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Guidance Governing Overdraft Products Long Overdue
Says Strunk & Associates Senior Vice President

Strunk & Associates, L.P. Senior Vice President Marc Paine says the recently published Joint Guidance on Overdraft Protection Programs governing discretionary overdraft services is long overdue and should be welcomed by third party providers and credit unions alike. He views the final guidance as a "common sense approach" that will benefit members and their credit unions and, when managed well, will serve to reinforce member confidence in discretionary overdraft payment services.

Paine, who is Director of Marketing for the Strunk organization, states that although the Joint Guidance provides a more comprehensive structure for discretionary overdraft services, it shouldn’t be looked at as burdensome or as a threat to their operation. The joint guidance actually provides much needed definition to systems that all reputable financial institutions and overdraft service providers should already have in practice. A framework is now in place that outlines appropriate and specific parameters under which discretionary overdraft payment services should be designed, implemented and managed.

However, there is no question that compliance with the final guidance will require a thorough and well prepared approach to marketing, communications and operational processes and procedures. If a credit union is considering a third-party overdraft payment service provider, we recommend a thorough due diligence be undertaken. Evaluate overdraft service providers wisely.

Paine points out that Strunk and Associates’ ongoing investment in, and commitment to, compliance and matters involving legal due diligence is unparalleled and has enabled the company to provide credit unions with the most comprehensive set of Best Practices recommendations for discretionary overdraft payment services in the industry.

In the past decade, deployment of the Strunk & Associates’ Overdraft Privilege^SM Service Program has grown from a modest number of credit unions in the Southwest to over 1000 financial institutions in 47 states and the Caribbean.

More information on the company and their services.

April 5, 2005