... Mr. Todd Harper, Chair NCUA.
The National Credit Union Administration (NCUA) is the federal regulator which helps "monitor and oversee" the operation and performance of SECU. A credit union board is wise to listen carefully to what a federal regulator "suggests" should be done. Best to give NCUA the same respect you would give to someone pointing a loaded gun at you. In other words, listen carefully, don't push your luck!
✅ Here's what Mr. Harper had to say about NSF's [link CUTimes 3/04/2024]: "Remember Blockbuster Video? More than 9,000 locations, nearly $6 billion in yearly revenue, and lots of late fees. Although customers hated those late fees, Blockbuster became overly reliant on that income. When Netflix's online ordering, mail-in return, low monthly fee and no-late-fees model came along, Blockbuster was then too slow to adjust. And, well, you know the rest of the story: Blockbuster withered until it went bankrupt."
"The lesson from Blockbuster's downfall is this: Profiting from consumers' problems can come back and bite you. That's because, at some point, your competition will solve your customer's problems. It's happening right now in financial services."
"With markets changing, it's time for credit unions of all sizes and charter types to reevaluate their overdraft and NSF fee programs. These programs can harm consumers, and they're also unsustainable in the long run. "
"And, in far too many instances, the most vulnerable members – people of color and those with lower incomes – are the ones paying the bulk of these fees. That's inequitable."
"The hard truth is that as more banks decrease overdraft fees or drop them altogether, consumers will expect their credit unions to follow."
"Credit unions that fail to adjust may even end up in the dustbin of history. Just ask Blockbuster Video."
"... people of color and those with lower incomes – are
the ones paying the bulk of these fees. That's inequitable." Kinda reminds you of race-based lending (RBL), doesn't it!
