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Samantha: Hello, this is Samantha Shares.

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This episode covers N C U A Board
Member Tanya Oatska’s statement on

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the agency’s Collection of Overdraft
and Non-Sufficient Fund Data

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The following is an audio
version of that statement.

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This podcast is educational
and is not legal advice.

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We are sponsored by Credit Union
Exam Solutions Incorporated, whose

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team has over two hundred and
Forty years of National Credit

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Union  Administration experience.

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We assist our clients with N C
U A so they save time and money.

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If you are worried about a recent,
upcoming or in process N C U A

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examination, reach out to learn how they
can assist at Mark Treichel DOT COM.

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Also check out our other podcast called
With Flying Colors where we provide tips

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on how to achieve success with N C U A.

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N.C.U.A.

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Board Member Tanya  Oatska Statement
on N C U A’s Collection of Overdraft

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and Non-Sufficient Fund Data

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during a meeting of the NCUA Board.

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As Prepared for Delivery on May
twenty second, twenty twenty four

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The N.C.U.A.

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has a responsibility to ensure we have
a safe and sound system of cooperative

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credit and a mandate to ensure that credit
unions are following all applicable laws.

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The actions that N C U A has taken
over the years with respect to

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overdraft and fee income is consistent
with those responsibilities.

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It’s important for the N C U A to
understand the data both at the individual

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institution level and system wide.

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We also need to make sure that it
is transparent for credit unions,

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credit union members and the public.

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Overdraft practices and fees should
already be disclosed to members and

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in compliance with applicable laws.

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An overreliance on overdraft and N.S.F.

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fees adversely affects both
members and their credit unions.

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Institutions that rely more on fee
income have greater concentration risk.

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N C U A’s supervisory priorities have
included overdrafts for several years.

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In 20 18 and 20 19, N C U A examiners
reviewed credit union overdraft practices,

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including opt-in disclosures, and
conducted transaction testing to verify

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that credit unions were complying with
the applicable regulatory provisions.

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In 20 22, examiners requested
information about a credit

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union’s policies and procedures
governing its overdraft programs.

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In 20 23, NCUA examiners started
conducting reviews of overdraft website

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advertising, balance calculation
methods, and settlement processes

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for federal credit unions with assets
totaling 500 million dollars or more.

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I think it is prudent to not prejudge
the data or assume a narrative before

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assessing the data in aggregate.

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Our very capable staff is currently
assessing the newly collected data and

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I look forward to reviewing it to get
a better sense of the bigger picture.

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This concludes the statement.

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If your Credit union could use assistance
with your exam, reach out to Mark Treichel

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on LinkedIn, or at mark Treichel dot com.

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This is Samantha Shares and
we Thank you for listening.