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Michigan Credit Union League

AAACU's Slashed ODP Fees Will Save Members $675K

Alpena Alcona Area Credit Union (AAACU) recently announced that it has, once again, reduced its non-sufficient fund (NSF) and overdraft protection service fee (ODP).

The fee will now be $13.75, effective Dec. 1, 2021.

The $527-million credit union serving 32,315 members noted that in comparison, the average overdraft fee being charged in the U.S. is $33.58, according to a recent study.

The new fee structure will be one of the lowest in Northeast Michigan as compared to other area financial institutions.

“Our members should not have to worry about paying an excessive overdraft fee just to buy food for their family or to put fuel in their automobile,” said President/CEO Donald J. Mills. “Taking action to lower or eliminate service fees is not what most financial institutions would do, but we are not most financial institutions.”

The credit union recognizes that charging excessive service fees can lead to prolonged negative account balances, with each fee making it harder and harder to escape the cycle of debt. These reduced fee adjustments reflect AAACU’s desire to help those who may be struggling to break that cycle.

“We’ve all struggled with finances at some point,” said Mills. “When money is tight, we want our members to be able to put gas in their car, food on their families table and be able to pay their utility bills without having to worry about being charged excessive fees. The decision to lower the service fee was made in the best interest of our members and community, not our credit union’s bottom line.”

By reducing fees, AAACU is putting more money in their member’s pockets, helping them take care of their families and save money for their future.

“Our reduced overdraft protection service fee saved our members over $675,000.00 over the past year alone,” stated Mills. “I am challenging each and every other financial institution, banks & credit unions, in our local NE Michigan communities to take similar action to consider lowering their overdraft protection service fee (ODP) in order to support our members and put them into a better overall financial position.”

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2021-11-17 00:00:00