Federal credit unions are often seen as the kinder, gentler version of big banks, since they are designed to serve members of modest means without a profit motive. But data from a new reporting rule reviewed by The Lever found that the largest credit unions made nearly $4 billion charging their members unnecessary overdraft fees last year.
Now, following industry lobbying on the issue, President Donald Trump’s top credit union regulator has revoked the junk-fee reporting rule, meaning credit unions will have more leeway to hide how they bilk consumers than the corporate banks to which they’re supposed to serve as an alternative.
