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Did you Opt In?New Federal Reserve rules give debit and ATM card user’s additional options regarding overdrafts. THE BASIC FACTSTypes of overdraft services. An overdraft occurs when you make a purchase or ATM transaction but you did not have enough funds available in your account to pay for it. For a fee, your credit union’s overdraft services will cover you when you become overdrawn. This fee can apply to each time you overdraw your account. Generally, there are two types of overdraft services: Standard overdraft services. UBCCU will cover your transactions for a flat fee of $25 each time you overdraw your account. (An additional $5.00 if the check is returned). For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and UBCCU will charge you a fee. If you, then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee. In this example, you will pay a total of $50 in fees. Overdraft protection plans. UBCCU offers a line of credit or a link to your savings account to cover transactions when you overdraw your account. Credit unions typically charge a fee each time you overdraw your account, but overdraft protection plans may be less expensive than standard overdraft services. (You must qualify for this service) THE NEW RULESYou choose. In the past, some credit unions automatically enrolled you in their standard overdraft services for all types of transactions when you opened an account. Under the new rules, UBCCU must first get your permission to apply these services to everyday debit card and ATM transactions before you can be charged overdraft fees. To grant this permission, you will need to respond to the notice that has been or will be sent to you and OPT IN (agree). Existing accounts. If you do not OPT IN (agree), beginning August 15th, 2010, UBCCU standard overdraft services will not apply to your everyday debit and ATM transactions. These transactions typically will be declined when you do not have enough money in your account, but you will not be charged overdraft fees. New Accounts. If you open a new account on or after July 1st, 2010, UBCCU cannot charge you overdraft fees for everyday debit card and ATM transactions unless you OPT IN. If you open a new account before July 1st, 2010, UBCCU will treat you as an existing account holder; you will receive a notice about UBCCU’s overdraft services and will have to decide if you want them for everyday debit and ATM transactions by checking the box and signing that you want to OPT IN. Flexibility. Whatever your decision, the new overdraft rules give you flexibility. If you OPT IN, you can cancel at any time. If you do not OPT IN, you can do so later. Checks and automatic bill payments. The new rules do not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities. UBCCU may still automatically enroll you in our standard overdraft services for these types of transactions. If you do not want UBCCU’s standard overdraft services in these instances, talk to a Member Service Representative or Branch Manager; you do have the option to cancel. USEFUL TERMSEveryday debit card transactions – purchase made with your debit card on a day-to-day basis (excludes all checks and automatic bill payments) Overdraft - an overdraft occurs when you write a check, make an ATM transaction, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for an amount greater than the balance in your checking account. OPT-IN – giving UBCCU permission to include you in a particular overdraft service OPT-OUT – declining a particular overdraft service offered by UBCCU
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