USA Today is on a tear
August 4, 2009 | USA Today, alternatives, federal legislation, industry | Comments (0)Another story in today’s paper goes after government credit union overdraft fees. From the story:
Government credit unions aren’t run by the government but are legally owned by their members, including some of the administration officials and members of Congress pushing for overdraft reform. Credit unions say they automatically extend overdraft loans because members want the service. And they point out that as not-for-profit institutions, they want to meet their customers’ needs.
At the United States Senate Federal Credit Union, which counts senators and other government employees among its members, courtesy overdraft is provided because, “If we didn’t, (consumers) would go somewhere else and get it,” says CEO Susan Enis.
Not everyone wants to be signed up, however. Sen. Chris Dodd, D-Conn., chairman of the powerful Senate Banking Committee, is a customer of the Senate credit union. He’s also been an outspoken critic of overdraft practices, vowing to crack down if regulators keep letting institutions automatically sign consumers up.
“All banks and credit unions should be required to get customers’ OK before they sign them up for overdraft services,” Dodd says.
Comments»
No comments yet.