An overdraft occurs when you do not have enough money in your account to cover a transaction.
At Five Star Credit Union we pride ourselves on member service. If you write a check or use automatic bill payment and overdraw your checking account, we will generally honor the check(s) so they do not "bounce" or leave you unable to pay for what you are trying to purchase. It’s called Overdraft Privilege and here’s how it works: (Note: Program is changing effective May 8th 2013 to offer a variable amount of overdraft protection based on your deposits and payment history).
For members who are eligible, which is most of our members, we will generally pay your overdraft items up to a variable amount based on your history of deposits and past payments instead of returning them and charging you a non-sufficient funds (NSF) fee. This may eliminate returned checks and returned check charges (or legal actions) from merchants. It can also eliminate the embarrassment that accompanies having your check returned. You don’t have to do anything to activate the service and if you don’t use it, it won’t cost you anything!*
IMPORTANT - While the above applies to checks and automatic bill payments, other transactions that may cause your account to overdraft CAN NOT be paid UNLESS YOU ASK US TO by signing up (Opting in) to that service. Qualifying and opting in may include the following type additional transactions under ODP.
* ATM Transaction - such as cash withdrawals (is not curently offered by FSCU but may be added in the future).
* Debit Card transactions - would help protect your purchase from being rejected at a restaurant, gas station, on-line or other retailers or vendors due to insufficient funds in your acccount.
If YOU WANT Five Star Credit Union to authorize and pay overdrafts on your ATM and Debit Card purchases click here and print out the enclosed form and complete and return it to us at. Or you can stop by a branch, or phone us at 888-619-1711 (option 5). You may already have filled out such a request with us and you can always call or visit us to inquire if you are not sure.
Feel more confident about your finances and the peace of mind that Overdraft Privilege may bring you. If you would rather not participate in any part of this benefit to you, please contact us to opt out. For those members with savings in other accounts they can ask to have these accounts set up to transfer funds into their checking account to cover overdrafts. There is a $5.50 fee for each time such a transfer is made due to an overdraft rather than the $35 ODP or NSF fee charged.
We appreciate your business, and your Overdraft Privilege is just another way we can say “thank you” for your membership with us!
*Whether overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if an account is not in good standing, if the member is not making regular deposits, or if they have too many overdrafts. Each item presented to us will be assessed our $35 overdraft fee, whether it is paid using the overdraft privilege (ODP) or returned due to non-sufficient funds (NSF). You must bring your account back to a positive balance within 30 days.
Overdraft Privilege Frequently Asked Questions
What is Overdraft Privilege?
Overdraft Privilege is a service that may allow the payment of overdraft items on eligible members’ personal checking accounts. The account must be in good standing, and payment of items is discretionary.
What is the Overdraft Privilege limit?
Effective May 8, 2013 the Overdraft limit for all eligible checking accounts is now variable based on your history of deposits and payments to better meet each members individual overall financial needs. The amount of your overdraft protection may now vary up or down slightly on a daily basis. Both the amount of the overdraft items and all applicable fees, including but not limited to our $35 overdraft fees are included in this limit.
Can I increase the amount of my Overdraft Privilege limit?
Not directly. Effective May 8, 2013 it will be based on your history of deposits and repayments.
How much will I be charged if I overdraw my account?
You will be charged our normal $35 overdraft fee for each item that we pay, the same fee that we charge if we return the item unpaid due to non-sufficient funds (NSF) in your account.
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How do I apply for the Overdraft Privilege?
No application is required for overdraft of checks and automatic bill payment. All qualifying currrent members have Overdraft Privilege and new accounts that qualify are granted the Overdraft Privilege within 60 days of opening their checking account. To obtain overdraft protection on your ATM withdrawals and debit card transactions you must tell us you want that protection. Click here for an authorization form or visit any of our branches to sign an authorization.
How do I know if I have the Overdraft Privilege?
