Courtesy Coverage Policy

A Discretionary Overdraft Service

It is the policy of Alliance Credit Union ("the Credit Union, CU, we, us, or our") to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards.

A non-sufficient funds (negative) balance may result from: A) The payment of checks, electronic funds transfers, debit card/ATM transactions, or other withdrawal requests; B) Payments authorized by you; C) The return, unpaid, of items deposited by you; D) The imposition of applicable service charges; or E) The deposit of items which according to the Credit Union¡¦s Funds Availability Policy, are treated as not yet "available" or finally paid.

We are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. Rather than automatically returning, unpaid, any non-sufficient or uncollected funds items that you may have, if your eligible account (primarily used for personal and household purposes) has been open for at least thirty (30) days and thereafter you maintain your account in good standing, which includes at least: (A) Continuing to make deposits consistent with your past practices, and depositing at least $400 or more in your account within each thirty (30) day period; (B) You are not in default on any loan obligation to the Credit Union; (C) You bring your account to a positive balance (not overdrawn) at least once every thirty (30) days; and (D) Your account is not the subject of any legal or administrative order or levy, we will consider, without obligation on our part, approving your reasonable overdrafts. This discretionary* service is generally limited to a $1000 overdraft (negative) balance for eligible personal checking accounts. Our standard fee of $29 per item paid is included in the $1000 overdraft limit.

  • The maximum amount of Courtesy Coverage fees we will collect per day is $145 IF you are within the $1000 overdraft limit.
  • If you exceed the $1000 overdraft limit at any time, and we continue to pay items on your account, our standard Non-Sufficient Funds (NSF) Fee of $29 will be charged for each item paid or rejected without limitation.
We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified electronically or by mail of any overdraft items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts plus our Courtesy Coverage fee that you owe us shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our Courtesy Coverage fee.

Courtesy Coverage is optional (not mandatory or required) and you may opt out of participating in it at any time by notifying us via phone (800.232.8669) or in writing ( or our mailing address at the bottom of the letter). If you opt out, the Credit Union will no longer pay any items that overdraw your account, i.e., we return them unpaid, and our standard NSF fee applies for each item returned unpaid. You may also opt back in at any time as long as you meet the eligibility requirements mentioned above by notifying us via phone or in writing. Re-entry into the program is not automatic. You must re-qualify and may be denied activation if you fail to meet the eligibility requirements.

LIMITATIONS: Available only to eligible personal checking accounts primarily used for personal and household purposes. (Business accounts, Savings, Money Market accounts, Student accounts belonging to members under age 18 and Public Fund accounts are not eligible.) We may limit the number of accounts eligible for Courtesy Coverage* to one account per household.

*Courtesy Coverage does not constitute an actual or implied agreement between you and the Credit Union. Nor does it constitute an actual or implied obligation of or by the Credit Union. This service represents a purely discretionary courtesy or privilege that the Credit Union may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.