1. What are the new rules for Reg. E Overdraft and how will it impact me? The Federal Reserve Board issued final ruling on overdraft services under Reg. E which would require the consumer's consent and Opt-In to Overdraft Privilege before the Credit Unions can pay the overdrawn Debit Card transactions. This opt-in rule goes into effect July 1, 2010 and applies only to everyday debit card transactions and does not pertain to overdraft protection services associated with written checks or recurring debit transactions, such as regularly scheduled bill payments.
2. What is Overdraft Privilege?
Overdraft Privilege is a service that adds a measure of protection when an inadvertent overdraft occurs to your personal checking account. It may cover your insufficient fund items for low fee. That means, instead of returning or rejecting the transactions, the Credit Union may pay your items, saving you hassles and embarrassing moments at the merchants.
3. What are the advantages for me to Opt-In to the Credit Union’s Overdraft Privilege Service?
Opting-In to the Credit Union Overdraft Privilege Service can really give you peace of mind and many advantages. Here are a few examples:
Avoid embarrassing moments at merchants
Cover for errors in check register
Be able to make “special item” purchases immediately
Pay unforeseen expenses and have needed funds during emergency situations
Eliminate special trips to the Credit Union just to make a deposit
4. What happens if I do not Opt-In to Overdraft Privilege Service?
If we do not receive a response from you to Opt-In to our Overdraft Privilege Service as of August 15th, 2010, the Credit Union will not be able to provide you the service of paying an overdrawn Debt Card transaction.
5. What if I already have OD Transfer Protection?
If you have established OD Transfer Protection with the Credit Union, such as linked to a line of credit or automatic transfers from your accounts, we will always look to pay overdraft by those methods first before utilizing Overdraft Privilege Service. OD Transfer Protection is not affected by Opt-in or Opt-Out of Overdraft Privilege Service.
6. How do I Opt-In for Overdraft Privilege Service?
You may Opt-In to our Overdraft Privilege Service in any of these convenient ways:
Written
Online at our webpage
Verbal by phone
Fax or mail
7. Are there enrollment or setup fees for Opting-In to Overdraft Privilege Service?
No. There is no fee for Opting-In to Overdraft Privilege Service. It is a great way to be prepared for the unexpected overdraft transactions.
8. What is the convenience fee for using Overdraft Privilege Service? Under our standard Overdraft Privilege Service practices:
There is no charge for Overdraft Privilege Service unless you use it.
The Overdraft Privilege Service Fee is $22 per item.
The maximum fee is $66 per day, per channel.
9. If I Opt-In for Overdraft Privilege Service, does that guarantee that my overdrafts will be paid? We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay overdraft transactions.
10. When can I Opt-In to Overdraft Privilege Service? To protect yourself and avoid interrupted services from the Credit Union, you may Opt-In to Overdraft Privilege Service immediately by using one of the convenient Opt-In methods. If you’re not Opted-In by August 15th, 2010, we will discontinue offering Overdraft Privilege Service for all of your overdrawn Debt Card Transactions.
11. Will I receive confirmation once I Opted-In to Overdraft Privilege Service? Yes, once the Credit Union receives your authorization to Opt-In to our Overdraft Privilege Service, we will send you a written confirmation notice.
12. Can anyone in my account Opt-In /Opt-Out of Overdraft Privilege Service? Any authorized account holder may Opt-In or Opt-Out of Overdraft Privilege Service for Reg. E affected transactions. This includes the primary account holder, joint account holder, trustee, custodian, attorney-in-fact or an authorized signer on a fiduciary account.
13. How long is my Opt-In valid for? Your Opt-In is valid indefinitely, as long as you keep a good credit standing with the Credit Union.
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