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MCoUSA Overdraft Privilege

Overdraft Management Service Solution

Our Overdraft Management Consulting service is designed to implement a customized overdraft management program that is acceptable to your bank’s management with the desired community perception while introducing fairness, controls and efficiencies that result in increased profitability.

MCoUSA Principals have been consulting with community banks on overdraft management for over a decade. Our independent review of overdraft management practices and policy has helped hundreds of banks improve efficiency, tighten controls, reduce losses, and increase fee income.

We often find that there is no formal overdraft management policy and that pay-return and charge-waive decisions are inconsistent. Our detailed analysis of practices among officers, branches and customer-groups identifies areas where improvements can be achieved and becomes the basis for a formal, written policy

A recent development in overdraft management is the advent of overdraft balance limits. While these programs can generate significant new profits; MCoUSA does not recommend any approach that encourages overdrafts.

Our approach is to address overdraft balance limit usage within the scope of our Overdraft Management program; carefully addressing management, regulatory, community and customer perspectives. Based on our experience, the vast majority of NSF checks have a covering deposit within 3 or 4 days. We feel that the use of overdraft balance limits and other available core system automation is frequently underutilized. Properly designed programs can greatly reduce processing time, ensure high levels of customer service for high-value accountholders and represents an acceptable risk to the bank with the proper rules-based controls. And, this may be accomplished without openly encouraging overdrafts.

Whether overdraft balances are part of the solution or not, MCoUSA’s overdraft management software program, ODManager™, helps manage and collect overdrafts. (ODManager™ software is also available separately. More…)

Our Overdraft Management Consulting service is results oriented with fees based on the results you actually realize.