Overdraft Privilege Disclosure
Overdraft Privilege (ODP) is a service we provide to our checking account customers to cover inadvertent overdrafts. The service is subject to the eligibility criteria and other constraints as explained below.
Overdraft Privilege Overview:
- The payment of overdrafts is NOT guaranteed.
- You are NOT required to have this service on your account – you may opt-out at any time.
- You will be charged an overdraft fee for each insufficient item paid into overdraft.
- If you overdraw your account, you MUST return the account to a positive balance within 30 days, or your Overdraft Privilege will be suspended.
- There are other overdraft protection options available to you which may be less costly.
Overdraft Protection Options:
PRODUCT / SERVICE | DESCRIPTION | COST |
---|---|---|
Transfer from another account | If you have other accounts with us, you can authorize us in advance to transfer the funds needed to cover overdrafts | No Charge |
Overdraft Line of Credit | This product requires you to complete an application and approval and APR is based on your credit worthiness. | APR |
Overdraft Privilege | See description below | $35 per item |
Overdraft Privilege
ODP is a service we add to your checking account to cover inadvertent overdrafts, subject to the eligibility criteria as explained below. With ODP we will generally pay your overdraft items up to $500 for personal accounts and $1,500 for business accounts, however, whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. You will be charged our normal overdraft or return item fee currently $35 for each item that is presented. When more than one overdraft item is presented and paid, multiple overdraft fees may be charged. Both the amount of the overdraft items and all other fees, including but not limited to overdraft fees, are included in this limit. All deposits to overdrawn accounts are applied to the negative balance. Checking accounts that remain overdrawn for 45 consecutive calendar days may be closed and charged off.
Eligibility Criteria
No application is required; eligibility is at the discretion of the Bank. You may not be granted ODP if:
- Your account has been open for less than 30 days
- Your account type is not eligible
- You are not making regular deposits
- You are more than 30 days past due on any Bank loan or delinquent on any other obligation to the Bank
- You are subject to any legal or administrative orders, levy, or are currently a party in a bankruptcy proceeding
- You have an outstanding Overdraft Repayment Plan balance
- Your account is being reviewed for fraudulent activity
- The primary account owner is less than 18 years old
- A ChexSystems or other negative indicator has been reported to us
- Your account is classified as inactive
- You have an unresolved prior loss with the Bank
- We do not have a valid address for you
Suspension/Removal of Overdraft Privilege
You may be suspended or removed from ODP if:
- You do not bring your account to a positive balance within 30 days of becoming overdrawn
- You fail to meet the eligibility criteria
- If you meet all of the criteria above, we may still remove ODP if we believe you are not managing your account in a responsible manner which may harm you or the Bank
Transactions Eligible for Overdraft Privilege Coverage:
- Checks
- Internet banking
- ATM Transactions*
- ACH transactions
- Preauthorized automatic transfers
- Debit Card Transactions*
- In-person withdrawals
*Overdraft Privilege will only be available for ATM and everyday debit card transactions on consumer accounts if you authorize the Bank to pay those transaction types (see ATM/Debit Card Consent Form). Business accounts will automatically be opted in for all transaction types.
If you authorized ODP for ATM transactions, please verify your available balance before initiating an ATM withdrawal.
Overdraft Privilege Opt Out
If you do not want to have Overdraft Privilege, simply contact us and we will provide you an opt-out form to remove this benefit from your account. There is no additional cost for ODP. By opting out you are instructing us to return unpaid items presented against insufficient funds. If you opt-out, you may still be charged our $35 returned item fee. Customers who receive Social Security, federal direct deposit or any other entitlement benefit must opt-out if they do not want the Bank to apply those funds to pay an overdraft. If this is a joint account, I agree that the signature of only one accountholder is necessary for the Bank to revoke Overdraft Privilege.
Payment Order of Items
We pay items based on our actual (ledger) balance. The actual (ledger) balance method calculates your account balance only based on transactions that have settled, and it does not reflect pending transactions or checks that have not posted to your account. Debits to your account are received in groups and/or individually throughout the course of a business day. We process ACH debits and credits, phone and online banking transfers, checks drawn on Woodlands Bank accounts, and deposits and withdrawals made in person at Woodlands Bank branches throughout the course of a business day in real time, in the order they are received. Debit Card and ATM transactions are processed as received. Preauthorized transfers are processed on their due date. Electronic transactions, including ACH credit and debits, that are received after the end of the business day are processed first the following business day. We process checks presented for payment at locations other than Woodlands Bank second, in serial number order.
Financial Education
The Bank believes that financial literacy and education helps consumers make informed decisions. Awareness of personal financial responsibility allows consumers to realize the benefits of responsible money management, understand the credit process and the availability of help if problems occur.
www.mymoney.gov is the federal government’s website for federal financial literacy and education programs, grants and other information.
Checking Account Agreement
Your account agreement describes the duties, obligations, and rights of depositors, authorized signatories and the Bank with regard to your deposit accounts. That account agreement is incorporated herein for all purposes as if it were set forth verbatim as to matters not directly addressed by this disclosure. Your account agreement and this disclosure shall be construed so as to minimize conflicts between them.
Waiver:
The Bank’s forbearance from, or delay in, exercising any of the Bank’s rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this ODP disclosure, or any other provision related to your account, shall not be construed to be a current or future waiver of the Bank’s rights, remedies or privileges.
Remedy:
You and the Bank agree that the exclusive remedy and forum for all disputes arising out of the Overdraft Privilege or your Bank’s performance there under, except for matters you or Bank take to small claims court, is arbitration by an independent arbitrator pursuant to the applicable rules of the American Arbitration Association, except as prohibited by law.