One of South Florida’s largest credit unions has decided to stop making money off its members’ mistakes.
And the company’s president and CEO believes that other financial institutions will soon follow its lead ahead of an expected federal crackdown on penalties and fees.
Power Financial Credit Union, headquartered in Pembroke Pines, recently eliminated overdraft and insufficient funds penalties for its 33,000 members in 14 Florida counties, including Broward, Palm Beach and Miami-Dade.
No longer will members have to pay a $35 penalty if they write a check, make a debit card purchase, or pay an online bill without enough money in their checking accounts to cover it. Penalties associated with the credit union’s credit cards, however, will remain in place.
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