Chairman Kyle S. Hauptman announced that the National Credit Union Administration (NCUA) will no longer publish overdraft and non-sufficient fund (NSF) fee income for individual credit unions with more than $1 billion in assets. Instead, under the new policy effective with the March 31, 2025 call reporting, the NCUA will collect the data during supervisory examinations. The agency will continue to publish overdraft and NSF fee income data in the aggregate but not on an individual credit union basis.
“Our regulatory framework should protect consumers from predatory practices without depriving them of the financial tools they need to navigate their lives,” Chairman Hauptman said. “The appropriateness of overdrafts and NSF fees charged is a matter between a credit union and its member-owners who ultimately determine how their credit union is run.”
In December, prior to the change in leadership, the NCUA issued advisory guidance to federal credit unions regarding the consumer harm stemming from fee practices. The advisory letter warned that that certain overdraft fee practices and returned deposited item (RDI) fee practices will subject credit unions to heightened risk and provided some risk management principles for credit unions to follow with respect to overdraft and NSF fee practices. Earlier last year, the NCUA indicated that credit unions should expect increased NCUA supervision on overdraft and NSF fees.
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