Changes to Regulation E and consumer opt-in requirements could significantly impact credit union non-interest income. NSF/Overdraft fees currently comprise 28% of credit union non-interest income, according to a recent study conducted by Callahan & Associates. To comply with the upcoming July 1 deadline, credit unions are facing increased marketing costs and operational issues as they inform members, meet opt-in notification requirements, and ensure their data processing systems can easily address the changes.
“The new overdraft protection rules impact credit union operations on a number of fronts,” says Jay Johnson, Executive Vice President at Callahan & Associates. “Increased costs for compliance combined with decreased non-interest income revenue could significantly impact credit union financials. There is also a potential for damaging the member relationship if overdraft fees are mistakenly charged or debit charges incorrectly denied for those who opt-in.”
To discuss the impact of the Reg E Changes and new rules surrounding overdraft protection, Callahan & Associates is hosting a panel of industry business partners on Tuesday, April 6th at 2 p.m. EDT. These industry experts will help credit unions understand the different ways that these rules will affect their operations and develop strategies for increasing member opt-in.
During the webinar, Prepare Your Credit Union for Overdraft Opt-in and Reg E Changes, credit unions will have an opportunity to ask questions and obtain feedback to aid in developing their own strategies for informing members. Speakers include:
- Jay Johnson, Callahan & Associates
- Sean Mulvaney and Zach Gabelhouse of Acton Marketing
- Heather McGuire, PSCU Financial Services
- Jim Vilker, CU*Answers