Overdraft Privilege & Regulation E
Effective May 18, 2017
What is Overdraft Privilege?
Overdraft Privilege allows Altra to consider, without obligation, paying occasional and reasonable overdrafts for a member in good standing. This service is valuable if you make a mistake, have an unexpected expense, or make a deposit that cannot immediately be credited. Having NSF items paid instead of being returned unpaid helps you avoid the inconvenience, expense, and embarrassment of having a check returned.
Altra Federal Credit Union Overdraft Privilege Service Policy
It is Altra Federal Credit Union’s (“we, us, or our”) policy to comply with applicable laws, rules and regulations, and to conduct business in accordance with strict safety and soundness standards. A non-sufficient funds (overdraft/negative balance) may result from:
- A) the payment of checks, electronic funds transfers, or other withdrawal requests you initiate;
- B) payments authorized by you;
- C) the return, unpaid, of items deposited by you;
- D) charging your account for our applicable service charges and fees;
- E) the deposit of items to your account which, according to our Funds Availability Policy, are treated as not yet “available” or “finally paid”.
We are not obligated to pay any item initiated for payment against your account if your account does not contain sufficient collected funds. Rather than automatically returning, unpaid, all non-sufficient funds items that you may have, if your “eligible account type” has been open for at least ninety (90) days and thereafter you maintain your account in good standing, which includes at least:
- A) continuing to make deposits consistent with your past practices, and depositing at least $400 or more in your account within each thirty (30) day period;
- B) you are not in default on any loan obligation to us; and
- C) your account is not the subject of any legal or administrative order or levy, such as bankruptcy or a tax lien, we will consider, without obligation on our part, approving your reasonable overdrafts up to your assigned OVERDRAFT PRIVILEGE limit, including our fees.
This discretionary service will generally be limited to a $800 overdraft (negative) balance for eligible personal checking account types or a $1,500 overdraft (negative) balance for eligible business checking account types. Please see our Service Charges disclosure for our normal fees and charges including, without limitation, our non-sufficient funds (NSF) or overdraft (OD) fees. These will be charged for each transaction initiated for payment from your checking account for which there is not sufficient collected funds.
Typically, we will charge our normal NSF/OD fee whether we approve an overdraft item for payment or return it unpaid and we will charge your account a continuous overdraft fee. Typically, we will charge this continuous overdraft fee after the seventh day and for each subsequent seven day calendar day period your account is overdrawn and continues to have a negative (overdraft) balance.
Our NSF and weekly overdraft fees will be included in and count against your assigned OVERDRAFT PRIVILEGE limit of $800 or $1,500. Whether your overdrafts will be paid or not is at our sole discretion and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing as described previously, or if you have too many overdrafts. We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail or email of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts including our fees that you owe us shall be due and payable immediately. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft shall be jointly and individually liable for such overdrafts including our fees.
Eligible Account Types
The account types that are eligible for OVERDRAFT PRIVILEGE are:
- Free Checking
- A+ Checking
- Platinum Checking
- Business Edge
- Business Advantage
- Business Basic
Ineligible Accounts and Limitations
The account types that are ineligible for OVERDRAFT PRIVILEGE are:
- Savings type accounts
- Money Market accounts
- Public fund/charitable organization accounts
- Certain trust accounts
- Minor accounts (not of legal age)
We may, in our sole option and discretion, limit the number of your accounts eligible for OVERDRAFT PRIVILEGE to one account per household and/or one account per taxpayer identification number.
Transactions and your OVERDRAFT PRIVILEGE limit
NSF transactions initiated for payment against your checking account may be paid by us using your assigned OVERDRAFT PRIVILEGE limit, including our fees. Our NSF/OD fee may be imposed for paying, or not paying, overdrafts you create by: checks, ATM withdrawal, or other electronic means. Per Regulation E, we will not include ATM and everyday debit card transactions within our Overdraft Privilege service without first receiving your affirmative consent to do so. Absent your affirmative consent, ATM and everyday debit card transactions generally will not be paid under Overdraft Privilege.
You May Opt-Out
You may choose at any time to not participate in OVERDRAFT PRIVILEGE by notifying one of our Service Representatives who will explain what this (“Opt Out”) means, and the potential consequences for you.
If You Need Help
Of course, overdrafts should not be used to pay ordinary or routine expenses and you should not rely on overdrafts as a means to cover these expenses. Altra has partnered with the GreenPath Financial Wellness to give all members access to confidential financial counseling, education, and assistance. If at any time you feel you need help with your financial obligations please contact GreenPath at 877-337-3399 or one of our Service Representatives at 800-755-0055.
Always a discretionary service
Our OVERDRAFT PRIVILEGE service does not constitute an actual or implied agreement between you and us. Nor does it constitute an actual or implied obligation of or by us. Our OVERDRAFT PRIVILEGE service represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.
- ALWAYS A DISCRETIONARY* SERVICE: Our OVERDRAFT PRIVILEGE Service does not constitute an actual or implied agreement between you and us. Nor does it constitute an actual or implied obligation of or by us. Our OVERDRAFT PRIVILEGE Service represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.
Download full Overdraft Privilege & Protection Disclosure
Regulation E: Consent for Overdraft Services
Opt In to Continue Overdraft Services
Due to changes in Federal Regulations we will not authorize and pay overdrafts on debit card transactions and ATM withdrawals unless you ask us to. Please sign in to Altra Online Banking > User Options to sign up.
What You 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:
- Through the standard overdraft practices that come with your account.
- Through optional overdraft protection plans, such as a link to another account or line of credit which may be less expensive than our standard practices. To learn more, call 800-755-0055 to ask us about these plans.
This notice explains our standard overdraft practices.
What are the standard overdraft practices that come with my account?
We may 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 on debit card transactions and ATM withdrawals unless you ask us to by opting into Reg E with an office or the Member Contact Center.
- 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 Altra Federal Credit Union pays my overdraft?
Under our standard overdraft practices:
- We will charge you a fee up to $32.00 each time we pay an overdraft.
- We will charge an additional $32.00 on every seventh day the account is overdrawn.
- There is no limit on the total fees we can charge you for overdrawing your account.
What if I want Altra Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, please contact any one of Altra's offices,call 800-755-0055, or sign in to Altra Online Banking > User Options to sign up.