The Community Bankers of Louisiana -- 95 banks and a few billion dollars strong - has chosen John M. Floyd & Associates of Houston (Baytown)as its preferred partner for Overdraft Privilege programs that help accountholders avoid hassle, embarrassment and added costs on bounced checks. - Popular program helps consumers avoid hassle, added costs of bounced checks.
Baytown, TX / Baton Rouge, LA (PRWEB) February 25, 2005 -- Louisiana consumers who bounce checks can avoid embarrassment, inconvenience and onerous costs, if their bank offers a new overdraft privilege program being extended through members of the Community Bankers of Louisiana (CBL).
CBL has signed an agreement with John M. Floyd & Associates, Inc. (JMFA) of Baytown, TX, near Houston, naming the profitability-consulting firm as its "Preferred Partner" for the JMFA Overdraft Privilegesm program.
The statewide banking trade association, formed in the1970s, represents the views of 95 community banks – independently owned and operated financial institutions with billions of dollars in combined assets. Financial organizations in more than 20 states have teamed with JMFA for its courtesy pay" product (www.OverdraftPrivilege.com).
Discreet, Value-Added Service
According to John M. Floyd, Chairman and CEO of JMFA, The public is demanding value-added services like overdraft privilege." Floyd has repeatedly emphasized this in presentations to the Consumer Advisory Council to the Federal Reserve System, the American Bar Assn. and the Consumer Federation of America.
This discreet service avoids the embarrassment of bank customers ‘making good on a check with a valued retailer or creditor. Neither the accountholder nor the merchant loses time or productivity in straightening out an NSF (insufficient funds) mess," Floyd says. Accountholders dont wind up on retailers bad check lists.
They can avoid multiple NSF charges from a merchant or late payment penalties on mortgages, car loans or tuition payments. They also can prevent negative entries on their credit record or potential visits from law enforcement for inadvertent – but repeated – bad checks," he added.
Louisiana community banks with viable overdraft programs have the opportunity to enhance customer satisfaction while increasing their non-interest or fee income," noted Dan Digby, President of CBL. Fee income has become more important to profit margins in an era of declining income from lending, bold competition from non-bank institutions and strict regulations."
We are proud to add Floyd & Associates to our select list of endorsed providers," Digby said. JMFAs portfolio of products coupled with its competitive pricing and well-recognized customer service clearly made it the best choice for our members."
Our goal was to identify an outstanding vendor that would combine all the benefits of an overdraft program with the community bank philosophy of focusing on the customers well being," he added. I‘m convinced our relationship with Floyd will help our members implement consumer-friendly programs."
Overdraft Programs not all Equal
JMFA, founded in 1973, is a leading provider of non-interest or fee income products to financial institutions. The company has installed profit improvement programs in more than 2,000 banks, thrifts and credit unions, adding billions in increased pre-tax earnings for its clients in 49 states and Central America. The company has successfully implemented variations of its overdraft privilege program in more than 900 institutions.
JMFA Overdraft Privilege(SM) is nondiscriminatory and guaranteed to be 100% compliant with federal and state regulations, as well as with recently suggested changes," Floyd emphasized. Our program has a proven track record of producing more income and less charge-offs for financial institutions than typical NSF programs."
He also disclosed:
• Of 18,000 financial institutions in the United States, more than 2,500 are estimated to now have defined and communicated overdraft programs.
• The typical fee charged on an insufficient funds (NSF) check is $17 to $35. The average in 2003 was $22.50.
• Studies indicate the average accountholder writes about 3.4 NSF items per year.
A well-managed overdraft program is a win-win-win for the consumer, the merchant and the financial institution," he said. Additionally, automated programs help identify troubled accountholders for necessary counseling."
Floyd has been speaking from coast to coast this past year emphasizing the multiple benefits of overdraft programs, as well as the unfair practices endemic to the implementation, accountholder education and management of some overdraft programs. In addition, Floyd has advised consumers, regulators and bankers that some bounce or overdraft protection programs are discriminatory, over-promote the service, under-educate consumers on its use and base overdraft limits on a mystery matrix."
JMFA creates strategic programs, including Privilege Manager CRM(SM) software, specific to each bank, its organization and its market that maximizes all aspects of NSF revenue.
It then delivers expert training, accountholder education and software to assure successful implementation and full regulatory compliance.
About Community Bankers of Louisiana:
The primary objective of the statewide trade association is to ensure the long term success and profitability of Community Banks in Louisiana. It provides CBL members with timely newsletters, state and federal lobbying, educational programs, an Executive Management Conference and Trade Show, Annual Convention and numerous product and service endorsement agreements that provide Member benefits. CBL members are dedicated to their community, customers, employees, directors and the preservation of personal service.
JMFA Overdraft Privilege(SM) and Privilege Manager CRM(TM)are service marks of John M. Floyd & Associates, Inc. Privilege Manager CRM is patent pending.
For More Information or Interviews:
Jared Cahill, JMFA National Director of Alliances, Baytown, TX, 877-510-5603 or 505-228-7509;
www.OverdraftPrivilege.com; Jared.Cahill@jmfa.com
Dan Digby, President, Community Bankers of Louisiana, Baton Rouge, LA, 225-927-9022; Fax 928-3201; www.cblofla.com; dan@cblofla.com
Preston F. Kirk, APR, Kirk Public Relations, Austin, TX, 830-693-4447; kirk@281.com
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