Payson added, "The credit union's mantra is 'people helping people,' and we are going to do just that. We believe this change is the right thing to do as we diligently work to better serve our members and communities."
The credit union noted that it helps members avoid overdrafts in the first place by offering alert tools that notify them when their account dips below a specified balance, as well as card controls that help members monitor and limit daily spending. In addition, MAX provides free online personal finance courses and in-person financial education programs for members.
MAX is the latest to join a list of nearly a dozen credit unions that have slashed fees for members. Other credit unions that recently made similar moves included Connexus Credit Union ($3.7 billion, Wausau, Wis.), Westerra Credit Union ($1.9 billion, Denver), CoVantage Credit Union ($2.6 billion, Antigo, Wis.), ESL Federal Credit Union ($8.6 billion, Rochester, N.Y.), Affinity Credit Union ($138 million, Des Moines, Iowa), U.S. Eagle Federal Credit Union ($1.3 billion, Albuquerque, N.M.), Power Financial Credit Union ($926 million, Pembroke Pines, Fla.), Alliant Credit Union ($14.6 billion, Chicago), UW Credit Union ($4.7 billion, Madison, Wis.) and WEOKIE Federal Credit Union ($1.3 billion, Oklahoma City, Okla.).
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
