Overdraft Protection and Member Privilege

Member Privilege

Overdraft Protection and Member Privilege

Dirigo understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Overdraft Coverage Options:
The choice is yours. Consider these ways to cover overdrafts:

OVERDRAFT PROTECTION LINK applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you have at Dirigo Federal Credit Union for a fee. Call us at 800-281-5435, email us at info@dirigofcu.com, send us a secure message through online banking, or come by a branch to sign up for this service.

OVERDRAFT PROTECTION LINE OF CREDIT applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from a line of credit you have at Dirigo Federal Credit Union for a finance charge. Please note that overdraft lines of credit are subject to credit approval. Call us at 800-281-5435, email us at loan@dirigofcu.com, send us a secure message through online banking, or come by a branch to apply for this service.

MEMBER PRIVILEGE allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review “What Else You Should Know” for other important information.

If you would like to select Extended Coverage for future transactions, click the button below to complete the Extended Coverage Consent Form online.

If you prefer, you may also contact us at 800-281-5435, visit any branch, request a form to complete and mail to PO Box 741, Lewiston, ME 04243-0741, email us at info@dirigofcu.com, or send us a secure message through Online Banking.

Extended Coverage Consent Form

If you want to discontinue Member Privilege in its entirety, contact us at 800-281-5435, email us at info@dirigofcu.com, or send us a secure message through online banking.

What Else You Should Know:

  • A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile, online, and telephone banking services to track your balance. For financial education resources, please visit www.mymoney.gov.
  • The $25 Member Privilege Fee that is charged if you overdraw your account is the same fee amount that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Member Privilege Fee or a Returned Item Fee of $25. All fees and charges will be included as part of the Member Privilege limit amount. Your account may become overdrawn more than the Member Privilege limit amount because of a fee. Fees are subject to change.
  • There is a limit of 5 Member Privilege Fees and/or Returned Item Fees ($125) per day we will charge you for overdrawing your account. We will not charge a Member Privilege Fee or Returned Item Fee if the amount of the item is $10 or less.
  • Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Member Privilege Fee from funds that you deposit or that are deposited into your account may call us at 800-281-5435 to discontinue Member Privilege.
  • If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, Dirigo Federal Credit Union (“We”) may charge a Returned Item Fee each time we return the item because it exceeds the Available Balance in your account. Because we may charge a Returned Item Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge a Returned Item Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge a Member Privilege Fee. We may use the terms “item” and “transaction” interchangeably.
  • This describes the posting order for purposes of determining overdrafts. Our general policy is to post ATM, ACH and debit card transactions in the order in which the items are received, while paper checks are posted lowest to highest dollar amount; however, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Member Privilege Fees or Returned Item Fees assessed.
  • Member Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Membership Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.
  • We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
  • Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Member Privilege Fees for transactions that we would otherwise be required to pay without assessing a Member Privilege Fee. However, this would allow us to authorize transactions up to the amount of your Member Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding your Available Balance
Your account has two kinds of balances: the Current Balance and the Available Balance

  • We authorize and pay transactions using the Available Balance.
  • Your Current Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
  • Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Current Balance, less any holds due to pending debit card transactions and holds on deposited funds.
  • The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Member Privilege limit and any available Overdraft Protection.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Member Privilege limit.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Member Privilege limit.
  • Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Membership Agreement and Disclosure, which will reduce the amount in your Available Balance.
  • Please be aware that the Member Privilege amount is not included in your Available Balance provided through online banking, mobile banking, or Dirigo Federal Credit Union’s ATMs.
  • We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, a Member Privilege Fee may be assessed.
  • Except as described herein, we will not pay items if the Available Balance in your account (including the Member Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Overdraft Privilege Limits

  • New eligible consumer checking accounts will receive a $100 Introductory Member Privilege limit at account opening that will be increased to $750 after 30 days in good standing.
  • Member Privilege may be reduced or removed if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Member Privilege limit reinstated.

If you have any questions about Overdraft Protection or Member Privilege, please visit any branch, call us at 800-281-5435, email us at info@dirigofcu.com, or send us a secure message through online banking.