Overdraft Protection/Courtesy Pay

Have you ever been short of funds in your checking account and had an item returned? Any one or all of the following services can be used to protect your account. Here are three options to protect your checking account from costly errors:

Option 1: Savings

Most of your savings accounts can be designated to protect your checking account from an inadvertent error. You prioritize the order in which your savings accounts would be accessed. For example, you may want your Primary Share account to be accessed before your Holiday or Vacation accounts. While a savings transfer is convenient, there are limitations under Regulation D when used for overdraft protection or pre-authorized payments/debits as explained below.

Regulation D: The Federal Reserve Bank's Regulation D limits the number of certain transactions you can make from your savings accounts each month. Savings accounts include regular Savings (S1), Holiday (S2), Vacation (S3), Special (S6) and Money Market (S7) accounts. Each individual share account is allowed a total of six (6) Reg D transactions per month. They may be in the form of overdraft protection from your savings account to pay a check or pre-authorized debit presented on your checking account.

A pre-authorized payment/debit is often used to pay a third party item, such as utility bills, credit cards, mortgages, insurance premiums and car payments. Many times a member will set up a pre-authorized payment from their savings account only to find that the transaction will be returned because they reached their Regulation D limit for the month.

Since Regulation D only places a limit on the savings account, we suggest setting up a pre-authorized payment/debit from a checking account.

Option 2: Signature Line of Credit Loan

A great feature of our Signature Line of Credit is the optional overdraft protection it provides for your checking account. Lines are available from $500 to $10,000 with a minimum transfer amount to checking of $50. Now you can get cash at an ATM from a signature line of credit. Call our Member Service Center to sign up.

Option 3: Courtesy Pay

Double Your Protection. Courtesy Pay is your second defense against returned checks and negative credit scores. It is a service that adds a measure of protection to your personal checking account, protects your credit rating and pays your bills on time.

Courtesy Pay may cover your insufficient funds items, up to a limit of $500.00, for a $35.00 fee per covered overdraft transaction, including checks, in-person withdrawals or other items presented by electronic means. You then have up to 30 days to bring the account current, either through a direct deposit, transfer of funds, or a deposit at one of our branch locations. That means, instead of returning a check because of insufficient funds, we may pay your item saving you additional third party charges. It saves you the embarrassment an inadvertent overdraft can cause and helps you protect your credit rating.

Courtesy Pay is offered as a privilege and People First reserves the right to return a check or ACH request when sufficient funds are not available in your account.

You are automatically signed up for this service as long as you meet the qualifications established in the People First FCU Courtesy Pay Agreement.

The chart below summarizes the various methods available to access funds in your checking account, along with the overdraft options available.
Access MethodOption 1: SavingsOption 2: Signature Line of CreditOption 3: Courtesy Pay
Check Yes* Yes Yes
Pre-Authorized Payment/Debit Yes*Yes Yes
Point of Sale Transaction with a Visa Debit Card Yes* YesCurrently Unavailable
ATM Withdrawal Yes* Yes No
PLEASE NOTE: Overdraft protection from a savings account or a signature line of credit is only available if you sign up for the coverage and there are funds available to transfer. Courtesy Pay is automatically turned on if you meet the qualifications for this service.
*Restricted by Regulation D to no more than six transfers per month

View our Courtesy Pay Agreement and Regulation D disclosure.

In order to access the agreement and disclosure, you must have Adobe Acrobat Reader, a free software for viewing and printing Adobe PDF files.

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