TOLLAND, Conn.-Courtesy pay, or overdraft protections, continues to be a good source for non-interest income for credit unions, according to Jim Craig.
But Craig, director of Geezeo Interactive, warned the regulatory environment is changing and a more hands-on management of a CU's overdraft protection program will be required to avoid fines.
"The good news is more active management can also lead to more income from the program," he told Credit Union Journal. "By proactively managing limits based on the account history and promoting debit card use, a credit union can create more opportunities for income creation. By offering money management tools such as online personal financial management, or PFM, credit unions can arm their members with the ability to avoid fees if they choose."
