Overdraft Coverage Options 

 

Overdraft Privilege and Overdraft Protection

 Life happens! First Federal Bank of Louisiana understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

 

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

Service

Cost

Overdraft Protection Link to Another Deposit Account you have at First Federal Bank of Louisiana1

$10.00 fee per transfer

Overdraft Privilege

$28.00 NSF Fee per item. Daily fees may apply.

1Call us at 800.860.1238 if you have any questions about coverage options or come by a branch to sign up for these services.

 Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another deposit account you may have at First Federal Bank of Louisiana.

 Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have overdraft protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted.

 

Transactions Covered with Overdraft Privilege

Standard Coverage
(No action required)

Extended Coverage

(Your consent required)*

If you would like to select Extended Coverage for future transactions:

 

     - call us at (800) 860-1238,

     - complete the Extended Coverage Consent Form and click submit

     - visit any branch

     - complete the consent form and mail it to us at PO Box 1667 Lake Charles, LA 70602

 

Checks

ACH - Auto Debits

Recurring Debit Card Payments

Online Bill Pay Items

Internet Banking Transfers

Telephone Banking

Teller Window Transactions

ATM Withdrawals

 

✓*

Everyday Debit Card Purchases

 

✓*

 

* If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

 

You can discontinue the Overdraft Privilege in its entirety by contacting us at (800) 860-1238.

 

What Else You Should Know

 - A link to another deposit account is a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts.  Use our mobile banking, Internet banking, and telephone banking services to keep track of your balance.

 - The $28.00 NSF fee is the same fee amount that is charged if a check is returned as unpaid.  If multiple items overdraw your account on the same day, each item will be assessed an appropriate $28.00 NSF Fee or a Return Fee of $28.00. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn in excess of the Overdraft Privilege limit amount as a result of a fee.

 - If your account balance remains overdrawn four (4) or more business days, we will charge your account a daily overdraft fee of $5.00 for each of the consecutive business days the account remains overdrawn up to 32 business days, beginning with day four.

 - For consumer accounts, there is a limit of 6 NSF Fees ($168.00) per day we will charge. We will not charge an NSF Fee if the amount of the item is $5.00 or less. These exceptions do not apply to business accounts.

 - We generally post items lowest to highest dollar amount within each type: in the following order: 1) credits, 2) over the counter transactions, 3) ATM and debit card transactions, 4) ACH debits, 5) checks (serial number); however, exceptions may occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of NSF Fees or Return Fees assessed.

 - Although under payment system rules, First Federal Bank of Louisiana may be obligated to pay some unauthorized debit card transactions, First Federal Bank of Louisiana will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).

 - Giving us your consent on your consumer account to pay every day debit card and ATM overdrafts may result in you incurring NSF Fees for transactions that we would otherwise be required to pay without assessing an NSF Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.

 - First Federal Bank of Louisiana authorizes and pays transactions using the available balance in your account. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the current balance (collected funds) less any debit card holds, any available overdraft protection, and the amount of the Overdraft Privilege limit. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the current balance (collected funds) less any debit card holds and any available overdraft protection, but does NOT include the Overdraft Privilege Limit. For accounts with Standard Coverage only, First Federal Bank of Louisiana may be obligated to pay ATM/Debit card transactions authorized above the available balance. This type of transaction will decrease your Standard Coverage Overdraft Privilege limit. For accounts with Extended Coverage, the Overdraft Privilege Limit is included in the available balance for ATM and everyday debit card transactions. First Federal Bank of Louisiana may place a hold on deposited funds in accordance with our Terms and Conditions of Your Account. If the funds in the available balance are not sufficient to cover a transaction, any available overdraft protection and/or the amount of the Overdraft Privilege limit, may be used to authorize and pay a transaction. One overdraft privilege limit amount is used for both the standard coverage and extended coverage products.

 - Please be aware that the Overdraft Privilege amount is not included in your balance provided through online banking, mobile banking or First Federal Bank of Louisiana’s ATMs.

 - First Federal Bank of Louisiana will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules.  In some cases, the hold may exceed the amount of the transaction.  When the hold ends the funds will be added to the available balance in your account.  If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an NSF Fee may be assessed.

 - Except as described in this letter, First Federal Bank of Louisiana will not pay items if your account does not contain available funds (including the Overdraft Privilege limit) to cover the item(s) and the amount of any fee(s).

 - We may suspend your debit card use if you incur overdrafts in excess of the available balance (as described above) in your account, including any Overdraft Privilege limit. You will be unable to use your debit card for purchases or to access your account at the ATM while your debit card is suspended. Debit cards on your account will remain suspended until you contact us and you make sufficient deposits so that your available balance is positive on accounts without Extended Coverage or back within the Overdraft Privilege limit on accounts with Extended Coverage. If you use your debit card for recurring payments, e.g., utilities, and your debit card is ever suspended, these transactions will be returned to the payee(s). You will need to make other arrangements to pay make these payments to the payee(s).

 -  An Overdraft Privilege limit of $100 is available for eligible Personal and Business Checking accounts at account opening.

 - Overdraft Privilege limits of up to $500/$750 are available for eligible Personal Checking accounts opened at least 35 days in good standing and up to $500/$750 for eligible Business Checking accounts opened at 35 days in good standing.

 - Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

 - Overdraft Privilege may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty-two (32) days for a minimum of one business day. If you are overdrawn thirty-two (32) consecutive days, any debit cards on your account will also be suspended. You must bring your account balance positive to have Overdraft Privilege and the debit card reinstated.

 - Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.   

 

Extended Coverage

Extended Overdraft Privilege is also available for ATM and Debit card transactions.  Enroll Now if you would like to select Extended Overdraft Privilege for future transactions. Eligible accounts must be open for at least 30 calendar days. All consent forms are subject to approval. 

Enroll Now

Sweep Overdraft Protection

Avoid the hassle of returned checks and costly overdraft fees by linking your checking account to another First Federal account. In the event your account becomes overdrawn, the funds will automatically sweep to cover the item(s).

 

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