Thu, Oct 15, 2015
Over the course of the past 10 years, there have been a half dozen regulations or proposed guidance on overdraft solutions. Each of these have defined what financial institutions could and could not do when providing a solution for consumers who did not have sufficient funds to cover a purchase or cash withdrawal at the time the transaction posted to their account.
After collecting overdraft program data from nine of the nation's largest banks in 2011, the Consumer Financial Protection Bureau recently requested anonymized data from core processors FIS, Fiserv and Jack Henry. By capturing this generic, snapshot of how overdrafts are processed and how fees are assessed at the system level before any discretionary intervention, regulators hope to obtain the information needed to determine whether any additional overdraft rules are necessary.
Due to the changing regulatory environment, many existing overdraft programs are outdated and obsolete. The all-new JMFA OVERDRAFT PRIVILEGE® program includes all-new analytics, strategies, communication tools, as well as reporting and tracking to help credit unions recover lost revenue, offer a compliant program, and provide a value-added service for members.