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Effective Monday, Jan. 27, the Lansing, Mich.-based LAFCU sharply lowered its overdraft and non-sufficient funds fees from $32 to $0.99. The $1.1 billion credit union said the decision was driven by its ongoing focus on supporting individuals of modest means, who are often hit hardest by traditional fees.
While it will especially impact members from underserved communities, the fee reduction is in line with its commitment to making financial services more accessible and affordable for all of its members, LAFCU noted.
Spyke continued, “By reducing these fees, we are further prioritizing our members. It’s a reflection of who we are as a credit union – driven by the philosophy of ‘people helping people.’ At LAFCU, we’re focused on helping members reach financial stability, which in turn can lead to greater opportunities for generational wealth building.”
LAFCU’s announced followed news of other credit unions reducing and/or eliminating their overdraft and NSF fees in 2024, including the $3.8 billion Navigant Credit Union in Smithfield, R.I., and the $6.2 billion Wescom Credit Union in Pasadena, Calif.
A recent NCUA report found that credit unions charging overdraft and non-sufficient funds fees are not using that revenue to reduce the cost of other fees or interest rates, with former Chairman Todd Harper stating, “Credit unions that rely heavily on fee income from overdrafts and NSF fees have concentration risk issues,” and that “consumers who can least afford it are often paying an oversized portion of those fees.” Proponents of overdraft and NSF fees have argued that they help meet consumers’ need for access to short-term, small-dollar loans.
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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.
