Samantha: Hello, this is Samantha Shares.
This episode covers N C U A Board Member Tanya OAtska Statement on the
Decision to Remove Total Overdraft and Non-sufficient Fund Fee Data
The following is an audio version of that STATEMENT.
This podcast is educational and is not legal advice.
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And now the STATEMENT
N C U A Board Member Tanya OAtska Statement on the Decision to Remove Total
Overdraft and Non-sufficient Fund Fee Data
N C U A Board Member Tanya F.
Otsuka issued the following statement about the agencyâs decision to remove
total overdraft and non-sufficient fund (NSF) fee data for federally
insured credit unions with more than $1 billion in assets from Call Reports
beginning with the first quarter of 2025.
Member empowerment is a cornerstone of the cooperative credit movement.
For credit unions, which are built on the philosophy of âpeople helping
people,â increasing transparency is a simple way to demonstrate the credit
union difference, enable consumers to make informed financial decisions,
and help maintain trust and confidence in our cooperative system of credit.
In that spirit, the N C U A began collecting and publishing quarterly
Call Report data on revenues credit unions with over $1 billion in assets
made from overdraft and non-sufficient funds (NSF) fees last year.
Unfortunately, the fourth quarter 2024 data published today will be
the last to include information on overdraft and NSF fee income.
On March 3, 2025, Chairman Hauptman unilaterally announced changes
to the way the N C U A collects overdraft and NSF fee information.1
Specifically, starting on March 31, 2025, the agency would âno longer publish
overdraft and non-sufficient fund fee income for individual credit unionsâ
and this information would ostensibly be collected during supervisory examinations.
This is a step in the wrong direction.
There is no data to suggest credit unions limited the services they provide
low-income or underserved consumers last year simply to avoid having to report
fee income on the N C U Aâs Call Reports.
Credit unions with higher overdraft and NSF fees also do not appear to
offer lower fees to members for other services, nor better interest rates.2
Overdraft and NSF fees put a strain on members who are likely already
struggling and may further trap them in a cycle of financial hardship
that can be difficult to escape.
That is why providing the public information about fees through the N
C U Aâs Call Reports enabled consumers across the country to more readily compare
between credit unions and choose the institution that best fit their needs.3
Credit unions are already required to disclose to their members
the fees that they charge.
Instead of providing overdraft and fee income in a transparent, consistent, and
standardized way, collecting overdraft and NSF fee data through the exam process
will erode the quality of the data and hamstring our ability to monitor trends.
The decision to collect this data through the supervisory process
rather than through the quarterly Call Report must not be used as an
excuse to withhold it from credit union members or the broader public.
Transparency is vital for promoting fair competition within the financial system.
Limiting access to individual credit union data does not help consumers, encourage
the chartering of de novo institutions, or reduce regulatory burden on small
cooperatives, which were exempt from the requirement to report these data.
It just enables larger institutions that rely heavily on fee income to
operate in the shadows, resulting in less competition and less choice for
consumers, and places institutions that stay true to the principles of the
credit union movement at a disadvantage.
At the end of the day, members, as owners of their credit union, have a right to
know how their institution operates, just like any investor would if they purchased
stock in a publicly traded company.
We shouldnât keep credit union members in the dark.
I urge the N C U A Chair to prioritize transparency and to continue the practice
of quarterly reporting and public disclosure of overdraft and NSF fee
income for individual credit unions.
I look forward to continuing to work with the entire N C U A Board to protect
consumers and the credit union system.
This concludes the STATEMENT
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This is Samantha Shares and we Thank you for listening.