BROOKFIELD, Wis.-As credit unions race to meet the Reg E deadlines, two card experts are wondering if credit unions are paying attention to what may occur after Aug. 15.
Kay Leaks, regulatory compliance manager at Fiserv, is concerned that some credit unions may not have staff ready to handle the calls that will come mid-August. "I have been stressing to our clients that they need to educate their member-contact staff, the people who will be taking the complaint calls. Because on Monday, August 16, there could be a lot of them."
Many members do not read mail from the credit union, and if the CU has not reached out on multiple occasions, they will face the wrath of many uniformed members when transactions are declined. "I hate to say it, but a lot of members will learn about Reg E when they go shopping on the 15th," Leaks pointed out.
Leaks said call center and front-line staff should be up to speed on the new overdraft rules and have a script to follow that carefully explains what the new policies are, why they have changed, how to opt in, and that the credit union has already reached out to the member.
Card processors also reminded that credit unions should be looking for ways to quickly respond when members who have not opted in to overdraft have transactions declined, such as having the core system notify member service, which follows up with a call.
Co-Op Financial Services in Rancho Cucamonga, Calif. plans to notify members of client credit unions of their option to opt in right at the ATM when a withdrawal is declined. "In our closed network we will present the option to opt in at the ATM on a per-transaction basis should that transaction result in an overdraft," said Kim Hester, EVP-network services. "That will be ongoing. If members have not opted in, they can opt in and the credit union can follow up with the needed disclosures."
Not only should CUs have processes in place Aug. 15 to help members opt in when transactions are declined, they should not stop communicating about the new overdraft policy , said Leaks. "This is not a one-, two-, or even three-time educational effort. Credit unions need to continue education all the way up to August 15 and afterward."
