BIRMINGHAM, Ala. — The Alabama Credit Union League is firming upits public policy on overdraft protection, warning that unnamedfinancial institutions–primarily banks–are taking advantage ofconsumers with unsavory practices.

In a formal statement on so-called courtesy pay programs, theleague also reminded regulators and lawmakers that the productshould be treated as a special member service or an account featurerather than as a loan.

The league statement came amidst new congressional and statescrutiny given to overdraft protection as some regional banks,including those in Alabama, are re-pricing products or adoptingprocedures consumer groups find predatory.