Overdraft Protection

Members will receive ODP information with their new account opening package upon joining LG & W Federal Credit Union. The ODP service offered allows a qualified account to be overdrawn for the purpose of clearing Share Draft, EFT, MasterCard Debit and ATM transactions (subject to Opt In Requirement) instead of returning the items as non-sufficient funds (NSF). Qualified members will be given a maximum ODP of $500 depending on their eligibility. The Credit Union will charge an ODP fee for each item it pays (see Fee Schedule for most current ODP fee). The credit union will charge no more than (5) five ODP fees per day.

All other account sources will be exhausted to cover the overdraft before utilizing this service. For example, before utilizing ODP the Credit Union will attempt to transfer funds from other account sources to cover the transaction(s) first, such as a share and other accounts, depending on the set-up of the account.

ODP activity may post to accounts between the times the transactions are initiated to a period ofup to 3 days. Overdraft fees will be disclosed in accordance with Regulation DD, where fees for the period and year-to-date will be posted to member statements.

The ODP program will be managed automatically through the Credit Union's core processor system provided the account qualifies for the service.

Management and/or the Collections Specialist will be responsible for decisions on accounts that do not fit into the core processor system parameters.

The set qualifications for ODP were approved by LG&W Federal Credit Union Board of Directors. These qualifications are subject to change at the Credit Union's discretion.

Initial qualifications for $500 ODP limit:

• Account must be open for a minimum of 30 days
• Member must not be in default on any loan obligation to LG&W Federal Credit Union
• Member must be at least 18 years of age
• All share and loan accounts are in good standing
• Member must have consistent deposits totaling $150 into the account within a thirty (30) day statement cycle
• Member must bring their account to a positive balance at least once every thirty (30) days
• Account is not the subject of any legal or administrative order or levy

Negative balance will not exceed qualified limit of $500 (including the item presented, however fees can take the limit over $500). Any payment (plus the overdraft fee) which would lead to a negative balance greater than the qualified limit, may be returned unpaid, pending the review of the exception report.

The majority of the daily processing is automated. Overdraft items will be posted to accounts in ascending order dollar amounts. This will assist in reducing the number of items that may be considered non­sufficient funds to an account. Prior to returning drafts the data processing system will "allow the account to go negative" to pay the NSF items and apply the fee. In addition, when members use their MasterCard Debit card the system will authorize transactions if funds are available under their ODP limit.

The Credit Union Board of Directors has established a maximum limit of 20% of our share draft totals as a cap on the total dollar amount of all overdrafts the Credit Union will honor for ODP program advances; at such time as we reach 20% the Credit Union may suspend the ODP program.

When all ODP has been exhausted, it will be the decision of the Credit Union to review the overdraft or exception report to decide whether to pay or return each overdraft item according to the above guidelines. LG & W Federal Credit Union is not obligated to pay any check, preauthorized payment order, or other item(s) drawn on an account that does not contain sufficient funds when the item is presented for payment.  LG&W Federal Credit Union is not obligated to provide prior written notice of its decision to pay or not to pay an NSF item. Share Draft, ACH, Debit, and ATM transactions are covered in the ODP program.

LG&W Federal Credit Union reserves the right to discontinue ODP privileges at any time without prior notice to the members.

ODP may be suspended or revoked for any of the following reasons(s): 

• Negative balance is not returned to a positive balance within 35 days
• The initial member qualifications are not met
• Excessive returned items (beyond limits of ODP)
• Delinquent loan account( s)
• Legal or administrative order or levy imposed against the account
• The member has caused financial loss to LG&W Federal Credit Union
• Negative balance exceeds the qualified limit

ODP privileges may be reinstated if the account is returned to good standing at the discretion of management.

Any member whose account is overdrawn for more than 35 days will have their ODP suspended until their overdraft balance has been satisfied. Members have 45 days to bring their account to a positive balance. If an account remains overdrawn for 45 days the Credit Union will have the option of either underwriting a loan for the member or terminating the member from the program, turning the account over to a collection agency and closing the account.