A declaratory order issued by Georgia's financial regulator hasbrought parity in overdraft fee limitations for all of the state'scredit unions.

The order, issued by Commissioner Kevin B. Hagler, exempts Georgia's state-charteredcredit unions from fee limits on overdrafts from deposit accounts,bringing them in line with those of federally chartered creditunions.

The order, issued July 11 and prompted by requests from theGeorgia Credit Union Association, follows on the heels of a similardeclaratory order issued earlier on behalf of several statebanks.

Both orders exempt their respective financial institutions fromviolating Georgia's usury limits, according to Angi Harbin, GCUA'sdirector of communications.

“Looking at opinion letters issued by NCUA and the federalcredit union act, it became clear that federally chartered creditunions would not be subject to the Georgia usury code, so the orderprovides parity between state- and federally chartered creditunions,” Harbin said.

“GCUA requested the department issue an order that would ensurestate-chartered credit unions parity with federal credit unionsoperating in Georgia,” she said.

The order affects credit unions whose members overdraw sharesavings or share draft accounts using an ATM card, check or debitcard. Under the order, state-chartered credit unions are nowprotected from violating usury limitations that do not apply to federallychartered institutions.

“It is difficult to predict the impact this will have on creditunions and their members, as the order does not requirestate-chartered credit unions to make a change in their overdraftfee structure, and it does not affect federally-chartered creditunions at all,” Harbin said.

The earlier declaratory order on behalf of Georgia's banks wasprompted by a Georgia Court of Appeals decision in the case ofSynovus Bank vs. Griner. The petition for certiorari, a writ thatseeks further legal review, is currently pending before the GeorgiaSupreme Court, according to Georgia Department of Banking andFinance's Oscar B. Fears III.

“In light of the pending cert petition, the department hasdetermined that it will not make any public comments on thedeclaratory orders at this time,” Fears added.