Overdraft Coverage

What else you should know:

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  A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile and Internet banking services to keep track of your balance. For financial education resources, please visit www.mymoney.gov.

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  The $30 Courtesy Pay Fee that is charged if you overdraw your account is the same fee amount that is charged if a check or ACH item is returned as unpaid. If your consumer account is overdrawn by $5 or less or if the item paid is less than $5, the Courtesy Pay Fee is waived. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Courtesy Pay Fee or a Return Item Fee of $30. All fees and charges will be included as part of the Courtesy Pay limit amount. Your account may become overdrawn more than the Courtesy Pay limit amount because of a fee.

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  For consumer accounts, there is a limit on the total Courtesy Pay Fees per day we will charge, which is 5 fees per day.

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  Recipients of federal or state benefits payments who do not wish to deduct the amount overdrawn and the Courtesy Pay Fee from funds that you deposit or that are deposited into your account may call us at (800) 276-5775 to discontinue Courtesy Pay.

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  If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Firelands FCU (“We”) will not charge a Non-Sufficient funds fee because it exceeds the Available Balance in your account for up to 30 days after the original presentment. Because we may charge a Return Item Fee each time an item is presented after 30 days, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge a Return Item Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Available Balance in your account is sufficient to cover the item, we may pay the item, and, if payment causes an overdraft, charge a Courtesy Pay Fee. We may use the terms “item” and “transaction” interchangeably.

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  This describes the posting order for purposes of determining overdrafts. Our general policy is to post items throughout the day and to post ACH credits before debits, ATM, ACH and debit card transactions are posted in the order in which the items are received; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Courtesy Pay Fees or Return Item Fees assessed.

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  Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

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  Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.

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  We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Courtesy Pay Options) is sufficient to cover the transactions and any fee(s).

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  Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Courtesy Pay Fees for transactions that we would otherwise be required to pay without assessing a Courtesy Pay Fee. However, this would allow us to authorize transactions up to the amount of your Courtesy Pay limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding Your Available Balance

Your account has two kinds of balances: The ledger balance and the available balance.

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  We authorize and pay transactions using the Available Balance.

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  Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.

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  Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.

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  The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Courtesy Pay limit and any available Overdraft Protection.

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  The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Courtesy Pay limit.

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  The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Courtesy Pay limit.

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  Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your Available Balance.

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  Please be aware that the Courtesy Pay amount is not included in your Available Balance provided through online banking, mobile banking, or Firelands FCU ATMs.

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  We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. 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 may be assessed.

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  Except as described herein, we will not pay items if the Available Balance in your account (including the Courtesy Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Courtesy Pay Limits

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  A Courtesy Pay limit of $100 will be granted to eligible checking accounts opened at least 1 day. A Courtesy Pay limit of $500 will be granted to eligible checking accounts opened at least 31 days in good standing. A Courtesy Pay limit of $750 will be granted to eligible checking accounts opened at least 181 days in good standing. A Courtesy Pay limit of $1000 will be granted to eligible checking accounts opened at least 365 days in good standing.

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  Courtesy Pay may be reduced/suspended if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Courtesy Pay limit reinstated.