WASHINGTON, D.C. – At America’s Credit Unions premiere advocacy event, Governmental Affairs Conference, NCUA Chairman Kyle Hauptman announced from the main stage that the NCUA Call Report Data on overdraft will now be confidential. 

“Credit unions offer overdraft programs in safe, clearly disclosed terms to members who may need help to make ends meet, but having this data publicly accessible could lead to consequential misunderstandings. America’s Credit Unions thanks Chairman Hauptman for hearing the concerns of credit unions and moving to protect institutions from reputational harm,” said America’s Credit Unions President/CEO Jim Nussle. “We look forward to continued collaboration on issues that ensure credit unions remain consumers’ best option for financial partners.”

“There is a well-intentioned movement aimed at protecting consumers from excessive fees, which is something we all support,” NCUA Chairman Kyle Hauptman said. “However, we must also consider the unintended consequences of such policies. In this instance, the previous data collection policy incentivized credit unions to avoid serving the needs of low-income and underserved communities. These fees can be the best option in a bad situation, saving money and protecting individuals’ credit scores. Overdraft also protects people from much higher costs imposed by their local governments.

“Our regulatory framework should protect consumers from predatory practices without depriving them of the financial tools they need to navigate their lives. The appropriateness of overdrafts and NSF fees charged is a matter between a credit union and its member-owners who ultimately determine how their credit union is run,” Hauptman concluded.

America’s Credit Unions has raised concerns about reporting and publicly publishing data from overdraft and non-sufficient fund fees since the NCUA made the requirement last year. America’s Credit Unions has also urged the agency to use a more transparent process for changes to call reports to ensure credit unions have reasonable time to review, provide feedback, and implement the changes.

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America’s Credit Unions is the unified voice for not-for-profit credit unions and their more than 140 million members nationwide. America’s Credit Unions provides strong advocacy, resources and services to protect, empower, and advance credit unions and the people and communities they serve. For more information about America’s Credit Unions, visit AmericasCreditUnions.org.