CLACKAMAS, Ore.– Advantis Credit Union has reduced both overdraft fees and non-sufficient funds (NSF) fees for all checking accounts, cutting the fee to $10 from $25.
The credit union said the change is in line with its mission of helping members improve their financial lives, as well as its goal of providing greater financial equity for members.
“Too often the members who incur these fees are already the most financially vulnerable,” said Advantis President and CEO Jason Werts. “Whether they are a family living paycheck to paycheck, a college student with their first account, or someone getting back on their feet after a job loss, adding additional hardships to these individuals goes against who we are. As a not-for-profit financial cooperative, it is our top priority to remove financial pain points and support our members’ financial success. Reducing these fees is one way to help ease the financial burden on these members.”
In making the announcement, the $1.98-billion Advantis cited national industry research that shows overdraft fees can present a significant burden on some consumers, with a small percentage of consumers accounting for the vast majority of overdraft revenue (for financial institutions nationwide).
It added that studies also found that while small institutions with overdraft programs charged lower fees on average, consumer outcomes were similar to those found at larger banks.
Advantis said it has a long established low-fee business model, with a small percentage of total revenue coming from fee income. The credit union is estimating its members will save approximately $400,000 in the coming year as a result of its decrease in overdraft and NSF fees.
Members ‘Find Value’
The credit union said it will “continue to offer overdraft services for its members, although as noted, at a fee level that is 60% lower and more equitable,” and that is has “found that many members find value in this service to help cover inadvertent times in which they overdraw their account, especially allowing important payments (such as rent and utilities) to be paid successfully.”
Advantis further noted it offers its approximately 85,000 members tools and resources in the form of account alerts based on account balances and card controls designed to help members monitor daily spending. It also offers free online financial wellness courses as well as the option to meet with a personal financial educator.
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