Overdraft Privilege pays for items that would not normally clear your checking account because of insufficient funds. When a check is written or a debit transaction is made that exceeds the balance in your account, the transaction will be honored and the merchant will be paid – saving you the embarrassment and additional merchant fees typically charged for unpaid transactions.
Regulation E States You Must Opt In
Even though we add Overdraft Privilege to your account, we cannot pay overdrafts until you give us your permission by opting in to the Federal Government's Regulation E. Opting into this regulation will authorize
Co-op Services to pay your overdrafts on debit card transactions when funds are not available in your account. In order to choose to “opt-in”, we need to hear from you one time only. Simply stop by one of our branch offices or contact a Member Service Representative at 800-321-8570, ext. 200. The process will take virtually no time at all.
Overdraft Privilege Rules & Regulations
- Your membership and all accounts must be in good standing for Overdraft Privilege to take effect.
- You must deposit an amount equal to or more than the amount of discretionary Overdraft Privilege extended to you every (30) day period.
- You must bring your account to a positive End of Day balance within every 54 day period. A zero balance is not considered to be a positive balance.
- You must not be in default on any loan or other obligation to Co-op Services.
- You must not be subject to any legal or administrative order or levy.
Overdraft Privilege is not a line of credit. It is a courtesy to protect you if you inadvertently overdraw your account. We have the discretion to pay the overdraft, subject to the limit of your Overdraft Privilege and the amount of the overdraft fee. Co-op Services is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment (or other negotiation or processing) by Co-op Services of any non-sufficient item does not obligate Co-op Services to pay any additional non-sufficient fund items, or to provide prior notice of its decision to refuse to pay such items.
Co-op Services will consider, as a discretionary courtesy and not a right or obligation, approving your reasonable overdrafts. This privilege will generally be limited to a maximum of $500 in negative balances for member checking accounts. Any and all fees and charges, including without limitation the non-sufficient funds fees (as set forth in our fee schedules available at www.cscu.org), will be included.
Overdrafts written above and beyond Co-op Services Credit Union's established limit may result in a check or checks being returned to the Payee.