FSUCU desires to provide a valuable service to its members who have share draft/checking accounts with the credit union and overdraft their accounts. FSUCU will advance money to a member to cover an overdraft. To implement this policy, the guidelines will be:
In order to qualify for Courtesy Pay, a member must:
- be at least 18 years of age
- have a share draft/checking account with a positive balance
- be no more than 30 days past due on any Credit Union loan
- have an automated direct deposit into their account
- have the account open a minimum of 45 days
All members who qualify will be granted a Courtesy Pay overdraft limit of $500. Members with checking accounts at the Gold level will have a Courtesy Pay overdraft limit of $750 and members with checking accounts at the Platinum level will have a Courtesy Pay overdraft limit of $1,000. This limit would only be used if all other sources of overdraft protection were exhausted, i.e., from savings or from an existing line of credit.
Members will be charged $32 for each Courtesy Pay overdraft transaction. This fee is identical to the $32 NSF fee we currently impose now. The only difference is that a member with Courtesy Pay will have his transaction paid instead of returned.
FSUCU offers an e-alert notification to all Courtesy Pay account holders free of charge. The system allows the member to receive notices when the account reaches a minimum balance or becomes negative. This feature can help the members keep track of their balances and perhaps prevent Courtesy Pay charges since the member is aware of the low balance. Our staff is trained to offer alternatives to Courtesy Pay, such as a line of credit or overdraft protection from a different account.
If an account remains negative for 30 days, we will remove all Courtesy Pay services, and we will try to make arrangements with the member. If the member refuses to make immediate payment arrangements, the negative account will be immediately referred to the Collections Department for standard collection procedures.
Courtesy Pay will be automatically activated for members meeting the above requirements. Members who opt out of Courtesy Pay will be coded on our data processing system to exclude Courtesy Pay service. FSUCU may also remove any member who appears to be abusing Courtesy Pay.