NCUA: NSF/Overdraft Notice Not Required Posted by AVCU on 10:58 AM

NCUA has issued a legal opinion letter stating that federal credit unions aren't required to send a notice each time a member incurs an NSF or overdraft fee. However, NCUA’s regulations require FCUs to include NSF and overdraft fees in their periodic statement disclosures of fees charged to an account. Although individual notices aren't required, NCUA guidance states it is a “best practice” to notify members promptly. Disclosures of NSF and overdraft fees are generally governed by NCUA’s Truth in Savings Act (TISA) rule. NCUA’s TISA rule requires periodic statements to include a disclosure of any fees, including those for NSFs and overdrafts, debited from an account during the statement period.