Success Story: Village Bank Overhauls Ad Hoc Overdraft Program for Enhanced, Compliance, Service

Posted by Michele Rehm, Marketing Manager on Aug 8, 2018 2:04:22 PM

village bank logoSince Village Bank opened its first branch in 2000, branch managers had been entrusted with making pay/return decisions for NSF items, including whether to charge overdraft fees. The process resulted in preferential treatment for some customers, putting the bank’s reputation and compliance at risk.

In December 2013, bank executives recognized they needed to centralize and standardize this ad hoc decisioning process not only to ensure equitable treatment to all customers, but to better align the bank with federal guidance, improve efficiency and more accurately manage fee income. 

Village Bank chose BSG Financial Group's CourtesyConnect/CourtesyLimit technology and procedures to help.

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Approximately three years after implementing CourtesyConnect/CourtesyLimit, Village Bank underwent a compliance review during which it received no violations for overdraft procedures.

BSG Financial Group had provided Village Bank with an established set of Best Practices and guidance to help establish program procedures and parameters. Lynn Catlett-Leffel, Vice President, Retail Deposit Product Manager for the bank, stated that the CourtesyConnect/CourtesyLimit reports were “a lifesaver” during the review.

“We were able to show the auditors everything they were looking for, like customer communications data and Reg E decisions, and answer all of their overdraft-related questions,” said Catlett-Leffel. “We were more prepared for this review than we had ever been before thanks to BSG Financial Group.”

Download the Village Bank Success Story (PDF) to learn how CourtesyLimit/CourtesyConnect has positively impacted Village Bank's efficiency, fee income, compliance and service.

Topics: Overdraft Protection, Dynamic Overdraft Limits