New Federal Reserve regulations effective July 1, 2010
Important Notice Regarding Courtesy Pay (Overdraft Privilege):
, require all
financial institutions to receive approval from account holders to charge a fee
for the payment of overdrafts resulting from ATM transactions or everyday debit
card transactions. Please be advised that this new regulation does not affect
accounts at Suncoast Schools FCU because the credit union’s courtesy pay
program does not allow overdrafts resulting from ATM transactions or everyday
debit card transactions. These transactions are declined if funds are not
available. Therefore, no action is required on the part of Suncoast Schools FCU
The Suncoast Schools FCU's Courtesy Pay Program does pay overdrafts resulting
from check or ACH debit transactions on qualified accounts enrolled in our
Overdraft Privilege Program. When this situation occurs, a fee is charged.
Enrollment in Overdraft Privilege is automatic for qualified accounts; however,
a member may opt out of the program at any time by contacting the credit union.
For more information about Overdraft Privilege please see below.
At Suncoast Schools Federal Credit Union, we know that from time-to-time, for a
variety of reasons, members might find themselves with a bounced check and
overdrawn account. That’s why we’ve made available several options to protect
your account and your good name. It’s important to establish a strong line of
defense for unexpected circumstances.
Share (Savings) or Money Market Account
Any share account
or money market account
can serve as back-up to your checking account
Personal Line of Credit
Available for qualified members, provides an unsecured line of credit
be drawn upon without approval. Not only can this account provide overdraft
protection, advances may also be requested in person, by phone, mail or writing
a personal line draft.
Visa Credit Card
Available for qualified members
, your credit card
can provide overdraft
protection, in addition to offering you the convenience of making purchases and
payments with the power of Visa.
offers Overdraft Privilege as protection against bounced
checks. The difference, however, is that while members will not be charged a
merchant fee for a bounced check, they will still be charged the Suncoast
non-sufficient funds (NSF) fee
Suncoast offers Overdraft Privilege as a discretionary courtesy and not as a
right or obligation. With Overdraft Privilege, when checks (excluding checks
presented for cash at a teller window) or ACH debits are presented and the
funds are not available in the regular checking account
or the member’s other designated overdraft sources (savings account
, money market account
, line of
credit or credit card
), Suncoast will honor the check(s) by bringing the
checking account to a negative balance up to $700 or 10 items per month.
Members who exceed these limits will be denied access to Overdraft Privilege.
We will mail a special notice advising the member that his or her account has
been brought to a negative balance to pay the item(s). To make sure that this
service remains available, the account must be brought to a positive balance
within 30 days.
If you overdraw your account you will be charged the
standard NSF (non-sufficient funds fee)
on each item, however you will
not be charged a fee by the merchant/payee, because with Overdraft Privilege
the check is not returned to them, it is paid by Suncoast. Multiple fees will
be charged if multiple overdrafts occur on the same day. The NSF fee along with
any and all fees and charges (as set forth in our Fee Schedule and Account
Agreement and Disclosure), will be deducted from the foregoing limit. In other
words, paid items, fees, and charges shall not exceed the applicable limit.
Overdraft Privilege should be used as a last resort to protect your checking
account and good name. It is more expensive than Suncoast’s other overdraft
protection services, and should be used only if/when other alternatives are not
available. All Suncoast members in good standing are automatically enrolled in
Overdraft Privilege once account has been open for 90 days.
Members may choose not to participate in the program by
contacting the Credit Union.