Frequently Asked Questions - Member Privilege

How does Member Privilege work?
What does Member Privilege cost?
How do I know when I use the Member Privilege overdraft limit?
What is my Member Privilege limit? If I have two checking accounts, can I get Member Privilege on both?
What if I go beyond my Member Privilege limit?
What are some of the ways I may have access to Member Privilege?
How quickly must I repay my Member Privilege?
How soon can I use my Member Privilege?
When I check my balance at an ATM, through DirectConnect home banking, ELSIE audio response telephone service, or at the teller window is my Member Privilege limit included?
What if I do not want to have Member Privilege on my checking account?

Q. How does Member Privilege work?

A. As long as you maintain your account in good standing, LCFCU may approve your overdrafts within your current available Member Privilege limit. Whether your 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. Your account is in good standing if you (1) demonstrate responsible account management—such as making regular deposits to bring your account to a positive balance at least once every 30 days (including the payment of all credit union fees and charges); (2) avoid excessive overdrafts suggesting the use of Member Privilege as a continuing line of credit, and (3) there are no legal orders, levies or liens against your account. Please note that the amount of the overdraft plus our standard NSF fee of $25 for each item will be deducted from your overdraft limit. No interest will be charged on the overdraft balance.

Q. What does Member Privilege cost?

A.There is no additional cost associated with this privilege unless you use it. You will be charged our standard NSF fee of $25 for each overdrawn item created by a traditional paper-based check, a teller withdrawal, an automatic payment (ACH) transaction, or a recurring debit card payment. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and everyday debit card purchases. (For example, three paid items in one day will result in $75 in NSF fees.) To help you manage your account, the total fees you have paid for NSF items (both paid and returned) during the current month and for the year-to-date, will be reflected on your monthly checking statement.

Q. How do I know when I use the Member Privilege overdraft limit?

A. You will receive an overdraft notice in the mail each time items are paid. The notice will show the check number, amount and the NSF fee. You will need to subtract the total fees when balancing your checkbook.

Q. What is my Member Privilege limit? If I have two checking accounts, can I get Member Privilege on both?

A. Your Member Privilege limit is $500. If you have multiple accounts for your household, you may have a limit on all eligible accounts..

Q. What if I go beyond my Member Privilege limit?

A. Overdrafts above and beyond your established Member Privilege limit may result in a check or checks being returned to the payee. The standard NSF fee will be charged per item and assessed to your account. An NSF notice will be sent to notify you of our actions.

Q. What are some of the ways I may have access to Member Privilege?

A.Generally, you may access your Member Privilege through:
- Teller transactions
- Writing a check
- DirectConnect home banking transactions
- Bill Payer transactions
- ACH debit transactions
- ATM withdrawals**
- Debit Card transactions (everyday)**
- Debit Card transactions (recurring)
- ELSIE telephone account management transactions

Q. How quickly must I repay my Member Privilege?

A. You should make every attempt to bring your account to a positive balance as soon as possible, and must do so within 30 days. If you are not able to bring your account to a positive balance within 30 days you will receive a letter from LCFCU informing you of the situation and your options. If, thereafter, your account has not been brought to a positive balance, we may suspend your account and take other steps to recover the funds.

Q. How soon can I use my Member Privilege?

A. If you are a new checking account holder, you may be able to use the overdraft service 60 days after the account is opened, assuming you demonstrate responsible account management by making regular deposits to maintain your checking account with a positive balance, and there are no legal orders, levies or liens against your account.

Q. When I check my balance at an ATM, through DirectConnect home banking, ELSIE audio response telephone service, or at the teller window is my Member Privilege limit included?

A. No. The balance reflected in these settings will not include the overdraft limit assigned to your account.

Q. What if I do not want to have Member Privilege on my checking account?

A. There is no cost for having the peace of mind associated with our Member Privilege overdraft courtesy service, unless you use it. However, in the event you would like to have the service removed from your account, you may do so by simply returning a completed Member Privilege Waiver of Limit Form to our office in person, by fax (202) 707-6418 or by mail to: 8100 Professional Place #308, Hyattsville, MD 20785-2229

For additional information, please read our Member Privilege Policy.