Opt in for overdraft privilege (ODP) services
Debit cards are a convenience and it's hard to imagine living without them. Using debit cards makes it easier than ever to make purchases and payments, but it also makes it easier to overdraw a checking account and incur fees associated with overdraft protection programs. As a result, federal lawmakers have created new rules governing overdraft protection programs that go into effect on July 1, 2010.
You now have an option concerning whether you want to continue to have our ODP cover your everyday debit card transactions. Please take note that this opt-in rule applies only to everyday debit card transactions and does not pertain to ODP associated with written checks or recurring debit transactions, such as regularly scheduled bill payments.
Why opt-in?
CDCU's ODP is designed with your protection and convenience in mind, however life doesn't always go according to plan, and overdrafts do occur. Without ODP, your everyday debit card transactions may be declined if you attempt to make a transaction without sufficient funds.
For existing accounts: If you do not opt-in, beginning August 15, 2010, your everyday debit card transactions will not be protected under CDCU's ODP.
For new accounts: If you open a new account on or after July 1, 2010, your everyday debit card transactions will not be protected under CDCU's ODP unless you opt-in.
How to opt-in
You can opt-in one of two ways:
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:
- We can link a savings account or an overdraft loan to your checking and transfer to cover any overdrafts. These types of transactions will incur a $1.50 transfer fee (provided there is enough money in the account to cover your transactions).
- ODP may cover your items up to a balance of $1,000 if there are no other accounts set up to transfer funds for overdrafts or if there are no funds available in the other back-up sources. You will be charged the standard $27 per item.
This information explains how the new legislation affects ODP relating to overdrafts on your checking account.
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic bill payments
Effective July 1, 2010 for new members and August 15, 2010 for current members, we will not authorize and pay overdrafts for the following types of transactions unless you ask us to:
- 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 CDCU pays my overdraft?
Under our standard overdraft practices:
- We will charge you a fee of up to $27 each time we pay an overdraft.
What if I want CDCU to authorize and pay overdrafts on my everyday debit card transactions?
If you want us to authorize and pay overdrafts on everyday debit card transactions, please complete this form.
Please contact CDCU at (734) 434-4130 or visit either branch location as we would be happy to answer any questions you may have.
If this form is not submitted, we must assume that you DO NOT WANT CDCU's ODP program to cover your everyday debit card transactions, but cover all other items under the ODP program. This service will then be removed effective August 15, 2010.
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