Overdraft Protection: Is Your Checking Account Protected?
Lately, financial institutions have sent letters to their checking account holders requesting them to opt-in to an overdraft protection plan that will allow debit card purchases or ATM withdrawals to clear the Checking Account, even when funds are not available. Sounds like a great deal until you learn that some financial institutions could charge as much as $39 per overdraft item. Avoid high overdraft protection fees by opening a Checking Account at Members Credit Union (MCU) with overdraft protection. MCU offers two money saving options to help you avoid an accidental overdraft.
1. Savings Account Related Overdraft Protection
MCU will transfer money from your MCU Savings Account to cover a charge or check that would have overdrawn your Checking Account. Funds from savings will be transferred in $25 increments to cover the charge and there is no transfer fee.
2. Line of Credit with VISA Debit Card Overdraft Protection
MCU will transfer money from your MCU Line of Credit to cover a charge or check that would have overdrawn your Checking Account. Funds from the line of credit will be transferred in $25 increments to cover the charge. There is no charge for transferring the money. This transaction is considered a loan, currently with a 10.75% variable APR. Excessive balance charges may be applied if the credit limit is exceeded.
Overdrafting your account at another financial institution without overdraft protection not only causes expensive fees or embarrassing situations – it could put your checking account in danger of being closed. To learn more about Members Credit Union’s Checking Accounts and our overdraft protection options please call your local branch or our Member Services Department at 800-951-8000.
I am not in agreement with this new feature simply because as a 5 to 6 year member I was not greatly educated on this item offered on my checking account causing me to greatly overdraft money that I assumed I had! Plus when I received the information on the feature I was already greatly in the negative! I have a credit card with another bank and they now offer the same feature HOWEVER they contacted me by phone to educate me on the new offer with me giving a verbal go ahead to proceed with the new feature on my account! I am greatly disappointed with MCU for this mishap.
What are the qualifications for the Line of Credit w/VISA Debit Overdraft Protection?
Dear India Wiggins,
The Overdraft Protection enhancement is a solution to comply with new federal regulations that became effective this year. Any member that does not want an overdraft line of credit can choose to link their Regular Savings account to their checking account for overdraft protection. Members who do overdraft their account without some form of overdraft protection may have restrictions placed on their VISA Debit Card. Those who have overdrawn their account in the past without overdraft protection will save money by having overdraft linked to their checking account. Our Member Services Director will contact you to discuss this program further.
On the topic of member education, it is our responsibility to educate our members on all of MCU’s products and services. When you opened your MCU account you should have received a Truth in Savings brochure that outlines all fees that can possibly occur with your account. On the heels of the new regulation’s passing on July 1st, MCU sent out letters to members with a checking account who did not already have overdraft protection, posted our overdraft programs to MCU’s website, and wrote an article in the August MCU Member News and Report. However, I see your point and agree that we missed an opportunity to assure that all members understood this new change by not utilizing outbound calling. We will keep your comments in mind and work to improve the level of communication between member and credit union.
Dear Steffny,
To find out if you qualify for a Visa Debit Card overdraft line of credit contact our Loan Department at 336-748-4826 or 800-951-8000, ext. 256. A loan officer will send you the necessary forms to sign. If you do not qualify for $500 overdraft line of credit you will receive a $250 overdraft line of credit. Checkless checking account holders will receive $100 overdraft line of credit.
Thank you both for your membership, comments, and questions.
how do i get this
Dear Tammy,
If you have an MCU hacking account with a Visa Debit Card you are now eligible for some type of overdraft protection. Call our Loan Department at 336-748-4826 or 800-951-8000, ext. 256 and a loan officer will send you the necessary forms to sign. If you do not qualify for $500 overdraft line of credit you will receive a $250 overdraft line of credit. Checkless checking account holders will receive $100 overdraft line of credit. You can also link your MCU Savings Account to your Checking Account.
wondering what kind of over draft we can get
Dear Mary,
MCU Members who have an MCU Checking Account should call our Loan Department at 336-748-4826 or 800-951-8000, ext. 256. A loan officer will be able to discuss your overdraft protection options and send you the necessary forms to sign. If you do not qualify for $500 overdraft line of credit you will receive a $250 overdraft line of credit. Checkless checking account holders will receive $100 overdraft line of credit. You can also link your MCU Savings Account to your Checking Account.
Thank you for your question!
I have been with MCU for 6 yrs and had this feature ever since. I commend my branch in Lumberton (Sherry) for having educated me on this. They always give excellent service. Not only do I enjoy a lot of savings, I have peace of mind knowing I had this protection FREE of CHARGE.