DENVER–Westerra Credit Union has become the latest to announce it will eliminate all overdraft fees and non-sufficient funds fees on checking accounts.
The credit union said it has been waiving all fees since March 2020, when the pandemic began in the U.S., and will now move to permanently discontinue all overdraft and non-sufficient funds fees.
In announcing the decision, Westerra said it is challenging other financial institutions to break the long-time tradition of financial institutions charging fees when consumers do not have enough funds in their accounts to cover transactions.
“Let’s work together to make a difference for the people in our community,” said WCU President/CEO Jay Champion. “Let’s help people manage life’s challenges, not make it more difficult by charging fees when they can least afford it.”
According to the $1.9-billion Westerra, it offers its approximately 113,000 members a variety of tools that can be used to monitor accounts, including setting alerts for when funds reach certain low balances so that funds can automatically be transferred from other accounts. If there are insufficient funds in the account, the transaction may be declined without a fee, so members can arrange another form of payment, or a payment on another date, the credit union said.
Regular Checkups
Westerra added it also regularly conducts financial checkups with members to help them understand how to utilize these tools. The credit union said it recently launched technology to make it easy for consumers to open checking accounts in less than five minutes.
“We’re undergoing a transformation at Westerra and in our country,” Champion said. “This move to eliminate archaic check overdraft fees is another step closer to our goal of creating a more equitable banking experience for everyone.”
Other CUs That Have Cut, Reduced Fees
As CUToday.info has reported, Alliant Credit Union in Chicago announced earlier that it has eliminated overdraft fees, while UW Credit Union in Madison, Wis., said it has cut its overdraft fee to $5.