New Overdraft Protection Law - Effective July 1, 2010
Congress recently passed legislation that requires consumers to Opt-In to have overdraft protection when using their debit card and/or ATM card.  The new law will effect transactions processed on and after July 1, 2010.  If a consumer elects to Opt-In, the financial institution may charge a fee to provide this service/protection.  If the consumer elects to not Opt-In, the financial institution is not required to honor any transaction that may exceed the account balance available and may not charge a fee.

What this means to consumers is if there is not sufficient money in your account to cover a debit card or ATM card transaction, we can decline the transaction and cannot charge a fee to do so.  If you have elected to Opt-In for overdraft protection, we may cover the transaction up to the maximum overdraft coverage allowed to save the embarrassment of having your transaction declined.

If you elect to Opt-In, you also have the right to Opt-Out at anytime at no cost.  There is a fee of $25.00 to cover an overdraft.

This new law applies to every financial institution that offers overdraft protection plans relating to debit card and/or ATM transactions.

If you want to Opt-In to protect yourself, or you have any questions, please contact the credit union.

Note: This law does not cover check transactions.

 



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