Overdraft protection dollars could aid consumers during COVID-19

An article in CUToday covers proposals to use overdraft protection funds to help consumers during the fallout of coronavirus-related financial strain. The online magazine mentions Mike Moebs, economist and CEO of Moebs $ervices, who suggests $46.1-billion in unused overdrafts could be a valuable resource.

CU Today also examines economist Arnold Kling’s proposal on his blog, citing both economists reasoning for how those dollars could supplement insufficient government aid to consumers with the $1,200 checks being distributed to Americans.

According to the article, “In his own analysis of Kling’s proposal, Ron Shevlin, managing director of fintech research at Cornerstone Advisors, explained on the company’s Snark Tank blog that Kling believes the program should last for a specified period of time after which the checking account holder would have to cover any credit provided in order to avoid a penalty.”

Read more at CUToday.

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The League of Southeastern Credit Unions & Affiliates represents nearly 300 credit unions throughout Alabama, Florida, and Georgia. It has a combined total of almost $200 billion in assets and 12.4 million members. LSCU provides advocacy, compliance services, education and training, cooperative initiatives, and communications.

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