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For Immediate Release Contact: Patrick Harris Director of Media Relations Ohio Credit Union League pharris@ohiocul.org 800-486-2917

CONSUMER ALERT: Deadline Approaches for Consumers to Choose
Overdraft Protection for ATM/Debit Card Transactions

 Aug. 15 “opt in/opt out” deadline affects existing accounts at all financial institutions 

Columbus, Ohio (August 10, 2010) – Credit unions continue to notify members about a quickly approaching deadline that requires all financial institutions to obtain consent from members to pay for account overdrafts for automated teller machine (ATM) and debit card transactions.  Members with existing checking accounts should notify their financial institutions by August 15 if they want to “opt in” to overdraft protection.  No notification by the deadline will be deemed an “opt out” of overdraft and could mean consumers’ ATM and debit card transactions will be subject to decline.

“Debit cards are a popular form of payment by credit union members a debit cards,” said Paul Mercer, President of the Ohio Credit Union League.  “Many Ohioans are under the impression that their ATM withdrawals and debit card transactions will be covered by their financial institution voluntarily; however, the new regulation means consumers need to choose to enact the protection.” 

The regulation change applies to all federally-regulated financial institutions, including credit unions, banks, and thrifts and the rule only applies to ATM and debit card transactions, not checks.  It is applicable to members with a debit card linked to a checking account that was opened before July 1, 2010.  Accounts opened after July 1 were subject to the rule change at their inception. 

Most financial institutions charge a fee for overdraft protection for ATM and debit card transactions, though fees at credit unions are typically less than banks.  According to the March 2010 “The Benefits of Membership Report” from the Credit Union National Association, non-sufficient fund fees are on average five dollars less at credit unions ($25) than at banks ($30), helping to save households an average of $159 a year.

Why choose to “opt in?”

• Protects members from the inconvenience of a denied purchase

• Gives consumers the protection and convenience to access cash from an ATM

• Prevents additional fees from retailers for returned checks

Why choose to “opt out?”

• Helps protect an account from having a negative balance

•  Allows member to avoid fees associated with an overdraft coverage

• May not be necessary if you carry an extremely high balance in your checking account

Credit unions are not-for-profit, democratically-controlled cooperative financial institutions.  Members of credit unions are owners, and each member-owner has an equal say in the operations of the credit union.  Almost all Ohioans are eligible to join a credit union.  To find a credit union to join, visit www.FindACreditUnion.com, and fill in the prompted fields.

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The Ohio Credit Union League, with offices in Columbus, is a state trade association representing 392 credit unions. Credit unions are not-for-profit financial institutions owned and democratically-controlled by their members. Ohio credit unions provide savings, loans, and other consumer financial services to their 2.66 million members. To learn more, visit www.OhioCreditUnions.org.