June 25, 2010

Good day.

You may have heard about the “Reg E” Courtesy Overdraft Protections related to Debit Card use and overdraft fees. This letter addresses the issue as it relates to your New Buffalo Savings Bank Debit Card.

The legislation was enacted by the Board of Governors of the Federal Reserve System. It is being put in place because bank customers were being charged overdraft fees when a Debit Card Transaction Terminal accepted their debit card even when there were not sufficient funds in their checking account to cover the entire transaction. 

This happens because debit transactions are processed in a number of different ways depending on the transaction terminal.  Some transaction terminals, such as gas pumps and some merchants, automatically allow a transaction even if you do not have sufficient funds in your account to cover the entire amount. This action may cause your checking account balance to go negative. New Buffalo Savings Bank has no control over transactions accepted at these terminals. We cannot choose to accept or deny them.

Beginning August 15, 2010, if a transaction with your New Buffalo Savings Bank debit card should overdraw your account, we will not charge you the associated overdraft fee. However: Any checks or other debit on your account resulting in an overdraft will incur a fee. This includes, but is not limited to, any automatic re-occurring payment using your debit card number such as monthly dues; online bill payment; or payments made through automated transfer (ACH). Currently the overdraft fee is $25 for each returned unpaid check and $30 if it is paid. There may also be a daily fee until the account is brought back to a positive balance.

Should you have 3 debit card overdrafts within a 4-month time frame, your debit card privilege may be revoked and your card deactivated.  New Buffalo Savings Bank reserves the right to revoke debit card privilege at any time.

Some banks have Courtesy Overdraft Protection, a program that allows overdrafts on a debit card and then charges an overdraft fee. If you have a debit card with another financial institution, you may be asked to Opt-in to this program. New Buffalo Savings Bank does not have a Courtesy Overdraft Program. There is nothing to Opt-in to.If you have questions about New Buffalo Savings Bank overdraft policies, please contact us at 269-469-2222.

Thank you.