Overdraft Privilege
Have you ever run short of funds just before payday or when you have an unexpected expense? Relax! You deserve consideration. Stark Federal is committed to helping members avoid overdraft fees with overdraft privilege.
Overdraft Privilege is a simple and convenient way to help ensure your checking and everyday debit card transactions clear in the unlikely event your available balance runs low. Consider it a last line of defense when other sources of funds have been exhausted. Either way, it’s there to help you manage a potentially uncomfortable situation with grace.
Available funds will be transferred from the primary savings account automatically to cover check and debit card transactions. You will also receive email and text alerts regarding overdrafts to your account.
Benefits of Coverage:
• Provides Security—may provide funds to pay unexpected expenses.
• Offers Convenience—may provide uninterrupted coverage if you lack sufficient funds.
• Eliminates Embarrassment—helps you avoid the awkwardness of a merchant declining your transaction.
• Acts as Last Line of Defense—you can still be covered after other overdraft sources have been exhausted.
Plus, there are no fees to sign up, and no fees if you never use Overdraft Privilege.
How does it work?
Overdraft Privilege is a discretionary overdraft service. We are not obligated to pay any item presented for payment if your account does not contain sufficient available funds; however, as long as you maintain your account in "good standing," and you have an established deposit relationship with Stark Federal, we may approve your overdraft items within your current available Overdraft Privilege limit as a non-contractual courtesy.
For overdraft privilege consideration, your account is in "good standing" if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 45 calendar days (including the payment of all credit union fees and charges); (2) avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit; and (3) there are no legal orders, levies or liens against your account; and (4) there are no loan or Visa delinquencies.
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
• Checks and other transactions made using your checking account number
• Automatic bill payments
• Recurring Debit Card
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (Opt-In Form required):
• ATM transactions
• Everyday debit card transactions
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
What if I want Stark Federal Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, an “Overdraft Coverage OPT IN Consent form is required. Please contact a Member Service Representative for assistance.
What fees will I be charged if Stark Federal Credit Union pays my overdraft?
Under our standard overdraft practices: We will charge you a fee of $35 each time we pay an overdraft, and there is a limit of 3 overdrafts per day we charge you for overdrawing your account. Also, if your account is overdrawn for 5 or more consecutive business days, we will charge an additional $5 per day.
We do allow a $15 grace amount before a fee is charged. This helps eliminate the "$40 cup of coffee" scenario. That is, we try not to charge an overdraft fee that might have resulted from a small purchase.
How quickly must I repay my Overdraft Privilege?
You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days. If you are not able to do so, you will receive a letter informing you that your Overdraft Privilege (ODP) limit has been suspended and additional items will be returned.
How soon can I use my Overdraft Privilege?
If you are a new account holder, you may be able to use the Overdraft Privilege service 120 days after the account is opened, assuming your account is in "good standing" as defined above.
What if I do not want to have Overdraft Privilege on my share draft account?
If you would like to have this service removed from your account or have questions about the qualifications involved with overdraft privilege, please contact a Member Service Representative.
