DUBUQUE, Iowa–A credit union here found itself as the lead item in a national report on how financial institutions are handling stimulus payments to Americans who have overdrawn their accounts.
Morgan Banke, a member of Dupaco Community Credit Union, was profiled in a report by the New York Times that also included reporting on banks’ policies toward their customers.
The Times reported that since August of 2020, Banke has had just enough money in her Dupaco account every month to pay either her rent or her car insurance. “The unemployed mother of two has relied on her bank, the Dupaco Community Credit Union in Dubuque, Iowa, to cover the difference. But each time she makes that choice, the bank charges her $28 in overdraft fees. Her account is $780 in the red,” the report stated.
According to the Times, when Banke heard of new stimulus payments from the federal government, she contacted Dupaco to ask if it would waive the outstanding fees, allowing her to tap her stimulus check, but Dupaco said no.
As the Times reported, Banke isn’t alone and it isn’t just Dupaco Community CU with a similar policy, even though in the past week the largest United States banks have pledged to “temporarily zero out their customers’ negative balances so they can get access to their stimulus money and put it toward whatever expense seems the most pressing.”
Big Banks to Credit Accounts
Representatives of Bank of America, Citigroup, JPMorgan Chase and Wells Fargo told the New York Times they would be crediting customers’ accounts for roughly a month after the money arrived. “After that, the banks will revert the accounts to their previous overdrawn status,” the report stated, noting the banks acted similarly after the first wave of stimulus.
Other large regional banks, including Fifth Third Bancorp, Truist, PNC Financial Services and US Bank, are following suit,” the Times stated,
“However, some regional and community banks — which often serve areas where there is little competition, including poor neighborhoods and rural communities — are pursuing different approaches,” according to the Times. “Some smaller banks say they are considering customers’ requests on a case-by-case basis.”
Banke’s credit union, Dupaco Community, where Banke, 25, has had an account for six years, ever since she started working as a bartender in Dubuque, doesn’t have a blanket policy for its members, the Times stated. Banke currently lives in Madison, Wis.
CU Has Previously Waived Fees
“We work with members on an individual basis to address whatever situation they might have,” Dave Klavitter, a Dupaco spokesperson, told the Times, saying he would not comment on Banke’s case.
However, Dupaco Community has on three earlier occasions waived Banke’s overdraft fees on three earlier occasions, prior to more recently indicating it would not waive the fees again.
Banke said she plans to ask Dupaco if it can zero out her balance temporarily.