High Touch and High Tech Fuel Reg E Opt-In Successes
7/21/2010
By Lindsey Siegriest
Credit unions are scrambling to get members to opt-in to overdraft or courtesy pay programs by the Aug. 15 deadline in order to retain noninterest income.
The new requirements, called Regulation E, passed last November forced financial institutions to make sure that new customers opt-in for overdraft or courtesy pay programs for debit card and ATM transactions starting on July 1. They have until Aug. 15 to get existing customers to opt-in.
Ventura County Credit Union in Ventura, Calif., is aiming to get 17,000 of its 25,000 members to opt-in to its courtesy pay program by the August deadline.
So far the credit union has reached 60% of its goal with an opt-in rate of 95%. It started to reach out to members in April through e-blasts, mailing inserts, website banners, in-branch merchandising and communication through branches and the call center.
“The most important thing was that we started early,” said Gavin Bradley, vice president of member service. “We started strategizing last year and have been having weekly meetings since January.”
The most effective method for the credit union has been speaking to customers as they come into the branch. All staff members were trained on how to handle different questions and scenarios when explaining the new opt-in requirements to members. The credit union also sets monthly company-wide goals and incentives for employees who meet those goals. Employees hit the target two months in a row.
The credit union’s IT team set up a notification system so that when frontline employees access a member’s account, they can see if he or she has decided whether to opt-in or opt-out yet. The system also offers employees tips on how to ask members to opt-in.
“This deals with the service issue of having to ask members over and over again and it makes it easier on the staff to have that information in front of them,” said Bert Herrera, vice president of IT.
Herrera added that his team is also trying to develop a system to give members the option to opt-in at the ATM to reach them at the point of need.
The credit union is currently on track to reach its goal of 17,000 by the deadline. The members who have chosen not to opt-in, Bradley said, explained that they never use courtesy pay and don’t see the need for it. But the majority of members, he said, like things the way they are and are happy with keeping the service as long as it isn’t being changed.
“We’ve definitely used all avenues to reach out to members and we feel that has been effective,” Bradley added.
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