A change is coming to AllCom Credit Union checking accounts that could affect how you’re able to use your debit card in certain instances. Most of our members' checking accounts currently have a feature called Overdraft Privilege (ODP). Currently, this feature may allow one-time debit card purchases and ATM transactions to be approved when there is not enough money in your account at the time of the transaction.
As of August 15, 2010, this feature will be disabled unless you confirm with us in writing that you want to continue it. The credit union recently mailed some information describing these pending changes and included an "Opt-In" form that must be signed and returned to us as soon as possible. All members that have checking accounts were mailed this letter and must respond if they wish to continue to receive the same level of access to Overdraft Privilege after August 15th.
If you have not communicated with us and returned your signed form by that date, you will no longer be able to take advantage of the Overdraft Privilege for one-time debit card and ATM transactions. Those types of transactions will be declined if there are not sufficient funds in the account at the time of the transaction.
If you'd like to download the form, we have included one for your convenience
so that you may continue to have uninterrupted access to Overdraft Privilege after August 15th.
AllCom Credit Union wants our members to be fully informed about these pending changes and has developed some answers to questions that you may have about this feature.
Overdraft Privilege Frequently Asked Questions
1. Question: What is Overdraft Privilege (ODP)?
2. Question: How does it work? How much does it cost a member?
Answer: We will generally pay items presented, up to the total of the Overdraft Privilege limit for each account. In addition to the items paid, our normal overdraft or return item fee of $25 will be added on a per item basis, and is included in the limit. For example, if we pay two overdraft transactions for a member, they would be charged two overdraft fees totalling $50. The member is not charged any additional amount per transaction for having this service on their account.
Overdraft Privilege does not cost a member anything unless they use it!
3. Question: How can members apply for this benefit?
Answer: There is no application process. Members are provided this service automatically on checks written, ACH transactions, preauthorized automatic transfers, internet banking, and telephone banking when they meet the eligibility requirements explained in the Overdraft Privilege account disclosure.
Effective July 1, 2010, (August 15th for existing accounts) members must sign a consent form to authorize Overdraft Privilege on ATM and one-time debit card transactions. If a member does not have ODP, they have either opted out or been suspended or excluded for not meeting the minimum requirements.
4. Question: How does a member know when they have Overdraft Privilege and what their limit is?
Answer: When a member initially qualifies for ODP we send them a welcome letter referred to internally as the Activation Letter. The Activation Letter briefly describes the benefits of the privilege and informs them that their account is now qualified. Also included with the Activation Letter is our Overdraft Privilege Disclosure (lists all of the terms and conditions) and a consent form for ATM and everyday debit card transactions (beginning July 1, 2010).
5. Question: How can our members access Overdraft Privilege?
Answer: Overdraft Privilege can be accessed via:
NOTE: *Requires the member to authorize the Credit Union by completing an ATM/DebitCard Consent Form.
6. Question: Why do we require our members to sign an ATM/Debit Card Consent Form?
Answer: On November 12, 2009, the Federal Reserve Board published changes to Regulation E (Electronic Fund Transfers). Under the rule, financial institutions may not charge members a fee for paying ATM and one-time debit card transactions unless the member affirmatively consents, or opts in to overdraft coverage for these transactions. The new rule does not apply to checks, ACH debits and recurring debit transactions creating overdrafts.
7. Question: What is the difference between an one-time debit card transaction and a recurring debit card transaction?
Answer: Recurring debit card transactions are created when a debit card holder uses their card to initiate a monthly recurring payment instead of using a credit card. The debit card information is recorded once and the organization or vendor then submits the monthly bill to the financial institution with the debit card holder’s account number. These transactions have a code identifying them as recurring.
One-time or everyday debit card transactions occur when the accountholder uses their debit card at the time of purchase, such as, gasoline, groceries, movies, dinner, etc.
8. Question: What transactions are included in ATM transactions?
Answer: ATM and not just cash withdrawals would be included. Some examples are: account-to-account transfer, postage stamp purchase, loan payments,
9. Question: How have members received the ATM/Debit Card Consent Form?
Answer: AllCom Credit Union recently sent a mailing to our members that provided a letter explaining the changes and the consent form.
10. Question: How will members provide their consent?
Answer: Members may provide us with their authorization by:
a) Returning the response form that is provided with the mailing;
b) Contacting us via Telephone – when calling for the purpose of Opting-In, you may speak with Jennifer Lachambre, Carol Esparza or Laura Cummings
c) Beginning on/around July 1, 2010, members will be able to provide their consent via AllBranch, AllCom's Home Banking product. AllBranch members will be notified as soon as this feature becomes available.
11. Question: Can a member phone their authorization in to us?
Answer: Yes. Please call 508.754.9980 and ask to speak with Jennifer Lachambre, Carol Esparza or Laura Cummings.
12. Question: What if a member comes into the branch and states that they have forgotten to bring the consent form but they wish to opt-in?
Answer: We will provide members with another opt-in form to sign.
13. Question: If a member signs the ATM/Debit Card Consent Form, can they later decide to revoke their choice?
Answer: Yes, members may revoke or opt-out of authorizing overdrafts on ATM and debit cards at any time. The member will still have Overdraft Privilege for other transaction access channels unless they choose to opt-out of the entire Overdraft Privilege Program. If a member that currently has Overdraft Privilege would like to opt-out of the program entirely, they may do so by downloading the ODP Opt-Out Form found here:
14. Question: If a member does not sign the form, will they have any Overdraft Privilege?