PORTLAND, Ore.—Providence Federal Credit Union is cutting its overdraft fees in half, with its Courtesy Pay program now charging $15 per overdraft rather than $30.
“Our Courtesy Pay program is a safety net for our members’ checking accounts when funds are low and even when mistakes are made. It is another way Providence FCU is helping our members when they need it,” said Board Chair Mary Savage in a statement. “While some financial institutions view fees as a source of revenue, Providence FCU is not-for-profit, so when we saw that we could cut our fees, we didn’t even hesitate.”
The $140-million credit union said members who enroll in Courtesy Pay may overdraft up to $400 to be subject to the $15 overdraft fee. Since launch, Providence FCU said approximately 30% of active checking members have already enrolled.
“Courtesy Pay protection is suited for those who may experience a surprise expense, are enrolled in automatic bill pay and don’t have the funds to cover, or have forgotten to check with joint account holders about individual expenditures,” the credit union said in announcing the change.
Providence FCU has approximately 16,200 members.