Under the Federal Reserve Board's revised Regulation E covering electronic fund transfers, overdraft protection can no longer be provided as an automatic service to credit union members. Members must give permission to have this service, or opt-in. This applies to all new members after July 1, while all existing members must opt-in by Aug. 15.
If a member declines overdraft protection or doesn't opt-in by the deadline, all debit card transactions will be declined at the point of sale if there are insufficient funds to cover the purchase. This may also lead to a significant reduction in fee income for credit unions.
"CO-OP Member Center is ready to explain how the credit union's overdraft program is changing and take requests to opt-in for protection," said Mark Chatfield, Chief Operating Officer, CO-OP Member Center. "We can also assist with outbound calls for the critical task of reaching members who rely the most on this service from their credit union. Our call center offers credit unions of all sizes a convenient channel for their members to opt-in."
After taking a member's opt-in call, CO-OP Member Center will report customer requests and relevant accounts to be covered to the credit union, which then generates a written communication to the customer confirming that they have opted-in for overdraft protection. This CO-OP Member Center service is performed without any set-up fees and is available immediately to existing clients.
Additional benefits of CO-OP Member Center include increasing profits by growing lending operations, cross-selling credit union products and services 24/7, enabling credit unions to focus on their core competencies and facilitating speedy adoption of new technologies such as mobile banking via CO-OP's Next Generation Network (NGN) Universal Hub.
For more information on CO-OP Member Center, based in Fort Worth, Texas, e-mail firstname.lastname@example.org or call 1-800-782-9042, ext. 7140.
About CO-OP Financial Services
Based in Rancho Cucamonga, Calif., CO-OP Financial Services is the industry leader in access and convenience products for credit unions. Nearing 30 years of credit union service, CO-OP connects credit union members to their accounts through network services, payment processing, e-commerce, CO-OP Shared Branching and call center services. With a total of 3,000 credit union members, 30 million cardholders, 28,000 surcharge-free ATMs, 4,000 shared branch locations and 160 million-plus monthly transactions, CO-OP Financial Services is the nation's largest credit union service organization, offering the tools, counsel and leadership to help credit unions prosper. To learn more, visit www.co-opfs.org. Follow CO-OP on Twitter at:http://twitter.com/COOPFS and keep up with industry issues via the CO-OP Insight Vault blog at:http://co-opinsightvault.com.