Overdraft Compliance and Performance Review Program Offered through CUNA, JMFA Partnership

FOR IMMEDIATE RELEASE
Contact:
Katye Long - CUNA Communications;
(608) 231-4038;
202-508-6765; klong@cuna.coop
Steve Swanston, EVP-Sales - John M. Floyd & Associates;
Baytown, TX; (800) 809-2307
Steve.Swanston@JMFA.com, www.overdraftprivilege.org
Preston F. Kirk, APR - Kirk Public Relations;
Austin, TX; (830) 693-4447; kirk@281.com

MADISON, Wis. and BAYTOWN, Texas – Credit unions can ensure that their existing overdraft programs comply with federal guidelines and the recommendations issued by federal regulatory agencies in February through an industry partnership that offers a no-obligation compliance and performance review program.

John M. Floyd & Associates, Inc. (JMFA) and CUNA Strategic Services, Inc. are jointly offering the JMFA ODP Compliance and Performance Review^SM program that examines existing programs for compliance with the government guidance issued by the Federal Reserve Board, Federal Deposit Insurance Corporation, National Credit Union Administration and the Office of the Comptroller of the Currency.

The guidance addresses safety and soundness considerations, legal risks and best practices. It is aimed at eliminating such abuses as discriminatory availability, over-promotion, under-education of consumers on its proper use and individual overdraft limits based on a ‘mystery matrix’ unknown to the member. The agencies want to avoid the promotion of poor account management; to provide a clear explanation of the discretionary nature of the program; to clearly disclose fees and to explain the impact of transaction-clearing policies on the overdraft fees consumers may incur.

During the comprehensive review, JMFA assesses all aspects of compliance, including Regs B, E, Z, Part 707 of NCUA Rules and Regulations, the FTC Act and Interagency Guidance. The firm reviews risk policies and procedures to test the overdraft program’s consumer friendliness. JMFA also looks at such key performance indicators as income and charge-offs to make sure the institution reaches peak potential.

“No matter how successful a financial institution’s overdraft, bounce protection or courtesy pay program has been, if management is not reacting to industry changes and consumer concerns, it is missing out,” said Steve Swanston, executive vice president of Sales for JMFA. “Our no-obligation review, based in part on the National Credit Union Association guidelines, can help them avoid violations and provide a more consumer friendly program.

“Not only have we stayed on top of all the latest regulations, from day one we also guaranteed 100 percent compliance with state and federal regulations,” Swanston added. “In fact, for years our company founder advocated the fair-practices issued by the five agencies.

“We also assist the credit union with technology upgrades to help streamline processes that improve efficiency and reporting,” Swanston added. “And because personnel turnover can be an issue, JMFA provides all the products, tools and training required to update staff members responsible for communicating with members and administering the overdraft program.”

“JMFA’s consumer-focus, attention to regulatory compliance and best management practices further heighten its acceptance and reliability in fine-tuning any existing overdraft program under the new guidelines,” said Wes Millar, senior vice president of CUNA’s Strategic Alliances.

JMFA, which pioneered the automated, nondiscriminatory overdraft program in 1988, has implemented more than 1,000 variations of JMFA Overdraft Privilege^SM. It is partnered with leading national core processors serving financial institutions and has been jointly marketing the high profile, value-added service with CUNA since September 2003.

CUNA Strategic Services, Inc.
CUNA Strategic Services, Inc., owned jointly by Credit Union National Association (CUNA) and the state leagues, provides credit unions with access to high quality products, services and technologies delivered with a competitive advantage made possible through volume pricing and strategic program development. CUNA serves more than 90 percent of America’s 9,300 credit unions, which are owned by nearly 86 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information, visit www.strategicservices.cuna.org.

About John M. Floyd & Associates, Inc.
JMFA, founded in 1973, is a leading provider of performance improvement programs for financial institutions, including overdraft privilege. JMFA has installed programs in more than 2,000 performance improvement programs in financial institutions for its clients in 49 states and Central America. The company has implemented more than 1,000 variations of its JMFA Overdraft Privilege^SM program in the past 17 years and is partnered with leading industry associations and core processors.

JMFA Overdraft Privilege^SM and JMFA ODP Compliance and Performance Review^SM are service marks of John M. Floyd & Associates, Inc.

Copyright © 2008 - Credit Union National Association, Inc.