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Courtesy Pay
General Policy Statement:
Wabellco Federal Credit Union may honor a member transaction that results in an overdrawn account through the use of the Credit Union’s overdraft protection program called Courtesy Pay. Under this program, the Credit Union charges a fee to provide for the payment of a transaction that would otherwise be returned due to non-sufficient funds (NSF). The Credit Union is under no obligation to pay every overdraft. This program is not intended to be used as a line of credit, or misused by the membership placing transactional risk on the credit union.
Guidelines:
Members will be granted an overdraft limit on an individual basis. Those who have direct deposit of their pay into the credit union will be assigned a limit of either $250 or $500 depending on the amounts of direct deposits being received. Those members without direct deposit will be assigned a limit of $100.
Under certain circumstances, the CEO will have the authority to approve overdrafts exceeding a member’s limit. Under no circumstances will the overdraft amount be greater than $500.
The credit union will charge a fee that is not to exceed the fee assessed for a returned item. The fee is currently set at $25.
The member will have 14 days to bring the account to a positive balance. If the account remains negative, overdraft privileges will be revoked and the member will be notified of this action.
The board of directors will set a limit on the total dollar amount of total overdrafts existing at any point in time. The board is aware of the risk involved, and the limit is set at 0.10% of assets. If the total outstanding overdrafts exceed 75% of the limit, the CEO will monitor on a daily basis and appropriate action will be taken.
Members will be notified by mail on each overdraft occurrence, and will include the current balance and any fees charged.
Accounts remaining negative for a period of 45 days or more shall be charged off and collection procedure will commence.
If it is determined that a member is either misusing the program, or if a different product may benefit them, communication with the member will occur.
Decisions to approve a member’s overdraft status or limit shall not be made based on a prohibited basis (e.g. race, color, national origin, sex, marital status or age).
Credit union staff and board members will not be granted preferential treatment through waived or reduced fees.
The board of directors has the discretion to terminate this program at any time.
Collection Costs:
You agree to pay all costs of collection of the amount you owe under this agreement including court costs and attorney fees not in excess of 15% of the unpaid debt.
Approved 4/13/2016
Revised 2/13/2019
Reviewed 11/11/2020
Wabellco Federal Credit Union may honor a member transaction that results in an overdrawn account through the use of the Credit Union’s overdraft protection program called Courtesy Pay. Under this program, the Credit Union charges a fee to provide for the payment of a transaction that would otherwise be returned due to non-sufficient funds (NSF). The Credit Union is under no obligation to pay every overdraft. This program is not intended to be used as a line of credit, or misused by the membership placing transactional risk on the credit union.
Guidelines:
Members will be granted an overdraft limit on an individual basis. Those who have direct deposit of their pay into the credit union will be assigned a limit of either $250 or $500 depending on the amounts of direct deposits being received. Those members without direct deposit will be assigned a limit of $100.
Under certain circumstances, the CEO will have the authority to approve overdrafts exceeding a member’s limit. Under no circumstances will the overdraft amount be greater than $500.
The credit union will charge a fee that is not to exceed the fee assessed for a returned item. The fee is currently set at $25.
The member will have 14 days to bring the account to a positive balance. If the account remains negative, overdraft privileges will be revoked and the member will be notified of this action.
The board of directors will set a limit on the total dollar amount of total overdrafts existing at any point in time. The board is aware of the risk involved, and the limit is set at 0.10% of assets. If the total outstanding overdrafts exceed 75% of the limit, the CEO will monitor on a daily basis and appropriate action will be taken.
Members will be notified by mail on each overdraft occurrence, and will include the current balance and any fees charged.
Accounts remaining negative for a period of 45 days or more shall be charged off and collection procedure will commence.
If it is determined that a member is either misusing the program, or if a different product may benefit them, communication with the member will occur.
Decisions to approve a member’s overdraft status or limit shall not be made based on a prohibited basis (e.g. race, color, national origin, sex, marital status or age).
Credit union staff and board members will not be granted preferential treatment through waived or reduced fees.
The board of directors has the discretion to terminate this program at any time.
Collection Costs:
You agree to pay all costs of collection of the amount you owe under this agreement including court costs and attorney fees not in excess of 15% of the unpaid debt.
Approved 4/13/2016
Revised 2/13/2019
Reviewed 11/11/2020
