NCUA Releases Research Note on
Overdraft, NSF Fees at Credit Unions
ALEXANDRIA,
Va. (Jan. 16, 2025) – The National Credit
Union Administration today released a Research Note that provides an
analysis of statistics for overdraft and non-sufficient funds fees, and
observations on the relationship between overdraft and non-sufficient
funds fees and other revenues.
“This
Research Note provides important information for consumers,
researchers, credit unions, and regulators about the use of overdraft
and NSF fees at credit unions,” NCUA Chairman Todd M. Harper said. “The
findings suggest that credit unions are not offsetting this income
through reduced fees for other services or lower interest rates. Credit
unions that rely heavily on fee income from overdrafts and NSF fees
have concentration risk issues, which raises potential
safety-and-soundness concerns. And, on the other side of the
transaction, consumers who can least afford it are often paying an
oversized portion of those fees. It’s time for credit unions to rethink
their overdraft and NSF programs.”
View the entire press release
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