Overdraft Coverage
This is an important notice regarding overdraft coverage. Please read this notice if you have an active checking account or ATM card tied to your savings account. If you have already responded to this notice, no further action is required and you can return to the home page.
The government has changed its regulations regarding standard overdraft practices for the payment of ATM and everyday debit card transactions. Please respond to this request no later than August 15, 2010 to let us know how you want us to handle ATM and one-time debit card transactions that would trigger overdrafts.
Once you have read this notice, you can click here to make your choice.
To make your decision another time, click here.
What do I need to know about overdrafts and overdraft fees?
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
- We have standard overdraft practices that come with your account.
- We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.
This notice explains our standard overdraft practices:
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic bill payments
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to:
- ATM transactions
- Everyday debit card transactions
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.
What fees will I be charged if TruChoice FCU pays my overdraft?
Under our standard overdraft practices:
- We will charge you a fee of up to $25 each time we pay an overdraft
- There is no limit on the total fees we can charge you for overdrawing on your account
Our current overdraft policies will apply until these changes go into effect on August 15, 2010.
I'M CONFUSED! Answers to Frequently Asked Questions
Why are you asking me this?
Changes in regulations require us to ask your permission before we continue providing you with overdraft protection.
Is this new?
The protection and fees are not new. What’s changed is we have to ask permission to do what we used to do for you automatically as a courtesy.
If I want to keep my overdraft protection the way it’s always been, what do I do?
You choose “Yes” and we’ll keep protecting you the way we always have.
Why does it say I’ll get charged $25 when I don’t get charged for overdrafts now?
If you don’t get charged now, you probably have an ER Line of Credit. An ER Line automatically transfers money in $300 increments from your line of credit to cover any overdrafts. This will not change. Choosing “Yes” will just make sure you are covered if you max out your ER Line.
I only pay a $2 transfer fee when I overdraft. Will that change?
If you currently have money transferred automatically from a savings or money market account to cover any overdrafts in your checking account, this will not go away by choosing "yes". Choosing "yes" will just make sure you are covered if you don't have enough in your savings and/or money market to cover the overdraft.
Will I have to give permission every time I overdraw on my account?
No. By choosing “Yes” now, you are giving us permission to provide overdraft protection until you tell us otherwise.
Why do things keep changing?
Some people got into deep financial trouble because they weren’t paying attention to their finances and big banks, mortgage companies and credit card companies took advantage of this. Congress is trying to make sure people are fully aware of what rates and fees financial institutions are charging them.
