Courtesy Pay Policy
July 21, 2004
Revised and Approved: April 20, 2017
It is the policy of Avestar Credit Union to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards.
A non-sufficient funds balance may result from:
- The payment of checks, electronic funds transfers, or other withdrawal requests
- Payments authorized by you, the member
- The return, unpaid, of items deposited by you, the member
- The imposition of credit union charges
- The deposit of items which according to the credit union's Funds Availability Policy, are treated as not yet "available" or finally paid
We are not obligated to pay any item presented for payment if your account does not contain sufficient funds. Rather than automatically returning, unpaid, any non-sufficient funds item that you may have, if your eligible account (primarily used for personal and/or household purposes) has been open for at least 6 months and thereafter you maintain your account in good standing, which includes at least:
- Continuing to make deposits consistent with your past practices, and depositing at least $600 or more in your account within each 30-day period
- You are not in default on any loan obligations to Avestar Credit Union
- You bring your account to a positive balance at least once every 15 days
- Your account is not the subject of any legal or administrative order or levy
- Less than 5 NSF items in a 12-month period
We will consider – as a discretionary courtesy and not a right of yours not an obligation on our part- approving your overdrafts. This discretionary *service will include any and all credit union fees, without limitation to our non-sufficient funds/overdraft fees as disclosed in our fee schedule. A service charge will be assessed for each item (other than ATM or one-time debit card overdrafts, unless the member has opted-in per Regulation E) that is paid on the member's behalf. Agreement to Opt-In is documented by signing "Add Coverage" on the What you Need to Know about Overdrafts and Overdraft Fees agreement.
Fees will not be assessed for paying overdrafts on ATM or one-time debit card transactions unless the credit union has provided the member with a notice, the member opts-in, and we provide the member with a confirmation of the opt-in.
Total courtesy pay fees and total returned item fees will be disclosed on the periodic statement provided to the member. These amounts will be shown for both the statement period and year-to-date as required by NCUA Rules & Regulations.
We may refuse to pay an overdraft for you at any time, even though your account is in good standing and we may have previously paid overdrafts for you. You will be notified by mail/e-notice of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts plus our non-sufficient funds and/or overdraft charges that you owe us shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than 1 owner on the signature card, each owner, and agent (if applicable), drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus any non-sufficient and/or overdraft fees. A negative account after 45-days will have two options:
- Pay the account in full
- Convert balance into a loan with a payment plan
- A $25.00 fee will be applied to any NSF item, paid or returned.
- Available only to eligible accounts primarily used for personal and/or household purposes
- We may limit the number of accounts eligible for the Courtesy Pay *service to 1 account per household
- Business, Trust and Custodial Accounts are not eligible
*The Courtesy Pay service does not constitute an actual or implied agreement between you and Avestar Credit Union. Nor does it constitute an actual or implied obligation of or by Avestar Credit Union. This service represents a purely discretionary courtesy or privilege that the credit union may provide to you from time to time and which may be withdrawn or withheld by the credit union at any time without prior notice or reason or cause.*
An account may be removed from the Courtesy Pay program for members who do not wish to have Courtesy Pay protecting their account from overdrafts. At your request, your account can be removed from coverage of any future Courtesy Pay overdrafts. Any items clearing the account without Courtesy Pay or sufficient funds may be returned at the credit union's discretion. A non-sufficient funds fee will be charged. To opt out of the Courtesy Pay program, contact the credit union to complete a What You Need to Know about Overdrafts and Overdraft Fees agreement.