Overdraft Privilege

What is Overdraft Privilege?

  • A financial resource that can protect you from inadvertent mistakes caused by insufficient or overdraft checks
  • Union State Bank’s convenient response to your unexpected banking needs
  • A valuable enhancement to your banking relationship
  • Not a PROMISE . . .but a PRIVILEGE. . .to you, our customer

If you write a check, initiate an electronic funds transfer, authorize an ACH debit to your account or authorize any other debit transaction to your account, excluding ATM and one time debit card purchases, we will either (a) pay the overdraft or (b) return the item(s) unpaid for non-sufficient funds (NSF).  If we pay the overdraft, this service is called Overdraft Privilege.  (Payment of ATM and one time debit card purchases using Overdraft Privilege and the assessment of the overdraft fee must be pre-authorized, to the bank, by the customer’s decision to Opt-In to include those transactions prior to the initiation of those transactions).  Participation in the Overdraft Privilege program can save the customer the expense and the embarrassment of having an item returned.

What are the qualifications for Overdraft Privilege?

  • The account must be a checking account. Savings and Money Market accounts do not qualify for the Overdraft Privilege Program
  • The account must have regular deposits (at least 2) during the first full statement cycle after account opening
  • The account must be in good standing (no insufficient funds or charge back activity) during the first full statement cycle.

What types of accounts are eligible for Overdraft Privilege?

  • Personal Checking accounts used for consumer purposes
  • Personal NOW accounts used for consumer purposes

Only personal checking and NOW accounts used for consumer purposes are eligible for Overdraft Privilege. There are three different Overdraft Privilege limits:

  • $300 – this is the default limit for most new accounts.
  • $500 – this limit can be requested by those customers that have been account holders for an extended period of time or have other account relationships with the bank.
  • $700 – this limit is reserved for those customers that have a regular direct deposit to their account (at least one direct deposit each month)
  • Customers and / or their accounts with a history of excessive overdrafts or charge offs with other institutions or Union State Bank will not be eligible for Overdraft Privilege without expressed approval by a member of Senior Management.

What are the fees for Overdraft Privilege?

Our normal fee is currently $35.00 for each non-sufficient funds item. However, Union State Bank will only charge a maximum of $105.00 in non-sufficient funds fees on a single business day to any one consumer account. The non-sufficient fee of $35.00 will be charged regardless if the NSF item is paid or returned.

In the event that a non-sufficient item presented on an account would overdraw a customer’s account $5.00 or less, Union State Bank will automatically waive the non-sufficient funds fee of $35.00 for that occurrence.

What types of transactions can cause Overdrafts?

  • Checks written by you
  • Electronic Checks authorized by you
  • ACH debit transactions authorized by you
  • In person withdrawals
  • Other debit transactions authorized by you
  • ATM and one time debit card transactions the customer has elected to Opt In to be paid

Fees will be applied to overdrafts created by checks and electronic checks written and authorized by you, ACH debit transactions, in person withdrawals, other debit transactions authorized by you, as well as ATM and one time debit card transactions the customer has elected to OPT In to be paid.

What time period is required to repay the Overdraft Balance?

To maintain eligibility for Overdraft Privilege, customers must continue to make deposits into their accounts, bringing their account to a positive balance within a thirty (30) day period from the time of overdraft.  The bank reserves the right to require customers to pay outstanding overdraft (negative) balances, including fees, immediately or on demand.

Under what circumstances will the bank not pay an Overdraft?

  • If your account is not in good standing
  • If the bank determines the customer is abusing the Overdraft Privilege
  • If regular deposits are not being made to the account
  • If the account has charged back deposited items

The decision to pay customer overdrafts by Union State Bank is discretionary and the bank reserves the right not to pay any non-sufficient item.  Typically, the bank will not pay overdrafts if an account is not in good standing (charge back deposited items, kite suspect, account document exceptions, etc.), regular deposits are not being made tou the account or the bank determines abuse of the overdraft privilege program.  We may refuse to pay an overdraft for you at anytime, even though your account is in good standing and we may have previously paid overdrafts for you.

What order are items posted to my account?

  • All credits (deposits) in time stamp order
  • All debit transactions (ATM, debit card, ACH, Point of Sale, and over the counter withdrawals) in timestamp order except checks
  • All checks in ascending serial number order

Can a customer Opt-Out of Overdraft Privilege?

A customer may choose at any time not to participate in Overdraft Privilege by notifying one of our customer service representatives in writing. You may mail or deliver this written “opt-out” request to Union State Bank, P. O. Box 600, Florence,Texas 76527.

How will you be notified if you use Overdraft Privilege?

Union State Bank will mail an Overdraft or Non-Sufficient Funds notice to the customer each time the customer has an item presented for payment against insufficient funds.  The notice will be mailed to the last known address of the customer on the same day of the overdraft occurrence.

How can you avoid using the Overdraft Privilege?

  • Record both your debit and credit transactions on the account and keep a running balance so that you know what your balance is the majority of the time
  • Balance your bank statement each month and research any discrepancies
  • Use the Union State Bank website to monitor your account and transactions posted to your account frequently between statement cycles
  • Utilize the Telebank service by calling  866-366-2265 for balance inquiry and limited transaction history
  • Use the bank website to set up email and text alerts that will notify you when your balance reaches a low balance limit determined by you
  • Begin a regular savings program and have savings funds set up to automatically transfer to the checking account to cover an overdraft
  • In the event you find yourself in a cash crisis and know you will need to use the Overdraft Privilege, plan exactly how much you will need to use of your Overdraft Privilege limit, come to the bank and make ONE withdrawal for the total amount you will need and pay only one non-sufficient funds fee. Once you withdraw the funds needed, purchase money orders to pay your obligations or a prepaid debit card if you prefer not to carry cash.
  • Consult any of our loan officers to discuss a plan to address your budget needs

Always a Discretionary Service

The Union State Bank Overdraft Privilege service does not constitute an actual or implied agreement between you and the bank. Nor does it constitute an actual or implied obligation of or by the bank. Our overdraft privilege service represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.

At any time a customer should need help managing the use of the Overdraft Privilege service or need assistance with budget planning, they may contact any loan officer, at any location or go to www.mymoney.gov or www.fdic.gov/consumers/consumer/moneysmart for financial literacy information.

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