An overdraft occurs when you do not have enough money available in your account to cover a transaction, but we pay it anyway. Your available balance determines if you have enough money in your account to cover a transaction.
We have three options to cover your overdrafts:
Savings Transfer Overdraft Protection – this allows automatic transfers from your Saving(s) account for a fee of $2.00 per transfer, which may be less expensive than our standard overdraft practices. Overdraft protection can be set up at any time. Please contact us to verify your current overdraft protection setup or to set up Overdraft Protection for your account.
Personal Line of Credit – can also be a convenient way to cover those unexpected expenses that can result in an overdrawn account. You can set up your Personal Line of Credit to automatically transfer enough to cover your overdraft for a small fee of $2.00 per transfer. The mininum transfer amount is $50.00. Apply now or contact us for more information.
Overdraft Privilege – allows qualified members who are at least 18 years old to overdraw their accounts up to $500.00 or $750.00 with direct deposit and for business accounts. There is a $30.00 fee each time we pay an overdraft. The standard protection allows us to authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using a checking account number
- Automatic bill payments/ACH
Additional Transaction Coverage
For added protection members can authorize and pay overdrafts on their ATM and everyday debit card transactions; to do so, they must opt in for this additional coverage.
- Opting in allows added protection where you authorize us to pay overdrafts for the following types of transactions:
- ATM withdrawals
- Everyday debit card transactions (recurring payments are not included)
The credit union pays 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 transction will be declined.
Overdraft Protection Frequently Asked Questions
Is there a limit for how far I can overdraft my account and still be covered?
Generally, the limit for Overdraft Privilege is up to $500.00 and may be as high as $750.00. Business accounts are generally up to $750.00. The limit does not change if you are opted into the added protection.
Are you encouraging me to write bad checks?
No. We are responding to member requests to pay items that were being returned when the available amount is only a few dollars less than the amount of the check. We are providing our members with a valuable service.
If I opt out of Overdraft Privilege and change my mind later, how do I reinstate it on my account?
You may opt in to Overdraft Privilege by contacting us.
When do I have to repay the overdraft covered by Overdraft Privilege Protection?
You must bring your account to a positive balance at least once every 35 days or less.
How is my account balance determined?
We authorize and pay transactions using the available balance in your account. The available balance is the ledger balance (collected funds) minus any holds. As such, the available balance does not include any deposited funds on hold. We may place a hold on deposited funds in accordance with our Funds Availability Policy. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection may be used to authorize and pay a transaction.
We may also place a hold on your account for any authorized debit card transactions 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, we will add the funds to the available balance. If your account is overdrawn after such held funds are added to the available balance and the transaction is posted to the available balance, an overdraft fee may be assessed.
Will the overdrawn limit be reflected in my available balance?
No. The overdraft limit is not part of your balance. Rather, it is simply a threshold the Credit Union will extend to you beyond your available checking balance.
Can I use Overdraft Privilege to make a Progressions Credit Union loan payment?
No. You cannot use this service to make any loan payments or to bring another account to a positive balance.
What if I don't want Overdraft Privilege?
You can opt out of the service at any time by contacting us. Please note this request could take up to 24 business hours. Without Overdraft Privilege, overdrawn items will be returned upaid and a $30.00 NSF fee will be assessed after funds for overdraft protection (if applicable) have been depleted. You may also be charged additional fees by the merchant/payee.
Can Overdraft Privilege be removed from my account once I have been automatically opted in?
Yes. Progressions Credit Union maintains the right to remove Overdraft Privilege from your account if it is no longer in good standing. We are not obligated to honor any overdraft coverage once your account is not in good standing. Not in good standing includes, but is not limited to: not bringing the account positive within 35 days; has caused the credit union a loss; has delinquent loan obligations with the credit union; has legal orders, garnishments, executions or levies including bankruptcy notices; or has engaged in suspicious or abusive activity.