NEW YORK, N.Y. (2/22/12)--Robert Allen, president/CEO of Long Island, N.Y.'s Teachers FCU, will discuss his credit union's approach to overdraft fees, checking account disclosures, and other membership issues at a Wednesday meeting with the Consumer Financial Protection Bureau (CFPB) in New York City.
Allen will appear on behalf of his credit union, the Credit Union Association of New York, and the Credit Union National Association (CUNA). While he is the only credit union representative on the agenda, Allen and will be joined by other financial industry and consumer panelists.
CUNA staff, CFPB Deputy Director Raj Date and other agency staff will also attend the meeting.
Cordray earlier this month said bank overdraft protection programs were one of the areas on the bureau's radar screen, but did not give details on how the CFPB plans to address overdraft issues.
CUNA in a recent meeting with Cordray and CFPB staff raised concerns regarding overdraft protection issues, and said that "credit union members do not need to be protected from their credit unions." However, credit unions do need increased regulatory relief, they said.
According to CUNA estimates, 56% of credit unions that offer checking accounts offer overdraft protection, and 11% of those that offer overdraft protection do not charge a fee for the service. The median overdraft fee is $25, and 95% of those that assess the fee do so on a per-item basis.