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Regulation E

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Regulation E - Overdraft Protection

What you Need to Know about Overdraft and Overdraft fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway.  We can cover your overdrafts in two different ways:

  1. 1.  We have standard overdraft practices that come with your account.
  1. 2.  We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our standard overdraft practices.  To learn more, ask us about these plans.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with your account?
We do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will be charged if Clearfield Bank & Trust pays my overdraft?
Under our standard overdraft practices:

  • we will charge you a $30.00 fee (up to $180.00 per day) each time we pay an overdraft.

What if I want Clearfield Bank & Trust to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you want us to authorize overdrafts on ATM and everyday debit card transactions, call 814-765-7551, or complete this form:

*Today's Date:   

*Your Name  

* Please enter the last four numbers of your account(s):

  I do not want Clearfield Bank & Trust to authorize and pay overdrafts on my ATM and everyday debit card transactions. 

I want Clearfield Bank & Trust to authorize and pay overdrafts on my ATM and everyday transactions on the account(s) specified below:  I am aware that I may revoke this consent at anytime by calling 814-765-7551 or by visiting www.cbtfinancial.com

Right to Revoke Consent of Payment of Overdraft

 I have previously authorized Clearfield Bank & Trust to pay overdrafts on ATM and everyday debit card transactions.  I would like to revoke my prior consent to pay these types of transactions (only).

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?
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.