Pennsylvania Credit Union Association

John M. Floyd (JMFA)
Overdraft Privilege Program


Changes in regulatory requirements over the past few years regarding financial services and products have had a significant impact on overdraft programs for all financial institutions.  Now, most overdraft programs are outdated and obsolete.  As regulators and consumer groups continue to focus on the expectations of transparency and full disclosure when it comes to consumer products, offering an overdraft program that is not up to date can have a strong impact on a credit union's compliance, and ultimately, revenue.

Now is the time to re-evaluate the overall effectiveness of your overdraft program - from a compliance standpoint - as well as how it affects member service and performance.


JMFA OVERDRAFT PRIVILEGE® is a fully transparent, 100% compliant overdraft program that provides a valuable service for members which boosts account holder retention and preserves and improves revenue for your credit union.

Member benefits
A fully communicated, fully disclosed overdraft program provides financial stability to members who occasionally have a financial emergency or make an error on their account. Members may overdraw their transaction accounts subject to a one-time, pre-established limit. An overdraft privilege program is not administered like a loan, and the overdrawn account must return to a positive balance every 30 days.

While the majority of members will consider the service merely as a “safety net,” a significant number of members look at the program as a useful financial service from their credit union. Plus, members are able to use the service without going elsewhere in search of alternatives for their needs.

Credit union benefits
Implementing a fully disclosed, fully communicated overdraft program can result in a sustainable increase in non-interest income and improved market share. Add to that streamlined processes and automation as well as having an expert on your side to handle compliance issues improve profitability and performance. 

JMFA Overdraft Privilege® program provides:
  • a thorough evaluation, custom design and comprehensive program management
  • an automated collection system that works with the credit union’s core processing system;
  • established pre-set limits for members, based on a thorough analysis of share draft activity. When necessary, the limit can be adjusted, eliminated or re-instated, depending on the situation. As long as the account holder is in good standing, an overdraft will be paid to that established limit.
  • disclosures, member notifications and procedures to comply with applicable regulations; and
  • extensive employee training on the compliance and operational issues of the program, as well as how to explain the advantages of overdraft privilege to members.
With Privilege Manager CRM® software, JMFA provides credit unions with the best Windows®-based software to track all NSF activity and effectively administer their program. Privilege Manager CRM® helps credit unions reduce charge-offs by automating collection procedures for overdrawn accounts. It also provides management with detailed reports to monitor and track the credit union’s program.

During the term of the contract, a JMFA Relationship Manager provides success monitoring and tracking of the program.

JMFA Overdraft Privilege® case studies

Leading the industry
For more than 35 years, JMFA has successfully delivered effective profitability enhancement services to more than 2,200 financial institutions across the nation. JMFA is the leading provider of overdraft programs and offers guarantees for 100% compliance with all state and federal agencies.

Guaranteed results
JMFA’s fees are completely performance-based on your income improvement, which means software, program management and compliance support – it’s all included..

Click here for a FREE, no-obligation Overdraft Privilege Analysis.


For more information or to get started, please contact your Association Representative at 800-932-0661, or e-mail
Business Development / Sales
Central Pennsylvania

Russell Evans
VP, Business Development
& Membership
800-932-0661 x 5330

Western Pennsylvania

Monika Edlis

Sr. Account Executive

Eastern Pennsylvania

Angelique Pattillo
Account Executive