Providence Federal Credit Union (Providence FCU) has announced it will reduce overdraft fees in their Courtesy Pay program from $30 to $15 for members, making it one of the lowest in the nation. Courtesy Pay is designed to give members, who may inadvertently overdraft their account, peace of mind that their expenses will be covered until the shortage is rectified.
“Our Courtesy Pay program is a safety net for our members’ checking accounts when funds are low and even when mistakes are made. It is another way Providence FCU is helping our members when they need it,” said Mary Savage, Providence FCU Board of Directors Chair. “While some financial institutions view fees as a source of revenue, Providence FCU is not-for-profit, so when we saw that we could cut our fees, we didn’t even hesitate.”
Members who enroll in Courtesy Pay may overdraft up to $400 in a transaction and will now only pay a $15 overdraft fee. Launched June 3rd, more than 30% of its active checking members have already enrolled in the service. Courtesy Pay protection is suited for those who may experience a surprise expense, are enrolled in automatic bill pay and don’t have the funds to cover, or have forgotten to check with joint account holders about individual expenditures. Members can enroll in the program at any time for free. Members only pay when the service is used.