Overdraft Protection Options

We understand. It happens to all of us. You make an honest mistake in your checkbook. Unusual or unforeseen circumstances pop up at just the wrong time. That’s why Midwest Community offers several overdraft protection options to protect your checking account when an inadvertent overdraft occurs. Choose the Standard Overdraft Plan and one of two additional options to best fit your personal financial needs.

Standard Overdraft Plan

All Midwest Community checking accounts are protected by our Standard Overdraft Plan. This basic overdraft protection service is our most affordable, and transfers excess funds from your primary, or other eligible, designated savings account, to cover checks, automatic bills, everyday debit card transactions and other transactions made using your checking account. A normal overdraft fee will be assessed for each item that draws your account negative. Please notify a credit union member service representative if you wish to remove this basic overdraft coverage.

Overdraft Line of Credit

Don’t keep excess funds in your savings accounts? Still want to protect your checking account with an affordable overdraft protection option? Our Overdraft Line of Credit is for you. Midwest Community’s Overdraft Line of Credit is offered as an alternative to our Courtesy Pay overdraft protection plan. Qualified checking account holders can attach a line of credit up to $500 to your Midwest Community checking account. The Overdraft Line of Credit provides overdraft protection in the form of incremental deposits to cover checks, automatic bills, everyday debit card transactions and other transactions made using your checking account. A normal overdraft fee will be assessed for each incremental line of credit advance, and interest will accrue on the advanced line of credit balance.

Courtesy Pay

Courtesy Pay is an overdraft protection plan that adds a measure of protection to your checking account when other overdraft options do not meet your needs. Courtesy Pay may cover your insufficient funds checks, automatic bills, and other transactions made using your checking account. If you also want us to cover everyday debit card transactions you must contact a member service representative to authorize the credit union to pay overdrafts on your everyday debit card transactions. Courtesy Pay will cover overdrafts on your checking account up to a limit of $700. A normal Courtesy Pay charge for each item that draws your account negative will be assessed. Other overdraft protection plan options may be less expensive. The Courtesy Pay overdraft protection plan is discretionary which means the credit union pays overdrafts at our discretion; we do not guarantee we will always authorize and pay any type of transaction. Please notify a credit union member service representative if you wish to opt-out of this program.

Courtesy Pay Disclosure

The Credit Union may honor a member transaction that results in an overdrawn account through the use of the Credit Union’s overdraft protection program. Under this program, the Credit Union charges a fee to provide for the payment of a transaction that would otherwise be returned due to non-sufficient funds (NSF). The Credit Union is under no obligation to pay every overdraft.

  1. TYPES OF TRANSACTIONS SUBJECT TO OVERDRAFT PROTECTION. The Credit Union offers overdraft protection for the following types of transactions which could result in an overdrawn account: share draft, ACH, bill pay, one-time and recurring debit, POS, and unpaid returned items.
  2. ATM AND ONE-TIME DEBIT CARD TRANSACTIONS. Prior to assessing a fee for one-time debit card and POS transaction overdrafts, the Credit Union will provide members with the right to opt in, or affirmatively consent, to the Credit Union’s overdraft service for POS and one-time debit card transactions for each account, pursuant to the Credit Union’s ATM/Debit Card Policy.
  3. MEMBER QUALIFICATIONS. The Credit Union will only offer this program to members “in good standing” who are 18 years or older, and who qualify for a checking account. To be considered “in good standing,” the following qualifications must be met: member must make regular deposits sufficient to cover transactions (i.e. no history of negative account balance); member must own the checking account for 30 days; member must bring the account to a positive balance at least once every thirty days or less; member must have no legal orders outstanding; member must have no history of account abuse behavior [check kiting, fraudulent deposits, excessive overdrafting]; and, member must not have any delinquent or discharged loans. This feature is available only to personal accounts for personal and household use. However, in certain instances overdraft protection will be granted to established business accounts (business checking opened over 30 days) in good standing. We may limit the number of accounts eligible for overdraft protection to one account per household. Midwest Community reserves the right to remove a member from the Courtesy Pay program for cause at any time, and refuse payment of overdraft items/checks drawn.
  4. DOLLAR LIMITS. The total dollar amount of overdrafts the Credit Union will honor per member at any given time is not to exceed $700, including fees, if there is a verifiable direct deposit in the account within five business days and is sufficient to cover the overdraft; or $500, including fees, if there is no verifiable direct deposit in the account.
  5. REPAYMENT. A member has 30 calendar days from the day the advance was made, not to exceed 45 calendar days, to deposit the funds to cover each overdraft. If the member is unable to repay the advance within 45 days the credit union will provide them the opportunity to sign a non-interest promissory loan agreement with repayment of the entire outstanding obligation to occur within four months. If a member does not qualify for a loan under existing policies and guidelines, the member may sign a longer-term promissory note to repay the overdraft at an interest rate not to exceed 18%.
  6. FEES. Applicable fees will be assessed for each overdraft. A list of current fees and applicable interest rate(s) will be furnished when the account is opened.
  7. NEGATIVE ACCOUNT BALANCES. The Credit Union may immediately terminate this program for members who fail to pay any negative balance amounts upon demand. The Credit Union may also close the member’s account 45 days after written notice to the member of his/her negative account balance, as this will be deemed to be a voluntary withdrawal from Credit Union membership.