It is the policy of Westbound Bank to comply with applicable laws and regulation, and to conduct business in accordance with applicable safety and soundness standards.
An overdraft (negative) balance occurs when you do not have enough money in your account to cover an item presented for payment but we pay it anyway. Items such as these listed below may cause an overdraft:
a) Checks, electronic funds transfers, such as ATM withdrawals, debit card transactions pre-authorized automatic debits, telephone initiated funds transfers, or online banking transactions, or other withdrawal requests;
b) payments authorized by you; or
c) the return, unpaid, of items deposited by you.Overdraft Service Options:
While we strive to provide you with excellent service and protection, we are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. It is important for you to use your checking account responsibly and never intentionally overdraw your account. However, we realize that financial shortfalls happen from time to time and we have several useful services to cover you in the event that you overdraw your checking account. We offer these useful services to cover you in the event that overdraw you checking account.
Transfer from Another Account – If you have other accounts with us, you can authorize us to transfer the funds needed to cover your overdraft, such as a link to a savings account, Money Market Account, or another Checking Account. To learn more, ask us about this plan contact any of our branch locations or call customer service at 713-544-7633.
Line of Credit – A line of credit called Cash Reserve is available to cover overdrafts. This service requires you to complete an application and approval is based on your credit worthiness. Contact one of our loan officers at any of our branch locations or call 713-554-7615 for applicable terms and conditions.
Overdraft Privilege –The Overdraft Privilege service does not constitute an actual or implied agreement between you, the customer, and the Bank. Nor does it constitute an actual or implied obligation of or by the Bank. Overdraft Privilege is a discretionary service we add to your checking account, subject to the eligibility criteria as explained below. This service represents a purely discretionary courtesy or service that the Bank may provide to you from time to time and which may be withdrawn or withheld by the Bank any time without prior notice or reason or cause.
OVERDRAFT PRIVILEGE SERVICE DISCLOSURE
(Discretionary Overdraft Service)
With Overdraft Privilege we will generally pay your overdraft items up to $300 for consumer accounts (personal checking accounts), however, whether your overdrafts will be paid is discretionary and we reserve the right not to pay. Any and all bank fees and charges, including, without limitation, our Overdraft Fee of $29.00 per item, will be included in this limit, which means the fee and overdraft will be subtracted from the total overdraft limit available on the account. 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. All deposits to overdrawn accounts are applied to the negative balance.
We may refuse to pay an overdraft for you at the time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail of any 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 Overdraft Fee(s) of $29.00 per item, regardless of how many overdrafts occur each day that you owe us shall be due and payable on demand. If there in 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 overdraft plus our Overdraft Fee(s) of $29.00 per item.
Overdraft Privilege Eligibility
No application is required for Overdraft Privilege; eligibility is at the sole discretion of the Bank and is based on you managing your checking account in a responsible manner. If your eligible personal account which is primarily used for personal and household purposes has been open for at least thirty-one (31) business days and you have made at least $300 in accumulative deposits during the last 30 business days we will consider, as a courtesy or service and not as a right or obligation, approving your reasonable overdrafts rather than automatically returning, unpaid, any insufficient funds items that you may have. Once approved for Overdraft Privilege, we will continue approving your reasonable overdrafts thereafter if 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 $300.00 or more, with in each monthly statement cycle;
(B) You bring your account to a positive balance (not overdrawn) during the monthly statement cycle that the service is used to
maintain discretionary eligibility;
(C) You are not in default on any loan obligation to Westbound Bank; and
(D) Your account is not the subject of any legal or administrative order of levy.
Suspension of Privilege
- Your Overdraft Privilege may be suspended or permanently removed based on the following criteria:
- You do not bring you account to a positive balance within 30 days of becoming overdrawn;
- You are more than 30 days past due on any Bank loan or delinquent on any other obligation to the bank;
- You are subject to any legal or administrative orders, levy, or are currently a party in a bankruptcy proceeding;
- Your account is being reviewed for fraudulent activity or transactions;
- A ChexSystems or any other negative indicator has been reported to us;
- Your account has been classified as dormant;
- We do not have a valid address for you;
- You fail to meet our eligibility criteria;
- Account is on Fresh Start Repayment Plan;
- Another Overdraft Privilege account exists.
Transactions Eligible for Overdraft Privilege
Overdraft Privilege will be available for all checks written, in-person withdrawals, ACH transactions, preauthorized automatic transfers, internet banking, and telephone banking. Overdraft Privilege will not be available for ATM and everyday debit card transactions unless you authorize the bank, by completing an “ATM/Debit Card Opt-in Form”.
Note: If you have consented to Overdraft Privilege for ATM transactions, please verify your balance before initiating an ATM cash withdrawal. All overdrafts will be subject to our $32.00 overdraft fee for each withdrawal until the account returns to a positive balance.
Overdraft Privilege Opt-Out Option
You may never need to take advantage of Overdraft Privilege, but you may find it useful in the event of a temporary shortfall. If you do not want to have Overdraft Privilege, simply contact us at 713-544-7633 and we will provide you an opt-out form to remove this discretionary service from your account. It is important for you to consider that there is not additional cost for Overdraft Privilege and that by opting out you are instructing us to return unpaid items presented against insufficient funds. If you opt-out, you will still be charged our $29.00 returned item fee. Customers who receive a Social Security, federal direct deposit, or any other entitlement benefit must opt-out if they do not want the Bank to apply those funds to pay an overdraft.
Payment Order of Items
Transactions may not be processed in the order in which they occurred and the order in which transactions are paid by the bank may affect the total amount of Overdraft Fee(s) incurred. The first items that we pay are ATM withdrawals, debit card transactions, and any checks cashed by our employees or that you have written to us. We then pay any items that were submitted electronically, such as ACH items, preauthorized automatic transfers, telephone-initated transfers, any other electronic transfers based on the dollar amount from smallest to largest and checks by the check number from lowest to highest.
Note: Be aware that hold placed on your account for pending electronic transactions, such as hotel or rental car deposits, reduce your available balance and may cause your account to become overdrawn.
Limitations: Overdraft Privilege is available only to eligible personal checking accounts primarily used for personal and household purposes (Business accounts, Money Market accounts, etc. are not eligible) and we may limit the number of accounts eligible for the Overdraft Privilege service to one account per household.
Your account agreement describes the duties, obligations, and rights of depositors, authorized signatories and the bank with regard to your deposit accounts. That account agreement is incorporated herein for all purposes as if it were set forth verbatim as to matters not directly addressed by this disclosure. Your account agreement and this disclosure shall be construed so as to minimize conflicts between them.
Waiver: The Bank’s forbearance from, or delay in, exercising any of the Bank’s rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this Overdraft Privilege disclosure, or any other provision related to your account, shall not be construed to be a current or future waiver of the Bank’s rights, remedies or privileges.
Remedy: You and the Bank agree that the exclusive remedy and forum for all disputes arising out of the overdraft privilege or your or Bank’s performance there under, except for matters you or Bank take to small claims court, is arbitration by an independent arbitrator pursuant to the applicable rules of the American Arbitration Association, except as prohibited by law.