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FOR IMMEDIATE RELEASE

NAFCU Statement on CFPB Checking Account Field Hearing

Washington (Feb. 3, 2016) -National Association of Federal Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement in conjunction with the CFPB's field hearing today on checking accounts.

"At credit unions, which are member-owned, not-for-profit financial cooperatives, members come first.Credit unions work every day to ensure that their members have the information and services that will help them meet their financial goals," Hunt said. "Credit unions remain the best choice for consumers seeking low- or no-fee checking, and the majority of those offering overdraft services also offer alternatives such as overdraft lines of credit and linked savings accounts."

"Credit unions return any ‘earnings' to their members in the form of lower fees and better rates," Hunt said. "At most credit unions, you can open an account for as little as $5, and the majority still offer no-fee checking."

According to Bankrate's 2015 Credit Union Checking Survey, 72 percent of checking accounts at credit unions are free, compared with just 37 percent of banks offering free checking.

Last year, NAFCU surveyed its member credit unions on overdraft, and every respondent to that survey reported that they offer alternatives to overdraft or courtesy pay programs. Some 84 percent reported the most popular of these, among their own members, are overdraft lines of credit and linked savings accounts. And nearly every respondent – 97 percent – reported that they would reverse an overdraft charge on a case-by-case basis.

Many credit union members also enjoy access to tens of thousands of free ATMs nationwide. Numerous credit unions also participate in a shared branching network that gives members access to locations in all 50 states.

The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance.www.nafcu.org.

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Patty Briotta
Director of Public Relations
703-842-2820

pbriotta@nafcu.org