What You Need to Know about CCU Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough available funds in your checking account to cover a transaction, but we pay it anyway. We can cover your overdraft in two different ways:
- We have standard overdraft practices that comes with your account. See "Fees for Overdrawing Accounts" in the Truth-In-Savings for details on limits and fees.
- We also offer Overdraft Transfer Protection, which is a less expensive way to cover inadvertent or occasional overdrafts. OverdraftTransfer Protection can link a share account to a members checking account, and if items post against insufficient funds on the checking account, the necessary funds are automatically transferred from an additional share account for $4.00 per transfer. However, if the share account is a savings account, federal regulations limit the automatic transfers to six per month (Regulation D).
- Overdraft Protection Line of Credit, subject to interest and credit approval.
This notice explains Standard Overdraft Practices
What is the standard overdraft practices that comes with my account?
We do authorize and pay overdrafts on the following types of transactions:
- Checks and other transactions made using your checking account number, such as ACH payments
- Automatic Bill Payments
As required by federal regulation, we will not authorize or pay overdrafts for the following types of transactions unless requested:
- ATM Transactions
- 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 Capitol Credit Union pays my overdraft?
We will charge you a courtesy pay fee of:
- $12.50 per item paid, bringing your available balance below $0.00 & up to a balance of - $5.00 (neg)
- $31.00 per item paid, bringing your available balance greater than or equal to -$5.00 (neg)
There is no limit on the total fees we can charge you for overdrafting your account.
Fees are subject to change with notice and according to state and federal law.
What time period do I have to repay or cover any overdrafts?
You have 32 days from date of your first overdraft to repay any overdrafts and fees that make up the current balances in your account.
What if I want Capitol Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions (OPT- IN)?
If you also want us to authorize and pay overdrafts on your ATM and everyday debit card transactions you may consent to adding Extended Coverage by:
- calling Member Services at (512)477-9465 option 0
- completing and mail the form to: Capitol Credit Union, PO BOX 81647, Austin, TX 78708
- bringing the consent form to any one of our branches
- sending a secure message within your PC Capitol Access login
- Forms can also be faxed to (512)495-6683
***For any items presented against insufficient balances, a Non-Sufficient Fund Fee of $34.50 per item will apply
******Please note that you may reinstate or revoke your Opt-In decision at any time***
On November 12, 2009, the Federal Reserve Board released its final ruling prohibiting financial institutions from charging consumers overdraft fees on ATM and one-time debit transactions, unless the consumer opts in to the overdraft service for those types of transactions.
Should you have additional questions or concerns please contact us directly.