Two groups following the overdraft debate and new rules by the Federal Reserve have provided different perspectives on credit union and banks' compliance burden.
In coming up with procedures, CUs "will have an advantage over banks in that they are closer to their members," so the job may be easier, observed Kate Monahan, analyst for the Aite Group of Boston.
It is understandable, she said that CU management will want to wait and see what legislation is finally enacted, but in the meantime, "credit unions should be getting their staff in place for a rollout" of the opt-in information. There's no doubt, she said, that "politicians look at banks and credit unions as created equal."
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Greg McBride, analyst for Bankrate Inc., a survey research firm in N. Palm Beach, Fla., said the sharp impact of the new rules on CUs "may a bit overstated" since "we feel it will not impact the broad population, but a small segment who tend to be repeat offenders in overdrawing their accounts." Regardless, the new rules "will not arrest the trend of these fees going higher," forecast McBride.
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