Americo Federal Credit Union Courtesy Pay Overview
Americo FCU may honor a member transaction that results in an overdrawn account through the use of the Credit Union’s Courtesy Pay Program. Under this program, the Credit Union charges a fee to provide payment for a transaction that would otherwise be returned due to non-sufficient funds (NSF). The Credit union is under no obligation to pay every overdraft and may discontinue coverage at any time without notice. A member must opt in to activate Courtesy Pay.
Types of transactions subject to Courtesy Pay Protection:
The Credit Union offers Courtesy Pay for the following types of transactions which could result in an overdrawn account:
- Checks paid through regular channels
- Over-the-counter checks
- Electronic debits (ACH/EFT)
- Automatic bill payments
- One-time debit/ATM transactions
Members must meet certain qualifications to be approved for Courtesy Pay. Below is a list of qualifications. Other restrictions may apply.
- Must be at least 18 years old
- No loan past due more than 30 days
- Must have acceptable Chex systems report
- Must have an account established for at least 60 days in good standing
- Cannot be a party in a bankruptcy proceeding
- Cannot have prior unresolved loss with the Credit Union
- Account cannot be subject to any legal or administrative order of levies
- Must have valid address with Credit Union
The member has 30 days from the day the advance was made to bring the account to a positive status by either making a deposit to the account or by obtaining a loan to bring the balance positive.
A notice will be sent to inform the member that their Courtesy Pay Protection has been activated and that their account is in a negative status. The member will receive their regular monthly statement that also serves as a reminder that their Courtesy Pay Protection has been activated with an up-to-date balance as of the end of that month. The negative share draft account will be closed if the account is not brought to a positive balance status by day 45.
Order of protection
- Designated share transfers
- Unsecured line of credit loan (if applicable)
- Courtesy Pay Protection
The total dollar limit of all overdrafts resulting in a negative status is not to exceed $500.00 including fees at any given time.
The fee for overdraft privilege is $28.00 per overdraft with a maximum fee of $112.00 (4 overdrafts) per day.
Payment order of items
Checks, drafts, transactions, and other items may not be posted in the order that you make them or in the order that we receive them. We may, at our discretion, pay a check, draft, or item and execute other transactions on your account in any order we choose. The order in which we process checks, drafts, or items, and execute other transactions on your account may affect the total amount of overdraft fees that may be charged on your account. A maximum if $112.00 per day (4 overdrafts) will apply. Please contact us if you have any questions about the way we pay checks or drafts and process transfers and withdrawals.
At the time the account is opened, members will be provided with a disclosure of fees and list of categories of transactions for which an overdraft fee may be imposed. Courtesy Pay Protection will become available to new members 60 days from the day the account was opened provided the member is in good standing with the credit union. Members must opt in to the program. Members who have opted in to the program may at any time thereafter opt out by providing the credit union with written notification that they now choose to opt out of the program.
The Credit Union will provide a periodic statement disclosure regarding the total amount of overdraft fees and charges imposed on an account for the statement period and the calendar year-to-date.
While Americo FCU will typically pay overdrafts on accounts in good standing (as described above) payment is a discretionary courtesy, and not a right or obligation and Americo FCU in its sole discretion, can cease paying overdrafts at any time without prior notice of reason or cause.