University Credit Union (“we, us or our”) offers the Overdraft Privilege Service. If your account qualifies for Overdraft Privilege, we will consider, without obligation on our part, paying items for which your account has insufficient or unavailable funds, instead of automatically returning those items unpaid. This document explains how Overdraft Privilege operates.
Transactions that May Qualify for Overdraft Privilege — An overdraft occurs when you do not have enough money in your account to cover a transaction. Although there are many reasons why your account might become overdrawn, most overdrafts result from the following:
- You write a check that exceeds the amount of funds available in your account;
- You deposit a check or other item into your account and the item is returned unpaid, which causes a negative balance in your account once your balance is reduced by the amount of the returned check;
- You have inadequate funds in your account when we assess a fee or service charge; or
- You initiate a transaction before funds deposited into your account are “available” or “finally paid” according to our Funds Availability Policy. For example, if you deposit a check into your account, the proceeds of that check may not be available to you for up to two days after you deposit the check (longer hold time may apply). If you do not have sufficient funds in your account—independent of the check—to cover the transaction, you will incur an overdraft.
The Overdraft Privilege Service applies to a variety of transactions, including checks, ACH and in-person (teller) withdrawals made using your checking account number.
Participation in Overdraft Privilege is not mandatory. You may opt-out of the service any time by notifying one of our Member Service Representatives.
As noted above, we retain full discretion to decline to pay any item under the Overdraft Privilege Service. This means we can refuse to pay any overdraft for any reason. Even if we decide to pay an overdraft item, absent an agreement to the contrary, such payment does not create any duty to pay future overdrafts. If we do not authorize and pay an overdraft, your transaction will be declined and we may assess NSF fees on your account in accordance with your account agreement and the fee schedule in effect at the time of the overdraft.
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.
Fees — For each overdraft we pay, we will charge the standard per item overdraft fee set forth in our Schedule of Fees and Charges. We have no obligation to notify you before we pay or return any item. The amounts of any overdrafts, including our fees, are due and payable immediately or on demand.
Accounts Eligible for Overdraft Privilege — Overdraft Privilege is a discretionary service and is generally limited to $500-$750 overdraft (negative) balance for eligible personal checking accounts, depending on your account type. Please note that the amount of each overdraft, including our overdraft fees, count toward your Overdraft Privilege limit. We may in our sole discretion limit the number of accounts eligible for Overdraft Privilege Service to one account per household or per taxpayer identification number. Further, Overdraft Privilege is usually extended only to accounts in good standing. An account in good standing exhibits, but is not limited to, the following characteristics:
- The account has been open for at least ninety (90) days;
- The account demonstrates deposit activity of at least $1,000 within the last 90 days;
- The account owner is current on all loan obligations with us; and
- The account is not subject to any legal or administrative order or levy, such as bankruptcy or tax lien.
We offer other overdraft protection services in addition to Overdraft Privilege. These include an overdraft line of credit and overdraft protection linked to another account of yours with us, such as a savings account. If you apply and are approved for these optional services, you may save money on the total fees you pay us for overdraft protection services.
Optional Opt-In Service
If you want us to authorize and pay overdrafts for which an Overdraft Privilege fee will be assessed on ATM and everyday debit card transactions, opt-in by one of the following methods: visit eBranch on our website at www.ucu.org; call (310) 477-6628, ext. 1; or complete a form on our web site at www.ucu.org and mail it to University Credit Union. You can revoke your authorization for University Credit Union to pay these overdrafts at any time by any of the above methods. Your revocation must include both your name and account number so that we can properly identify your account.
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. If at any time you feel you need help with your financial obligations, please contact one of our Member Service Representatives at (310) 477-6628, ext. 1.