Overdraft Privilege

Honest mistakes happen from time to time. That’s why we offer Overdraft Privilege (ODP) – to save you the embarrassment of an NSF check, and the aggravation of dealing with additional fees and charge for returned checks.

How does ODP work?

ODP is activated after other methods of overdraft protection – such as transferring funds from your savings account – have been exhausted. You’ll pay for ODP only when you use it. While our standard NSF fee applies to checks covered by ODP, we will honor or pay the overdraft check if you are enrolled in the ODP program, and as long as the check amount and fee does not exceed the ODP limit and balance, if any. If you should exhaust the ODP limit, checks will be returned as NSF.

Overdraft Privilege is not a contractual agreement. Honoring or paying checks using ODP is at the sole discretion of the Credit Union and may be withdrawn at any time. Call or E-mail us for more details. If you email us, please do not include sensitive information (Account Numbers, Social Security numbers, etc.) in the email.

New Regulations on Overdraft Privilege

Dort Federal is diligently working to comply with the new Federal Regulation E (Reg E), which requires all checking account holders to opt-in, or opt-out, of our Overdraft Privilege (ODP) program. In late March, our checking account holders received a letter, along with an opt-in/opt-out form to be returned to the credit union. Your response is essential to the continuation of your Overdraft Privilege Debit and ATM benefits. As of July 1st, those who opt-out will no longer have ODP coverage on their Debit and ATM transactions. We encourage all of our checking account holders to opt-in to retain their ODP benefits. To help you make an informed decision, please read the FAQs provided. If you still have questions about Reg E and opting-in, please call us at 810-767-8390, or 800-521-3796. We can accept your opt-in over the phone. Our Call Center is available Monday through Friday from 8 a.m. to 6 p.m., and Saturdays from 9:00 a.m. to 12:30 p.m.

Frequently Asked Questions

Q: How is this program DIFFERENT from what I already have?

A: The new regulations taking effect in July 2010 only affect one-time debit card and ATM transactions. Share drafts (paper checks) and ACH (automated or preauthorized electronic debits) do not fall under this portion of the legislation. That being said, share drafts and ACH transactions are still covered if you are eligible for the Overdraft Privilege program regardless if you opt-in or opt-out at this time.

Q: If I don’t have Overdraft Privilege, how can I get it?

A: New checking accounts are reviewed after 90 days and are enrolled if eligible at that time. Those accounts receive notification of enrollment, along with a disclosure, at the time of eligibility.

Existing checking account holders who did not qualify at 90 days after opening, may call the credit union and request Overdraft Privilege at any time.

Q: I thought you would just take funds from the Primary Shares and cover the debit for a $2 fee.  What is this about a $25 fee? 

A: Dort Federal has always provided Overdraft PROTECTION on your checking account. Our first attempt to process your transaction is always to check the availability of Overdraft Protection. This means that IF you have adequate funds available in your SAVINGS account, we will automatically transfer the funds from savings to checking to cover your debit for a $2 fee*.

If you do not have enough available funds in your savings account, Overdraft PRIVILEGE may cover the debit (up to a total of $500) and you will be charged a $25 Overdraft Privilege fee.

*Regulation D dictates that electronic transfers from Savings are limited to six per month. Overdraft Protection is an automated electronic transfer that is subject to Regulation D rules.

Q: Will this allow an authorization on my debit card for $500 more than what I have available?

A: No. Currently, if you swipe your debit card, or enter your debit card number for a transaction, your card will be denied. Example, you have $100 available in your checking account. You are trying to make a purchase for $200, your card (as our program stands today) will be denied.

Q: May I go to the ATM and get funds up to $500 more than I have available for the $25 fee?

A: No. Overdraft Privilege has never provided access at an ATM for greater than the available limit in your checking account. 

Q: It says that you will only pay out at Dort’s discretion.  Why would you NOT pay it for me?

A: If an authorization is given for a debit card transaction, we are required to post the debit to your checking account. This means that if you swipe your debit card and it is approved, it will be paid.

For share drafts or ACH transactions, Dort Federal may authorize Overdraft Privilege payment up to a $500 cumulative limit. The $500 cumulative limit also includes any fees incurred for overdrafts. Example, you have a $0 balance in your checking account, you write a check for $475, you have now taken your account negative $500. This includes the $475 check plus the $25 Overdraft Privilege fee.

Q: I would like to keep the Overdraft Privilege for checks and electronic debits, but I do not want it for ATM and debit card purchases. 

A: If you do not want Overdraft Privilege on ATM and one-time debit card purchases, opt-out of Overdraft Privilege coverage. At this time, under the current regulations, opting-out will continue your share draft (paper checks) and ACH Overdraft Privilege.

Q: What will happen if I opt-out? Will I be charged a fee if I overdraft my account? 

A: At this time you will not be charged a fee, but you will not be able to use your debit card until your account is brought positive, or pending deposits are available.