Skip to content
Junk Fees (1)
LexopFeb 7, 2024 9:59:01 AM2 min read

Say Goodbye to Junk Fees and Hello to Member Empathy

A crucial transformation is on the horizon in the financial sector, particularly for credit unions. It revolves around eliminating 'junk fees' associated with delinquencies—a move that's not just beneficial but necessary. The Consumer Financial Protection Bureau (CFPB) is considering legislation to ban these punitive charges, signalling a pivotal shift toward ethical financial practices. But what does this mean for credit unions and their members?

The Problem with Junk Fees

Junk fees, the extra charges levied for late payments and other types of account delinquencies, have long been a contentious issue. They often lead to:

  • Strained Relationships: These fees can damage the trust and loyalty that credit unions have worked hard to build with their members.
  • Regulatory Challenges: With the CFPB's potential legislation, the financial landscape is changing, pushing institutions to reassess their fee structures.
  • Value Misalignment: Credit unions are built on a foundation of empathy and support. Relying on punitive fees can contradict these core values.

“Over the years, large banks and their consultants have concocted new junk fees for fake services that cost almost nothing to deliver. Banks should be competing to provide better products at lower costs, not innovating to impose extra fees for no value. The CFPB will continue to rid the market of junk fees today and prevent new junk fees from emerging in the future.” - CFPB Director Rohit Chopra.

The problem with NSF and overdraft programs is that many credit unions still rely heavily on them as a revenue stream. The lack of transparency with these programs is a cause for concern and the NCUA is drawing attention to these fees. The NCUA is now going to require federally insured credit unions with more than $1 billion in assets to disclose, separately (this is important), income from overdraft and NSF fees. 

Introducing Lexop: A Solution that Cares

At Lexop, we believe there's a better way to manage delinquencies—one that aligns with the values of empathy and support inherent in the credit union community. Our collections software is designed to eliminate the need for punitive junk fees while enhancing member relationships through empathetic engagement. Here's how Lexop is changing the game:

  • Empathy at the Forefront: Our approach prioritizes understanding and supporting members through financial difficulties, fostering a positive and supportive environment.
  • Future-Proofing: By aligning with upcoming regulatory changes, Lexop ensures your practices are compliant and ahead of the curve.

Strengthening Community Values: We help credit unions reinforce their commitment to member support, aligning operational practices with core values.

Why Make the Shift?

The move towards eliminating junk fees and adopting more empathetic delinquency management practices isn't just about compliance. It's about taking a stand for what's right and fostering a community where members feel valued and supported—even in their most challenging times. Lexop offers a pathway to achieve these goals, transforming potential negatives into opportunities for positive engagement and support.

Ready to See the Difference?

This shift towards more empathetic, fee-free delinquency management is more than just a trend—it's a movement towards creating a financial ecosystem that respects and supports its members at every turn. At Lexop, we're proud to lead this charge, offering solutions that meet the current needs of credit unions and pave the way for a more inclusive and supportive future.

We invite you to discover the impact of Lexop firsthand. Click here to view a demo and see how our platform can revolutionize your approach to delinquency management, eliminate reliance on junk fees, and enhance your relationship with members.




Lexop helps companies retain past-due customers by facilitating payment and empowering them to self-serve.