Texas Dow Employees Credit Union wasn't sweating the Aug. 15 Reg E overdraft opt-in deadline.
The $1.5 million Lake Jackson, Texas, credit union started to implement its overdraft opt-in plan back in April.
Stephanie Sherrodd, senior vice president of member services, said the credit union separated members by usage and targeted those who used the service the most. It used a combination of direct mail, outbound phone calls and employee contests to get members to opt-in.
By the time the deadline arrived, the credit union had an 84% opt-in rate.
To continually provide members with the opportunity to opt-in, the credit union's development team built a text and e-mail system to alert members of an overdraft at the ATM or point of sale.
The alert provides a phone number the member can call to opt-in to courtesy pay protection right on the spot.
"Since the deadline we've had some members receive the texts and opt-in on the spot, but we already had a high opt-in rate before the deadline so it is not a huge rush of members," Sherrodd said.
However, the credit union has seen an increase in usage of its courtesy pay program since implementing its strategy in April.
"With our employees talking to members more and educating members on the program we've seen higher usage rates," Sherrodd said. "With more members being aware the service is available, they are using it and paying it back."
Texas Dow gave away iPods, lunches and jeans days to employees to encourage them to talk to members about the courtesy program and educate them on the benefits of opting in.