NCUA Board Member Tanya Otsuka Statment on Collection of Overdrafts and Non-Sufficient Fund Data
Samantha: Hello, this is Samantha Shares.
This episode covers N C U A Board
Member Tanya Oatskaâs statement on
the agencyâs Collection of Overdraft
and Non-Sufficient Fund Data
The following is an audio
version of that statement.
This podcast is educational
and is not legal advice.
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N.C.U.A.
Board Member Tanya Oatska Statement
on N C U Aâs Collection of Overdraft
and Non-Sufficient Fund Data
during a meeting of the NCUA Board.
As Prepared for Delivery on May
twenty second, twenty twenty four
The N.C.U.A.
has a responsibility to ensure we have
a safe and sound system of cooperative
credit and a mandate to ensure that credit
unions are following all applicable laws.
The actions that N C U A has taken
over the years with respect to
overdraft and fee income is consistent
with those responsibilities.
Itâs important for the N C U A to
understand the data both at the individual
institution level and system wide.
We also need to make sure that it
is transparent for credit unions,
credit union members and the public.
Overdraft practices and fees should
already be disclosed to members and
in compliance with applicable laws.
An overreliance on overdraft and N.S.F.
fees adversely affects both
members and their credit unions.
Institutions that rely more on fee
income have greater concentration risk.
N C U Aâs supervisory priorities have
included overdrafts for several years.
In 20 18 and 20 19, N C U A examiners
reviewed credit union overdraft practices,
including opt-in disclosures, and
conducted transaction testing to verify
that credit unions were complying with
the applicable regulatory provisions.
In 20 22, examiners requested
information about a credit
unionâs policies and procedures
governing its overdraft programs.
In 20 23, NCUA examiners started
conducting reviews of overdraft website
advertising, balance calculation
methods, and settlement processes
for federal credit unions with assets
totaling 500 million dollars or more.
I think it is prudent to not prejudge
the data or assume a narrative before
assessing the data in aggregate.
Our very capable staff is currently
assessing the newly collected data and
I look forward to reviewing it to get
a better sense of the bigger picture.
This concludes the statement.
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with your exam, reach out to Mark Treichel
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This is Samantha Shares and
we Thank you for listening.
