Overdraft Privilege

Overdraft Privilege helps protect you against having your items returned in the event of an inadvertent overdraft of your account by giving you a reserve for emergencies or unexpected situations. There is no fee for having this privilege; you are only charged if you overdraw your account. You do not have Overdraft Privilege until you receive written confirmation from us that it has been added, and new accounts must be open at least 60 days in good standing before Overdraft Privilege will be applied.

Here is how Overdraft Privilege works for you.

Overdraft Privilege is not a line of credit. However, if you overdraw your account, we have the discretion to pay the overdraft, subject to the limit of your Overdraft Privilege.  

For example:
Suppose your account balance is $50, and you have $500 of Overdraft Privilege. If you have a debit item for $100 come in; we would pay the item instead of returning it to the merchant, and charge you the fee for an overdraft transaction. Thus you have avoided any unpaid items or additional merchant fees.  You simply need to bring your balance back current with the credit union.

When you use your Overdraft Privilege you must remember to subtract the overdraft fee from your account balance. In the example above you would have subtracted $135 from your account: $100 (the amount of the check) plus $35 (the amount of the overdraft fee). Any additional items that come in while your account has a negative balance will also be charged the NSF fee of $35 per item. It is important to record these fees. The next deposit that you make will bring your balance to the amount of the deposit minus the amount you were overdrawn (including any overdraft fees).

ATM receipts, and other ways in which you can get available balance information, will show only your ledger balance without the Overdraft Privilege included. However, you will be able to withdraw funds from the ATM and have transactions approved for ATM and debit card transactions, even though it will overdraw your account if you have given us prior consent. You must opt in to payment of overdrafts on these items on your consumer account. You will be charged the overdraft fee of $35 associated with these transactions.

What if I want the Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you want us to authorize and pay overdrafts for which an Overdraft fee will be assessed on ATM and everyday debit card transactions, you may do one of the following:

  • Call us at 706-434-1600, or
  • Download the Opt-In Agreement and either
    • present it at a branch
    • mail it to: 1424 Walton Way Augusta, GA 30901
    • fax it to 706-434-1625
    • scan and email it to operations@hccu.coop

Understanding Uncollected Funds

  • If you deposit to your account and are informed that a HOLD will be placed on some of the funds deposited, those funds are NOT available for you to withdraw until the date indicated on your notice.
  • If an item is presented against held funds and you have Overdraft Privilege on your account, you will be charged a negative funds fee of $35 to pay the item even though you have a positive ledger balance in your account.
  • For example: You have $100 in your checking account and deposit a $700 check on which we place a $500 hold ($200 is available to you immediately) for 5 days. Although you have a ledger balance of $800, only $300 is “available” for checks or other debits to be paid.
  • If you have a $500 Overdraft Privilege in the example above, you have available to you $800 to pay debit items. However, you will be charged a $35 fee for any debits paid against your account in excess of the $300 shown above as “available”.

Points to Remember about Overdraft Privilege

  • Every debit item on an overdrawn account will be charged an Overdraft Privilege fee of $35.
  • You must promptly repay the amount of the overdraft and any overdraft fees.
  • Your Overdraft Privilege will not be included as part of your available balance at an ATM
  • You must bring your account to a positive balance within 35 days or the Overdraft Privilege will be removed from your account.
  • You do not have Overdraft Privilege until you receive a letter telling you that it has been put on your account. New accounts must be open at least 60 days in good standing before Overdraft Privilege will be applied to the account.
  • You must opt in to payment of overdrafts for ATM and everyday debit card transactions.

Overdraft Privilege Terms and Conditions

You must maintain your account in good standing, which includes at least:

  • Continuing to make regular deposits to your account within each thirty-five (35) day period
  • Bringing your account balance to a positive balance within each thirty-five (35) day period
  • You are not in default on any loan or other obligation to us
  • You are not subject to any legal or administrative order or levy against your account with us