OVERDRAFT PROTECTION (ODP)
Always a Discretionary Service
It is the policy of City Bank (“the bank, we, us, or our”) to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards.
A non-sufficient funds (negative) balance may result from:
• The payment of checks, ATM withdrawals, electronic funds transfers, or other withdrawal requests;
• Payments authorized by you;
• The return of unpaid items deposited by you;
• The imposition of bank service charges; or
• The deposit of items, which according to the Bank’s Funds Availability Policy, are treated as not yet “available” or finally paid.
We are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. Rather than automatically returning, unpaid, any non-sufficient funds items that you may have, if your eligible account has been open for at least thirty (30) days and thereafter you maintain your account in good standing, which includes at least:
• Continuing to make deposits consistent with your past practices,
• You are not in default on any loan obligation to the bank,
• You bring your account to a positive balance (not overdrawn) at least once every thirty-five (35) days, and
• Your account is not the subject of any legal or administrative order or levy.
We may authorize and pay overdrafts for checks you write and transactions made using your checking account number. We will not authorize and pay overdrafts for ATM transactions or everyday (e.g. non-recurring) debit card transactions unless you have affirmatively given us your consent to do so. We will consider, without obligation on our part, approving your reasonable overdrafts.
This discretionary service will generally be limited to a $500 or $700 overdraft (negative) balance for eligible account types. Some restrictions do apply. Of course, any and all fees1 and charges, including without limitation our return item fee/overdraft paid fees1 will be included in this limit and will apply to any transaction that overdraws your account including, but not limited to, payments authorized by Checks, ACH/Electronic Items, City Bank and foreign ATMs/Debit Card/Check Card, Online Banking and Telephone Banking Transactions.
We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. We will charge you the amount of any overdrafts plus our return item fee(s) and/or overdraft paid fee(s) of $331 that you owe us and shall be due and payable upon demand. We will charge you for only six (6) ODP /NSF’s per day. A fee will not be assessed for any item(s) which causes the account to be overdrawn for less than $5 (negative balance of $5 or less) on any one business day. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our return item fee(s) and/or overdraft paid fee(s)ODP.
We may use deposits you or others make to your account to pay overdrafts, fees1 and other amounts you owe us.
Accept/Decline ODP Program:
We offer Overdraft Protection (ODP) that comes with eligible accounts. By accepting the ODP
program, we may pay overdraft items up to the limit allowed for your account type for the
following transaction types including without limitation: check, ACH or electronic transactions,
City Bank and foreign ATMs/debit cards, online banking and telephone banking transactions.
If you opt-in, see below, we may also pay overdrafts items up to the limit allowed for your
account type for ATM and debit card transactions. If the service is declined by you, any
transactions that overdraw your account may be returned, unpaid and a return item fee of
$33 may be imposed. The customer who accepts the ODP program consents to the applicable
overdraft limit of the account.
Opt-In/Out for ATM and Everyday Debit Card Transactions:
We will not include ATM and everyday debit card transactions within your assigned
ODP limit without first receiving your affirmative consent (opt-in) to do so. Absent your
affirmative consent (optin), ATM and everyday debit card transactions generally will not be
authorized if you do not have available funds. A customer who does not affirmatively consent
(opts-out) to the payment of ATM and/or everyday debit card transactions pursuant to ODP,
agrees to not overdraw their account for ATM and everyday debit card transactions ($0 debit
card overdraft limit).
Debit Card Deactivation:
If a consumer opts-out to the payment of ATM and/or everyday debit card transaction, on the
third time such a consumer breaches the account agreement by overdrawing the account with an
ATM or everyday debit card transaction, and there is an inherent risk to the bank, then the
debit card will be restricted from further use. The debit card may be reissued IF the consumer:
Consents to an automatic transfer from another account to cover overdrafts;
- Applies and qualifies for a loan product with an automatic transfer feature
to cover overdrafts;
- Voluntarily and knowingly consents to opt-in to the bank’s debit card overdraft service; or
- Otherwise provides evidence of curing the breach of the account.
ODP Denial Process:
Some common reasons your ODP may be denied are: if your account balance becomes negative in the first 30 days of the account being opened, if you have a negative record with Chexsystems, if the only deposit in your account is the initial deposit, and/or if you do not have regular payroll, social security, or similar direct deposits.
Savings Type Accounts, Money Market Accounts, Public Funds/Charitable Organization Accounts, Student Minor Accounts, accounts with restrictive hold codes (garnishment, liens, etc.), dormant, returned mail, and certain trust accounts are not eligible. We may limit the number of accounts eligible for ODP to one account per household and one account per tax payer ID.
Eligible Transaction Types:
Each transaction/item initiated for payment against your checking account(s) may be processed by us using your assigned ODP limit, including without limitation: Checks, ACH, ATM, POS, Online Banking, Bill Payment, Telephone Banking Bill Payment, and Mobile Banking Transaction; however, we will not include ATM and everyday debit card transactions within your assigned ODP limit without first receiving your affirmative agreement to do so. Absent your affirmative agreement, ATM and everyday debit card transactions generally will not be paid if you do not have available funds.
