WASHINGTON (3/21/13)--A bill introduced this week that would cap overdraft fees is "legislation that seems to address a problem that doesn't exist in the credit union system," according to the Credit Union National Association.
CUNA Senior Vice President of Legislative Affairs Ryan Donovan made that point in a story posted on the NBC "Today Show" website that takes a look at the overdraft bill. The story noted credit unions are concerned about their growing regulatory burden.
CUNA President/CEO Bill Cheney also noted overdraft protection plans that are reasonably structured can help ensure consumers will have access to funds when needed. "CUNA supports the ability of credit unions to offer these plans as a means to help their members resolve short-term financial problems," Cheney said Wednesday.
Just a day earlier, Reps. Carolyn Maloney (D-N.Y.) and Maxine Waters (D-Calif.) introduced the Overdraft Protection Act of 2013, which would amend the Truth in Lending Act. In addition to capping overdraft fees, the bill proposes to impose a limit on the number of overdrafts that a member could use per year, and require financial institutions to post credits and debits in a particular order.
Cheney added that CUNA historically has had concerns with legislative and regulatory proposals that make it more difficult for credit unions to offer these services to their members: "We believe these decisions are best made by the democratically elected boards of directors of credit unions, not by Congress or the regulator."