Checking Account Overdraft Disclosure

This Checking Account Overdraft Disclosure describes the circumstances when Streator Onized Credit Union (the “Credit Union”) will pay overdrafts in your Checking Account and charge you a fee. “Overdraft” means there is not enough available balance in your account to pay for a transaction. Each instance of overdrawing your Checking Account will result in a fee as described in our Fee Schedule, which is updated periodically.

Please note that for ATM and one-time debit card transactions, you must affirmatively consent or opt-in for this coverage. Without your consent, we may not authorize and pay an ATM or one-time debit card transaction that will result in insufficient available funds in your account. Please contact us at the number listed below to request an information about one-time debit card Opt-In services.

The following is important information regarding your account balance, how transactions are posted to your account, and when an overdraft fee will be charged. You should read this disclosure carefully. If you have questions, please see a branch representative or call the number listed below.

CHECKING ACCOUNT BALANCE. Your checking account has two kinds of balances: the “actual” or “current” balance and the “available” balance. You can check both balances when you review your account online, by phone, in mobile banking or at a branch. It is important to understand how the two different balances work so that you know how much money is in your account. This section explains actual and available balances and how they work. Please note that some ATMs may display only the available balance.

Your actual balance is the amount of money that is actually in your account at any given time. “Actual” balance may also be referred to as “Balance” or “Current” balance. It reflects transactions that have “posted” to your account, but not transactions that have been authorized and are pending. While the term “actual” or “current” may sound as though the number you see is an up-to-date display of the amount in your account that you can spend, that is not always the case. Any purchases, holds, fees, other charges, or deposits made on your account that have not yet posted will not appear in your actual or current balance. For example, if you have a $100 actual balance, but you just wrote a check for $60, then your actual balance is $100 but it does not reflect the pending check transaction. So at that point, you actually have $100, but you have already spent $60.

Your available balance is the amount of money in your account that is available for you to use without incurring an overdraft fee. The available balance takes into account things like holds placed on deposits and pending transactions such as debit card purchases that the Credit Union has authorized but that have not yet posted to your account. For example, assume you have an actual balance of $100 and an available balance of $100. If you were to use your debit card at a restaurant to buy lunch for $20, then that merchant could ask the Credit Union to pre-authorize the payment. In that case, we will put a “hold” on your account for $20. Your actual balance would still be $100 because this transaction has not yet posted, but your available balance would be $80 because you have committed to pay the restaurant $20. When the restaurant submits its bill for payment (which could be days later), we will post the transaction to your account and your actual balance will be reduced by $20.

Available balance is used to determine when your account is overdrawn. The following example illustrates how this works:
Again, assume your actual and available balance are both $100, and you use your debit card at a restaurant to pay $20. A hold is placed on your account, so your available balance is only $80. Your actual balance is still $100. Before the restaurant charge is sent to the Credit Union for processing, a check that you wrote for $90 is presented for payment. Because you have only $80 available (you have committed to pay the restaurant $20), your account will be overdrawn by $10, even though your actual balance is $100. In this case, we may pay the $90 check, but you will be charged an overdraft fee. That fee will be deducted from your account, further reducing the balance.

It is very important to understand that you can still overdraw your account even though the available or actual balance appears to show that there are sufficient funds to cover a transaction that you intend to make. As explained, your available balance may not reflect all of your authorized outstanding transactions (e.g. outstanding checks and automatic bill payments) that have not been paid from your account. In the example above, the outstanding check will not be reflected in your available balance until it is presented to us and paid from your account.

In addition, your available balance may not reflect all of your debit card transactions. For example, if a merchant obtains our prior authorization but does not submit a one-time debit card transaction for payment within three (3) business days of authorization (or for up to thirty (30) business days for certain types of debit card transactions), we must release the authorization hold on the transaction. The available balance will not reflect this transaction once the hold has been released until the transaction has been received by the Credit Union and paid from your account.

HOW TRANSACTIONS ARE POSTED TO YOUR ACCOUNT. There are basically two types of transactions in your account: credits or deposits of money into your account, and debits or payments out of your account. It is important to understand how each is applied to your account so that you know how much money you have and how much is available to you at any given time. This section explains generally how and when we post transactions to your account.

