NCUA releases Research Note on overdraft, NSF revenue statistics

The NCUA released a Research Note Thursday analyzing statistics for overdraft and non-sufficient funds (NSF) fees collected. The data comes from federally insured credit unions with more than $1 billion in assets, which are now required to submit overdraft and NSF fee revenue starting with the 2024 first quarter call report.

The Research Note, prepared by NCUA’s Office of the Chief Economist, uses revenue data from the first three quarters of 2024 and evaluates overdraft and NSF revenues as a fraction of total revenues.

“As we have steadfastly maintained, services such as overdraft protection are essential for meeting the unique financial needs of credit union members and offer critical support in times of financial shortfall. The NCUA’s Research Note fails to acknowledge the positive impact these programs have on members’ financial stability,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. “The assertion that credit unions rely excessively on fee income from overdrafts and NSF fees overlooks the responsible management and member-focused approach inherent to the credit union industry. We strongly oppose any regulatory measures that undermine the ability of credit unions to offer products and services members demand.”

America’s Credit Unions’ research shows credit union fee income has declined as a percentage of average assets for 17 consecutive years and now sits at a 33-year low. The organization has provided additional data to the NCUA, the CFPB, and Congress showing credit unions offer overdraft programs in a responsible manner.

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