WINSTON-SALEM, N.C. — Truliant Federal Credit Union here created a video sharing why it has always provided opt-in overdraft protection.
In the video-which can be viewed at www.youtube.com/watch?v=Qint-sG0T4s-Marc Schaefer, CEO of the $1.2-billion CU, talks about the difference between opt-in and opt-out overdraft, how the difference impacts consumers, how a line of credit versus overdraft can provide a significant savings to consumers, how Truliant's program is priced, and says that all financial institutions should offer opt-in overdraft protection.
"It's less consumer friendly," Schaefer said about opt-out programs, in the video, because it assumes the member already understands about overdraft programs. "They have to figure that out and decide they don't want to do that."
Schaefer said most of Truliant's overdraft accounts are tied to lines of credit that they've set up in advance with the credit union.
"There's a significant difference in cost to the consumer," when tied to a line of credit, Schaefer explains in the video. "An overdraft can cost a member $20 million. When a line of credit is advanced that same overdraft-say $300 for 10 days-cost about $1.28. Truliant's program has been opt-in from day one, and we believe that's the way that all financial institutions should offer overdraft protection."