When we initially offered the Overdraft Privilege we sent a letter and Account Disclosure to all accounts that were eligible. New accounts or accounts that became eligible after the initial offering have received a letter and a disclosure. If you received a letter from us then you are eligible for this service. If you did not receive a letter and have questions about this service please contact any member service representative by phone or at a branch.
Why don’t I have the Overdraft Privilege?
Our Account Disclosure lists the eligibility requirements for the Overdraft Privilege service. The most common reasons that you would not be eligible are 1) if you are delinquent on a loan or other obligation to us, 2) if you are currently in a repayment plan. 3) You may have been suspended from the Privilege if you did not bring your account to a positive balance in 30 days. If you do not have the Overdraft Privilege and none of these criteria apply then please contact a member service representative.
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If I just opened my checking account, how long do I have to wait before I am eligible for the Overdraft Privilege?
You must wait 60 days before your account will be eligible for the Overdraft Privilege.
How can I get another copy of the Overdraft Privilege Account Disclosure?
Please contact any member service representative and we will provide you with another copy of the Account Disclosure.
What types of overdraft are covered by the Overdraft Privilege?
The Overdraft Privilege service is available for all checks that you write, ACH items that are presented, and internet banking bill pay. However after August 15th, 2010, due to federal regulations, we will begin to offer overdraft privilege for ATM withdrawals and debit card transactions only if members ask us to.
Why would items presented not be paid by the Overdraft Privilege?
Items presented may be returned if you have exceeded your Overdraft Privilege limit, if you are delinquent on a loan or other obligation to us or if you are in a repayment plan. Also, whether overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, if you are not making regular deposits, or if you have too many overdrafts.
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If I overdraw my account by $215 how much will you deposit to my account to cover the overdraft?
We do not make deposits to cover overdrafts paid by the Overdraft Privilege. Your account will remain overdrawn until you make a deposit to bring it back to a positive balance. Additional fees may be charged if items presented are either paid or returned after your initial overdraft if your account remains overdrawn.
What about transfers from other accounts or lines of credit?
We offer transfers from other accounts that you have with us if you authorize us in advance to do so to cover your overdraft. We charge a transfer fee of $5.50 for each transfer that we make. We also offer a preapproved line of credit to cover your overdrafts. The line of credit must be applied for in advance and is subject to our normal loan underwriting criteria. Please contact a loan officer for an application and more information on the specific terms and conditions of this loan option.
If I do overdraw my account and you pay the item, how long do I have to repay the overdrawn balance?
Once your account is overdrawn you must bring it back to a positive balance for at least one full day within a 30 day period by making a deposit(s) to your account.
If you pay an overdraft and my account is overdrawn, how much interest will you charge me?
We do not charge any interest on account overdrafts that are paid by the Overdraft Privilege service. We do charge our normal $35 overdraft fee for each item presented, whether it is paid or returned, if your account is overdrawn.
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How do you determine in which order to pay items presented?
The first items that we pay are any checks cashed by our employees or that you have written to us. We then (assuming you have told us to pay these) pay any items that were submitted electronically, such as ATM withdrawals, ACH items, any debit card transactions). Next we would pay preauthorized automatic transfers, telephone-initiated transfers and any other electronic transfers. Finally, we pay the remaining items in dollar amount order from the lowest amount to the highest amount.
What if my balance is still overdrawn and I can’t pay back the overdraft after the 30 days?
If you know that you will not be able to bring your account back to a positive balance within 45 days of your initial overdraft, please contact the Collections Department to discuss repayment plan options. Failure to make arrangements with the Collections Department will result in your account being closed, and collection efforts will continue.
What do I do if I don’t want the Overdraft Privilege on my account?
If you do not want your account to be eligible for this service and would prefer us to automatically return any items presented which may overdraw your account, please contact any member service representative to request an opt out form. In order to be removed, you must complete, sign and return this form to us. Please note that when we return your items you may be subject to additional fees charged by merchants or by us if the same items are presented again for payment at a later time. .
I would like more detailed information about the Overdraft Privilege program, who should I contact?
Please contact any member service representative or call 888-619-1711 (Option 5) for detailed information about this service.
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