What You Need to Know about Overdrafts and Overdraft Fees
An overdraft occurs when you do not have sufficient available funds in your account to cover a transaction, but we pay it anyway. We look at the available balance when determining whether there is an overdraft. Available balance is the actual balance minus any deposits or withdrawals that are on hold or transactions that have been preauthorized but have not yet been debited from your account, such as gas station purchases, hotel or reservations and other such items. We can cover your overdrafts in two different ways:
- We have standard overdraft practices that come with your account.
- We also offer overdraft protection plans, such as a link to a savings account, or a Personal Line of Credit (Moneyline Loan), which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.
This notice explains our standard overdraft practices.
What are the standard overdraft practices that come with my account?
We do authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number
- Automatic bill payments
We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below).
- ATM transactions
- Everyday debit card transactions
We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.
What fees will I be charged if LOC pays my overdraft?
Under our standard overdraft practices:
- We will charge you a fee of up to $30 each time we pay an overdraft
- There is no limit per day on the total fees we can charge you for overdrawing your account
What if I want LOC to authorize and pay overdrafts on my ATM and everyday debit card transactions?
For additional important information concerning overdrafts, please refer to section 14 of your membership and account agreement and the information set forth in “What Else You Need to Know: Your Liability for Overdrafts”.
If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call (800) 837-4562 or complete the form below. You can revoke your authorization for LOC to pay these overdrafts at any time by any of the above methods. Your revocation must include both your name and your account number so that we can properly identify your account.
Use this form to change your preference for Extended Overdraft Privilege for ATM and everyday debit card transactions. You can change your preference at anytime. Please note that the submission of this form does not immediately change your preference. An LOC employee must update your account during normal business hours.