National Credit Union Administration (NCUA) Chair Kyle Hauptman announced changes to overdraft and non-sufficient fund (NSF) fee data collection policies intended to help credit unions support its members struggling with inflation.
The previous data collection policy required federally insured credit unions with more than $1 billion in assets to disclose, separately, income from overdraft and NSF fees. The data was then made available to the public on an individual basis and in the aggregate.
Under the new policy, the NCUA will collect overdraft and NSF fee data as part of the examination process, the agency explained in a press release. This data will continue to be published in the aggregate once updates to the NCUA’s examination system are complete.
“There is a well-intentioned movement aimed at protecting consumers from excessive fees, which is something we all support,” Hauptman said in a press release. “However, we must also consider the unintended consequences of such policies. In this instance, the previous data collection policy incentivized credit unions to avoid serving the needs of low-income and underserved communities. These fees can be the best option in a bad situation, saving money and protecting individuals’ credit scores. Overdraft also protects people from much higher costs imposed by their local governments.”
Hauptman discussed the policy change during a fireside chat with America’s Credit Unions President and CEO Jim Nussle during the 2025 Governmental Affairs Conference in Washington, D.C.
“Our regulatory framework should protect consumers from predatory practices without depriving them of the financial tools they need to navigate their lives,” Hauptman said. “The appropriateness of overdrafts and NSF fees charged is a matter between a credit union and its member-owners who ultimately determine how their credit union is run.”
He also told Nussle about what he calls “true financial inclusion,” which he described as removing barriers to de novo credit unions and removing the “pain points” that have led to fewer small credit unions.
“The NCUA must ensure our regulatory burden is not a factor in a credit union’s decision to merge away,” he said. “Once those credit unions are gone, rarely does anyone come to fill their place. Relieving the regulatory burden on credit unions, especially the small and newly formed ones posing relatively low risk to the Share Insurance Fund, is vital to keeping these credit unions thriving now and in the future.”
The new data collection policy is schedule to take effect on March 31.