A new amendment to Regulation E, which governs Electronic Fund Transfers, went into effect in July 1, 2011. The amendment changes the way all financial institutions must handle overdraft services. As a result, you now have several options that will govern how ATM and debit card transactions that overdraw your account are handled. To receive overdraft protection, you must now specifically “opt-in” to receive this coverage. Below you will find a link to the What You Need to Know about Overdrafts and Overdraft Fees PDF. Please review these materials and determine if opting-in is right for you. If you would like to opt-in, please complete the form and return it to the address below or contact us at 800-794-2070. Return the Opt-in form to:
Bridgeview Bank - 87th St.
7300 W. 87th Street
Bridgeview, IL 60455
If you would like to opt-out of this feature, no action is necessary:
We need to receive your signed opt-in form in order to provide you with overdraft coverage. Otherwise, Bridgeview Bank Group will not authorize ATM or debit card transactions where the available balance in the account at the time of authorization is insufficient.
Should you have any questions about this new ruling or about overdraft protection, please do not hesitate to contact your Personal Banker or our Customer Care Center at 800-794-2070.
Click here to download the “What You Need to Know about Overdrafts and Overdraft Fees” PDF.
In July 2011, new federal regulations changed the way banks handle overdrafts that occur when consumers use debit cards to make everyday purchases or ATM withdrawals that exceed the balance available in their accounts. Business accounts are not impacted by the change.
What is an overdraft?
An overdraft occurs when you do not have enough money in your account to cover a payment you have authorized.
What is changing under new federal banking rules regarding overdraft fees?
Under the new rules, you must provide your permission for overdraft fees to apply to everyday debit card and ATM transactions. These new rules were effective on July 1, 2011 for new accounts and August 15, 2011 for existing accounts.
What kinds of transactions are included in the overdraft changes for debit card and ATM usage?
This change applies to everyday or one-time debit card transactions as well as withdrawals made through ATMs. An everyday debit card transaction is a one-time, non-recurring purchase or payment made with your debit card. Examples of this include purchasing gas, groceries, or other everyday items with your debit card.
Does this change apply to checks or recurring payments from my account?
No, the new regulation only applies to ATM and everyday debit card transactions. Automatic bill payments (such as gym memberships or utilities that draft automatically from your debit card), checks and other transactions made using your checking account number are not affected by these new rules. We may authorize and pay overdrafts on these transactions and a $35 overdraft fee per transaction may be incurred. Bridgeview Bank Group pays overdrafts at our discretion, which means that we do not guarantee that we will always authorize and pay any type of transaction.
Do these new Federal Reserve rules regarding overdraft fees apply only to my accounts at Bridgeview Bank Group?
No. Every bank is affected by the new Federal Regulation.
How could this impact me?
If you have not authorized us to assess overdraft fees for ATM and debit card transactions, those transactions would generally be declined if you do not have sufficient funds in your account. For example, if you went to the grocery store and attempted to pay using your debit card without sufficient funds available in the account, your transaction would be declined.
If I provide my consent for the bank to continue standard overdraft practices, what does that mean?
It means you give Bridgeview Bank Group permission, if it chooses to do so, to pay ATM and everyday debit card transactions in excess of your balance and charge you a $35 fee per overdraft.
If I provide my consent for the bank to continue standard overdraft practices will the bank always pay my ATM and everyday debit card transactions?
No. Bridgeview Bank Group does not guarantee that your ATM and everyday debit card transaction will be paid even if you provide your permission. These standard overdraft practices are an accommodation provided at the bank’s discretion.
If I do NOT provide my consent to the bank to continue its standard overdraft practices, does it mean that I will never overdraw my account using my debit card for ATM and everyday transactions?
No. There are limited circumstances when it will not be possible for the bank to avoid paying an ATM or other debit card transaction you made, even if there is not enough money in your account. You should not assume that because the ATM or other debit card transaction goes through that there is enough money in your account to cover it. In these cases, the bank may not charge you an overdraft fee, but you still must re-pay the bank to cover the overdraft.
When do I need to notify Bridgeview Bank Group if I want the bank to continue its standard overdraft review practices for everyday debit card transactions and ATM withdrawals that overdraw my account?
After you review the Bridgeview Bank What You Need to Know about Overdrafts and Overdraft Fees, you may notify Bridgeview Bank any time. Once you notify Bridgeview Bank your decision will become effective after we confirm receipt of your notice.
For accounts opened prior to July 1, 2011, if Bridgeview Bank does not receive your consent by August 15, 2010, Bridgeview Bank will generally no longer authorize and pay everyday debit card transactions and ATM withdrawals that overdraw your account. If you open your account on or after July 1, 2011, your decision is effective after we confirm receipt of your notice. Whether you consent to overdraft fees for everyday debit card transactions and ATM withdrawals or not, you can change your decision at any time by notifying Bridgeview Bank.
How can I notify Bridgeview Bank that I want the bank to continue its standard overdraft practices for everyday debit card transactions and ATM?
You may notify us by:
- Calling 800-794-2070
- Stopping by your local Bridgeview Bank office
If I have a joint checking account, do we both need to provide our consent?
No. Any owner may provide consent. The authorization applies to the account, not the individual.
Is there a deadline to provide my consent?
Customers who do not choose to authorize us to continue standard overdraft practices and charge overdraft fees by August 15, 2011 will generally not have ATM and one time debit transactions that would overdraw their accounts paid. You can provide authorization now or at any time.
Can I change my decision to continue this service?
Yes. You can change your decision at any time.
How can I avoid overdraft fees?
The best way to avoid overdraft fees is to closely monitor your account and keep accurate records of your transactions. You can do this by keeping a check register (available at any Bridgeview Bank office) and listing all of your deposits and withdrawals (checks, ATM and debit card transactions, bill payments and other withdrawals). Bridgeview Bank also provides a variety of free resources to help you monitor your spending including Online Banking and Direct Dial (800-794-2070).
What is the difference between standard overdraft practices and Overdraft Protection?
Standard overdraft practices refers to the bank’s discretionary decision making process regarding paying or authorizing transactions which would overdraw an account. Overdraft protection plans refer to the option of linking a checking account to other Bridgeview Bank deposit accounts or lines of credit to cover overdrafts.
Does Bridgeview Bank Group offer overdraft protection plans?
A variety of overdraft protection options are available to you. These include linking your checking account to a Bridgeview Bank savings, money market, another checking account or line of credit. If you request a transaction which would overdraw your checking account, an automatic transfer is made to cover the transaction and any fee, up to your available balance or credit limit. Transfer fees of $5 may apply, and are less than the standard $35 overdraft fee.
If I have one of the above overdraft protection plans linked to my checking account, do I still need to decide whether or not to instruct Bridgeview Bank to consider authorizing and paying everyday debit card transactions and ATM withdrawals that overdraw my account?
Yes. Even with an overdraft protection plan linked to your checking account, it is possible that you might not have enough funds or credit available to cover an everyday debit card transaction or ATM withdrawal. In that event, the transaction could be denied. If you have instructed Bridgeview Bank to consider authorizing and paying these items on your behalf, you may still be able to complete your transaction.