LAKE FOREST, Ill.—Few credit union members have issues with their cooperative’s overdraft (OD) services—and CUs are doing a better job than banks when it comes to ODs—according to a new analysis of the CFPB’s year-end consumer complaint data.
Moebs $ervices recently completed a review of the CFPB consumer complaint database and found that only five credit unions received complaints, overall, through Dec. 31. The bureau began collecting consumer complaint data in late 2011.
Credit unions were the subject of 1,960 complaints to the CFPB, 43 of those pertaining to overdrafts. Overall, all financial institutions have received 245,755 complaints. Member complaints about their credit unions represent just 0.02% of all complaints.
Not surprisingly, what complaints there were came from members of some of the largest credit unions, which also have significantly more members than other CUs. The $72-billion Navy FCU in Vienna, Va., received the most CU complaints with 1,434 overall, with 34 related to ODs. The $19-billion Pentagon FCU in Alexandria, Va., received 413 complaints in total and one for overdrafts. The $31.2-billion State Employees’ CU in Raleigh, N.C., netted 66 complaints, four regarding ODs. The $14-billion BECU in Tukwila, Wash., came in at 46 and two. And the $11.4-billion SchoolsFirst FCU in Santa Ana, Calif., received only one complaint, and it was not for overdrafts.
“Credit unions are definitely leading the way on overdraft complaints with so few. Now is the time to use this positive member service result to consider lowering the price of overdrafts,” suggested Michael Moebs, economist and CEO at Moebs $ervices.
Overdraft prices for the CUs receiving complaints are: Navy ($29), Pentagon ($20), SECU ($12), BECU ($25) and Schools First ($20).
But banks are doing a good job with overdrafts, as well, according to the CFPB data. Of 500,000-plus consumer complaints in the CFPB database, only 1.5% pertained to overdrafts, Moebs explained.
“As the economy is improving and the election year is here, the CFPB will have to answer why any action on overdrafts is being put in front of enormous complaints about mortgages, debt collectors, credit reporting agencies, credit cards and others,” said Moebs.