Effective Date: January 2023
It is SouthPoint Financial Credit Union’s policy to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards. This document details SouthPoint Financial Credit Union’s (we, us, our) standard overdraft practices. The words “You” and “Your” in this document represent anyone who has signed the Account Card or Account Card Addendum. An overdraft occurs when an item that exceeds the account’s available balance is presented for payment.
We are not obligated to pay any item presented for payment on your account if it doesn’t contain sufficient funds to cover the item, and we are not required to notify you before we pay or return an item. Whether overdraft items are paid or sent back to the Payee as unpaid, you will be charged the normal Overdraft fee. This Overdraft fee is subject to change; see our Fee Schedule for the most current fee. To comply with Regulation E, we will not charge you an Overdraft fee for paying overdrafts for ATM or one-time debit card transactions unless we have provided you with a notice which you signed electing to opt into this service, and we provided you with a confirmation of your consent to opt in. If we exercise our right to use our discretion to pay an overdraft, we do not agree to pay future overdrafts and may discontinue covering overdrafts at any time without notice. If we pay an overdraft or impose a fee that overdraws your account, all owners are held liable for repayment. Please contact us if you have questions about how we pay checks or drafts and process transfers and withdrawals. Below are some services that we offer to help cover you in the event that you overdraw your account.
We no longer send overdraft notices to members. All members are invited to view their balance and history online or with their mobile phone or PC at home. Our online banking services also include free text alerts that you may set up with overdraft parameters for notifications. For more information about this tool please see www.southpointfinancial.com/services/anytime-anywhere-banking.
Draw from another SouthPoint account
You can authorize a draw to be set up from any credit union authorized account. These funds would be transferred in $100 increments. See Truth-In-Savings for any limitations and the Fee Schedule for the most current fees.
A Ready Reserve is a line of credit that is tied to your checking account solely for the purpose of covering overdrafts. Ready Reserve approval is based on credit worthiness and all owners of the checking account must be borrowers on the Ready Reserve. The limit varies and an annual percentage rate of 15.00% will be charged on the outstanding balance. To apply, simply visit any one of our branches, call 877-794-6712, or apply online at www.southpointfinancial.com.
Courtesy Pay is a service that is included in your checking account package to cover overdrafts up to a set limit if you are eligible (see eligibility criteria below). Overdraft items are generally paid up to $800.00*; however, we are not obligated to pay them. For example, items will typically not be paid if your account isn’t in good standing, you are not making regular deposits, or you have had too many recent overdrafts. Keep in mind that even if overdrafts are paid, you are still charged the normal Overdraft fee per item (unless the overdraft item is an ATM or one-time debit card transaction and you have not opted in per Regulation E). The amounts of each item and the associated Overdraft fees are included in the $800.00 limit. An account may go negative more than $800 if there are fees associated to transactions being presented on the account. If an account is negative for more than forty-five (45) days with no deposit being made to bring the account out of the negative, or no Credit Union loan approval being obtained, then the account will be closed.
Eligibility – You may be ineligible for the Courtesy Pay service or it may be suspended or revoked based on the following criteria:
- Your deposit history changes drastically
- Your account is a Health Savings Account (HSA)
- Your account doesn’t have a positive balance for at least one full business day within a thirty (30) day period.
- You are subject to any legal/administrative orders, levies, or are currently a party in a bankruptcy proceeding.
- A previous account closure is reported on ChexSystems
- You have a prior loss with the Credit Union
- You have delinquent past or present credit obligations
- You have elected to Opt Out of Courtesy Pay
- We believe you are managing your account in a manner which could be deemed destructive to you or the Credit Union
- You are not a member in good standing with the Credit Union
*Accounts with $1,000.00 or more of Direct Deposits in a rolling 31 day period may be eligible for an increased Courtesy Pay limit of $1,200.00.
Transactions Covered by Courtesy Pay
- Share Drafts/Checks
- Automatic Bill Payments
- ACH Transactions
- ATM or One-time Debit Card Transactions*
* you must sign an Opt-In form in order for these types of transactions to be covered by Courtesy Pay.
Opting Out of Courtesy Pay
You can choose to opt out of Courtesy Pay at any time. You can do this by calling 877-794-6712 or by emailing [email protected].
For specific details regarding How Transactions are Posted to Your Account and Understanding your Available Balance please refer to our Membership and Account Agreement.