New Mexico credit union stops overdraft fees
New Mexico’s oldest credit union will no longer charge members overdraft fees.
The US Eagle Federal Credit Union announced it would end the practice at a virtual press conference on Wednesday. During the event, US Eagle President and CEO Marsha Majors said the recent growth of the Albuquerque-based credit union has enabled it to make the switch. The change takes effect for members on Thursday.
âI am extremely proud to say, on behalf of US Eagle, that we are eliminating these painful fees that most people have been powerless to manage,â said Majors.
Before the change, Majors said the credit union would allow a withdrawal with insufficient funds in an account before billing them. She added that typical fees range from $ 29 to $ 33.
In 2020 alone, Americans paid $ 12.4 billion in overdraft fees, with nearly 80% of those paying them living from paycheck to paycheck, according to a press release from US Eagle.
The majors have estimated that about half a dozen banks and credit unions nationwide have eliminated overdraft fees in recent years.
She said the change would cost US Eagle between $ 1.5 million and $ 2 million in annual revenue, but said the change is expected to benefit the more than 80,000 members of the credit union.
“We think they will be very happy to see that these fees have been eliminated,” she said.
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