SECU: Now Leading "The Charge" On NSF Fees - "Esse Quam"?

  Bragged in a post on 2/14/2024 [link] about SECU's "Second Chance" NSF Program...

Introduced over a decade ago, the Second Chance program - paired with a low NSF fee of $12 (banks charged @ $30) - helped greatly reduce or eliminate the cost of a bounced check for SECU members. But that was then, what about now? 

✅ In 2022, Bank of America eliminated its NSF fee to help their consumer customers:           

"January 11, 2022  - Bank of America today announced significant changes to its overdraft services, including plans to eliminate non-sufficient funds (NSF) fees beginning in February 2022..." "... and leads the industry in helping clients avoid overdrafts; and, in doing so, has significantly reduced the vast majority of fees related to overdraft. “Throughout the process we have engaged our National Community Advisory Council (NCAC) for their guidance and feedback on our changes."

[😎 Why not ask the SECU Advisory Boards to "raise their hands" about helping members by eliminating this fee?] 

✅ SECU no longer leads the Country in looking for ways to help members avoid costly NSF fees.  The Credit Union charged SECU members $25+ million in NSF fees during 2023. That's a lot of paychecks for teachers, state employees, and their families! And of course, having just finished its "most profitable year on record in 2023", SECU didn't "need the money" more than those members.

✅ Here's what the federal regulator - the Consumer Financial Protection Bureau - had to say:

• Among banks with over $10 billion in assets, 97% of NSF fee revenue has been eliminated.
• CFPB estimates that, as a result of the elimination of NSF fees at these banks, consumers are saving almost $2 billion annually on a going forward basis.

✅ SECU is a $50 billion financial institution. Only 2 out of the 37 U.S. banks over $50 billion now charge an NSF fee. According to CFPB:

			Table 1: NSF fee practice of banks with over $50 billion in assets, grouped by asset size Assets Total number of banks Number of banks no longer charging NSF fees Number of banks continuing to charge NSF fees Over $200B          14        14            0 $100B-$200B            8           8            0 $75B-$100B            5          5            0 $50B-$75B          10          8            2
			... thought "the We Board" wanted SECU to be "industry standard"?

The North Carolina Credit Union Division - Ms. Kristina Ray, Esse Quam Videri?

... Esse Quam Videri

"To Be, Rather Than To Seem?" 

✅ To: Ms. Kristina Ray, Administrator of Credit Unions

cc: North Carolina Credit Union Commission

 

Dear Ms. Ray,

We forwarded you the attached letter and request at the end of February, 2024. We have received neither an acknowledgement nor response from you.

If you intend to ignore our request, would you please let us know. Thank you.

Sincerely,

Jean and Jim Blaine

March 6, 2024

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 ✅ To: Ms. Kristina Ray, Administrator of Credit Unions

cc: North Carolina Credit Union Commission 

Dear Ms Ray,

On August 28, 2023, we received a letter from SECU which began as follows:

"The North Carolina Credit Union Division ("NCCUD") forwarded to State Employees' Credit Union ("SECU") correspondence and other information (the "Complaint") you provided on July 25, 2023 and August 11, 2023 regarding certain elements of SECU's bylaws and election policies and procedures (the "EDAP") and SECU's publication of its financial statements. We write  in response to your Complaint."

The letter is signed by Leigh Brady with "cc: NCCUD".

We have never seen nor received a copy of "our Complaint". Would you please forward a copy of the "Complaint" to us immediately. We would very much like to know what we said, if you will permit us that courtesy.

Given the discussion at the recent Commission subcommittee meeting and the upcoming April 9, 2024 Commission Meeting, your prompt response would be appreciated.

Hope you do not find it unfair, nor unreasonable for us to ask you for a copy of "our Complaint". Thank you.

Sincerely,

Jean and Jim Blaine

February 29, 2024

... you do start to wonder just what's going on... don't you?!?