WEST PALM BEACH, Fla. — The arrival of 2010 means it's six months and counting until credit unions must comply with a July 1 deadline for compliance with Regulation E rules and overdraft protection.
For many credit unions the new rules are likely to negatively impact the fee income now being generated by members who overdraw their checking accounts. Analysts interviewed by Credit Union Journal, however, see a certain number of opportunities in the marketplace for credit unions that act now, and some even bigger opportunities for credit unions that do no already have an overdraft protection program in place.
The new rules from the Fed, along with proposed restrictions that are included in various consumer protection bills in Congress, are in response to populist anger over bounced check fees charged by banks, many of which received bailout funds from U.S. taxpayers. Various vendors have already responded with a number of solutions aimed at assisting credit unions in not only maintaining revenue streams, but also in complying with the new rules.
Read more about how this could impact your credit union in the stories below.
LOMBARD, Ill. — Other "sexy" issues like healthcare, jobs and terrorism are likely to put consumer protection legislation on the backburner once again, according to Bill Handel VP-Product Development at Raddon Financial Group, who believes a bill with significant changes to overdraft practices will not be seen in 2010, if at all.
BROOKFIELD, Wis. — Fiserv recently released Relationship Advance, a new product that allows credit unions to provide a short-term, open-end line of credit linked to members' checking accounts.
WILMINGTON, N.C. — Changes to Reg. E and future overdraft reform are beneficial for credit unions, according to Robert C. Giltner, a consulting partner at Velocity Solutions.