Overdraft Protection

Our Courtesy Pay program will honor and pay your checks, electronic ACH debits, MasterCard Debit Card transactions, ATM withdrawals, and CU*EasyPay Bill Pay Payments drawn against non-sufficient or unavailable/uncollected funds in your checking account so these items will not be returned unpaid. Lakeshore Federal CU’s Courtesy Pay program is there to help you, should you unintentionally overdraw your checking account. Courtesy Pay will save you the embarrassment and expense of returned checks when you make an honest mistake in your checkbook. When we receive an item for payment that causes the balance in your account to go below zero, we may pay the check or debit up to $500 including the Courtesy Pay fee. Courtesy Pay does not cost anything unless you use it. On overdrawn accounts using Courtesy Pay, we will assess a $25.00 Courtesy Pay fee for each item paid. Items that exceed the $500 limit will be returned Non-Sufficient Funds (NSF) and will not be paid.

Current Information

You have been hearing about new Federal Regulations that happened on July 1, 2010 that changed the way overdraft services work for you. The new regulation requires that you opt in (agree) to overdraft services by August 15, 2010 to continue the overdraft payment of ATM and one-time debit card transactions. It does not affect overdraft services for checks or recurring debit card transactions.

It is important that you understand how this regulation will affect you when you perform a one-time debit transaction. These one-time debit transactions are purchases you make through your day to day spending such as stores, restaurants, payments over the phone and online. You have had the privilege of the credit union covering these transactions when you may not have had enough in your account to cover them. You were charged a fee, but your transaction was approved with the merchant.

Please be aware that if you do not agree (opt in) to authorize the payment of overdrafts on your ATM and one-time debit card transactions by August 15, 2010, and you do not have any other overdraft protection options, these transactions will be declined at the point of sale.

We understand that everyone makes mistakes on their checking account by forgetting to record a check or deposit. That is why the credit union offers overdraft protection as a service to our members. The credit union is here to protect your checking account and save you from the embarrassment of being denied. You may sign the opt in agreement at any time, but transactions may be denied until that time.

Please contact the credit union if you have any questions.