Standard Overdraft Practices (Courtesy Pay) and Overdraft Protection Plan Policy

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Arkansas Education Assoc. Federal Credit Union (AEAFCU) may honor a member transaction that results in an overdrawn account through the use of the Courtesy Pay (Standard Overdraft Practices) or the overdraft protection that transfers funds from a member's savings to a checking account to cover overdrafts.

Overdraft Protection Plan:
Members who are automatically enrolled in the overdraft protection plan will be provided with a notice of enrollment at account opening. The overdraft protection plan allows for funds to be transferred from a member's share (savings) account to a member's share draft (checking) account to cover an insufficient item being presented for payment, as long as there are available funds in the share account. AEAFCU charges a $5.00 fee for this service. The fee will be disclosed in the credit union's fee schedule.
Courtesy Pay (Standard OverdrAft Practices):
Under the Standard Overdraft Practices (Courtesy Pay), AEAFCU will charge a fee to provide for the payment of a transaction that would otherwise be returned due to non-sufficient funds (NSF). However, AEAFCU is under no obligation to pay every overdraft, no application is required for Courtesy Pay, and eligibility is at the credit union's sole discretion. 
GUIDELINES:
Types of Transactions Subject to Overdraft Protection:
AEAFCU offers courtesy pay for the following types of transactions which could result in an overdrawn account: Share Draft (checking) transactions, ACH debit transactions -- received or originated, ATM and one-time debit card transactions.
ATM and One-Time Debit Card Transactions:
Before assessing a fee for ATM and one-time debit card transaction overdrafts, AEAFCU will provide members with the right to opt-in, or affirmatively consent, to the Credit Union's courtesy pay service for ATM and one-time debit card transactions for each share draft account.
Member Qualifications:
AEAFCU will offer the courtesy pay program to members "in good standing." To be considered "in good standing," the following qualifications must be met: over the age of 21, have a non-interest or interest-bearing account, and are making regular deposits to a share draft/checking account with AEAFCU which has been open for a minimum of sixty (60) days. The member should also have a good payment record with AEAFCU and not be subject to any legal or administrative order or levy to pay.
Dollar Limits:
The total dollar amount of all courtesy pays the Credit Union will honor is not to exceed 10 percent of net worth, including fees at any given time. This overall Courtesy Pay dollar limit will be reviewed annually.

The total dollar amount of courtesy pay AEAFCU will honor per member at any given time is not to exceed $500, including fees for interest-bearing accounts.
Repayment:
A member has 30 calendar days from the day the advance was made, not to exceed 45 calendar days, to deposit the funds. Courtesy payments that remain unpaid will be handled in a manner consistent with the Credit Union's Collection Procedures. 
Fees:
Applicable fees will be assessed for each overdraft. A list of current fees and applicable interest rate(s) will be furnished when the account is opened. The current fee for paying or returning an NSF item is $22.50.
Disclosures:

  1. • At the time an account is opened, members will be provided with a disclosure of the fees and a list of categories of transactions forwhich an overdraft fee may be imposed.
  2. • The Credit Union will also provide a periodic statement disclosure regarding the total amount of overdraft fees or charges imposed on an account for the statement period and calendar year to date.

Advertising:
AEAFCU will not state the available overdraft limit or indicate the amount of overdraft funds available in individual member accounts in any advertisement or periodic statement.
No Preferential Treatment:
Credit Union staff and board members will not be granted preferential treatment through waived or reduced fees.
Negative Account Balances:
AEAFCU may immediately terminate this program for members who fail to pay any negative balance amounts upon demand. The Credit Union may also close the member's account 45 days after written notice to the member of his/her negative account balance, as this will be deemed to be a voluntary withdrawal from Credit Union membership. Any unpaid balance will be charged off no longer than 60 days from the date the account was first overdrawn. A deposit made against a written-off balance will be applied as an offset to the written-off amount.