What You Need to Know about Overdrafts and Overdraft Fees - Courtesy Pay

What fees will I be charged if FedChoice Federal Credit Union pays my overdraft?

Under our standard overdraft practices:

• We will charge you a fee of up to $30 for each item each time we pay an overdraft for ATM transactions, everyday debit card transactions, checks, ACH, and Bill Pay transactions. Additional merchant fees may apply.
• We will charge you no more than five (5) fees (either Courtesy Pay or nonsufficient funds (NSF)) per day when overdrawing your account.
• There is no limit on the total fees we can charge you for overdrawing your account.

What if I want FedChoice Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions and/or on checks, ACH and Bill Pay transactions?

DISCRETIONARY COURTESY PAY POLICY

This Discretionary Courtesy Pay Policy (“Policy”) is also subject to the terms and conditions of the Membership Agreement and Disclosures (and all amendments). If there are any discrepancies between this Policy and the Membership Agreement and Disclosures, the Membership Agreement and Disclosures prevails.

You may be eligible for FedChoice Federal Credit Union’s (Credit Union’s) Courtesy Pay program if you meet the following criteria:

• You are an eligible member of FedChoice Federal Credit Union
• You are eighteen (18) years of age or older;
• Your account is not in dormant status as described in the Membership Agreement and Disclosures;
• You have opted in for Courtesy Pay coverage and have not subsequently opted out of Courtesy Pay coverage.

Accounts established as trust, club, organization, or business accounts are not eligible for Courtesy Pay. Any account where a primary owner is deceased is also not eligible for Courtesy Pay.

You may no longer be eligible to use your Courtesy Pay if you do not meet the criteria below. To maintain eligibility for Courtesy Pay, your membership and your account(s) must remain good standing, which includes at a minimum:

• Bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours;
• Not being in default on any loan or other obligation to the Credit Union for 30 days or more; and
• Not being subject or any legal or administrative order or levy.

Courtesy Pay may be revoked at our discretion. If the Credit Union does revoke Courtesy Pay, you must request to opt in again once you re-qualify. Revocation can occur due to, but limited to the following:

• You have caused the Credit Union an unresolved loss;
• The Credit Union has been notified that you are in bankruptcy;
• The Credit Union has initiated repossession or foreclosure on any loan held at the Credit Union;
• You have been notified that you are a Member Not In Good Standing as defined in the Membership Agreement and Disclosures.

If you are no longer eligible for Courtesy Pay or if Courtesy Pay has been revoked, transactions may be returned to merchants or other third parties as “unpaid.”

The Credit Union may pay overdrafts when the account does not have available funds. The overdraft limit available to you may change as frequently as daily based on system analysis. The overdraft limit may be lower or higher than the previous daily limit. It may be possible that your account will become overdrawn in excess of the overdraft privilege amount as a result of the assessment of fee(s).

Courtesy Pay is not a line of credit. If you overdraw your account, however, we may pay the overdraft subject to the limit of your Courtesy Pay and the amount of the Courtesy Pay fee. Coverage and notification of overdraft transactions is made at the Credit Union’s discretion and may be terminated without notice. You cannot rely on the Credit Union to pay overdrafts on your account regardless of how frequently or under what circumstance the Credit Union has paid overdrafts on your account in the past.

If two or more members jointly hold an account, we will treat the affirmative consent of any of the joint owners as affirmative consent for that account. Similarly, we will treat a revocation of affirmative consent by any of the joint owners as revocation of consent for that account. Further, your affirmative consent to Courtesy Pay is effective until revoked by you, or unless you become ineligible or we revoke the service.

If we do not authorize and pay an overdraft, your transaction will be declined.

You may opt out of any overdraft protection service at any time by visiting a Financial Service Center or calling FedChoice us at 301.699.6151 Monday, Tuesday, Thursday and Friday, 8:30 am – 4:00 pm ET and Wednesday, 9:30 am – 4:00 pm.

The total of the discretionary Courtesy Pay (negative) balance, including all fees and charges, is due and payable upon demand, and each account holder will continue to be liable, jointly and severally, for all such amounts, as described in the Membership and Account Agreement with a maximum repayment period of 30 calendar days.