Overdraft Protection FAQs
What is Overdraft Opt-In?
Revisions to Federal Law governing bank overdraft practices give customers the option of deciding if they want the bank to cover overdrafts generated by everyday debit card and ATM transactions. If a customer opts-in, the overdraft coverage for their everyday debit card and ATM transactions will continue as they are today. If a customer does not opt-in, the bank will decline one-time debit card and ATM transactions when the account balance is insufficient.
What kind of transactions is impacted by the opt-in rules?
All everyday (one-time) debit card and ATM transactions are impacted by the opt-in rule. Overdraft coverage for these types of transactions requires you to opt-in (agree) in advance. Recurring debit card payments (eg: your mortgage payment set up to pay monthly via online bill-pay) and checks or ACH transactions are not affected by the new opt-in rule. These transactions may still be covered (paid) by the banks standard overdraft practices when your balance is insufficient.
When did the new opt-in rules go into effect?
The new opt-in rule went into effect on July 1, 2010 for accounts opened after that date and on August 15, 2010 for accounts that already exist as of July 1, 2010.
Why is the Federal Government requiring customers to opt-in?
These new rules were defined to help consumers control overdrafts in their accounts and reduce the related expenses, especially for small transactions created by debit card purchases.
Why do I have to authorize overdraft coverage for debit and ATM transactions?
The new rules specifically require that customers tell the bank if they want this type of overdraft coverage.
What will happen if I do not opt-in?
If you do not opt-in, Federal Law requires the bank decline your one-time debit card and ATM transactions when the balance in your account is not sufficient to cover them.
How do I opt-in?
There are several ways for you to ensure your account continues to function the same way it does today. Simply do one of the following:
- Complete and return this Opt-In form to the address on the form.
- Call Mountain West Bank at 1-800-775-1889; we will send you an opt-in authorization form which you can mail/fax back to us.
- Stop in at any of our branch locations to complete an opt-in form.
If I have already had Overdraft Privilege linked to my account prior to August 15, 2010, do I still need to opt-in?
Yes. The Mountain West Bank Overdraft Privilege coverage you already had would no longer apply to onetime debit card and ATM transactions after August 15, 2010 unless you specifically opted-in to do so. Your previous Overdraft Privilege coverage would still apply to debits created via check, ACH, and recurring debit transactions.
If I opt-in will my debit card purchases and payments always go through?
No. Whether an overdraft will be paid is discretionary and we reserve the right not to pay. This means we do not guarantee that we will always authorize and pay any type of transaction.
Are there fees?
Yes. You will pay a $30 fee each time a debit card or ATM transaction is approved and paid when you don't have sufficient funds in your account at the end of the day. There is no fee for Overdraft Privilege if you don't use it. And in most cases, there is no fee if you accidentally overspend with your debit card, but you make a deposit or transfer money that same business day to cover the cost of your purchase or payment. Mountain West Bank will continue to pay and NOT charge you for insufficient fund transactions if the overdraft balance remains below $10 at day-end regardless of the transaction type and regardless of whether you have chosen to opt-in or not.
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