A customer who does not affirmatively agree (opts-out) to the payment of ATM or everyday debit card transactions pursuant to ODP agrees to not overdraw their account for ATM and everyday debit card transactions ($0 debit card overdraft limit). The bank is not obligated to honor any overdraft on your account if the overdraft, either alone or when aggregated with other overdrafts and related overdraft fees1, exceeds your ODP limit for checks and ACH transactions.
Here’s how ODP works if we pay your overdraft item: If you inadvertently write a check, make an ATM withdrawal or other payment or withdrawal request for more than the funds on deposit in your account, we may cover them, and save you time, money and inconvenience. Suppose that your account type permits a $500 limit. With ODP, you may be covered for a check of $467 plus the $33 Overdraft Paid Fee-ODP. Alternatively, you may be covered for a $100 ATM withdrawal, a check of $334 plus the $66 Overdraft Paid Fee-ODP for two items.
You may wish to take advantage of City Bank’s balance alert options. If you bank online or use our mobile banking services, you may establish a balance alert threshold to let you know when your balance is nearing YOUR alert threshold. Here’s how it works: You set the threshold (say $100) by logging into your account online and setting up the balance alert program. The alert system is based on your ledger balance (not including any ODP limit). The ledger balance is finalized once a day in the evenings after all items have been posted, including deposits for which you have received credit, wire and cash items, ACH payments, and debit card payments that have been submitted by the merchant processors for posting. If your ledger balance has fallen to your alert threshold, you will receive a text message (if you use the mobile banking program) or an email alert. You can then log on securely to your account for more information.
Optional Overdraft Protection Services:
City Bank offers optional overdraft protection products/services that you may apply for. We offer sweep accounts, which can link your checking to another account at City Bank or Overdraft Protection from a line of credit (subject to credit approval) to cover any transactions that would otherwise overdraft your account. These services may be less expensive than ODP.
Removal of ODP:
ODP may be removed from any account at any time without prior notice or cause. Some common reasons ODP would be removed from an account are:
• The address on the account changes and City Bank is not notified.
• The account has been overdrawn for thirty 35 or more consecutive days.
You may choose at any time to not participate in City Bank’s ODP service, by notifying in writing or in person one of our Customer Xperience Representatives or by phoning 1-800-687-2265, who will explain what this means, and the potential consequences for you.
The bank does not make available ODP coverage for ATM or everyday debit card transactions for a customer who does not affirmatively consent to the payment of ATM or everyday debit card transactions pursuant to the bank’s overdraft service. A customer who does not affirmatively consent (opt-out) to the payment of ATM or everyday debit card transactions pursuant to ODP consents to not overdraw their account for ATM and everyday debit card transactions ($0 debit card overdraft limit).
If the opt out consumer breaches the account agreement by overdrawing the account with an ATM or everyday debit card transaction, and there is an inherent risk to the bank, then the debit card will be restricted. The debit card may be reactivated if the consumer consents to an automatic transfer from another account to cover overdrafts or applies or qualifies for an overdraft line of protection loan with an automatic transfer feature to cover overdrafts. If these alternatives are not possible, then the card may be reactivated if consumer voluntarily and knowingly elects to opt-in to the bank’s debit card overdraft service.
The opt-in consumer consents to the accounts applicable overdraft limit. The bank reserves theright to restrict the ATM or debit card if the account is overdrawn with an ATM or everyday debit card transactions in excess of the debit card overdraft limit. A charge of $33 will be imposed each time we pay or return an overdraft item.
ODP Excessive Use:
Please contact the Overdraft Department using the information on the back of this booklet if you:
(1) do not believe that you will be able to bring your account to a positive end-of-day balance
within the 35 day time period; (2) find that you are using Overdraft Protection (ODP) more often
than you intend; or (3) don’t understand why your account becomes overdrawn. We would like to
discuss your situation with you.
Following regulatory guidance, we will contact you if you are paying multiple ODP fees (i.e.,
more than 6 fees in a rolling 12-month period), to discuss possible alternatives to ODP that may
better meet your short-term credit needs. In the event you ask us to stop contacting you because
you have determined ODP is appropriate for your needs, we will honor your wishes. However,
if we identify that the number and frequency of overdrafts increases materially for an extended
period of time at some point after that, we may contact you again to ensure ODP is still the most
appropriate option available to you for covering your short term credit needs.
If You Need Help:
Of course, overdrafts should never be used to finance ordinary or routine expenses – and you should never rely on overdrafts to cover these expenses. If at any time you feel you need help with your financial obligations please contact the Federal Trade Commission’s (FTC) Choosing a Credit Counselor website http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm for additional education.
Always a Discretionary Service:
City Bank’s Overdraft Protection Service (ODP) * does not constitute an actual or implied agreement between you and City Bank. Nor does it constitute an actual or implied obligation of or by City Bank. This service represents a purely discretionary courtesy or privilege that City Bank may provide to you from time to time and which may be withdrawn or withheld by City Bank at any time without prior notice or reason or cause.
1All fees subject to sales tax in New Mexico. *Overdraft Protection (ODP) is subject to approval. Some restrictions do apply.