Share
Draft & ATM/Debit Policy
Member Qualifications for
Opening a Share Draft Account
A membership application
must be completed before opening a share draft account. The membership application can be found in
the office or electronically on the NIU Credit Union’s website.
The member must be able to
prove their identity with a driver’s license or state ID and verify their
original signature to a NIU Credit Union employee upon opening the account.
Applicant must be a member
in good standing and must own and maintain a minimum share balance of $25.00 in
the NIU Credit Union at all times.
Applicant must be at least
18 years of age to open an account in their name only or 16 years of age to
open an account with a parent or legal guardian as joint owner.
Applicant’s previous history
at the NIU Credit Union must reflect an ability to properly handle and maintain
a positive balance account. If a member
has had more than one closed account with the NIU Credit Union or a history of
returned checks for insufficient funds, the NIU Credit Union has the right to
deny opening the share draft account for the member.
This account must be opened
with a minimum of $25.00 in the form of cash or check or from a direct transfer
from the member’s share account.
Only one draft account is
permitted per share account. If a member
has more than one open share account, one draft account may be opened under
each share account.
Share Draft Account
Agreements
A Truth-in-Savings brochure
and current fee schedule will be given to the member upon opening of a share
draft account.
The share draft account is a
non-interest bearing account.
The NIU Credit Union may
contact ChexSystems or another check reporting service to obtain information on
the member requesting a new Share Draft account. Adverse prior history may be a cause for not
qualifying for opening a share draft account.
It is agreed upon when
completing the membership application and opening the share draft account that
if funds are needed in order to clear a transaction, an automatic transfer from
the members share account will occur up to 6 times per month without a fee.
Any occurrences beyond the
automatic 6 transfers a month from shares will result in a return of that
transaction and will be subject to a nonsufficient funds fee of $25.00.
Any returned checks or
electronic withdrawals with insufficient funds will result in an automatic fee
of $25.00 per transaction no matter the dollar amount of that transaction.
An automatic transfer from
an account other than shares may be set up if the member signs and files an
authorization agreement for this to occur.
We cannot open share draft
accounts for a member’s business. The
share draft account will have the members name and social security number
attached to it as well as at least the members name on the checks ordered.
The member is expected to
exercise extreme care in using the share draft program. If drafts are lost or stolen, the member
should notify the NIU Credit Union immediately and issue a stop payment on the
missing drafts. It is the member’s
responsibility to authorize the stop payment by filling out the required form,
paying the stop payment fee and obtaining the necessary information in order to
process the stop payment transaction.
A monthly statement will be
provided to the member by mail on the share draft account.
The member is expected to
maintain an accurate record of his or her transactions and to reconcile his or
her statements in a timely manner.
A discrepancy must be
promptly reported to the NIU Credit Union office for research and
adjustment. Any discrepancy not reported
within 90 days to the NIU Credit Union office may not be eligible for
adjustment.
Original cleared drafts and
copies of cleared drafts will not be included in the monthly statement. A copy of a cleared draft may be obtained by
the NIU Credit Union if needed for a fee.
Joint Ownership
Joint owners may be the same
as or different from those specified on the member’s primary share
account. The joint owner must fill out
their portion of the membership application, sign the form and prove their
identity to a NIU Credit Union employee just like the member.
A joint owner, being a
parent or legal guardian, is required for a member who is younger than 18 years
old.
ATM/Debit Card Agreements
Any member with an open
share draft account may apply for an ATM/Debit card by filling out the required
application.
A home address and at least
one phone number is required in order to apply for an ATM/Debit card.
If a member only has a PO
Box, the ATM/Debit card and PIN number ordered will be mailed to the NIU Credit
Union office.
Once an application has been
submitted, the NIU Credit Union will run an Experian credit check inquiry on
the member and submit it to the President or another designated employee for
approval.
If the application is
approved, a daily limit is set and a card is ordered. The ATM Card Agreement and EFT Initial
Disclosure Statement is mailed to the member as well as a letter explaining the
member’s daily limit and the transaction fees.
If a member is turned down
for an ATM/Debit card, a denial letter is mailed that explains that the
turndown was based on a poor credit history or delinquent account status and
they may apply again after a clean history of at least six months.
The daily ATM/Debit card
transaction file is normally posted each morning. The NIU Credit Union reserves the right to
process transactions made through the ATM network at any time of the day.
It is possible that an ATM
machine or the member’s ATM/Debit card may not function properly at all
times. The NIU Credit Union makes no
claim or warranties in this respect and shall not be responsible or liable for
damages if an ATM fails to dispense cash or if the member is forced to use a
foreign ATM machine at any time.
Any withdrawal, which does
exceed the available share draft account balance, must be repaid
immediately. In the event it is
necessary to refer the member’s negative share draft account to a collection
agency for any amount, the member will be liable for the NIU Credit Union’s
collection costs and penalty charges.
A member’s ATM/Debit card
may be de-activated or “warmed” by the NIU Credit Union once their account
balance falls below zero. The NIU Credit
Union reserves the right to keep an ATM/Debit card warmed for as long as
necessary or at least until the members share draft account balance is higher
than their designated daily limit.
Overdrafts
Drafts written for amounts
exceeding the balance of the share draft account will not be honored and a
$25.00 return fee will be deducted from the share draft account balance.
ATM/Debit card transactions
are automatically deducted from the member’s share draft account balance
whether funds are available or not. Once
the member’s share draft account goes into a negative balance status, there is
a $25.00 fee charged for each item.
The NIU Credit Union is
under no obligation to honor and pay drafts exceeding the amount available in
the share draft account.
Loan advances from an approved
Overdraft Protection Loan may be made in increments of $50.00 to cover a draft
or debit item presented up to a maximum of $300. If there are not enough funds available to
add on to a member’s existing overdraft protection loan, the draft will be returned
with a $25.00 fee or the debit item will post with a $25.00 fee.
Members are notified of
overdraft transfers or returns and the action taken by the Credit Union by an
overdraft notice or letter on a daily basis.
Share Draft &
ATM/Debit Fees
There is no service charge
or monthly charge for share draft accounts or for ATM/Debit cards.
There is no interest paid on
share draft accounts.
There is not a maximum
number of transactions or checks that can be written on the share draft account
as long as the member is within their available balance.
There are no fees for
performing ATM/Debit card transactions as long as the member stays within their
available daily limit.
There is a $1.00 fee for
using any foreign ATM machine, which includes all ATM machines other than owned
by the NIU Employees Federal Credit Union or Illinois Community Credit Union.
There is no minimum balance
on share draft accounts after the initial required deposit of $25.00 to open
the account.
When a member initially
opens their share draft account, the first 50 checks are free from the NIU
Credit Union. After that, the member
will be charged the price of draft orders.
Drafts returned unpaid
(insufficient funds, etc.) will result in a $25.00 fee per item.
ATM/Debit card transactions
that clear resulting in a negative share draft balance will be subject to a
$25.00 fee per item.
A copy of a cleared check is
$5.00 per item.
Assistance in balancing an
account by the NIU Credit Union staff is $15.00 per hour with a minimum of 1 hour.
Statement reproduction or
statement history is $5.00.
There is a $5.00 fee for
ordering a duplicate ATM/Debit card.
There is a $65.00 fee for
reporting an ATM/Debit card lost or stolen resulting in ordering another card.
There is a $25.00 fee for not
returning unused share drafts in the case of an involuntary closing of the
share draft account.
There may be a $25.00 fee
imposed on the member by the NIU Credit Union in violation of the Share Draft
Account Closure Waiver
Stop Payments
A stop payment request
requires the member to fill out the required form with the exact check number,
amount, date written and payee with their signature.
A stop payment fee of $25.00
per item is required before the request is processed.
One fee of $25.00 will be
charged for an entire book of checks (25 checks) otherwise there is a $25.00
fee per item.
A stop payment may be done
in the office or by mail or fax as long as all required information and fees
are obtained.
All stop payments have a
24-hour processing time.
The member will be notified
as soon as possible if the stop payment request cannot be honored.
The member will remain
responsible to the payee for the nonpayment of the check in all cases of stop
payments.
The NIU Credit Union is not
able to stop any ATM/Debit card transactions that have already been authorized
from clearing the member’s share draft account.
