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Glass City Federal Credit Union Privilege Pay Policy (revised 7/1/2006)
It is the policy of Glass City Federal Credit Union to comply with any and all applicable laws and regulations and to conduct business in a safe and sound manner. Glass City FCU is not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. Rather than automatically returning non-sufficient funds check (share draft), or ACH (automated clearinghouse) item, if your eligible account (used for personal and house-hold purposes) has been open for at least 60 (sixty) days and thereafter you maintain your account in good standing, which includes at least that:
a) You continue to make deposits consistent with your past practices,
b) You are not in default on any loan obligation to Glass City FCU,
c) You bring your account to a positive balance at least once every 15 days,
d) Your account is not the subject of any legal or administrative order of levy,
then Glass City FCU will consider - as a discretionary privilege or service and not a right of yours nor an obligation on the CU's part - approving your reasonable overdrafts. This discretionary service will be limited to an overdraft of $500 (negative) balance for personal checking accounts. Any and all CU fees and charges, including without limitation non-sufficient funds (NSF) and/or overdraft fees (as set forth in the CU's Fee Schedule) will be included in this limit.
Glass City FCU may refuse to pay an overdraft for you at any time, even though your account may be in good standing and even though the CU may have previously paid overdrafts for you. You will be notified by mail of any NSF items paid or returned that you may have. However, the CU has no obligation to notify you before we pay or return any item. The amount of any overdrafts plus any NSF or overdraft fees that you owe the CU shall be due and payable immediately upon demand. Collection steps will be taken on accounts whose negative balances exceed 30 (thirty) calendar days, and the account may also be closed. If there is an overdraft paid by the CU on an account with more than one (1) owner on the account signature card, each owner, if applicable, drawing or presenting the item creating the overdraft shall be jointly and severally liable for such overdrafts plus applicable fees.
LIMITATIONS: Available only to eligible personal checking accounts primarily used for personal or household purposes. Ineligible checking accounts include, but may not be limited to: accounts with loans that are more than five (5) days delinquent. The CU reserves the right to limit the number of accounts eligible for Privilege Pay to one per household. All savings (share) accounts, Business/Organization Checking Accounts, Money Market Savings, and all minor accounts are also not eligible. Privilege Pay ONLY covers paper checks (share drafts), and ACH (automated clearinghouse) withdrawals. It does NOT cover: ATM withdrawals, point-of-sale (POS) transactions, preauthorized transfers, or any other transaction items.
OTHER CU OVERDRAFT SERVICES: An Overdraft Protection Line of Credit may also be available on a checking account with the CU. If a member chooses to open the Overdraft Protection Line of Credit, the line of credit will be drawn upon FIRST to cover the posting items. A fee will be charged for each advance from the line of credit. (Refer to Fee Schedule.) If a member is not eligible for the line of credit, chooses not to open the line of credit, or has used the maximum available balance of the line of credit, items trying to post will overdraft to the Primary Share Account (S1) SECOND. An overdraft transfer fee will be charged for these transfers from the S1 (refer to Fee Schedule). If a member is eligible for Privilege Pay, it will be accessed as the THIRD option. OPT OUT NOTIFICATION: Glass City FCU will automatically review each checking account for Privilege Pay eligibility. A member may opt-out of Privilege Pay by notifying Glass City FCU and by completing an Opt-Out Request Form.
DISCLAIMER: Glass City FCU's Privilege Pay is non-contractual and discretionary. Glass City FCU is never obligated and may refuse to provide Privilege Pay on any checking account at any time and from time to time. The member does not have a contractual right or guarantee to Privilege Pay.
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