Life happens! Penn East Federal Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.
Overdraft Coverage Options
The choice is yours. Consider these ways to cover overdrafts:
Overdraft Coverage Options
|Overdraft Transfer1||$4 fee per transfer (Advantage and Premier Checking - no charge)|
|Overdraft Line of Credit Loan 1,2||Subject to interest|
|Courtesy Pay1||$29 Courtesy Pay Fee per item|
1- Call us at (570) 342-2720, Send a secured message through Online Banking, or come by a branch to sign up or apply for these services; 2 - Subject to credit approval.
1Call us at (570) 342-2720, Send a secured message through Online Banking, or come by a branch to sign up or apply for these services; 2Subject to credit approval.
Coverage Comparison Table
|Transactions Covered with Courtesy Pay||Standard Coverage (No action required)||Extended Coverage (Your consent required on consumer accounts)*|
|Recurring Debit Card Transactions||X||X|
|Online Bill Pay Items||X||X|
|Online Banking Transfers||X||X|
|Teller Window Transactions||X||X|
|Everyday Debit Card Transactions||X*|
*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Courtesy Pay Extended Coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
If you would like to select Extended Coverage for future transactions, call us at 570.342.2720, visit any branch, complete a consent form by clicking the link below and mail it to us at 441 North 7th Ave. Scranton, PA 18503, or by sending a secured email through online banking.
Extended Coverage Consent Form
*If you choose Extended Coverage on your consumer account, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
What Else You Should Know
A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and telephone banking services to keep track of your balance. For additional financial education resources, please visit mymoney.gov.
The $29 Courtesy Pay Fee that is charged if you overdraw your account is the same fee amount that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Courtesy Pay Fee or a NSF Fee of $29. All fees and charges will be included as part of the Courtesy Pay limit amount. Your account may become overdrawn more than the Courtesy Pay limit amount because of a fee.
If an item is returned because the available balance in your account is not sufficient to cover the item and the item is presented for payment again, Penn East Federal Credit Union will charge a NSF Fee each time it returns the item because it exceeds the available balance in your account. If, on representment of the item, the available balance in your account is sufficient to cover the item Penn East Federal Credit Union may pay the item, and, if payment causes an overdraft, charge a Courtesy Pay Fee.
For consumer accounts, there is a limit of 3 Courtesy Pay Fees ($87) per day we will charge. We will not charge a Courtesy Pay Fee if the amount of the item is $1 or less. These exceptions do not apply to business accounts.
Our general policy is to post items throughout the day and to post credits before debits. ACH and Checking items are posted in the order they are received from the FED. ATM and debit card transactions are posted throughout the day. However, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Courtesy Pay Fees or NSF Fees assessed.
Although under payment system rules, Penn East Federal Credit Union may be obligated to pay some unauthorized debit card transactions, Penn East Federal Credit Union will not authorize debit card or ATM transactions unless your account’s available balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Courtesy Pay Fees for transactions that we would otherwise be required to pay without assessing a Courtesy Pay Fee. However, this would allow us to authorize transactions up to the amount of your Courtesy Pay limit and may also help you avoid overdrafts in excess of your available balance that could result in suspension of your debit card. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
Penn East Federal Credit Union authorizes and pays transactions using the available balance in your account. Penn East Federal Credit Union may place a hold on deposited funds in accordance with our Agreements and Disclosures, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Courtesy Pay limit and any available Overdraft Transfer and/or Overdraft Line of Credit Loan. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Transfer and/or Overdraft Line of Credit Loan, but does NOT include the Courtesy Pay For accounts with Extended Coverage, the Courtesy Pay Limit is included in the available balance for authorizing ATM and everyday debit card transactions.
Please be aware that the Courtesy Pay amount is not included in your available balance provided through online banking, mobile banking or Penn East Federal Credit Union’s ATMs.
Penn East Federal Credit Union will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, a Courtesy Pay Fee may be assessed.
Except as described herein, Penn East Federal Credit Union will not pay items if the available balance in your account (including the Courtesy Pay limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
Penn East Federal Credit Union may reduce your debit card if you incur overdrafts in excess of the available balance in your account, including any Courtesy Pay limit (as described herein). Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Courtesy Pay limit, is positive and then you contact us.
Penn East Federal Credit Union may also reduce your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
If your debit card is suspended, you will be unable to use your debit card(s) for purchases or to access your account(s) associated with the debit card(s) at the ATM while your debit card is suspended. If you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
A Courtesy Pay limit of $100 will be granted to eligible Consumer checking accounts upon account opening. After 30 days in good standing, the member will be granted the full courtesy pay limit of $500.
A Courtesy Pay limit of $750 will be granted to eligible Business Checking accounts upon opened at least 30 days in good standing.
Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
Courtesy Pay may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one calendar day. You must bring your account balance positive for at least one calendar day to have the full Courtesy Pay limit.
Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Agreements and Disclosures. The total (negative) balance, including all fees and charges, is due and payable upon demand.
If you have any questions about Overdraft Protection or Courtesy Pay, please call us at (570) 342-2720 or visit a branch.