FAQ on Discretionary Overdraft Payment Service

 

Question:

Is Overdraft automatically given on an account?

Answer:

No, the Bank has a policy regarding Discretionary Overdraft Payment Service which looks at different factors when making the decision to grant the service.  (i.e., number of days account has been open, deposits being made on a regular basis, average account balances, NSF activity, etc.)

 

Question:

How do I receive overdraft on my account?

Answer:

You will need to contact a Customer Service Representative who will receive authorization.  Once your account receives ODP service, a letter will be sent outlining the basics of the service, the dollar limit of the service, the consequences of excessive use, and inform you of the opportunity to decline the service entirely at any time.  You will also receive a letter to opt-in for one-time debit card and ATM transactions. 

 

Question:

I have ODP service, but my debit card transaction did not work.  Why?

Answer:

Regulation E limits the ability of the Bank to assess an overdraft fee for paying ATM and one-time debit card transactions that overdraws a customer’s account, unless they affirmatively consent (opt-in) to the institution’s payment of overdrafts for these transactions.   Please contact our Customer Service Representative for further information.

 

Question:

Can I opt-out of the Overdraft Service?

Answer:

Yes, please contact a Customer Service Representative.

 

Question:

Will the Bank automatically pay my overdraft item?

Answer:

Payment of overdrafts is entirely discretionary on the part of the Bank.  For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts.

 

Question:

What is the cost for an overdraft item?

Answer:

The fee for an overdraft item is $27.50 charged to your account each time that an item causes your account to use the ODP service.  This fee will be included in the Overdraft limit.

 

Question:

How can I avoid an overdraft fee?

Answer:

There are steps a consumer can make to avoid the overdraft fee:

Keep a check register to balance your account.  Write down all deposits (credits) and all transactions (debits) that may include:  ATM withdrawals, debit card transactions, checks, online purchases, etc…
Link your accounts to sweep money between them. There is a fee associated with sweep accounts but it is typically lower than the ODP fee.  Please contact our Customer Service Representative for further information.

 

Question:

In what order does the bank pay items presented on my account?

Answer:

The order in which items are paid is important if there is not enough money in your account to pay all of the items presented.  The payment order can affect the number of items overdrawn or returned unpaid and the amount of fees you may have to pay.    

On the day items are processed:

First processed is on-us cashed items, by dollar amount smallest to largest
On-us checks are second, in numerical order (by check number)
ATM/Debit Card Transactions are done third, by dollar amount smallest to largest
ACH transactions are processed fourth, by dollar amount smallest to largest
Phone and online banking transfers are done fifth by dollar amount smallest to largest
Lastly, is checks and similar items, in numerical order (by check number)


Question:

If I use the ODP service, will the information be reported to the consumer reporting agencies?

Answer:

The Bank would not report negative information to consumer reporting agencies for normal usage of the ODP service.  HOWEVER, should the consumer fail to bring their account to a positive balance in the required 30 day timeframe, the account may be charged off and reported to a consumer reporting agency.