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July 29, 2010

Deadline: August 15 make sure you OPT-IN to continue your Courtesy Pay service without interruption


Click this link to print the OPT-IN form and return it to the credit union by August 15th to ensure that your overdraft protection remains uninterrupted. For more information about overdraft protection read the information below or feel free to call 875-1747 and speak to a member service representative about your options.

Overdraft Protection Reminder

New Laws Require Members to Opt-In to Overdraft Protection

Beginning August 15, 2010 Members who wish to take advantage of our Overdraft Protection services for everyday debit card and ATM transactions will need to have filled out an Overdraft Protection Opt-In form. ese forms will be mailed to each member, and are available at each location. ey will also be available online in the near future. If a form has not been filled out and returned to the credit union, Overdraft Protection will be unavailable for debit and ATM transactions. Members are able to Opt-in or Opt-out at any time.

What is Overdraft Protection?

An Overdraft occurs when you make a purchase or ATM transaction but don’t have enough money in your account to pay for it. For a fee the credit union’s overdraft protection service will cover you when you become overdrawn. is fee can apply to each time you overdraw your account.

The basic facts

Generally, credit unions can cover your overdrafts in one of two ways:

Standard overdraft practices. Your credit union will cover your transaction for a flat fee of $25 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your credit union will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee. In this example, if the fee your credit union charges for its standard overdraft practices is $25, you will pay a total of $50 in fees.

Overdraft protection plans. Your credit union may offer a link to your savings account to cover transactions when you overdraw your account. Credit unions typically charge a fee each time you overdraw your account, but these overdraft protection plans may be less expensive than their standard overdraft practices. At RFCU a member can cover an overdraft from their savings account up to 6 times per month and there is no fee for this service.

The new rules

You choose. In the past, some credit unions automatically enrolled you in their standard overdraft practices for all types of transactions when you opened an account. Under the new rules, your credit union must first get your permission to apply its standard overdraft practices to everyday debit card and ATM transactions before you can be charged overdraft fees. To grant this permission, you will need to respond to the notice and opt in (agree).

Existing accounts. If you do not opt in (agree), beginning August 15, 2010, your bank's standard overdraft practices won't apply to your everyday debit card and ATM transactions. These transactions typically will be declined when you don't have enough money in your account, but you will not be charged overdraft fees.

New accounts. If you open a new account on or after July 1, 2010, your credit union cannot charge you overdraft fees for everyday debit card and ATM transactions unless you opt in. If you open a new account before July 1, 2010, your credit union will treat you as an existing account holder: you will receive a notice about your credit union’s standard overdraft practices and will have to decide if you want them for everyday debit card and ATM transactions.

Flexibility. Whatever your decision, the new overdraft rules give you flexibility. If you opt in, you can cancel at any time. If you do not opt in, you can do so later.

Checks and automatic bill payments. The new rules do not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities. Your credit union may still automatically enroll you in their standard overdraft practices for these types of transactions. If you do not want your credit union’s standard overdraft practices in these instances, talk to your credit union; you may or may not have the option to cancel.

Information courtesy of federalreserve.gov