The 1.7 million member, $23.6 billion State Employees' CreditUnion has written the Consumer Financial Protection Bureau with adescription of its own checking overdraft program as an example ofhow a consumer-friendly program might be established.

The agency has announced an intent to look again at rulesgoverning how overdraftprotection programs work.

“SECU's regular overdraft option, utilized by more than 80% ofthe credit union's 900,000 checking account holders, protectsagainst high fees associated with 'bounced checks,' “the NorthCarolina credit union wrote.

“This option provides members with the opportunity to selecttheir deposit accounts, open-end loans or credit card to be usedfor automatic transfer of funds, when needed to 'pay' a checkingaccount item. A $.50 transfer fee is debited from theprotected checking account for the service,” SECU wrote.

But the CU also wrote that members can avoid fees altogether byusing text messaging or going online to move money.

“As a not-for-profit financial cooperative, State Employees' Credit Union operates with a 'People HelpingPeople' philosophy and 'Do the Right Thing' mentality, designingproducts and services that offer true consumer value and keep moneywhere it belongs – in the pockets of consumers,” said Leigh Brady,SECU senior vice president of education services.

“This philosophy and mentality have helped to shaped what SECUconsiders industry-leading, consumer-friendly overdraft bestpractices,” Brady said.