New Mexico’s oldest credit union will no longer charge overdraft fees to members.
U.S. Eagle Federal Credit Union announced that it would halt the practice during a virtual news conference Wednesday. During the event, U.S. Eagle president and CEO Marsha Majors said the Albuquerque-based credit union’s recent growth has allowed it to make the change. The change takes effect for members on Thursday.
“I’m extremely proud to say, on behalf of U.S. Eagle, that we are eliminating this painful fee that most people have been powerless to deal with,” Majors said.
Prior to the change, Majors said the credit union would allow one withdrawal with insufficient funds in an account before charging them. She added that a typical fee ranges from $29 to $33.
In 2020 alone, Americans paid $12.4 billion in overdraft fees, with nearly 80% of those who pay them living paycheck-to-paycheck, according to a news release from U.S. Eagle.
Majors estimated that about half a dozen banks and credit unions nationwide have eliminated overdraft fees in recent years.
She said the change would cost U.S. Eagle between $1.5 and $2 million in annual revenue, but said the change should be a helpful one to the credit union’s more than 80,000 members.
“We believe that they will be very happy to see that those fees have been eliminated,” she said.