Pub. 2 2012-2013 Issue 6

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S May • June 2013 15 institution leaders representing banks and credit unions from across the country. Their responses, gathered through a series of forums and surveys, focused on the following areas the CFPB has identi fi ed as concerning: • patterns of overdraft program use; • posting order that increases consumer costs; • opt-in rates based on misleading statements and excessive pressure; and • disproportionate impact on low-income and young consumers. Who uses overdraft services? According to the study results, there appear to be two distinct patterns of overdraft use: consumers who use the program occasionally – and in many cases inadvertently – and those who regularly rely on overdrafts to meet their near-term liquidity needs. Because they do not incur frequent overdrafts, occasional users are less likely to understand their fi nancial institution’s overdraft practices. This includes individuals who have incurred signi fi cant overdraft fees for debit card and ATM transactions because they were relying on their fi nancial institution to reject these transactions if they would lead to an overdraft. Providing these account holders with easy-to-understand information about how your overdraft program works is essential to main- taining compliance. On the other hand, it is important to counsel customers who regularly overdraw their accounts about the risks of ex- cessive overdraft usage. While these account holders might have a clear understanding of your overdraft services and the associated costs, make sure you have the policies and proce- Give your small business customers greater access to capital with CHFA’s Cash Collateral Support program. This streamlined program is easy to use and allows you to use your own underwriting criteria. In a short time, you could have cash deposited at your bank equal to up to 25 percent of the loan amount. Take advantage of the industry’s best kept secret. Contact CHFA Business Finance today and get the deal done! get the deal done 800.877. chfa (2432) www.chfainfo.com financing the places where people live and work Q Protect Your Bank  continued on page 16 When implemented and managed correctly, a fully compliant overdraft program will provide peace of mind for your customers and your institution.