RANCHO CUCAMONGA, Calif.-Kim Hester, EVP network services for CO-Op Financial Services, observed that not all CUs view Reg E education as defensive. Some see it as a means to increase debit revenue.
"Genisys Credit Union in Michigan had never had overdraft for debit transactions and now sees this as a great opportunity to jump in. They started letting members know on their statements in March and have an entire marketing program through direct mail, outbound calling, their website, and online banking. They are getting really good response from their members."
CU response to the overdraft deadline has been varied, but the successful ones have one thing in common: a focus on member satisfaction. "You have to get ahead with good, clear communication. After all, this is about member satisfaction. If members understand what is going on, they won't be upset if they get declined. Keep members satisfied and we'll keep some of that non-interest income we so desperately need."
