Discretionary Overdraft Privilege Policy
An overdraft occurs when you do not have enough money in your account to cover the transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
- We have standard overdraft practices that come with your account called “Discretionary Overdraft Privilege” or “Courtesy Pay.”
- We also offer overdraft protection plans, such as a link to a savings account or small line of credit, which may be less expensive than our standard overdraft practices. To learn more about these plans, contact a member service representative.
This notice explains our standard overdraft practices.
It is the policy of Destinations Credit Union to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.
The Deposit Account Agreement and Disclosure provided to you at the time you opened your account with us controls the duties, obligations and rights of the Depositor, the Authorized Signatories and Destinations Credit Union with regard to your share draft account. The Deposit Account Agreement (and all amendments thereto) and its terms shall control any possible conflict, if any, between any provision of this Discretionary Overdraft Privilege Policy and the Deposit Account Agreement and Disclosure. A copy of the Deposit Account Agreement and Disclosure is available to you upon request from Destinations Credit Union.
Overdraft privilege is not a line of credit. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of your overdraft privilege and the amount of the overdraft fee. Destinations Credit Union is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Available balance for payment of checks, ACH items, and recurring debit card transactions means the ledger balance minus any deposited funds and/or debit card holds, plus the amount of any Overdraft Privilege limit, if you have consented to this service, and any available Overdraft Protection; Account holds are placed for any authorized debit card transaction until the transaction settles and may sometimes exceed the actual transaction amount. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, a Courtesy Pay Fee may be assessed.
Any discretionary payment by Destinations Credit Union of an overdraft share draft (or items, such as ACH, ATM withdrawals or everyday debit card transactions) does not obligate Destinations Credit Union to pay any other overdraft share draft (or item) or to provide prior notice of its decision to refuse to pay such share draft (or item).
Pursuant to Destinations Credit Union’s commitment to always provide you with the best level of account holder service, now and in the future, if your consumer account (primarily used for personal and household purposes) has been open and active for at least Sixty (60) days and you maintain your account in good standing which include at least:
- Bringing your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours;
- Not being delinquent or in default on any loan or other obligation to Destinations Credit Union
- Not being subject to any legal or administrative order or levy and
- Neither a dormant account nor an account at a zero balance in excess of 30 days.
- A current address and phone number with the Destinations Credit Union.
Destinations Credit Union will have the discretion to pay overdrafts within the overdraft privilege limits, but payment by Destinations Credit Union is a discretionary courtesy and not a right of the member or obligation of Destinations Credit Union. This privilege for consumer share draft accounts will generally be limited to a maximum of $300 overdraft (negative) balance. Of course, any and all fees and charges, including without limitation the non-sufficient funds fees will be included as part of this maximum amount. Whether the credit union pays or returns a non-sufficient fund item(s), a per item fee of $32.00 will be assessed to the draft account as a Courtesy Pay or non-sufficient funds fee of $32.00 as set forth in credit union fee schedule. Courtesy Pay notices are sent through the mail or electronically (for eNotice users) that the item that was paid with the Courtesy Pay Fee. If the courtesy pay limit has been reached and the check is returned for Non-Sufficient Funds (NSF), an NSF notice is sent through the mail or electronically stating that the item has been returned and the NSF fee has been charged. Transaction types that are eligible for Courtesy Pay include and are limited to: ACH transactions, Checks/Drafts, On-Us Checks at the Teller Counter.Debit/ATM withdrawals or transactions are only covered if you have opted in for this service.
The total of the discretionary overdraft privilege (negative) balance, including any and all fees and charges, including all non-sufficient funds/overdraft fees is due and payable upon demand and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts as described in the Deposit Account Agreement and Disclosure with a maximum repayment period of 30 days.
For all transactions except ATM/debit card transactions, if you elect to opt-out of this program, you must complete the Overdraft Privilege Pay Opt-Out Form. By completing the opt-out form any checks (or items) for which there are not sufficient funds will be returned. For ATM/debit card transactions you must opt-in separately. If you do not opt-in, any ATM or debit card transactions for which there are not sufficient funds will be declined.
Destinations Credit Union shall review this policy annually or as necessary.
Again, while Destinations Credit Union will have the discretion to pay overdrafts on accounts in good standing (as described above) payment is a discretionary courtesy, and not a right of the member or obligation of Destinations Credit Union and Destinations Credit Union in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause.