Courtesy Pay Disclosures

Courtesy Pay is a service that allows us to pay a check written on our member’s personal checking account even if it causes the account to become overdrawn.

Courtesy Pay may provide certain accountholders in “good standing” with the ability to overdraw their personal checking account up to $500.

If the account has been open at least 60 days and maintained in good standing, defined as A) Making regular deposits sufficient to cover transactions; B) Bringing the account to a positive balance at least once every thirty days or less; C) There are no legal orders outstanding on your account, and; D) You do not have any loans with us that are more than 60 days past due, we may, at our sole discretion, pay overdrafts up to the limits mentioned above, including our normal Non-Sufficient Funds and/or Courtesy Pay charge(s). Whether we pay or return an item, your account will be assessed a fee, either as a Courtesy Pay charge or a Non-Sufficient Funds charge but you will not be charged both fees.

Courtesy Pay offers additional flexibility and convenience in managing accountholder funds, and provides peace of mind knowing that checks may be paid up to the authorized overdraft limit.

This non-contractual courtesy of paying overdrafts requires no accountholder action. It is not a loan. No additional agreements need to be signed, and it costs nothing unless the privilege is used – by initiating checks, electronic funds transfers, or other payment or withdrawal requests for more than is on deposit in the account. This applies to Debit Card/ATM Point of Sale transactions and Bill Payments made through CU@Home Online Banking. If you maintain the account in good standing and have need for this “courtesy”, we may, at our sole discretion, pay the item(s) up to the authorized limit, and we will charge the account our normal Non-Sufficient Funds and/or Courtesy Pay charge for each item that overdraws the account. We will send you a notice each time an overdraft occurs.

If you receive a direct deposit of your monthly Social Security payment into your checking account and do not want Courtesy Pay eligibility, you must advise us to stop us from paying your overdrafts with these funds.

Courtesy Pay allows NIH Federal Credit Union to provide a higher level of service to our members by helping to protect your account and reputation when an inadvertent overdraft occurs.

If you have questions, do not hesitate to call our Telephone Service Center at (301) 718-0208 or (301) 881-5822 TDD, (8:15 am – 4:00 pm, Monday-Friday, EST).

Effective November 2003