OVERDRAFT PROTECTION FAQ
Helpful Answers to your Questions
Q. What is an overdraft?
A. An overdraft occurs when you do not have enough money in your account to cover a payment you authorized, and the bank pays it as an accommodation, trusting that you will repay the amount of the overdraft plus any applicable fees.
Q. Does Peoples Bank limit overdraft fees?
A. Yes. Peoples Bank limits overdraft charges to a maximum of 7 per day. In addition, to further protect our clients we offer an added service that if the overdrawn amount in your account is less than $5, Peoples Bank will waive any overdraft fees you would have incurred from an ATM withdrawal or an everyday debit card transaction.
Q. What is an everyday debit card transaction?
A. An everyday debit card transaction is a one-time, non-recurring purchase or payment made with your debit card. This might be a purchase at a grocery store, gas station, or any other everyday purchase with your debit card.
Q. What do the new federal rules change?
A. The new rules mostly affect debit card transactions, specifically ATM transactions and everyday debit card purchases at a store or on the internet. The new rules require that you must expressly agree, that is, “opt-in”, before Peoples Bank may charge you a fee for paying an ATM or everyday debit card transaction that will cause an overdraft on the account.
Q. Does this new regulatory change affect overdraft coverage for checks and automatic payments from my checking account? (i.e. Peoples sometimes pays my checks and electronic bill payments such as my mortgage even if I do not have enough money in the account. If I do not opt-in will this stop?)
A. No. This change only affects everyday debit card transactions and ATM withdrawals that overdraw your account. Peoples will continue to consider paying items from checks, bill payments, ACH and recurring automatic payments from your debit card (such as utilities or insurance payments), even if you have not opted in to pay a fee for everyday debit card overdrafts.
Q. If I opt-in, will Peoples Bank always pay my ATM and everyday debit card transactions?
A. No. Unless you have signed up to link your checking account to another Peoples Bank account such as a savings account with sufficient funds to cover the amount of the overdraft, we cannot guarantee that your ATM and everyday debit card transactions will be paid even if you opt-in. These standard overdraft services are an accommodation provided at the bank’s discretion.
Q. If I do NOT opt-in, does it mean that I will never overdraw my account using my debit card or ATM card for everyday transactions?
A. No. There are limited circumstances when it will not be possible for the bank to avoid paying an ATM or other debit card transaction you made, even if there is not enough money in your account. You should not assume that because the ATM withdrawal or debit card transaction goes through that there is enough money in your account to cover it. In these cases, the bank may not charge you an overdraft fee, but you still must re-pay the bank to cover the overdraft.
Q. Beyond standard overdraft practices and linking my checking account to another account to cover overdrafts, are there other ways to avoid overdrafts?
A. The easiest way to avoid overdrafts is to keep track of your transactions and balance. You are also less likely to overdraw if you keep adequate money - or even a cushion - in the account. Peoples Bank also provides several free online services to help customers manage their daily finances.
Q. What happens if I don’t opt-in – or if I take no action at this time?
A. Beginning August 15, 2010, if you have not authorized Peoples Bank to consider paying everyday debit transactions and ATM withdrawals that overdraw your account, these transactions will be declined if there are not sufficient funds in your account, and you will not be able to complete your transaction.
Q. Can I change my mind later, if I choose to?
A. Yes. You can change your mind at anytime. If you opt-in now, you can choose to opt-out at any time by calling us at 800-374-6123, through our website: peoplesbancorp.com, or by visiting any Peoples Bank office.
Q. How do I opt-in ?
A. There are three ways to opt in. Choose what is most convenient for you!
- peoplesbancorp.com
- visit any Peoples Bank office
- call 1.800.374.6123, Option 7.
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