How Does TCCU's Overdraft Privilege Work? L. Wayne Mansur, TCCU President and CEO In the past, Texoma Community Credit Union has always given our members the option of using share savings funds to cover a check written on insufficient funds. Here's how it used to work: Let's say a TCCU member wrote a check to a merchant when there wasn't enough money in his or her checking account to cover the check. If the member had previously arranged for automatic transfer of funds from savings to cover the check, he was charged $2 per day to have the check paid. If such a transfer was not preauthorized, or if there were not enough funds savings to cover the check, the member was charged a $20 NSF (Non-sufficient Funds) fee, and the check was returned to the merchant. Often, the merchant would resubmit the check to the credit union for payment within a few days, and consequently, the member would be charged an additional $20 NSF fee. Finally, the typical merchant would charge the member an additional $25-$50 returned check fee. The total cost to the member, in addition to the embarrassment and frustration of having inadvertently bounced a check, could have come to over $90! TCCU's new Overdraft Privilege program changes everything for members who qualify for the privilege. Now, if you write a check for which there are insufficient funds in your account, TCCU will pay the check and debit your account a one-time ODP (Overdraft Privilege) fee of $20. It is, in effect, a short-term interest-free loan which you are expected to repay within a reasonable amount of time. The total cost to you is $20 instead of $90, and you are saved the embarrassment and frustration of a bounced check. Now, isn't that better? Within the next few weeks, you should receive a mailing that will tell you more about the Overdraft Privilege program. You will automatically be enrolled in the program unless you opt out or do not qualify for the privilege based on account history. We are confident that Overdraft Privilege will simplify your life and save you money. It's just one more of the many reasons Texoma Community Credit Union is "Your Financial Edge. " |
