PLAN, ACCOUNTS AND TRANSACTIONS COVERED, LIMITS AND FEES: Overdraft Privilege is a discretionary service that allows us to pay a check written, ACH, or debit card transaction to or through a third party on our members’ checking account even if it causes the account to become overdrawn. Overdraft Privilege may provide certain accountholders in “good standing” with the ability to overdraw their checking account up to $700 including costs associated with this service as explained below. Limits can be decreased upon member request or ability to repay negative funds.
Overdraft Privilege offers additional flexibility and convenience in managing accountholder funds and provides peace of mind knowing that eligible items/transactions may be paid up to the authorized overdraft limit. This non-contractual courtesy requires no accountholder action. No additional agreements need to be signed, and it costs nothing unless the privilege is used - by initiating checks, electronic funds transfers, or other payment or withdrawal requests for more than is on deposit in the account. When we pay an item under this program, we will charge the account our current overdraft fee of $30* for each item/transaction that overdraws the account. This fee will be included in calculating your Overdraft Privilege limit, which is predetermined.
LIMITATIONS: Available only to eligible Personal Checking accounts primarily used for personal and household purposes (business accounts, money market accounts, and minor accounts are not eligible) and we limit the number of accounts eligible for the Personal Overdraft Privilege service**to one (1) account per household.
ELIGIBLE TRANSACTION TYPES: Each transaction/item initiated for payment against your checking account(s) may be processed by us using your assigned Overdraft Protection limit, including without limitation: Checks, ACH, Debit Card POS and Online Banking Bill Payment.
QUALIFICATIONS: The Credit Union will extend the “Overdraft Privilege program” only under the following conditions: (1) members that are at least 18 years of age; (2) the eligible account has been open for at least 45 days during which time the member has maintained the minimum balance requirement; (3) and the account has been maintained in “good standing” (as defined by the Credit Union in its sole discretion from time to time) and (4) have a direct deposit of at least $200 monthly.
PROCEDURES: Before using Overdraft Privilege (“ODP”) we will first attempt to clear any item by using any specific contractual overdraft protection plan(s) you have with us such as, draft from savings accounts and/or overdraft lines of credit. The ODP privilege is not an invitation to overdraw your account but is intended as an added layer of safety should you accidentally write checks for more than you have in your account, or an inadvertent error causes the account to become overdrawn. You should consult with the Credit Union regarding our formal overdraft services via your accounts or an overdraft line of credit, which may better serve your needs.
Pursuant to your Membership Agreement the Credit Union retains sole discretion to decide which items to pay, and in what order to pay items. Without limiting this discretion, our policy is to pay them as we receive them. We commonly receive items to be processed against your account(s) multiple times per day in what is referred to as presentment files. Each presentment file received commonly contains a large amount of a specific type of item (Check, ACH, or ATM/POS). It is common for each of these presentment files to contain multiple items to be processed against your particular account. In this case, when multiple items are received at once, the items will be paid as follows: checks are paid in order of check number, lowest to highest; ACH items in each presentment file post credits first, then debits paid by dollar amount, lowest to highest, and generally we will receive up to four ACH presentment files per day; ATM/POS items are paid in the order they are presented. Items performed in person such as withdrawals or checks cashed at one of our locations or a shared branch, are generally paid at the time they are performed. Please review your Membership Agreement regarding our policies in order to fully understand our check clearing policies and the Credit Union’s discretion in paying checks as well as the order in which we may elect to pay checks.
THE CREDIT UNION’S PAYMENT IS DISCRETIONARY: All Overdraft Privilege elections are within the sole discretion of the Credit Union, and we have no contractual obligation with our member’s to pay or transfer any NSF item/transaction. Overdraft Privilege is not an entitlement, it is not a loan, and may be discontinued or denied at any time even though we have paid such items at other times. We will not pay any overdrafts if all of your accounts are not maintained in good standing; to pay any loan or other obligation to the Credit Union; when any account is subject to any lien, levy, claims or disputes; or when we have cause to believe that payment is not in the best interests or may violate any laws or regulations, The Overdraft Privilege program does not release you from your obligation to pay your debts including any amount by which your accounts may be overdrawn. The Credit Union may change the terms of this program at any time without notice.
YOUR OBLIGATION TO PAY: Accountholders will be notified by mail of any items/transactions paid under the Overdraft Privilege program; or items/transactions that are returned or the transaction is otherwise denied. We have no obligation to notify the accountholders before we pay or return an item or deny a transaction. The amount of any overdrafts, plus any applicable fees are due and payable upon demand. If we pay an overdraft on an account with more than one (1) owner, each owner is jointly and severally liable for such overdrafts and/or fees. The Credit Union reserves the right to apply any other or later deposits, including direct deposits (including deposits of Social Security or other government benefits), to pay your overdrafts or overdraft fees. Overdraft Privilege does not affect or limit the Credit Union’s other rights/options regarding NSF transactions under our other policies, procedures and applicable laws.
*This fee may change.
Chex Systems Contract Information: You may contact Chex Systems by visiting their website at www.chexhelp.com; by telephone using their Voice Response Unit at 800-428-9623; by mail at ChexSystems Attn: consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125 or by fax at 602-659-2177.
Effective Date – All information listed in this disclosure is effective as of February 25, 2022.