Account Overdraft Coverage
Federal regulations dictate how debit and ATM card related overdrafts are handled for checking accounts at all banks, including Citywide Banks. Citywide Banks is unable to cover certain overdrafts unless the customer gives permission to do so.
Citywide Banks offers customers three ways to submit an election (opt-in/opt-out) form:
- Download and complete the OVERDRAFT COVERAGE OPT-IN/OPT-OUT FORM. Then, mail form to: Citywide Banks, 13741 East Mississippi, Suite 102, Aurora, CO 80012.
- Download and complete the overdraft coverage opt-in/opt-out form. Then, drop by any Citywide Banks branch location.
- Stop by any Citywide Banks branch and ask to complete and submit form there.
These new overdraft election rules were defined to help consumers control overdrafts and reduce the related expenses – especially for small transactions created by debit card purchases. While Citywide policy has always been to cover and not charge for small one-time overdrafts – this new rule offers customers the option of avoiding overdraft fees for debit card transactions all-together if they choose.
Please review the OPT-IN NOTICE, which summarizes Citywide Banks overdraft practices and a customer's 'opt-in' options.
Benefits of ‘Opting-In’
Customers that 'opt-in" will enjoy the added benefit of being allowed to overdraw their account when using their ATM or debit card. This enables customers to avoid embarrassment, take care of an emergency, or withdraw extra funds when they need them most.
Citywide Banks can provide this option. However, the regulation requires that customers ‘opt-in’ if they wish to receive overdraft coverage for these types of transactions (one-time debit card and ATM transactions).
‘Opting-In’ doesn’t mean customers will incur more overdrafts – it just means they can have the option in an emergency. If a customer chooses to not ‘opt-in’, Citywide will be required by law to decline their everyday debit card and ATM transactions when thier account balance is insufficient.
Customers can call Citywide Banks Customer Service if they have questions about the ‘opt-in’ rules.
Overdraft Coverage Frequently Asked Questions
What does 'overdraft opt-in' mean?
Recent revisions to Federal Law governing bank overdraft practices give customers the option of deciding if they want the bank to cover overdrafts generated by one-time debit card and ATM transactions. If a customer 'opts-in', the overdraft coverage for their one-time debit card and ATM transactions will enable a transaction to be completed even if the account balance is insufficient. An overdraft transaction will be subject to a standard NSF fee. 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 type of transactions are impacted by the 'opt-in' rules?
All one-time ('everyday') 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 bank's standard overdraft practices when your balance is insufficient.
Why is the federal government requiring customers to 'opt-in'?
These 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 rules specifically require that customers tell the bank if they want this type of overdraft coverage. Customer accounts will default to 'opt-out' status for debit and ATM transactions unless a customer completes an election form and opts-in.
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. Customer accounts will default to 'opt-out' status for debit and ATM transactions unless a customer completes an election form and "opts-in".
How do I 'opt-in' or 'opt-out'?
There are several ways for you to make an election regarding overdraft coverage:
1) Download the printable overdraft coverage form, and mail it to Citywide Banks or drop by any branch.
2) Call Customer Service; they can send you an 'opt-in' authorization form which you can mail/fax back to us.
3) Stop in at any of our branch locations to complete an 'opt-in' form.
If I have Bounce Protection Overdraft Privilege linked to my account do I still need to 'opt-in'?
Yes. The Citywide Banks Bounce Protection Overdraft Privilege coverage does not apply to one-time debit card and ATM transactions unless you 'opt-in'. Your Bounce Protection Overdraft Privilege coverage will 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 $33 OD Bounce Paid Item(s) 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 Bounce Protection 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. Citywide Banks will pay and NOT charge you for insufficient fund transactions if the overdraft balance remains $10.00 or below at day-end regardless of the transaction type and regardless of whether you have chosen to 'opt-in' or not.
When do I need to make my deposit to avoid an overdraft fee?
You will have until the end of the business day of your transaction to make your deposit. If your debit transactions occur on a non-business day, you will have until the end of the next business day.
What about automatic debit card payments that I setup with a merchant?
Debit card purchases or payments that are set up to bill automatically (like a gym membership) may continue to be authorized at our discretion even if you do not 'opt-in'.
What if I can't decide or don't want this service?
We're happy to talk with you about options for managing your account. Visit a Banker or call Customer Service to discuss Citywide Banks' Bounce Protection Overdraft Privilege and the 'opt-in' rules. If you're certain that you don't want your everyday debit card and ATM transactions authorized when you don't have sufficient funds, you do not need to take any action. Your account will default to 'opt-out' if you do not submit an 'opt-in' form.
What if I change my mind about 'opt-in' later?
You always have the right to reverse your 'opt-in' decision or activate 'opt-in' at a later date. There are several ways for you to make an election regarding overdraft coverage:
1) Call Customer Service; they can send you an 'opt-in' authorization form which you can mail/fax back to us.
2) Stop in at any of our branch locations to complete an 'opt-in' form.
What other options do I have for managing overdrafts within my accounts?
Citywide Banks offers an overdraft line of credit called Ready Resource. You can set up an automatic transfer from your savings account to your checking account via online banking and you can also sign up for helpful email-alerts to keep you informed when your balance is low or your account is overdrawn.
What if I am having trouble repaying my Bounce Protection or I use it frequently?
Please contact us at 303-365-3650 if:
(1) you do not believe you will be able to bring your account to a positive end-of-day balance within the required time period;
(2) find that you are using Bounce Protection more often than you intend; or
(3) don't understand why your account becomes overdrawn. We would like to discuss your situation with you.
Following regulatory guidance, we will contact you if you are paying multiple NSF Fees (i.e., more than six fees in a rolling 12-month period), to discuss possible alternatives to Bounce Protection that may better meet your short term credit needs. In the event you ask us to stop contacting you because you have determined Bounce Protection is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Bounce Protection is still the most appropriate option available to you for covering your short term credit needs.
Customers will be charged our standard Overdraft (OD) Bounce Paid Item(s) Fee of $33 for each item overdrawn which may be charged for overdrafts created by check, in-person withdrawal, an automatic payment (ACH) transaction, automatic bill payment, a recurring debit card payment, or other electronic transaction. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and everyday debit card transactions.
OD Bounce Paid Item(s) Fees for overdrafts covered via Bounce Protection Overdraft Privilege are limited to 3 per day and a maximum fee of $99 per day. There is no daily limit for NSF Returned Item(s) Fees for overdraft items returned unpaid or OD Paid Item(s) Fees for overdraft items paid outside of Bounce Protection. No fees are charged for items that overdraw the account $10.00 or less.
You should make every attempt to bring your account to a positive balance as soon as possible, and must do so within 30 days.
Whether an overdraft will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing or you are not making regular deposits or you have too many overdrafts.