Credits. Most deposits are added to your account when we receive them. For some checks you deposit, only $200 will be made available at the time of deposit; the balance will be available two (2) business days later. There may be extended holds on checks or deposits that we believe could be returned for reasons such as non-sufficient funds or fraudulent activity. These funds will typically be transferred to your primary savings then pledged. Thus, your available balance may not reflect the most recent deposits to your account. For details on the availability for withdrawal of your deposits, see the section of your Account Agreements and Disclosures Booklet entitled “Your Ability to Withdraw Funds.”

Debits. There are several types of debit transactions. Each type of debit transaction is described generally below. Keep in mind that there are many ways transactions are presented for payment by merchants, and the Credit Union is not necessarily in control of when transactions are received.

• Checks. When you write a check, it is processed through the Federal Reserve system. We receive data files of cashed checks from the Federal Reserve each day. The checks drawn on your account are compiled from these data files and paid each day. We process the payments from low to high dollar value.

• ACH Payments. We receive data files every day from the Federal Reserve with Automated Clearing House or ACH transactions. These include, for example, automatic bill pays you have authorized. Each day, ACH transactions for your account are grouped together and paid in the order received in the file.

• Point of Sale (POS) Debit Card Transactions. These are transactions where you use your debit card and, generally, you are required to enter your PIN number at the time of the sale. They are similar to ATM withdrawals because money is usually deducted from your account immediately at the time of the transaction. However, some POS transactions are not presented for payment immediately; it depends on the merchant. Please see current schedule of fees for using your debit card with PIN number. You may avoid fees by signing for your purchase with the use of your debit card.

• Signature Debit Card Transactions. These are transactions where you make a purchase with your debit card and you do not enter your PIN but you are instead asked to sign for the purchase. As described above, in these situations the merchant may seek prior authorization for the transaction. When that happens, we generally place a temporary hold against the available funds in your account. We refer to this temporary hold as an “authorization hold,” and the amount of the authorization hold will be subtracted from your available balance. Authorizations are deducted from your available balance but not your actual balance as they are received by us throughout each day. At some point after you sign for the transaction, it is processed by the merchant and submitted to us for payment. This can happen hours or sometimes days after you signed for it, depending on the merchant and its processing company. These payment requests are received in real time throughout the day and are posted to your account as they are received. Please note: the amount of an authorization hold may differ from the actual payment because the final transaction amount may not yet be known to the merchant when the authorization request is submitted. For example, if you use your card at a restaurant, a hold will be placed in the amount of the bill presented to you, but when the transaction posts it will include any tip that you may have added to the bill. This may also be the case when you swipe your debit card at gas stations, hotels and other retail establishments. We cannot control how much a merchant asks us to authorize, or when a merchant submits a transaction for payment.

This is a general description of how certain types of transactions are posted. These practices may change and we reserve the right to pay items in any order we choose as permitted by law. We may receive multiple deposit and withdrawal transactions on your account in many different forms throughout each business day. This means that you may be charged more than one overdraft fee if we pay multiple transactions when your account is overdrawn.

The best way to know how much money you have and avoid paying overdraft fees is to record and track all of your transactions closely.


Courtesy Payment Service is not a credit product and requires no credit application. Courtesy Payment may be applied to your Checking Account if:
• You have no negative account history with any financial institution;
• You maintain your Membership in good standing;
• Your loans with us and credit cards are not past due;
• There are no legal or administrative orders or levies against your Checking Account;

We are not obligated to pay any overdraft. We will decide to pay overdrafts on a case-by-case basis, in our sole and absolute discretion. However, we shall not pay any check, item or other transaction if your negative Checking Account balance is greater than $750. Fees are included in the overdraft limit, which means that the fees are applied towards your total overdraft limit. We may change or remove your limit at any time without prior notice. You can be notified electronically of a low balance by utilizing the Alerts and Notifications section of online banking or mobile banking. You understand that we have no obligation to notify you before we pay or return any check, item or other transaction. We may refuse to pay any overdrafts without first notifying you even though your account is in good standing and even if we have paid previous overdrafts.

