PEMBROKE PINES, Fla.–Power Financial Credit Union said it is eliminating all overdraft and non-sufficient funds fees for both its personal banking and business banking members. The CU’s CEO, Allan Prindle, said the change returns nearly $1 million annually to its members’ pockets.
As CUToday.info has reported, a handful of institutions nationally, including several credit unions, have also announced similar fee eliminations, and Power Financial said it is the first in South Florida to do so.
“Banks and credit unions charged $30 billion in overdraft fees in 2020,” said Prindle. “But what is even more striking about overdraft fees is that they disproportionally hurt those individuals and families that are most vulnerable financially. We don’t think that is right, so we decided to do what we always do and put the financial needs of our members above all else by taking the industry-leading step to get rid of all overdraft and non-sufficient funds fees.”
According to PFCU’s website, it had had in place an opt-in Courtesy Pay program that charged no fees on overdraws of $10 or less, and a fee of $35 each time it pays a check or ACH overdraft transaction or an ATM or debit card overdraft transaction.
‘Can Really Hurt’
In making its announcement, the $921-million Power Financial said “overdraft fees can really hurt consumers by keeping them in the perpetual cycle of debt. One forgotten payment or an unexpected expense can push those living check-to-check to overdraft their account and pile up significant fees. With the elimination of overdraft and non-sufficient funds fees, Power Financial Credit Union is making banking more accessible, inclusive and forgiving.”