Strunk & Associates, L.P.

Established in 1976 by Chairman Bill Strunk, Strunk and Associates, L.P. is a financial institution advisory service recognized nationally for its innovative design, development and implementation of sustainable profit improvement solutions for the financial institution community.

A key element of Strunk and Associates’ success has been its highly regarded discretionary Overdraft Privilege Service Program — developed to uniquely address the financial services industry need, and consumer demand, for a comprehensive and structured discretionary overdraft payment service. It is designed to complement and enrich the financial institution’s member service portfolio and strengthen its ability to attract, retain and grow profitable account relationships.

Strunk & Associates has built an unparalleled record of success with its discretionary overdraft payment program. Financial institutions from nearly every state in the U.S. as well as the Caribbean have deployed the firm’s proprietary Overdraft Privilege Service Program. All have experienced dramatic improvement in member service, loyalty and goodwill, while strengthening the bottom line.

The most common forms of overdraft “protection” services involve loan products such as a pre-approved credit line, or sweep accounts that transfer funds from the member’s savings or money market accounts. Applications, credit approvals, contractual arrangement and excess deposits are normally required for such services.

Strunk and Associates’ discretionary Overdraft Privilege Service Program is offered as a depository fee-based service privilege that is earned and maintained through your member’s history of responsible account behavior. It is made available to your members in addition to common overdraft protection loan products as a non-contractual courtesy to nearly all of your members.

There are no additional papers for your member to sign and no action is required on the part of your member. Under the Strunk & Associates’ Overdraft Privilege Program, it is already a part of your Share Draft Deposit Account Agreement. The Overdraft Privilege service costs nothing unless your member overdraws his/her account by writing a check, makes an ATM withdrawal, enacts a debit card purchase, or issues any other payment or withdrawal request (ACH, POS) for more than the funds on deposit in his/her account. At that time, payment of the overdraft will be considered and is subject to established limits and conditions.

Many credit union members either do not qualify for, or choose not to apply for a line of credit. Included in this number are many members who do not maintain savings, or other, accounts and sufficient balances in these accounts, to protect them against occasional or inadvertent overdrafts via a pre-arranged “sweep” or transfer of these funds.

Strunk & Associates’ discretionary Overdraft Privilege Service Program is a value-added service provided by your credit union. And because there is no need to sign up for Strunk’s Overdraft Privilege Service, it’s substantial benefits and convenience are extended to a far greater percentage of your share draft account member base.

Under Strunk and Associates’ discretionary Overdraft Privilege Service Program, your members may now:

• Experience a significant improvement in member service and convenience
• Avoid the embarrassment of picking up returned checks
• Have the knowledge that their credit union will at least consider payment of their checks when they need it most!

The competitive nature of the credit union business today suggests that outstanding member service is imperative to both acquire and, more importantly, retain members.

Automatically returning members’ checks, many of which are for smaller amounts, is poor member service. Conversely, considering payment of members’ checks provides a very emotional value-added service, saves your members money and significantly contributes to improving good member relations. This encourages strong credit union brand preference and brand loyalty.

Whether your credit union pays, or returns an insufficient funds check, an overdraft/NSF fee will be charged to the member. The amount of the fee may vary, but let’s assume $20.00 as an average amount. If the check is returned to the retailer, an additional $25.00 to $30.00 is normally charged. But the costs to your member may not stop at this point.

The retailer may send the previously returned check back to your credit union under second presentment. If sufficient funds are still not present in your member’s account, you may be put in the position of charging yet another $20.00. Thus, the total charges incurred by your member may be as high as $45.00 to $70.00 or more, and the check still has not been paid.

Any wonder why this cascade of embarrassment, humiliation, and additional merchant costs is often the emotional source of poor member relations and reputational risk?

In the above scenario, under Strunk and Associates’ discretionary Overdraft Privilege Service Program, your member would only pay a $20.00 NSF service fee for payment of his/her overdraft. Potential savings to your member can be as much as $50.00 or more per item!

They are members you deal with every day. They represent all income levels. Approximately 60% of consumers do not balance their checkbooks each month, but are otherwise capable, competent and financially trustworthy.

Today, low/no interest rates on savings/checking accounts have prompted many credit union members to purposely limit saving and checking balances in order to get a higher rate of return on their savings funds. Consequently, important members may not qualify for traditional overdraft “protection” services.

Consequently, Overdraft Protection that is tied to a transfer of the member’s own (savings) funds is often misleading or an illusion of “protection.” Your members are not likely to blame themselves for not keeping enough money in their savings accounts – who do you think they will “blame” when the “protection” is not available?

The Overdraft Privilege Service Program will touch many areas of your financial institution, while satisfying media and consumer advocate issues. For example:

• Reg Z TILA /Truth in Lending (and disclosure)
• Reg O Loans to Key Executives
• Reg E Electronic Credit Banking
• Reg B Discriminatory Practices
• Reg DD TISA/Truth in Savings (and Advertising)

We provide our clients with a comprehensive guidance package that includes confidential and proprietary Best Practices guidelines, examples, illustrations and time-and-examination-tested sample materials that are compliant with applicable laws, rules and regulations — including the latest Regulation DD Amendments and NCUA guidance directives that apply to overdraft payment programs.

Strunk’s guidance package is designed to assist our clients in their compliance efforts to ensure their practices and processes associated with any discretionary payment of overdrafts are reliably compliant, prudent, safe and responsible.

Our clients also receive detailed analysis on relevant legal develop-ments and trends at both the sate and national levels. Our clients have been examined thousands of times over the years without major deficiencies, exceptions or findings.

Simply stated, we make things happen. We get things done, and we get them done right – the first time. The Strunk operational package includes processes and business support mechanisms that are configured to meet your credit union’s needs and requirements for successful implementation, integration and control of all overdraft/NSF account transactions.

With the installation of Strunk’s Overdraft Privilege Service program, our team of full-time, salaried-with-full-benefits, engagement managers and support specialists (and not commission-based independent contractors) provide you with a complete turnkey overdraft/NSF business system that, for over a decade, has always had the same consistent results:

• Improved Member Service
•  Loyal and satisfied members
•  Strengthening your bottom line