Checking with optional Courtesy Pay Service  

What is Courtesy Pay?

We’ve all been there. Made a mistake in our checkbook, a miscalculation here or there, it can happen. That is why Montgomery Teachers Federal Credit Union now offers Courtesy Pay which protects your personal checking account when an overdraft occurs.

Courtesy pay is a benefit of your personal checking account if you have direct deposit and your account is in good standing.  The service will provide up to $600.00 to pay your overdrawn item with a fee of $25.00 for each overdrawn item. 

How will Courtesy Pay benefit me?

Courtesy Pay will save you the embarrassment and expense of a returned check when you make an honest mistake in your checkbook, have unplanned expenses, or run short on cash between paydays. Instead of returning checks unpaid, we will automatically pay them for you, up to $600.00.

How does Courtesy Pay work?

When we receive an item for payment that causes the balance in your account to go below zero, we will pay the check or debit up to $600.00 including the overdraft fee.  Your checking account is worry free knowing that Courtesy Pay will cover you.  We are encouraging you, however, to manage your finances responsibly.

Is Courtesy Pay a loan?

No. It is a service provided by the credit union to help you manage your money. This service can be withdrawn at any time by the credit union.

Do I have to apply for this service?

No.  Courtesy Pay is automatically added to your account as long as it meets the requirements of our Courtesy Pay Policy.

How do I use my Courtesy Pay?

This is automatic too.  Overdrafts are approved on your account for checks you cash at the credit union or service centers, withdrawals, checks presented for payment, electronic withdrawals (ACH) you have approved, and purchases made with your debit card.

How will I know when I am overdrawn?

We will mail a letter notifying you when your account is overdrawn.

What will happen if I go over my Courtesy Pay limit?

When you exceed the Courtesy Pay limit, any additional items will be returned or declined when presented for payment.

Is there a charge for Courtesy Pay?

There is no annual fee or other charge for Courtesy Pay privilege until you use it... However, there is a standard overdraft fee that is described in our Rate and Fee Schedule.  If you use Courtesy Pay for two overdrawn items, your account will be charged two separate fees (for each overdrawn item, even on the same day).

How long do I have to bring my account into balance?

You should bring your checking account to a positive balance as soon as possible and certainly within 30 days. However, you have 30 days maximum to pay any overdraft and associated fees. Depending on the situation, we can ask for repayment at any time. Any deposit you make or that is made automatically will first be applied to any overdrawn balance and associated fees.

What happens if I cannot bring my account to a positive balance?

With Courtesy Pay, you have 30 days to bring your account to a positive balance. If you still have a negative balance at that time, your Courtesy Pay privileges will be suspended or revoked until the account is returned to good standing, regardless if you have reached the $600.00 limit or not.

What is the difference between Overdraft Protection and Courtesy Pay?

Overdraft Protection transfers funds from a previously designated account to pay the item. Overdraft Protection will NOT allow the account to go into a negative balance. There is no fee to sign up for Overdraft Protection (only when it is used). Courtesy Pay is a non-contractual courtesy, offered by MTFCU to eligible members. This service pays items that would otherwise be returned NSF. There is a $25.00 fee for each item paid.

How will I know if I have Courtesy Pay on my checking account?

Accounts that have direct deposit and are in good standing are eligible.

Is my Courtesy Pay limit shown in my available balance?

No. The Courtesy Pay amount is not added to your account balance.  

Can I use Courtesy Pay to make an MTFCU loan payment?

No. You cannot use Courtesy Pay to make any loan payments or to bring another account to a positive balance.

Responsibility

If MTFCU pays an overdraft on an account with more than one (1) owner on the signature card, all owners drawing/presenting the item (thereby creating the overdraft item) are jointly and severally liable for such overdrafts plus applicable fees. Collection action will be taken on accounts whose negative balance exceeds 30 consecutive calendar days.

Fees

Whether the Non Sufficient Funds (NSF) item is returned or paid, a per-item fee will be charged to the members account as, respectively, either an NSF fee or a Courtesy Pay fee, as set forth in the Rate and Fee Schedule.
If the account balance remains negative for 30 consecutive calendar days, a $10.00 Extended Negative Balance fee will be assessed, as set forth in the MTFCU Rate and Fee Schedule.

Notification

Members will be notified by mail of any NSF item returned or paid through the Courtesy Pay system. However, MTFCU has no obligation to notify the member before it pays an NSF item.

Limitations

• MTFCU Courtesy Pay Plan is non-contractual and discretionary. MTFCU may refuse to provide this service on any checking account at any time. The member does not have a contractual right to the overdraft courtesy, nor is it guaranteed by the Courtesy Payment Plan.
• Courtesy Pay may not be used to make any loan payments or to bring another account to a positive balance.
• Accounts must be brought to a positive end-of-day balance within 30 days of the overdraft.
• ATM transactions are not covered under the Courtesy Pay Plan.
• The number of accounts eligible for Courtesy Pay is one per household if the account is in good standing as described above.
• Courtesy Pay is limited to personal checking accounts and the member must be enrolled in direct deposit.

Opting Out

Members may “opt out” of the Courtesy Pay program by notifying MTFCU in writing. Once a member has “opted out” of the program, they must wait at least 60 days to request reinstatement.