Samantha: Hello, this is Samantha Shares.
This episode covers N C U A Board Member Tanya Oatskaâs statement on
the agencyâs Collection of Overdraft and Non-Sufficient Fund Data
The following is an audio version of that statement.
This podcast is educational and is not legal advice.
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N.C.U.A.
Board Member Tanya Oatska Statement on N C U Aâs Collection of Overdraft
and Non-Sufficient Fund Data
during a meeting of the NCUA Board.
As Prepared for Delivery on May twenty second, twenty twenty four
The N.C.U.A.
has a responsibility to ensure we have a safe and sound system of cooperative
credit and a mandate to ensure that credit unions are following all applicable laws.
The actions that N C U A has taken over the years with respect to
overdraft and fee income is consistent with those responsibilities.
Itâs important for the N C U A to understand the data both at the individual
institution level and system wide.
We also need to make sure that it is transparent for credit unions,
credit union members and the public.
Overdraft practices and fees should already be disclosed to members and
in compliance with applicable laws.
An overreliance on overdraft and N.S.F.
fees adversely affects both members and their credit unions.
Institutions that rely more on fee income have greater concentration risk.
N C U Aâs supervisory priorities have included overdrafts for several years.
In 20 18 and 20 19, N C U A examiners reviewed credit union overdraft practices,
including opt-in disclosures, and conducted transaction testing to verify
that credit unions were complying with the applicable regulatory provisions.
In 20 22, examiners requested information about a credit
unionâs policies and procedures governing its overdraft programs.
In 20 23, NCUA examiners started conducting reviews of overdraft website
advertising, balance calculation methods, and settlement processes
for federal credit unions with assets totaling 500 million dollars or more.
I think it is prudent to not prejudge the data or assume a narrative before
assessing the data in aggregate.
Our very capable staff is currently assessing the newly collected data and
I look forward to reviewing it to get a better sense of the bigger picture.
This concludes the statement.
If your Credit union could use assistance with your exam, reach out to Mark Treichel
on LinkedIn, or at mark Treichel dot com.
This is Samantha Shares and we Thank you for listening.