Overdraft Coverage Options
With our busy lives, it’s easy to make mistakes such as forgetting to deposit a check, make a transfer, or deduct your last debit charge from your balance. A simple error or balance miscalculation can lead to an unexpected shortage of funds.
Have peace of mind knowing your checking account is covered when the unexpected happens. Your choices for Overdraft Protection include:
- Savings Transfer
- Overdraft Privilege
Choose which option works best for you!
Savings Account Transfer
Set up Overdraft Protection Transfer from another eligible DOLFCU Share Account. In the event of an overdraft, available funds will be automatically transferred to your checking account to cover the overdraft. (Transfer Limits - up to three (3) per month for Money Market.) Please contact us to set up this option.
Even if you have Overdraft Protection, Overdraft Privilege is still available as additional coverage if your other protection sources are exhausted. 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 your Overdraft Privilege.
These options apply to checks and ACH transactions, and Labor CU can only pay overdrafts for ATM or everyday debit card transactions if you have given us consent to extend coverage for payment of these overdrafts.
- We will charge you a fee of up to $30 a maximum of three (3) times per day each day we pay an overdraft if your account is overdrawn more than $50.
- We will not charge you a fee if your account is overdrawn by $50 or less on any given day.
- There is a maximum of 3 Overdraft Fees and 3 NSF fees per day on the total fees we charge you for overdrawing your account.
- You have a maximum of 45 days to bring the account back to positive status.
If you would like to select this Overdraft Privilege Extended Coverage to cover ATM and everyday debit card transactions, simply complete this Opt In Consent Form and:
- Mail to PO Box 51, Merrifield, VA 22116
- Return in person to one of our branch locations
- Email your request to Opt In
- Call or text us your request to Opt In to (202) 789-2901.
For additional information about the Overdraft Privilege Program, download "What Else You Should Know" or read below.
What Else You Should Know about the Overdraft Privilege Program
- 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 just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, internet banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit www.mymoney.gov.
- The $30 Overdraft Fee that is charged if you overdraw your account more than $50 is the same fee amount that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, we will only charge three (3) Overdraft Fee or an NSF Fee of $30 per day. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
- Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Fee from funds that you deposit or that are deposited into your account may call us at (202) 789-2901 to discontinue Overdraft Privilege.
- If an item is returned because the Available Balance in your account (as defined below) is not sufficient to cover the item and the item is presented for payment again, Labor CU ("We") will charge an NSF Fee each time it returns the item because it exceeds the Available Balance in your account. Because we may charge an NSF Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and representment of the item. When we charge an NSF Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on representment 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 an Overdraft Fee.
- For consumer accounts, there is a limit of $90 Overdraft Fees (3) per day we will charge. We will not charge an Overdraft Fee if a consumer account is overdrawn by $50 or less or if the amount of the item is $10 or less. These exceptions do not apply to business accounts.
- Our general policy is to post items throughout the day and to post credits before debits. We post checks, ACH debits, ATM and debits card transactions in the order in which they 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 Overdraft Fees or NSF Fees assessed.
- Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
- 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.
- 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 Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
- Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
- The NSF/Overdraft fee is assessed based on the available balance in your account at the time the transaction settles to your account, and NOT based on the available balance at the time you authorize the transaction. Merchant transactions could take up to 7 days to settle to your account, which could cause additional overdrafts if funds are removed from your account prior to the pre-authorized transaction settling.
Understanding your Available Balance:
Your account has two kinds of balances: the Ledger Balance and the Available Balance.
- We authorize and pay transactions using the Available Balance.
- 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.
- 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.
- The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
- 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 Overdraft Privilege limit. 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 Overdraft Privilege limit.
- 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.
- Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through online banking, mobile banking or Labor CU’s ATMs.
- 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, an Overdraft Fee may be assessed.
- Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
- We may suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s), or for fraud. You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated.
- We will charge a fee of $10 to reactivate your debit card if we suspend your debit card.
- If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
Understanding Overdraft Privilege Limits
- An Overdraft Privilege limit of $1,000 will be granted to eligible consumer checking accounts opened at least 30 days in good standing.
- Overdraft Privilege may be reduced 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 45 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 Overdraft Privilege limit reinstated.
Accounts will be charged the standard Overdraft fee of $30 for handling (3) overdrafts created by check, ACH, Point-of-Sale, ATM withdrawal, in-person withdrawal, or other electronic item that is paid and $30 for items returned. An overdrawn balance must be repaid within 45 days. We may not pay items under your Overdraft Privilege if you do not maintain your account in good standing by bringing your account to a positive balance within every forty-five (45) day period for a minimum of 24 hours, if you default on any loan or other obligation to DOLFCU or if your account is subject to any legal or administrative order or levy.
If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Department of Labor Federal Credit Union will charge a return item fee each time it returns the item because it exceeds the available balance in your account. If, on representment of the item, the available balance in your account is sufficient to cover the item Department of Labor Federal Credit Union may pay the item, and, if payment causes an overdraft, charge an overdraft fee.
Money Management Tools
Do You Fit in One of these Categories?
Nice try, but…
You try to balance your checkbook using pencil and paper, but find it frustrating and have difficulty making the numbers agree.
See No Evil
You avoid the frustration altogether by ignoring your monthly statement altogether, using the institution’s balance, or keeping an approximation in your head.
If you fit one of these categories, DOLFCU has Money Management Tools available to help you balance your checkbook, establish a budget, and identify strategies to reduce debt and save!
For more information on effective money management and financial fitness, consider this list of helpful online references and resources.