Overdraft Protection

Overdraft Transfers and Courtesy Pay

{beginNavtabs}

Overdraft Transfers

Overdraft Protection allows funds to be transferred from a previously designated account to pay an item. If Overdraft Protection is used, there could be a $15 fee per transaction. Overdraft Protection will NOT allow the account to overdraw (go into a negative balance) to pay an item.

Courtesy Pay

Have you ever forgotten to record a check or debit card entry in your check register? Forgot to make that deposit or waited too late? The Credit Union encourages you to manage finances responsibly. We want to save you the embarrassment of having an item returned due to insufficient funds. For those times when you are left with too little cash in your checking account or have made an error in your checkbook, the Credit Union is now offering “Courtesy Pay”. This service allows the Credit Union to automatically post items to your share draft/checking account even when there are insufficient funds in the account to cover the item.

There is the expense and humiliation of added merchant fees or possible damage to your credit history that might result if an item is returned NSF. So, Courtesy Pay is a solution for the simple oversights that sometimes occur in your busy lifestyle.

Courtesy Pay FAQs

{beginAccordions h2}

What is Courtesy Pay?

As long as you maintain your account “in good standing,” defined as making regular deposits and bringing your account to a positive balance at least once every 30 days, we may honor overdrafts up to your Courtesy Pay limit on your account. As in the past, we will notify you by mail when an overdraft occurs.

How does Courtesy Pay work?

If funds are not available in your account to pay an item, we will attempt to clear the item by using overdraft protection before Courtesy Pay is utilized. In any event, funds are taken from Courtesy Pay last. If Courtesy Pay covers the overdraft, your account will reflect a negative balance. 

What is the difference between Overdraft Protection and Courtesy Pay?

Overdraft Protection allows funds to be transferred from a previously designated account to pay an item. Overdraft Protection will NOT allow the account to overdraw (go into a negative balance) to pay an item. Courtesy Pay is a non-contractual courtesy offered at the sole discretion of the credit union to members who maintain their Share Draft accounts in good standing. Any Courtesy Pay amount covered is NOT considered an account holder loan and is not subject to interest being charged; however, each overdraft item paid is subject to a Courtesy Pay fee. Overdraft Protection and Courtesy Pay are two completely separate services offered by Timberline Federal Credit Union. 

Who is eligible?

You must: 

• Be at least 18 years of age;
• Have no accounts with a current or prior derogatory history;
• Have a share draft/checking account with a positive balance;
• Be no more than 30 days past due on any credit union loan;
• Have a share draft/checking account opened for at least 3 months

What is my Courtesy Pay limit?

All Members who qualify will be granted a Courtesy Pay overdraft limit up to $500.

What transactions are covered by Courtesy Pay?

Courtesy Pay covers checks, electronic ACH debits, Visa Debit Card transactions, ATM withdrawals and Bill Payments.

What does Courtesy Pay cost?

There is no cost associated with Courtesy Pay unless you use it. You will be charged $30 for each item paid when Courtesy Pay protection is accessed.

Is my Courtesy Pay limit shown in my available balance?

No, the Courtesy Pay amount is not added to your available balance. It is not a line of credit. Rather, it's used only to prevent the occasional, unintentional overdraft.

How quickly must I repay my Courtesy Pay?

All negative balance amounts must be repaid to the Credit Union upon demand. Members have 30 calendar days from the date a Courtesy Pay advance is made to deposit funds to cover the advance(s) and any applicable fee(s). If the negative balance is not repaid within 30 days, the Credit Union may charge off the negative balance and close the share draft account in accordance with its collection procedures and/or Loan Charge-Off Policy. Courtesy Pay cannot simply be shut off; members will be provided a Courtesy Pay form as notice regarding account closure. Members remain responsible for all negative balance amounts until the full amount owed is paid.

What if I do not want Courtesy Pay?

We can change your account status so that no overdrawn items are paid using Courtesy Pay. To opt out of Courtesy Pay, you must come in and complete the required form. If you opt out, any future overdrawn items presented for payment against your account will be returned unpaid after funds available through overdraft protection, if applicable, have been depleted, and a $25 NSF fee will be assessed. You may also be charged additional fees by the merchant or payee. Please carefully consider your decision to opt in or opt out of this program.

{endAccordions h2}

To Opt In

If you want to opt in to or opt out of Courtesy Pay service, you must come in and complete the required paperwork with Member Services. Courtesy Pay will not be activated or deactivated on your account until that paperwork has been completed and processed.

{endNavtabs}