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Credit Union - New Overdraft Policy Informative - Notice Of New Overdraft Policy

Review by MaggieMcT on 2010-07-17
Here's the notice that I received from my credit union:

"Beginning August 15, 2010, new federal regulations require that you contact us if you'd like to continue receiving Member Overdraft Privilege for your ATM and everyday debit card transactions.

As required by law, if you don't contact us to opt in by August 15, we'll no longer be able to provide this Overdraft Privilege to you, which means ATM and everyday debit card transactions that exceed your available balance will be declined. YOU'LL STILL AUTOMATICALLY RECEIVE COVERAGE ON CHECKS, ACH TRANSACTIONS AND RECURRING DEBIT TRANSACTIONS UNLESS YOU SPECIFICALLY OPT OUT." (caps mine for emphasis)

I'm posting this because I've seen references to (a) this being effective July 1; and (b) that checks would also bounce.
Comments:3 Replies - Latest reply on 2010-07-19
Posted by YunkaG on 2010-07-17:
It says checks are covered. Best to just be able to do arithmetic and you'll never be overdrawn.
Posted by Venice09 on 2010-07-17:
Is it just me, or is this new law worded in a way to confuse people?

As far as I know, the law went into effect on July 1st. I'm glad I just read your review because it made me realize that I'm not sure about checks with my own bank. I'm a proponent of simple arithmetic, but no one is immune from making a mistake, even the banks.
Posted by saj80 on 2010-07-19:
The new regulation covers only ATM and debit card transactions; what the notice says, in effect, if you agree to opt in, your transactions will be processed but you will be charged the normal overdraft fee. If you refuse to opt in, these transactions will be declined. This regulations does not apply to checks. The effective dates are July 1 for new customers and August 15 for existing customers of financial institutions.

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