NSF has become the new four letter within the financial industry. While many institutions have grown dependent upon the $30 or so they charge a customer/member for an NSF, Washington DC is revving up to throw shame at FIs that impose those fees.
What’s a credit union to do?
A year ago we did a podcast with Joel Schwartz, founder of the then fledgling DoubleCheck, a company created to help consumers – and their FIs – better navigate NSFs. You are going to want to listen to that podcast – link here.
A lot has happened since that podcast. Washington DC has gotten more vocal about NSFs – you aren’t the only one having nightmares about the CFPB and Elizabeth Warren.
A lot of FIs – from Chase to B of A to many credit unions have slashed or eliminated NSF fees. You might think that this is curtains for Schwartz and DoubleCheck.
There is the NSF and then there are the ripple effects such as late fees imposed by merchants and credit card companies. Often the late fees can add up to lots of money that inflicts still more damage and pain on a consumer struggling to stay afloat. That’s where DoubleCheck’s patented technology comes in. It gives an early warning to the consumer about late fees heading his/her way and it also offers alternatives (such as putting some charges on a credit card).
This is win-win. It’s good for the consumer and good for the FI (and it does not create bad press which doing nothing can).
You might think this will be a somber podcast, talking about bounced checks and fees and cranky politicians. Be prepared instead to laugh. Schwartz knows what he is dealing with is serious stuff but he is a man who can see the lighter side too.
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