For your overdrafts cleared, you promise to immediately pay us all sums, including the fees and charges for this service, advanced to you or any other person you permit to use your Checking Account and/or who causes an overdraft on your Checking Account. You also agree that we have the right to transfer available funds from your other accounts you may have with us to cover the item that caused the overdraft and pay the related fees. You understand and agree that we may transfer funds to your Checking Account from any of your other account(s) with us (excluding IRA accounts), including account(s) upon which you are a joint owner, in an amount equal to the overdrawn check, item or other transaction, which we may pay according to the terms and conditions of this Disclosure, and to pay the related fees. In addition to any other rights that we may have, you agree that any deposits, future deposits or other credits to any account in which you may now or in the future have an interest, are subject to our right of off-set for any liabilities, obligations or other amounts owed to us by you (e.g., overdrafts and any related fees and charges) and such is applicable irrespective of any contribution to the account or source of funds in the account. Moreover, unless you "opt-out" of the Courtesy Payment Service, you consent and expressly agree that the application of an off-set of funds in any account includes the off-set of government benefits (such as Social Security and other public benefit funds) deposited to your account. Each person who causes an overdraft, which is paid by us, is a maker and agrees to be individually and jointly obligated to repay the unpaid negative balance in accordance with the terms and conditions of the Account Agreement and Disclosures Booklet, which was provided at the time of account opening. We reserve the right to limit Overdraft Service to one (1) account per member without notice of reason or cause.

You will be in default under the terms of this Disclosure and the Account Agreement and Disclosures Booklet if you fail to live up to any of the terms and conditions of this Disclosure or the Account Agreement and Disclosures Booklet, or you are in default on any loan obligation with us and/or a negative balance exists in any other deposit account with us on which you are an owner. If you are in default, we may temporarily suspend overdraft privileges or suspend/terminate debit card privileges or terminate the Overdraft Service or close your Checking Account and demand immediate payment of the entire unpaid negative balance. You also agree to pay any collection costs, attorneys' fees and court costs which we or you shall or may incur as a result of your default.

We may terminate or suspend the Overdraft Service at any time without prior notice. In no event shall any termination relieve you of your obligation to repay such sums already overdrafted, overdraft fees, collection costs and attorneys' fees, if any. We can delay enforcing any of our rights under this Agreement without losing them.

We also offer overdraft protection plans, such as linking your Checking Account to a Line of Credit, which may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.


Continued use of your Checking Account constitutes agreement with these terms and conditions.
*Transaction limitations apply.

Please refer to your Fee Schedule for information regarding overdraft fees.


A very convenient option SOCU offers with direct deposit is to then transfer funds to other accounts, savings, and loans at SOCU. We can link these transfers and payments to the direct deposit.

In order for SOCU to complete the transfers and payments as directed by the member, the identifying information in our system must match the information previously received from the employer or company. Occasionally, due to various reasons, companies that originate or send the direct deposits may change this identifying information without informing SOCU before the direct deposit is sent and received.

In most cases, the direct deposit will still be received in the member’s account but the recurring transfers and distributions may not be completed as expected.

There are also instances when a member may receive a lesser direct deposit or multiple direct deposits. If a transfer or distribution is tied to a direct deposit, the transfers will attempt to satisfy the instructions even if the funds are not available. Partial withdrawals/payments may be taken until the entire amount is satisfied. Late fees or non-sufficient fund fees may be incurred if the funds are not available at the time the scheduled transfer or as a result of other pending transactions when the transfer is made. SOCU may revoke this authorization at any time because of non-sufficient funds. If multiple direct deposits are received from the same sender, these transfers will be made on every deposit record received from that sender.

The member is responsible for verifying and reviewing account activity and/or statements for accuracy and to ensure transfer and payments are made as expected.

A member may revoke the authorization to transfer or distribute funds linked to a direct deposit at any time with at least three (3) business days’ notice.