Banks and Credit Unions Can Regain the Role of Trusted Caretaker and Advisor for All Things Financial

CARMEL, Ind., May 18 /PRNewswire/ -- Regulatory changes may force the extinction of free checking. An amendment to Regulation E, the Electronic Funds Transfer (EFT) Act, takes effect July 1, 2010, and will leave financial institutions looking for a way to replace non-sufficient funds (NSF) fees, the primary source of checking account revenue.

The amendment to Regulation E prohibits financial institutions from charging consumers fees for paying overdrafts on automated teller machine (ATM) and one-time debit card transactions, unless a consumer consents, or opts in, to the overdraft service for those types of transactions. The majority (57%) of consumers surveyed by Action Market Intelligence indicated they would not opt in for the overdraft programs. But, given the propensity of people to seldom opt in for anything, the percentage likely will be much higher.

Sally King, chief operating officer and managing partner of NXG Strategies, offers a solution in a no-cost webinar, "Creating the Value Exchange."  

"Our approach is to raise fee income with service charges while adding additional layers of security for credit unions and for their members," King said. "It restores financial institutions to their role as the foundation of financial support and security for the family."

To register for one of the webinars, visit http://nxgstrategies.webex.com. King will host presentations May 25 at 11 AM EDT, May 27 at 4 PM EDT, June 1 at 11 AM EDT, and June 4 at 2 PM EDT.

To learn more about the NXG approach, visit www.idsafechoice.com to access King's whitepaper, "The Paradigm of Free Checking: Where we are and how we got here."

NXG Strategies is a nationally recognized and respected marketing and consulting organization that combines subject matter expertise and years of experience in financial services and other vertical markets to provide organizations with identity theft and risk mitigation solutions. NXG works with organizations to find the best program solution to meet their needs and designs sales strategies to effectively meet acquisition and retention goals.

SOURCE Allied Solutions, LLC