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After months of banks’ efforts to explain new opt-in policies for account-overdraft protection, 60% of consumers surveyed last month were aware of pending changes in debit card overdraft services on existing accounts mandated by new federal rules, according to new data from Mintel Comperemedia, which surveyed 1,000 U.S. adults online. That was up from 40% who were aware of the changes during a similar survey Mintel conducted two months earlier.
August 24
Susan Wolfe, vice president of financial services at Mintel Comperemedia, is way off in making this statement:
"The fact that 60% of consumers were aware of changes in their debit overdraft policies is not bad because it's been covered pretty well by the media, but when you drill down to see what consumers really understand about their options, most are hazy," Wolfe contends. "The fact that consumers are not completely aware of these services, or clear about the details, means banks have more work to do in promoting these services."
As the survey later indicates, most of a financial institution's customers do not have overdrafts. With us, only roughly 16,000 of our 200,000 members have ever used something which would make opting in necessary, so that's about 8% of our membership. I would expect folks for whom this regulation would not touch to not be overly concerned with the changes. So they would be fuzzy because it will never affect them.
Why spend money promoting a service to consumers who will never use it?
Instead, in this environment, shouldn't we be using our resources to target those that are most likely to need it? Yep. So with us, that would be about 18% of our members. If 60% know about it, then we've already gone above and beyond.
Also, this comment again seemed off base:
"As of Aug. 15, bank customers must opt in to receive debit-overdraft coverage on existing accounts or risk having debit transactions declined at the point of sale. Most banks' new overdraft-coverage programs require the customer to link their debit account to a savings account or credit card. Fees typically average about $10 for each day the account is overdrawn."
This daily overdraft fee was mostly eliminated by the reg, at least as it ties to check card debits.
Carlton Howard
Coastal Federal Credit Union
