ST. LOUIS-Dave Tate, VP-branch operations at the $1.2-billion Anheuser-Busch Employees CU, is anticipating an intriguing year ahead.
"On my side of the business, it's really going to be interesting," shared Tate. "Especially with all of the various bills that will affect the consumer."
Limiting revenue on overdraft or courtesy pay programs obviously creates bottom-line concerns, but where credit unions really need to pay attention, according to Tate, is how the new overdraft laws will impact members. "When the credit union pays for an overdraft we accept the liability that the member will eventually make that good," he observed. "When we are limited on the items we can pay, I'm not sure Congress realizes that many checks now are going to go back to the merchant."
Members will need to understand, Tate said, that they actually have the funds in place to cover the checks they are writing. "If not, the individual is going to face problems. Not with us anymore, but with the merchants they wrote the check to. They will face collections issues on that end."
With Check 21 speeding up the check processing, members must be educated about how quickly checks clear today, and about the new overdraft rules, insisted Tate. "They no longer have three days after they write the check at the grocery store to get the money into their accounts. It's going to mean a lot more member education."
