Consumer Overdraft Disclosure

(Revised January 2021)


Please review this document carefully and download or print a copy for your reference. You can access a PDF version of this document that you can download or print by clicking here.


Recall that this Consumer Overdraft Disclosure is incorporated as part of your Account Agreement with New Covenant Dominion Federal Credit Union (NCDFCU) and applies only to consumer accounts. A consumer account is one held by an individual for personal, family, or household purposes. Different policies apply to non-consumer accounts, such as accounts held by organizations, businesses, unincorporated associations, or churches.


During your relationship with NCDFCU, there may be times when you do not have enough money to cover the transactions to be posted to your account due to an unintentional error or miscalculation. An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway as a convenience to you. An overdraft may also occur if you have insufficient funds to pay any service fees you owe to us.


While it should not be your practice to overdraw your account, we recognize that paying overdrafts helps you to avoid the problems that arise with declined transactions.  NCDFCU can cover your overdrafts in two different ways, both of which are only available to members in good standing:


  1. Through our Overdraft Courtesy Pay service, which comprises our standard overdraft practices.
  2. Through our Overdraft Protection service, by authorizing us to transfer funds from a linked NCDFCU account that you own in order to cover insufficient funds transactions. This option may be less expensive than our standard overdraft practices.


We require the explicit consent of members in good standing for enrollment in Overdraft Courtesy Pay and Overdraft Protection (collectively, our “Overdraft Program.”). A member in good standing is a member who:

  • maintains at least the minimum share balance described in our Consumer Account Agreement;
  • is not significantly delinquent on any NCDFCU union loan;
  • has not had any account with NCDFCU closed due to abuse or negligent behavior;
  • has not caused a financial loss to NCDFCU; and
  • has not engaged in violent, belligerent, disruptive, or abusive activities.


On a joint account, any joint account owner who is a member in good standing may request to enroll in our Overdraft Program. We may decline to enroll a member in our Overdraft Program in our sole discretion. We reserve the right to change the terms of or discontinue our Overdraft Program altogether in our sole discretion.


The overdraft limit on consumer accounts is $500.00. Any service fees we charge you count toward the dollar limit. After this dollar limit has been reached, we will not pay any further overdrafts on your account; instead, we will decline insufficient funds transactions and charge you the returned item fee (currently $25.00) As set forth in our Consumer Account Agreement, transactions may not be processed in the order in which they occurred, and the order in which we receive and process transactions can affect the total amount of service fees that you incur for overdrafts.


Notice for Non-Members and Members Who Do Not Enroll in the Overdraft Program

If there are insufficient funds to cover a transaction on a non-member account or a member account which is not enrolled in our Overdraft Program, we will decline the transaction and charge the returned item fee (currently $25.00) for each returned item.  If you are unsure of your membership status or whether you are eligible to enroll in our Overdraft Program, speak with a credit union employee.


What is Overdraft Courtesy Pay, and what service fees will I be charged if I enroll?


Under this service, we may authorize and pay overdrafts for the following transactions:

  • checks and other transactions made using your checking account number
  • automatic bill payments.


We do not authorize and pay overdrafts for the following transactions as we do not yet offer these services:

  • ATM transactions
  • everyday debit card transactions


We are not required to alert you before posting a transaction that will overdraw your account. You are responsible for monitoring your account. 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.


The payment of overdrafts is not a loan or line of credit, and all overdrafts must be repaid within 45 days. If you do not repay your overdraft within 45 days, we may require you to apply for a loan to pay the overdraft.


If you overdraw your account excessively, we may terminate your access to Overdraft Courtesy Pay or close your account, in our discretion.


For Overdraft Courtesy Pay, we will charge you a service fee of up to  $15.00 (the current lowered rate due to coronavirus pandemic; ordinarily $25.00) each time we pay an overdraft when your account is overdrawn by more than $10.  Also, if your account is overdrawn for 2 or more consecutive business days, we will charge an additional $2.50 service fee per day. There is no limit on the total service fees we can charge you for overdrawing your account. You may opt-out of Overdraft Courtesy Pay at any time by sending us a written notice. We will accept an opt-out notice from any owner of a joint account.


What is Overdraft Protection, and what service fees will I be charged if I enroll?


Under this service, you authorize us to automatically transfer available funds from a linked NCDFCU account to cover any insufficient funds transactions. We may transfer money in any linked account to any other linked account for this purpose. We only require the consent of only one joint owner to link joint accounts. We are not required to notify you when a joint account owner links the joint account to another NCDFCU account as part of our Overdraft Protection program.


We will charge you a $0 service fee (fee is waived during the coronavirus pandemic; ordinarily $5.00) per transfer if there are available funds in a linked account. There is no limit on the total service fees we can charge for transfers.


If no linked account has sufficient funds, we may elect to pay the overdraft via Overdraft Courtesy Pay and charge you the Overdraft Courtesy Pay fees. You may opt-out of Overdraft Protection at any time by sending us a written notice. We will accept an opt-out notice from any owner of a joint account.