It is the policy of Destinations Credit Union (DCU) to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and sound standards. The Deposit Account Agreement and Disclosure provided to you at the time you opened your account with us controls the duties, obligations and rights of the Depositor, the Authorized Signatories and Destinations Credit Union with regard to your share draft account. The Membership & Account Agreement (and all amendments thereto) and its terms shall control any possible conflict, if any, between any provision of this Discretionary Overdraft Privilege Policy and Membership & Account Agreement. A copy of the Membership & Account Agreement is available to you on our website (www.destinationscu.org) and upon request from any Destinations Credit Union branch.

An overdraft occurs when, on any day, the available balance in your share or deposit account is not sufficient to pay the full amount of a check, transaction, or other item, plus any applicable fee, that is posted to your account, we may return the item or pay it, as described below. 

DCU’s determination of an insufficient available account balance is made at the time each item is presented for processing with only one review of the account required. Available balance for payment of checks, ACH items, and recurring debit card transactions means the ledger balance minus any deposited funds and/or debit card holds, plus the amount of any Overdraft Privilege limit, if you have consented to this service, and any available Overdraft Protection. Account holds are placed for any authorized debit card transaction until the transaction settles and may sometimes exceed the actual transaction amount. 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, an Overdraft Fee may be assessed regardless of whether we pay or return the item. We do not have to notify you if your account does not have a sufficient available balance in order to pay an item. We may charge a fee each time a merchant or other payee submits or resubmits an item for payment; therefore, you may be assessed more than one fee as a result of a returned item and resubmission(s) of the returned item. There is also no limit to the amount of fees that can be assessed to your membership on any given day.

We offer standard overdraft services, also recognized as “Discretionary Overdraft Privilege” or “Courtesy Pay” automatically at account opening which goes into effect if your membership is in good standing and has been opened for at least sixty (60) days. This service allows us to authorize payment for the following types of transactions regardless of whether your share draft / checking account has sufficient funds: (1) checks and other transactions made using your checking account, except as otherwise described below; (2) automatic bill payments; (3) and ACH transactions. If you do not wish to have this standard overdraft coverage, you must OPT-OUT in writing.

We offer extended overdraft services for ATM and one-time debit card transactions (everyday purchases), you must affirmatively consent to such coverage. Without your consent, DCU may not authorize and pay an ATM or one-time debit card transaction that will result in insufficient funds in your account. Services and fees for these transactions are shown in the document DCU uses to capture your affirmative consent and the Fee Schedule. If you wish to OPT-IN to extended overdraft services, you must do so in writing.

To be eligible for extended overdraft services your share draft / checking account must have been open and active for at least Sixty (60) days, and you maintain your account in good standing which includes at least:

• Bring your account balance to a positive balance within every thirty (30) day period for a minimum period of 24 hours;
• Not being delinquent or in default on any loan or other obligation to Destinations Credit Union
• Not being subject to any legal or administrative order or levy and
• Neither a dormant account nor an account at a zero balance in excess of 30 days.
• A current address and phone number with the Destinations Credit Union.

Members also have the ability to establish a service linking your share or deposit account with other individual or joint accounts. You authorize us to transfer funds from another account of yours to cover an insufficient item, including transfers from a share or deposit account, or other account you designate. This service will be attempted before either standard or extended overdraft services kick in.

You have the right to revoke your consent at any time in writing. Except as otherwise agreed in writing, if we exercise our right to use our discretion to pay such items that result in an insufficiency of funds in your account, we do not agree to pay them in the future and may discontinue coverage at any time without notice.

Destinations Credit Union will have the discretion to pay overdrafts within the overdraft privilege limits, but payment by Destinations Credit Union is a discretionary courtesy and not a right of the member or obligation of Destinations Credit Union. This privilege for consumer share draft accounts will generally be limited to a maximum of $300 overdraft (negative) balance. Of course, any and all fees and charges, including without limitation the non- sufficient funds fees (NSF) will be included as part of this maximum amount. Whether the credit union pays or returns a non-sufficient fund item(s), a per item fee will be assessed (refer to the current fee schedule for the current charge) to the draft account as an overdraft fee or non- sufficient funds fee (NSF) as set forth in credit union fee schedule. There is no maximum number of overdraft or non-sufficient funds fees (NSF) that can be assessed to your membership on any given day. The total of the discretionary overdraft privilege (negative) balance, including any and all fees and charges, including all non-sufficient funds/overdraft fees is due and payable upon demand and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts as described in the Deposit Account Agreement and Disclosure with a maximum repayment period of 30 days.

Courtesy Pay / Overdraft Fee notices are sent through the mail or electronically (for eNotice users) that the item was paid with the overdraft Fee. If the courtesy pay limit has been reached and the check is returned for non-Sufficient Funds (NSF), an NSF notice is sent through the mail or electronically stating that the item has been returned and the NSF fee has been charged.

Destinations Credit Union shall review this policy annually or as necessary.

Again, while Destinations Credit Union will have the discretion to pay overdrafts on accounts in good standing (as described above) payment is a discretionary courtesy, and not a right of the member or obligation of Destinations Credit Union and Destinations Credit Union in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause.

To change your current selection, please stop by and speak with one of our branch representatives or contact our Member Service Department at 410-663-2500, memberservices@destinationscu.org, or through the secure messaging inside of your eBanking.