New rules give ATM and Debit card users additional options regarding overdrafts. Tuscaloosa V.A. Federal Credit Union will be providing all members that have a checking account with the ability to make decisions about overdraft services for transactions made with your ATM or Debit cards.

An overdraft may occur in several ways such as (1) the payment of checks, electronic funds transfers or other withdrawal requests such as ATM and debit card transactions; (2) payments authorized by you; (3) the return of unpaid items deposited by you; (4) the assessment of service charges; or (5) the deposit of items which, according to your credit union’s Funds Availability Policy, are treated as not yet available or finally paid. We are not obligated to pay any item presented for payment if your account does not contain sufficient funds. However, if you maintain your account in good standing (defined as making regular deposits and bringing your account to a positive balance at least once every 30 days) and there are no legal orders outstanding and no delinquent TVAFCU loans, we may approve your reasonable overdrafts. This is what is known as Courtesy Pay and is the last option presented to cover an overdraft.

There are other overdraft options before accessing Courtesy Pay that we strongly recommend. We would recommend that you apply for a TVAFCU line of credit to cover transactions when you overdraw your account. A line of credit comes with an interest rate that you only pay on outstanding balances used. We encourage you to set up this service as the first option for overdraft protection as they will be less expensive than the Courtesy Pay service.

Courtesy Pay was provided on your account as a backup to the service mentioned above. If an item is returned, not only are there usually NSF fees charged (whether it is paid or not), but there may also be expensive fees and other ramifications from the merchant. The Courtesy Pay program was intended to save you money and embarrassment in these situations.

Standard Courtesy Pay will remain and you will be automatically enrolled 30 days after opening a checking account and will remain if you continue to be a member in good standing. (Again, a member in good standing for these purposes is considered as clearing the overdraft amount within 30 days and having no significant deposit returns or delinquent loans with TVAFCU.)

In the past, TVAFCU and other Financial Institution’s standard procedures would be to automatically enroll you in their standard Courtesy Pay program for all types of transactions when you opened a new checking account. Under the new rules, TVAFCU and other Financial Institution’s must first get your permission to apply these services to everyday debit card and ATM transactions. To grant this permission and to receive the same peace of mind you have for other overdraft transactions, you will need to respond to the notice and opt in (agree).

If you want us to authorize and pay overdrafts on ATM and one-time debit card transactions, complete the opt-in form and return to TVAFCU as soon as possible. Click here to access the OPT-IN FORM.

Beginning August 15, 2010, if you do not opt in (agree), TVAFCU Courtesy Pay program won't apply to your everyday debit card and ATM transactions. These transactions typically will be declined when you don't have enough money in your account; no overdraft fees will be assessed.

If you open a new account on or after July 1, 2010, TVAFCU and other Financial Institution’s cannot approve transactions for everyday debit card and ATM transactions when you do not have sufficient funds to cover the full amount of the transactions unless you opt in (agree). If you do not opt in and do not have sufficient funds in your account at the time of the transaction, the transaction will be declined; no overdraft fees will be assessed.

If you open a new account before July 1, 2010, TVAFCU will treat you as an existing account holder; you will receive a notice about your overdraft services and will have to decide if you want them for everyday debit card and ATM transactions.

Whatever your decision, the new overdraft rules give you flexibility. If you opt in (agree), you can cancel at any time. If you do not opt in, you can do so later.

The new rules do not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities. TVAFCU may still automatically enroll you in their standard Courtesy Pay services for these types of transactions.

If you do not want the standard Courtesy Pay service or coverage for ATM and one-time debit card transactions, you may request to have the Courtesy Pay service removed from your checking account altogether.