As Congressional action appears to be looming on overdraft protection, State Employees' Credit Union CEO Jim Blaine and former NCUA Chairman Dennis Dollar engaged in what was described as a "lively and intense" faceoff this week.
In a panel debate during Monday's annual convention of the New Jersey Credit Union League in Atlantic City, the two dueled over the worthiness of the so-called "courtesy" product now getting intense scrutiny from lawmakers and the public following a series of national news articles on the topic.
In comments made later to Credit Union Times,Dollar, ex-regulator and now head of a Birmingham, Ala. consulting firm, defended CU policies in offering what he said is a "real value" to members provided overdraft protections are not abused.
But Blaine, also elaborating on his remarks in an interview, called on CUs to do a major management re-think because "many of our members cannot afford" the service. Too many CUs rely on NSF and related fee income "to stay afloat" and that is wrong, said Blaine.
"There are too many excuses being bandied about for continuing or expanding the service when in reality CUs should start finding new ways to produce income," Blaine advocated
Countering Blaine, Dollar said the views of the State Employees' CEO, who he holds in high regard, are well known in the industry, but the North Carolina executive remains strongly opinionated on the matter.
