Overdraft Privilege FAQ

How does Overdraft Privilege work?
If you are covered by Overdraft Privilege and overdraw your account, we may elect to cover your overdraft up to your disclosed Overdraft Privilege limit. You will need to stay in good standing and bring your account to a positive balance within 35 calendar days from the initial Overdraft Privilege use. You need to maintain that positive balance for a minimum of one business day to continue to receive Overdraft Privilege.

What’s so great about Overdraft Privilege?
If you make a mistake in your checkbook or have an unforeseen expense, Overdraft Privilege will save you the embarrassment, expense, and inconvenience of having a check returned to the merchant. It helps protect your credit rating and reputation!

How can Overdraft Privilege protect my credit rating?
Nearly every institution reports repeat overdraft conduct. That can make it difficult to get credit or checking account privileges in the future. The merchant or payee may also report NSF activity to consumer reporting agencies. By covering the overdraft, Overdraft Privilege prevents the return of the check and reporting of it as an NSF item.

Will I be charged a fee for Overdraft Privilege?
There is no fee to have this service on your account. You are only charged if you use it. Members will be charged the normal $35.00 fee for each paid item presented.  Whether the item is paid or returned, the member will be assessed the same overdraft fee.  

Quick Tip: One fee is better than two!  If we did not cover your overdraft, you would pay twice – one fee from the credit union and one from the merchant. Merchants and retailers set their own fees for returned items, typically between $25 and $75 per item.

What is the difference between Overdraft Privilege and an overdraft loan?
An overdraft loan is a contractual agreement that pulls funds from another source to pay an item.  Overdraft Privilege is not a contractual agreement.  It does not pull funds from another source to pay an item but instead allows the member to take their account into the negative.  We will continue to offer overdraft loans to those members who want them and qualify under current lending criteria.

Why are you adding Overdraft Privilege to my account?  Aren’t you encouraging me to incur overdraft charges?
No.  This service is meant as a safety net to cover accidental overdrafts. We are trying to save you the embarrassment of having a check returned and help you avoid the additional fees that merchants may charge them for returned checks. You only incur charges if you use Overdraft Privilege.

How can Overdraft Privilege be accessed?
By writing a check, having a payment electronically deducted from your account or making a withdrawal at the teller window.  Overdraft Privilege is also available through the ATM and for everyday debit withdrawals ONLY IF you complete the Opt-In form found here.

If I have reached my Overdraft Privilege limit, will additional checks be returned?
Yes.  If the member is at or over their limit then Overdraft Privilege will not cover and all additional NSF items are returned with the NSF fee.

I have money in my savings, why was Overdraft Privilege used?
Federal regulations limit the number of transfers that can be made from a savings account each month. If there have already been 6 transfers from your savings for the month, we cannot transfer the money into your checking account.

Can my Overdraft Privilege limit be raised?
No.

How do I opt out Overdraft Privilege?
Please phone the CVFCU Call Center or speak with any Member Service Representative to opt out of Overdraft Privilege.

  • Post Office Box 1660
  • Lynchburg, VA 24505
  • 434/528-9016
  • 800/335-0069

© 2010 Central Virginia Federal Credit Union

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