Today I received our monthly statement from the credit union. As usual, the envelope contained the glossy newsletter along with the actual statement.
One thing in particular caught my eye: a note about the changes that would eventually be implemented on our checking account overdraft protection. Overdraft protection is basically a loan that automatically goes into effect if we overdraw our account. It must be paid back, and charges a fee for each transaction.
It has saved our butts more than once.
Because of government reforms, the service is no longer going to be quite as automatic. Members have to ‘opt-in’ to the service if they want to keep it as it is now.
My mind immediately went back to my last credit union visit. The teller had asked me if I wanted to keep the service. I said yes, and thanked her for asking.
We’re financially responsible and all, I just like knowing that the cushion is there if we need it.
Thing is, there’s a good reason that the service is getting the once over. I know from experience that it’s really easy to fall back on the overdraft protection, and suddenly realize we owe $500. Something tells me that I might take better care not to overdraw if I can’t rely on the credit union to save me from myself.
There is a lot more to this change, and it’s totally worth educating yourself about it, but I’m going somewhere else with this.
What’s interesting to me is the way our credit union presented the situation to its members. The language sort of implied that something was being taken from me, and I should take back control and keep my overdraft protection. Of course, they didn’t mention the fees, which act like 25% interest in some cases.
In reality, stopping the overdraft protection puts some control, and responsibility, back in the hands of members. Sure, it might be embarrassing and inconvenient when we get declined at the gas station, but it can also force us to be more careful with and keep better track of our money.
It’s all so incredibly familiar, and American. We love pointing out our vices as pampered global rich kids. But are we going to stop whining about how easy we have it and make things harder on ourselves?
We have the choice. Lucky us.
In a different vein, I decided to call the credit union’s member services and ask to stop receiving those wasteful paper statements every month. They really have no purpose after the advent of online banking. Maybe if the banks can save enough on stamps, they won’t miss all the revenue from overdraft fees!