PLEASANTON, Calif.-According to Mitch Lucas, the impending overdraft opt-in deadline could be more of an opportunity for credit unions than a setback.
"I think for 95% of members this will not have an impact," stated the VP-product management and legal compliance at Harland Financial Solutions here. "This probably affects 5% to 10% of the membership base who occasionally have problems. They may get embarrassed or become annoyed when they are declined, but they will figure out how to fix the problem. They will either go back and opt in, or either link to a share account or an overdraft line of credit.
"Lucas emphasized that the new overdraft rule, or any major regulatory change, is an opportunity to re-evaluate products, their impact, and the relationship the CU has with its membership. Lucas contended that deeper relationships can be made now depending on how the financial approaches members about a change. "Right now I am getting bombarded by my financial institutions, one is a bank and one is a credit union. The CU has figured out how to do this politely and respectfully, and my bank has not."
