On November 12, 2009, the Federal Reserve finalized changes to Regulation E, which implements the Electronic Funds Transfer Act that affects Overdrafts caused by ATM transactions and one-time debit card transactions. This regulatory change requires you to notify us whether you want us to pay ATM transactions and one-time debit card transactions when you do not have available funds in your checking / share draft account to cover the transaction.
Overdraft Services protect your checking account when you don't have available funds in your checking account to cover a retail transaction. We will not authorize overdrafts for ATM transactions and one-time debit card transactions that will cause your account to go negative unless you tell us you want to Opt-In. Please note that you do not need to Opt-In to continue Overdraft Transfer Services for checks, ACH, or automatic bill payments. Find more details about our Optional Overdraft Services. Otherwise, continue scrolling to read the following and Opt-In!
Optional Overdraft Service Opt-In Request
WHAT YOU NEED TO KNOW ABOUT OVERDRAFTS AND OVERDRAFT FEES
An overdraft occurs when you do not have available funds in your account to cover a transaction, but we pay it anyway. Please refer to the Optional Overdraft Service Disclosures and the Membership and Account Agreement for a more thorough explanation of factors that determine when an overdraft occurs and when you may incur a fee for overdrawing your account. The terms of the Optional Overdraft Service Disclosures and the Membership and Account Agreement can be requested by phone at 630-844-4950 or at any of our local branches. The Optional Overdraft Service Disclosures and the Membership and Account Agreement are meant to be interpreted together. Optional Overdraft Service is helpful for the occasional and inadvertent overdraft situation to avoid your transaction being declined or returned when there are insufficient funds in your account. We can cover your overdrafts in several different ways:
- We have standard overdraft practices that comes with your account, which in essence, allows your account to go negative due to overdraft occurrences.
- We have optional overdraft services for ATMs and one-time debit card transactions.
- We also offer overdraft transfer services, such as a link to a share/savings account with us, which may be less expensive than our standard overdraft services. This applies to check writing, ACH and automatic bill payments only. Contact us to learn more about these options.
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. You must qualify and be approved for overdraft privilege services. If you cause an overdraft, the negative balance, including any and all fees and charges, are due and payable on demand.
Standard Overdraft Services
We do authorize and pay overdrafts for the following types of transactions:
- Share drafts/checks and other transactions made using your checking account
- ACH automatic electronic transactions
- Automatic bill payments
If you select that you do not want standard overdraft services, your check, ACH and automatic bill payment transactions may be declined if there are not sufficient funds in your account and you will be charged a $28.00 Non-Sufficient Funds Fee. You may also incur fees charged by the merchant or other payee.
Optional Overdraft Services
We do not authorize and pay overdrafts for the following types of transactions unless you ask to (see below):
- ATM transactions
- One-time debit card transactions (any one-time transaction including a point-of-sale transaction, an on-line transaction, or a telephone transaction).
Even if you do not request overdraft coverage for ATM withdrawals and one-time debit card purchases, we may still pay your overdrafts for other types of transactions, including checks.
Fees for overdrafts
We will charge you a fee of $28 each time we pay an overdraft. There is no limit on the total fees we may charge you for overdrawing your account. Fees may change from time to time as reflected in the Credit Union’s Schedule of Service Charges. Fees charged will lower the overdraft limit available on your account.
Right to revoke consent and opt-out later
You may revoke your consent for Optional Overdraft Services or opt-out of Standard Overdraft Services at any time, at no charge. To make your selection for overdraft services on your ATM and one-time debit card transactions, complete this form below, contact us by phone at 630-844-4950, or visit one of our local branches.