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Harper Issues Letter to CU Execs Outlining NCUA’s Approach to Overdraft, NSF Fees

Legal and compliance expert says this is an “unequivocal warning” to credit unions to address the issue sooner than later.

By Michael Ogden | December 11, 2024 at 05:00 PM
Todd Harper

The issue of overdraft and non-sufficient funds (NSF) fees has gone from a business practice that was seen as simply part of the credit union business plan, to a topic fraught with political and social ramifications.

Much of the fee debate began earlier this year when the CFPB issued a proposed rule to clamp down on banks and credit unions issuing what Director Rohit Chopra called “junk fees.” From there, the overdraft and NSF issue became worrisome for many credit union leaders who have or continue to have some kind of reliance on the fee income.

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