The Road to a Fully Compliant Overdraft Solution
There is no such thing as too much account holder communication when it comes to overdraft programs. As an early proponent of socially responsible overdraft programs, John M. Floyd & Associates (JMFA) is at the forefront of consumer education initiatives that greatly enhance the success of credit unions’ overdraft strategies.
There is no such thing as too much communication.
Financial institutions are criticized by regulators for not having disclosed the details of an overdraft solution, but rarely receive criticism for having disclosed too much.
Consumers continue to experience difficult economic situations, and many rely on their financial institution’s overdraft program to help them make ends meet. When having access to a reliable service translates into the ability to pay one’s mortgage or rent on time or cover the cost of medical needs and essential services, it can make a tremendous difference in an account holder’s life.
By implementing and maintaining a socially responsible overdraft program that provides clarity and communication to protect account holders from financial harm, credit unions can survive and prosper in today’s complicated regulatory environment.
JMFA is an innovator in user-friendly overdraft programs.
The JMFA OVERDRAFT PRIVILEGE® program has been implemented in more than 1,600 credit unions, thrifts and banks across the U.S. As a fully disclosed program, it allows consumers to be aware of their ability to overdraw their account up to a disclosed limit, with associated fee(s) should they experience a financial shortfall.
Examiners are onsite in one or more of JMFA's client organizations just about every business day of the year. And, JMFA regularly updates its program implementations and account holder materials to address regulatory issues raised by any agency, including the CFPB.
Because of the program’s emphasis on consumer education and institutional strategies that enhance safety and soundness, JMFA OVERDRAFT PRIVILEGE® carries a 100% Compliance Guarantee.
Click here to learn more about JMFA’s ongoing efforts to provide useful insight to regulators as they prepare to issue rules for overdraft services. if you would like to learn more about JMFA or an overdraft program, please contact your MCUA field representative.