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NCUA to Increase Scrutiny on Overdraft and NSF Fees
Michael Christians • February 13, 2024
On February 6th, in prepared remarks outlining the National Credit Union Administration's 2024 supervisory priorities, Chairman Todd Harper indicated that credit unions should expect increased supervision in the area of overdraft and NSF fees.
In their expanded review of credit union overdraft programs, examiners will focus on advertising, balance calculation methods, and settlement processes. This includes ensuring that overdraft and NSF fees are reasonable and proportional, and that credit unions do not charge re-presentment fees or fees in connection with authorize positive/settle negative transactions.
In furtherance of this increased scrutiny, Chairman Harper indicated that credit unions with more than $1 billion in assets will be required to separately report information about their overdraft and NSF fees to the NCUA.
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