Closing Share Draft
Accounts and ATM/Debit Cards
Voluntary by Member
It is the member’s
responsibility to determine the amount of any drafts outstanding and to arrange
sufficient funds to cover those drafts or ATM/Debit card transactions before
closing their share draft account. If
the share draft account is closed before all checks have cleared, it will
result in an automatic return.
A share draft account
closure waiver will be signed by the member at the time of request, agreeing
there are no more checks outstanding and also no automatic withdrawals or
deposits are expected to come through electronically on the share draft
account. Any activity on a closed share
draft account can result in a $25.00 fee imposed by the NIU Credit Union.
Any unused drafts should be
surrendered to the NIU Credit Union for destruction to prevent loss or
subsequent use of these drafts.
The members ATM/Debit card
should be surrendered to the NIU Credit Union and a maintenance form will be
processed for closing the card with the Illinois Credit Union League.
No refunds will be made for
the printing costs of any unused drafts.
Involuntary by NIU Credit
Union
All rights are reserved by
the NIU Employees Federal Credit Union to close share draft accounts of any
member who abuses the privilege of using this service.
The NIU Credit Union may
close share draft accounts if any of the following occur:
If
the NIU Credit Union is required to return more than five share drafts on any
account within any one-month period because of non-sufficient funds.
Evidence
of kiting between the members share draft account and other accounts within or
outside the NIU Credit Union.
The
member becomes 30 days or more delinquent on any NIU Credit Union loan.
Fraud
or forgery involving a member’s NIU Credit Union account occurs.
There
is violation of any credit union policy or procedure.
If
the member files bankruptcy or causes the NIU Credit Union a loss.
If
the member’s share or share draft account remain negative for more than a
30-day period.
The member is obligated
under these circumstances to return all unused drafts to the NIU Credit Union
office for destruction. If unused drafts
are not returned, the NIU Credit Union will place a blanket stop payment on all
unused drafts and impose a $25.00 fee to the members account.
Written instruction and
notification of this action will be sent to the member by mail using the
address on file.
Based on information
obtained by ChexSystems and a history of returned checks at the NIU Credit
Union, the NIU Credit Union can determine the need for share draft account
closure at any time.
Abuse and closure of a share
draft account may be cause for denial of credit at the NIU Credit Union.
The NIU Credit Union may
close an ATM/Debit card if any of the following occur:
The
member’s share or share draft account remains negative for more than a 30-day
period.
If
the NIU Credit Union is forced to warm a member’s ATM/Debit card more than
three times within any three-month period because of insufficient funds or
carrying a negative share draft balance.
If
the member exceeds the available shares or share draft balance resulting in
more than five NSF charges within any one month period.
No Activity
The share draft account
should be used and not remain idle. If
no activity has occurred for over one year, the NIU Credit Union will attempt
to find out the reason for the lack of activity and determine the action to be
taken. Automatic closing of the account
can occur.
Processing Procedures
Share draft and ATM/Debit
transaction processing will occur daily excluding legal holidays and
weekends. The processing normally occurs
in the morning unless there are technical difficulties. NSF and overdraft notices will be mailed on a
daily basis. All items received during
the business day will be credited with that day’s transaction date.
Share draft and ATM/Debit
transaction processing will occur on December 31st providing that
date falls on a weekday, whether the NIU Credit Union is open or not, in order
to process year end financial closing.
Funds Availability
It is our policy to make
funds from a member’s deposits available to them on the same business day it is
deposited. In some cases, the NIU Credit
Union will not make any or all of the funds that are deposited by check
available on the same day. Listed below
are the reasons why the NIU Credit Union may delay a member’s availability to
withdraw funds from a check deposit.
If the NIU Credit Union believes the check deposited will
not be paid.
If the checks deposited in one day total greater than
$5,000.00
If
the member’s account has been repeatedly overdrawn during the prior 6 months.
If
there is an emergency, such as failure of the NIU Credit Union’s computer
equipment.
If
a loan is being paid by personal check and a portion is being deposited into
their share account.
If the member’s funds will
be delayed for any of these reasons, they will be notified and given a date for
when the funds will be made available.
_____________________________ _______________________
Date Approved by Board of Directors Secretary