New Overdraft Rules

New Federal Regulations
That Will Affect Your Account
and Need Your Response

A Letter from John P. McGrail

LSFCU President/CEO:

The Federal Reserve Board voted to make changes to the way overdrafts are handled by all financial institutions. LSFCU has three different options and qualifying members may participate in all three. What has changed is that we now have to have you opt-in to our overdraft programs. You have probably seen news about this from many institutions and there is a difference with us. There are many large institutions that are changing their programs completely because of the negative feedback they were receiving from their customers. We are not changing the features of our programs because we believe we have been practicing the industry’s best standards and our outside auditors have agreed. We do need you to opt-in so that transactions can continue to be paid as you want them to after August 15, 2010. Please read on and respond quickly.

For our Members with an

ATM/Visa Check Debit Card:

It is our privilege to offer you the added convenience of using a debit card to access your account. Due to recent regulatory requirements by the Federal Reserve, we must now require you to opt-in to having any items paid or fees incurred when you overdraft your account thru ATM and everyday debit card transactions.

An overdraft occurs when there are not sufficient available funds in the account to cover an ATM withdrawal or a debit card transaction. You can avoid overdraft fees by keeping accurate records of your transactions and knowing your account balance before making ATM withdrawals or everyday debit card transactions.

You can opt-in or contact us by:

calling Member Services at 1-800-889-2393;
completing the opt-in form and mailing it to us at 850 Harrison Road, Salisbury, NC 28147, putting the completed opt-in form in an envelope addressed to Lion’s Share FCU and sending it via store/interdepartmental mail, or bringing it by our office;
faxing the completed opt-in form to 704-637-6311 or
sending us an email at memberservices@lionsharecu.org

For Our Members with

Overdraft Privilege: Referred to as “Standard overdraft practices” on the opt-in form.

With Overdraft Privilege, if you inadvertently overdraw your account, we have the option to cover your overdrafts up to $300 including fee(s). Your account will be charged the standard overdraft privilege fee of $25.00 for paying each item; which will thereby save you the larger insufficient funds fee of $30.00 and the embarrassment, hassle and extra fees associated with having your items returned to the payee.

The amount of the Overdraft Privilege is not shown in your available balance, but may be available to you for ATM cash withdrawals, checks, telephone and Internet Banking, ACH transactions, and when you use your debit card for purchases at retail merchants. If multiple items are presented against your account on the same day, each item will be assessed the appropriate Returned Item (NSF) fee of $30.00 or an Overdraft Privilege fee of $25.00.

Because of the new regulatory requirements, the Overdraft Privilege service you currently have for ATM and everyday debit card transactions will only continue until August 15, 2010, unless you notify us that you wish to continue to receive the service. Please review the opt-in form. You must opt-in if you want Overdraft Privilege to continue to be available for your ATM and everyday debit card transactions. You can opt-in or contact us by:

calling Member Services at 1-800-889-2393;
completing the opt-in form and mailing it to us at 850 Harrison Road, Salisbury, NC 28147, putting the completed opt-in form in an envelope addressed to Lion’s Share FCU and sending it via store/interdepartmental mail, or bringing it by our office;
faxing the completed opt-in form to 704-637-6311 or
sending us an email at memberservices@lionsharecu.org

Overdraft Privilege will continue to be available for checks, ACH, and automatic bill payments unless you elect to opt out of the Overdraft Privilege service in its entirety by contacting Account Services at 1-800-889-2393.

Once you have completed the opt-in form, you will receive a Confirmation letter and the new Discretionary Overdraft Privilege Policy that will apply after August 15, 2010. You have the right to opt-out of this program at any time by contacting our office with your name and account number.

It is our pleasure to offer this Overdraft Privilege to you. To ensure that you continue to have access to this service through ATM and everyday debit card transactions, you must notify us before August 15, 2010.

We appreciate your business, and want to make sure you have the information you need to make the right decision. If you have any questions regarding Overdraft Privilege, contact Member Services at 1-800-889-2393 or send an email to memberservices@lionsharecu.org.

We are working to ensure that you receive your Lion’s Share of the benefits that membership brings.

John P. McGrail, CCUE, CFSP, CUCE

President/CEO

Lion's Share Federal Credit Union