The United States Congress is considering legislation that could negatively impact your not-for-profit credit union. This legislation could eliminate Overdraft Protection (Courtesy Pay) programs. Recently the Federal Reserve mandated that credit unions “Opt In” members for this service.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we still pay it. This saves you the embarrassment and inconvenience of a returned or declined item. Enhanced Courtesy Pay privilege also eliminates the merchant charging you an additional fee for the returned or declined item.

We offer three ways to cover overdrafts:

1. We have Standard Courtesy Pay practices that come with your account. These services include paying overdrafts for checks, ACH, automatic bill payments and teller transitions. Some restrictions apply.
2. We have Enhanced Courtesy Pay practices that you can elect to have with your account. These services include paying overdrafts through Standard Courtesy pay practices as well as paying overdrafts for ATM and everyday debit card transactions. Some restrictions apply.
3. We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than Standard and Enhanced Courtesy pay practices.

Standard Courtesy Pay privilege will continue to be available for checks, ACH, automatic bill payments and teller transactions unless you notify us to remove this service. However, due to regulatory requirements, the Enhanced Courtesy Pay privilege service that includes ATM and everyday debit card transactions will only continue until August 15, 2010, unless you notify us to continue receiving this service. 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 I be charged if FivePoint Credit Union continues to pay my overdraft?

• We will charge you a $22.50 fee each time we pay an overdraft.
• There is no limit on the total fees we can charge you for overdrawing your account.

If you want us to continue to authorize and pay overdrafts on ATM and everyday debit card transactions, please complete the “Opt In” form that you will be receiving in the mail. The “Opt In” forms should reach homes soon. If you have any questions please call 962.8793 or 800.825.8829 and press menu option “2”.