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URGENT: Important Changes to Your Overdraft Privilege
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There are some new changes in Federal regulations that have a major effect on your Overdraft Privilege protection. We want you to be well-informed and prepared to deal with how these changes will affect you. Here’s what you need to do to make sure your Overdraft Privilege continues the way you intend as these new regulations come into play.
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What is Overdraft Privilege?
We believe it is important for you to use your checking account responsibly and to never intentionally overdraw your account. However, we realize financial shortfalls do occur. An overdraft occurs when withdrawals from an account exceed the available balance. When you have Overdraft Privilege at GENCO, we will generally pay your overdraft items up to $500. When we pay overdraft items for you, you will be charged our normal overdraft fee – currently $25 for each item presented. Both the amount of the overdraft items and all applicable fees, including but not limited to the $25 overdraft fees, are included in this $500 limit.
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The Concern
New Federal regulations prohibit financial institutions from charging overdraft fees for an ATM withdrawal or debit card purchase that overdraws your account without your written consent (known as opt-in). Furthermore, it requires specific opt-in from you to be covered. The regulation does not apply to checks you have written or ACH items you initiate.
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Normally during a transaction authorization process, if funds are not available in an account, the transaction will be denied. However, there are many merchants that do not obtain authorization from us before completing a sales transaction. Therefore, your account could become overdrawn when that transaction is posted to your account.
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Additionally, debit card purchases do not all clear immediately and you may become overdrawn if other items – such as checks you have written – clear your account first. If you do not opt-in and your account inadvertently becomes overdrawn, GENCO may suspend or cancel your debit card/ATM usage. Obviously, this can cause major inconveniences for you if you are not prepared.
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Opt –in: Your Opportunity for Protection
To avoid any surprise problems, here’s what you need to do:
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| If you currently have Overdraft Privilege with GENCO and want it to continue as usual, click here to print the opt-in form, sign it and mail, fax or email it to us - and you are set. Your Overdraft Privilege will continue as normal because you have opted-in to the privilege. |
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Overdraft Privilege also ensures your important items are not returned and you are not charged additional fees from a merchant – affording you peace of mind in the event you are in an emergency situation and need overdraft protection.
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Your written opt-in or electronic confirmation is required by this new Federal rule in order to be covered – even if you have enjoyed Overdraft Privilege prior to the new law. Print the opt-in form and sign it, then bring it by, mail, fax or email us your opt-in decision. We will provide you a confirmation. You have the right and ability to opt-out of Overdraft Privilege at any time.
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Click here to print the opt-in form.
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