Discretionary Overdraft Privilege Disclosure

It is the policy of SkyOne Federal Credit Union (SkyOne) to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

The All-in-One Account Disclosure provided to you at the time you opened your SkyOne account controls the duties, obligations and rights of the account holder and SkyOne with regard to your checking account. The All-in-One Account Disclosure (and all amendments thereto) and its terms shall control any possible conflict, if any, between any provision of this Discretionary Overdraft Privilege Disclosure and the All-in-One Account Disclosure.  A copy of the All-in-One Account Disclosure is available to you on request by calling 800.421.7111 or by visiting our website at www.SkyOne.org.

What is Overdraft Privilege?

Overdraft Privilege is a discretionary service provided to eligible accounts.  It is designed to help guard members against having items returned or declined. Overdraft Privilege is not a line of credit. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of your Overdraft Privilege and the amount of the overdraft privilege fee.  SkyOne is not obligated to pay any item presented for payment if your account does not contain sufficient available funds.  Any discretionary payment by SkyOne of an overdraft item (Check, ACH, bill pay, recurring debit card transaction) does not obligate SkyOne to pay any other overdrafts, or to provide prior notice of its decision to refuse to pay such items. 

Overdraft Privilege Eligibility:

Overdraft Privilege eligibility requirements are as follows: 1) You be at least 18 years of age 2) have an open Checking account and 3) be a member in “good standing”. A member is not in “good standing” with the Credit Union if they meet any of the following requirements:

  • The member fails to comply with the terms and conditions of any lawful obligations with Credit Union and/or causes, or can potentially cause the credit union a loss.
  • The member is thirty-one (31) days delinquent on any credit union loan.
  • The member has a share or checking account that is thirty-one (31) days overdrawn/zero balance.

Minor accounts (under 18 years of age) do not qualify for Overdraft Privilege.

SkyOne will have the discretion to pay overdrafts within the Overdraft Privilege limit. But, payment by SkyOne is a discretionary courtesy and not a right of the member or an obligation of SkyOne.  SkyOne in its sole and absolute discretion can cease paying overdrafts at any time without prior notice of reason or cause. 

Overdraft Privilege Limits:

If your monthly direct deposit is less than $500 or you do not have direct deposit with SkyOne, Overdraft Privilege may cover amounts up to a negative $500 balance. If your monthly direct deposit is $500 or more, Overdraft Privilege may cover amounts up to a negative $1,000 balance in your checking account. Of course, any and all fees and charges, including without limitation the non-sufficient funds fees (as set forth in our Schedule of Service Charges and the All-in-One Account Disclosure), will be included as part of this maximum amount.  It may be possible that your account will become overdrawn in excess of the Overdraft Privilege amount as a result of the assessment of a fee. Limits can be removed at any time without notice. Limits are re-evaluated at the first of the month.

Order of Payment:

Transactions may not be processed in the order in which they occurred, and the order in which transactions are received and processed may impact the total amount of fees incurred.

Liability for Overdrawn Balances:

The total of the discretionary Overdraft Privilege (negative) balance, which includes any and all fees and charges, including all non-sufficient funds/overdraft fees is due and payable upon demand, and account holder will continue to be liable, jointly and severally, for all such amounts, as described in the All-in-One Account Disclosure.  Our standard Overdraft Privilege fee of $30 will be imposed for overdrafts created by checks, ACH, Bill Pay and recurring debit card transactions.

Overdraft Privilege Fees:

Our standard Overdraft Privilege fee of $30 will be imposed for overdrafts created by recurring debit card transactions, checks, ACH, ATM withdrawals, non-recurring debit card transactions, in-person withdrawals, or by other electronic means.  The maximum amount of Overdraft Privilege fees that will be charged to a member’s account is $150 per day.  There is no fee if a transaction or transactions bring the checking account balance negative by $10 or less.

Overdrafts of ATM and Non-recurring Debit Card Transactions:

SkyOne will not pay overdrafts for ATM withdrawals or non-recurring debit card transactions unless you have given us your consent and SkyOne has provided you with the notice required by section 205.17(b) of Regulation E confirming you have opted in to the payment of these overdraft transactions.  In order to avoid overdrafts due to ATM withdrawals and non-recurring debit card transactions, SkyOne may place a hold on your account for any ATM withdrawals or non-recurring debit card transaction authorized until the transaction settles.  ATM withdrawals and non-recurring debit card transactions usually settle within two business days after the transaction is authorized.  The amount of the hold will be for the amount authorized, or as permitted under applicable payment network rules.  Holds on authorized ATM withdrawals and non-recurring debit card transactions will be removed prior to settlement where required by applicable payment network rules. 

Cancelling Overdraft Privilege:

Members may request to cancel the Overdraft Privilege Services Program for all transactions at any time by contacting the Credit Union at 800.421.7111.  By opting out, your check, ACH, Bill Payment ATM withdrawals and non-recurring debit card transactions will be returned unpaid and a Non Sufficient Funds Fee will apply, if funds are not available. 

Members may also request to cancel their Extended Overdraft Privilege Coverage by completing this form, or by calling the Credit Union at 800.421.7111. By opting out, you will no longer allow SkyOne to pay overdrafts on ATM withdrawals and non-recurring debit card transactions. 

Please refer to the Schedule of Services Charges for the Non Sufficient Funds Fee.


February 2019