ALPENA, Mich.–Alpena-Alcona Area Credit Union (AAACU) announced it is again cutting its non-sufficient fund (NSF) and overdraft protection service fee (ODP).
The fee will now be $13.75, effective Dec. 1,
In making its announcement, the $527-million credit union, which has more than 32,000 members, compared its pricing to the average overdraft fee being charged in the U.S., which is $33.58, according to a recent Bankrate.com study.
“Our members should not have to worry about paying an excessive overdraft fee just to buy food for their family or to put fuel in their automobile,” said President/CEO Donald J. Mills. “Taking action to lower or eliminate service fees is not what most financial institutions would do, but we are not most financial institutions.”
AAACU further said it recognizes that charging excessive service fees can lead to prolonged negative account balances, with each fee making it harder and harder to escape the cycle of debt. The credit union said the reduced fee adjustments reflect its desire to help those who may be struggling to break that cycle.
‘Best Interest of Members’
“We’ve all struggled with finances at some point,” said Mills. “When money is tight, we want our members to be able to put gas in their car, food on their families table and be able to pay their utility bills without having to worry about being charged excessive fees. The decision to lower the service fee was made in the best interest of our members and community, not our credit union’s bottom line.”
According to Mills, AAACU’s reduced overdraft protection service fee has saved its members more than $675,000 over the past year alone.
“I am challenging each and every other financial institution, banks and credit unions, in our local Northeast Michigan communities to take similar action to consider lowering their overdraft protection service fee in order to support our members and put them into a better overall financial position,” Mills said.