The State Employees’ Credit Union issued a letter highlighting the institution’s consumer-friendly overdraft services, practices and moderation efforts in response to the Consumer Financial Protection Bureau’s call for public comment on overdraft practices.
The letter focuses specifically on SECU’s low- and no-cost overdraft options and services designed to help customers avoid overdraft fees. SECU’s standard overdraft option, used by more than 80 percent of the institution’s account holders, prevents the accrual of fees associated with bounced checks. The standard option allows members to select a credit card, deposit account or open-end loan to be used as an overdraft safeguard in the event of insufficient checking funds and a 50 cent fee is charged to the overdrawn account for the service, Business Wire reports.
SECU customers can also avoid fees entirely. A two-way text alert system allows members to receive texts when potential “red flags” like low balances occur on the account. The SECU also offers the “Another Chance” program, which alerts members when a pending item is set to be charged to an account with insufficient funds. SECU customers must then make a deposit into the account before the end of the business day to avoid non-sufficient fund fees, Business Wire reports.
SECU Senior VP of Education Services Leigh Brady said that the SECU follows a “people first” policy.
“As a not-for-profit financial cooperative, [SECU] operates with a ‘People Helping People’ philosophy and ‘Do the Right Thing’ mentality, designing products and services that offer true consumer value and keep money where it belongs – in the pockets of consumers,” Brady said, according to Business Wire. “This philosophy and mentality have helped to shape what SECU considers industry-leading, consumer-friendly overdraft best practices.”