Courtesy Pay Disclosure

Courtesy Pay allows you to have peace of mind knowing that your checks, ATM/Check Card transactions and/or automatic withdrawals will be honored, despite an overdraft, using Courtesy Pay. When a check or debit item is presented to your account and the funds are not available in your checking account or through your other overdraft coverage (savings or line of credit) the payment will be posted and your account will be overdrawn up to $500.00, not including fees. The cost of Courtesy Pay protection is $25.00 per item.

You must opt-in by signing the Courtesy Pay disclosure at account opening. It is not a loan. No additional agreements need to be signed, and it costs nothing unless the privilege is used – by initiating checks, electronic funds transfers, or other payment or withdrawal requests for more than is on deposit in the account. If you maintain the account in good standing and have need for this “courtesy”, we may, at our sole discretion, pay the item(s) up to the authorized limit, and we will charge the account our normal Non-Sufficient Funds and/or Courtesy Pay charge for each item that overdraws the account. For good cause, as determined by management, the service provided by this policy may be revoked or suspended for any account that is deemed to be no longer eligible. Courtesy Pay fees will be assessed based on your “available” balance, not your “ledger” balance.  This means, if you have authorized transactions that have yet to clear your account, those transactions reduce your “ledger” balance to the “available” balance.

Important Information:

Eligible Accounts:

Any Share Draft/Checking account with the suffix 75 or 76. Share Draft/Checking account must be open for 30 days and member must be in good standing. Member must meet qualifications for a Share Draft/Checking account.

Ineligible Accounts:

All other accounts that are not share draft.  Business accounts do not qualify.

Members in good standing are as follows:

  • Those making deposits sufficient to cover transactions and bringing their accounts current at least once every 30 days.
  • Those with no delinquent loans.
  • Those not having caused the credit union a loss.
  • Those with no legal orders against their account.
  • The account is not dormant and has a current mailing address.

Transaction Types Eligible:

Checks, ACH, ATM, Audio Response, Bill Payment, Home Banking, On-Us Checks at the Teller Counter, Fee Postings, Over-the-counter withdrawals.

Limitations:

The credit union may limit the number of accounts eligible for Courtesy Payment to one account per household. Additionally, the credit union reserves the right to not pay items that result in an overdraft status on any account until it can be certified that the account is being maintained in good standing.

Account Fees:

Whether the credit union pays or returns non-sufficient funds items, a per-item fee will be charged to the member’s account as a non-sufficient funds or Courtesy Pay charge, as set forth in the credit union’s fee schedule. NSF Fees and Courtesy Pay Fees are $25.00 per item. Both fees are non-refundable.

Repayment Plan:

Members are encouraged to repay their CP balance as soon as possible. In the event a member has difficulty repaying their obligation - before the expiration of 30 days - under the Courtesy Payment program the following will apply:

  • Courtesy Pay will be suspended.
  • The member will be given the opportunity to sign a loan agreement at 18.00% interest rate for a term of no longer than six (6) months, or as credit allows.  If a loan is not secured, at 60 days the account will be charged off and reported.
  • Once the loan has been paid in full, Courtesy Pay may be reinstated at the credit unions discretion.

In the event the member does not repay the entire obligation within the approved time period, the account becomes subject to regular collection procedures as addressed in the credit union’s account agreement with the member.

Opting Out:

Any member not wanting Courtesy Pay, or any member who receives direct deposit of their monthly Social Security into their checking account and does not want overdrafts paid with these funds, must advise the credit union in writing.

Right To Offset:

At 31 days the Credit Union reserves the right to offset any un-paid balance with funds from other joint accounts to meet requirements of Courtesy Pay as defined by the Courtesy Pay policy with regards to “good standing”.

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