Regulation E/Opt-in/Overdraft Protection FAQ’s
What is Regulation E and why is it changing?
Regulation E governs electronic transactions. It is a consumer protection regulation that provides consumer rights, limits of liabilities, participants’ responsibilities and disclosure requirements for electronic fund transfer services.
The federal government is requiring all financial institutions that offer overdraft protection services to receive authorization from their customers to cover insufficient fund transactions on ATM and everyday debit card transactions. Checks and automatic bill payments that you may have set up for paying bills are not affected by this change.
What is an overdraft?
An overdraft occurs when you do not have enough money in your account to cover a transaction but the bank pays it anyway.
What are some ways I can cover overdrafts?
The best way to avoid an overdraft is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register, reconcile your check book regularly and manage your finances responsibly. However, if a mistake occurs, the bank offers two different types of overdraft services.
1. We have standard overdraft practices that come with your account.
2. We also offer overdraft protection plans, such as a link to a deposit account or line of credit, which may be less expensive than our standard overdraft practices.
Why should I opt-in?
For peace of mind. If you have an unexpected need for additional funds, you may not always be able to write a check. Having access to your limit at the ATM or with your debit card gives you peace of mind 24/7 and saves you the embarrassment of a denied transaction.
If I “opt-in,” will the bank always pay my ATM and everyday debit card transactions?
No – the bank does not guarantee that ATM and everyday debit card transactions will be approved, even if you opt-in.
How can I authorize the use of Overdraft Protection Services?
We want to make it very easy for you to opt-in. You only need to indicate consent by opting-in at our website, at any of our branches, by mail or by telephone. Plus, you only have to opt-in one time. You can change your mind at any time, as well.
What happens if I don’t opt-in?
Beginning August 15, 2010, if you have not opted-in, ATM withdrawals and one-time debit card transactions will normally be declined when there are insufficient funds in the account to cover the transaction or purchase.
What if I still have questions or would like more information?
We invite you to call your Bank Representative or stop by and visit any of our office locations. We will discuss your options with you so you can make an informed decision.
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