800-809-2307
Four Letters. Infinite Potential.

JMFA Compliance Team Meets with Regulators Regarding Overdraft Solutions

Meeting opens dialogue as regulators contemplate new regulations

By Cheryl Lawson, EVP-Compliance Review

When the Consumer Financial Protection Bureau (CFPB) solicited input in 2012 on the impact of overdraft protection programs on consumers, JMFA partnered with Washington D.C.-based Morrison & Foerster, LLP, to provide information gathered from community bank and credit union clients across the nation. In February, together with our Compliance Counsel, Oliver Ireland, Partner at Morrison Foerster, we met with representatives of the CFPB to discuss how fully-transparent, disclosed overdraft programs provide a valuable resource for consumers when they experience financial difficulties. 

This meeting – which was a follow-up to the information JMFA provided previously to the CFPB in response to its request for comment on overdraft programs – enabled us to explain how JMFA OVERDRAFT PRIVILEGE® works in its entirety. The CFPB members appreciated the opportunity to learn more about the experiences smaller financial institutions – those not part of their own survey – have with a transparent, fully-disclosed overdraft solution. They were receptive to our consumer education materials, as well as the strategies the program provides to help banks and credit unions avoid risks. We are pleased to report that we received no objection or criticism regarding any part of the program. 

As we continue our efforts to provide our clients with the most up-to-date overdraft solution, we are responding to recent government rule changes – which left many overdraft programs outdated and obsolete – by making changes to our own, building an all-new JMFA OVERDRAFT PRIVILEGE® program that helps financial institutions stay compliant and recapture lost income. 

As the CFPB and other regulators continue to develop overdraft strategies and guidance for small- and- medium-sized financial institutions, JMFA will continue to communicate with them regarding fully compliant, non-discriminatory overdraft solutions. Their leadership has encouraged our on-going participation since we agree that the best programs are those that provide consistent, non-discriminatory and compliant financial tools for consumers. 

We have been the premier provider of fully disclosed overdraft programs for more than 25 years, and we remain committed to providing the best solution for banks and credit unions, and the consumers they serve. 

To learn more about our on-going efforts and where we see the industry going, contact the representative for your region.


As seen in:
Credit Union Association of New Mexico's Website- March 19, 2014
Cornerstone Credit Union League's Leaguer- March 20, 2014
Maryland and DC Credit Union Association's The Daily Scoop- March 20, 2014

Name:
Email:
Subject:
Message:
x
account holder account holder retention account holder strategies account holder strategies; growth strategies; account holders announcement attracting talent Bank of Pacific banks batching best practices board governance board member board of directors bottom line branch profitability branding Bryan Hanks budget business culture business environment business strategies career advice Case Study CEO onboarding CFPB Charles Shanley Cheryl Lawson Chris Karstens communications Compliance compliance examinations compliance risks Consumer FInancial Protection Bureau Contract Optimizer Contract Renegotiations contract review contract staffing core processor contracts corporate culture corporate governance CPE credits credit card contracts credit cards credit unions Crissandra Fry CSS culture customer service cyber security Darin Byrd debit card contracts digital directors economy efficiency studies election employee employee retention employees EMV migration evaluation executive search expense management expense reduction expense studies expenses Federal Reserve Board fees financial services financial stability Floyd's Forum full disclosure Generating Income generating leads generation governance government hiring HR HR Consulting HR policies human capital human resources income income enhancement interview strategies interview tips IT contracts Jan Southern Jennifer Peoples Jim Griffis JMFA Academy JMFA clients JMFA News job search John M. Floyd Keith Hughey Kelly Flynn Kim Kreps leaders leadership lending program Linda Meyer loans management Mark Roe marketing Midwest Region Millennial Millennials Missouri NCUA negotiating contracts Net Operating Analysis NOA Non-Interest Income Oliver Ireland onboarding Organizational Health outsourcing overdraft compliance overdraft coverage overdraft fees overdraft practices Overdraft Privilege overdraft program Overdraft programs overdraft protection programs overdraft service overdraft strategy overdrafts Paul McFarland payday loans Pennsylvania performance improvement personnel planning Press Release Privilege Manager CRM process improvement product profitability Profitability Improvement project staffing Recruiting Recruitment Services recruitment strategies re-engineering regional director regulations regulators regulatory Retaining Employees revenue revenue enhancement Richard Miller ROI Ron Jennings senate service service agreements shareholders social media staff staff development staff spotlight staffing staffing gaps staffing studies staffing study stakeholders Strategic Planning Succession plan succession planning Susan Prell talent technology technology costs technology utilization temporary staff Tim Strandquist training UDAAP vendors Washington Westmoreland Community FCU