Power Pay Overdraft
Power Pay Overdraft Protection Program
At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be a costly, inconvenient and a potentially embarrassing experience.
We do not encourage overdrafts. As always, we encourage you to manage your finances responsibly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check is returned.
That's why we provide Power Pay, a special overdraft service for LG&W Federal Credit Union members.
What Is Power Pay Overdraft Protection?
The Power Pay program is a courtesy service offered to eligible members that will provide a limited amount of overdraft protection from which we may authorize and pay checks, ACH/Electronic Items and everyday debit card transactions initiated for payment against your eligible checking account. While Power Pay is not a loan, it may cover items such as checks, up to a $500 limit, when account funds are not available. That means, instead of returning a check to the merchant because of insufficient funds, LG&W Federal Credit Union may pay your check, ACH/Electronic item and everyday debit card transactions, saving you additional charges from merchants as well as the embarrassment of an inadvertent overdraft.
How does Power Pay Overdraft Protection Program work?
Overdrafts on your eligible checking account, up to a limit of $500 [including the amount of the overdrawn item(s) and the Power Pay fee(s)] may be honored by LG&W Federal Credit Union. A Power Pay fee of $28.00 will be assessed for each item that draws your account negative. You must then bring your account back to a positive balance as soon as possible, and at least once every 30 days, either through a direct deposit, transfer of funds or a deposit at one of our full-service ATMs or at our Office.
What If I Already Have Overdraft Protection?
If you have established alternate overdraft protection methods, such as automatic transfer from your other accounts, we will pay an overdraft if funds are available using these methods before paying your overdraft utilizing Power Pay.
Do I Have To Apply For This Service?
When you open an eligible checking account type, you are automatically enrolled in the Power Pay program after 30 days for checks and ACH/Electronic items. You must provide your consent ("opt in") to take advantage of Overdraft Protection for Everyday Debit Card Transactions, a feature of Power Pay.
You may choose to opt out and no longer participate in the Power Pay program at any time by coming in to our branch or calling the Office and completing the Power Pay Opt Out form. If you no longer participate in the Power Pay program, and you have opted out of the Overdraft Protection for Everyday Debit Card Transactions feature, you will be automatically removed from the debit card protection.
As long as your eligible checking account is in good standing, you may remain enrolled in Power Pay for checks and ACH/Electronic Items and revoke your opt in to the debit card feature at any time. You may revoke your opt in by visiting one of our branches or contacting our Office at (901) 680-7995 or Toll-Free at (888) 354-8698.
Important Power Pay Overdraft Protection Information
The Power Pay program is a courtesy service offered to eligible members that will provide a limited level of protection from insufficient funds, returned checks, ACH/Electronic items, everyday debit card transactions and returned check charges from merchants. Under the program, LG&W Federal Credit Union may overdraw your checking account up to $500, which includes any fees associated with the program. The order in which transactions are received and processed may impact the total amount of fees incurred.
You must maintain your eligible checking account in good standing. This includes, among other requirements, the following:
• Your account has been opened for 30 days;
• You are not in default on any loan obligation with us;
• You have consistent deposits, totaling $150.00 into the account within a thirty (30) day statement cycle; • You bring your account to a positive balance at least once every thirty days, and;
• Your account is not the subject of any legal or administrative order or levy.
If you meet these requirements, we may, at our sole discretion, pay overdrafts up to the limit mentioned above, including Power Pay fees. Whether we pay or return an item, your account will be assessed a $28.00 fee, either as a Power Pay fee or a Returned Item fee.
L G & W Federal Credit Union is committed to keeping our members informed. If you have any questions regarding our Power Pay program, please do not hesitate to contact our Office at 901-680-7995.
A Power Pay fee of $28.00 will be imposed each time we pay an overdraft on everyday debit card transactions, checks and ACH/Electronic Items. Once an overdraft has occurred, you must bring your account to a positive balance (not overdrawn) immediately. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing.