Courtesy Pay Overdraft Policy
An insufficient balance can result from several events, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you; (3) the return of unpaid items deposited by you; (4) credit union service charges; or (5) the deposit of items which, according to the credit union’s Funds Availability Policy, are treated as not yet available or finally paid. We are not obligated to pay any item presented for payment if your account does not contain sufficient funds.
However, if you maintain your account in good standing, we may approve your overdraft items within your current available Courtesy Pay limit as a non-contractual courtesy. Your account is in good standing if you (1) demonstrate responsible account management, such as making regular deposits to bring your account to a positive balance at least once every 30 days (including payment of all credit union fees and charges); (2) avoid excessive overdrafts suggesting the use of Courtesy Pay as a continuing line of credit, and (3) there are no legal orders, levies or liens against your account. In addition, based upon our review of your account management, if we determine you may be using Courtesy Pay as a regular line of credit by creating excessive overdrafts, we may suspend the privilege without any prior notice.
In the normal course of business, we generally pay electronic transactions first and then checks (low to high amounts) per the credit union’s policy. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order of item payment may create multiple overdrafts during a single banking day for which you will be charged our Courtesy Pay per item fee of $35 for each overdraft paid and $35 for returned non-sufficient funds (RTN NSF).
You may opt out of the program at any time, but you are responsible for any overdrawn balances at the time of opting out. Normally, we will not approve an overdraft for you in excess of the predetermined amount assigned to your account type. So as not to exceed your limit, please note that the amount of the overdraft plus the credit union’s courtesy pay per item fee of $35 per item will be deducted from the overdraft limit.
We may refuse to pay an overdraft item at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft items if your account is not in good standing as defined above or if, based upon our review of your account management, we determine that you are using Courtesy Pay excessively or seem to be using it as a regular line of credit. You will be charged a $35 RTN fee for each item returned.
You will be notified by mail of any non-sufficient funds items paid or returned that you have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdraft including our courtesy pay per item fee of $35 and/or a returned non-sufficient funds of $35 that you owe us shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one owner on the signature card, each owner and agent, if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdraft plus our courtesy pay per item fee of $35.
Courtesy Pay should not be viewed as an encouragement to overdraw your account. As always, we encourage you to manage your finances responsibly. If you would like to have this service removed from your account, please call (615) 382-8255.
Please note that your Courtesy Pay limit may be available for each item paid under the limit created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, or automatic bill payment and recurring debit card payment. Also, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit. The limit will not be included in the balance provided during an inquiry at an ATM, by phone, or on home banking.
LIMITATIONS: Courtesy Pay is a non-contractual courtesy that is available to individually/jointly owned accounts in good standing for personal or household use. The Credit Union for Robertson County reserves the right to limit participation to one account per member and to suspend, revoke, discontinue or change this service without prior notice.