Overdraft Coverage Changes
How do you want us to handle your overdrafts?
Due to recent federal banking regulations, you are now required to give your consent for us to charge you to cover insufficient funds relative to ATM and one-time checkcard transactions.
To continue to receive the full benefits of our standard overdraft practices, you will be required to opt-in or agree to the terms and conditions of the program. Should you decide that you do not want ATM or everyday checkcard activity covered by our program, we will deny all such overdraft transactions beginning August 15, 2010.
It only takes a few minutes to preserve the peace of mind that overdraft coverage can provide. To make your overdraft decision, call us at 1-800-636-7622 today!
Benefits of "Opting-In" for Overdraft Coverage
- May allow customers to make a checkcard transaction and/or withdraw funds from an ATM when they need the funds the most without being declined.
- Fast and discrete way to cover a purchase when adequate funds may not be available.
Standard Overdraft Coverage: Frequently Asked Questions
Q: How has overdraft coverage changed?
A: Currently your account is covered by our standard overdraft practices that authorize Cadence to pay overdrafts on your ATM and everyday checkcard transactions when you have inadvertently overdrawn your account. Beginning August 15th, if you want to continue to receive this overdraft coverage for these types of transactions, you must give your consent to Cadence or "opt-in" for this coverage.
Q: What happens if I DONT "opt-in" for this coverage?
A: Should you decide not to "opt-in" for this coverage, insufficient funds in your account will cause checkcard transactions and ATM withdrawals to be declined.
Q: What happens if I DO "opt-in" for this coverage?
A: Should you decide to "opt-in" to receive continued overdraft coverage, our current overdraft practices will continue without disruption under the current terms and conditions. Cadence Bank may pay ATM and everyday checkcard transactions in excess of your available balance. If paid, a fee of $35 may be assessed to your account.
Q: What if I do not take any action before August 14th?
A: The Federal Regulation goes into effect on August 14, 2010 for existing accounts opened before July 1, 2010. On or after that date you are no longer covered unless you choose to continue overdraft coverage. This means that any ATM or everyday checkcard transaction that would result in an overdraft of your account will be declined at the point of sale.
Q: What if I change my mind about the coverage I want?
A: You can select or change your overdraft coverage selection at any time by contacting your local branch office.
Q: How do I select the overdraft coverage I want?
A: Cadence Bank customers can call 1-800-636-7622 or visit their local branch office. Customers who received a letter from Cadence can make their overdraft consent selection online using their assigned personal URL or returning the consent form included in their letter.
Q: If I Opt-In/Opt-Out for one account does it automatically apply to all of my accounts?
A: No. You will need to provide your overdraft coverage preference for each account you have that has a checkcard or ATM card tied to it.
Q: Can I Opt-In/Opt-Out for my spouses account?
A: If you are an authorized signer and joint holder of the account you can make the overdraft coverage selection for that account.
Q: Will you always pay my overdrafts?
A: We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.*
Q: What if I have an overdraft line of credit or a transfer setup from my savings account?
A: This new regulation will not affect any overdraft protection service you may already have set up. Your Overdraft Protection service will continue without interruption.
Q: Does this change apply to checks or reoccurring payments from my account?
A: No, the new regulation only applies to ATM and everyday checkcard transactions. Automatic bill payments, checks and other transactions made using your checking account number are not affected by these new rules. We may authorize and pay overdrafts on these transactions and fees may be incurred. Cadence Bank pays overdrafts at our discretion, which means that we do not guarantee that we will always authorize and pay any type of transaction.*
Q: Does this new regulation apply to Cadence Bank customers only?
A: No. Every bank and every consumer banking customer is affected by this new Federal Regulation.
Q: Does this new regulation apply to business customers?
A: No. This new regulation only applies to personal checking accounts and only those tied to a Cadence Bank checkcard.
Q: What is the difference between standard overdraft coverage and Overdraft Protection?
A: Overdraft coverage is a service provided by banks to authorize ATM and everyday checkcard transactions for clients even if the amount was more than the available balance. In exchange for providing this service, we charge customers a fee for each transaction. Overdraft Protection is an additional service that allows bank customers to link their checking account to other Cadence Bank accounts to cover overdrafts.
*Cadence Bank makes decisions on whether or not to pay/authorize items based on the risk associated with the account, the client, and the transaction. We do not provide overdraft coverage on all items.
For more information, call us at 1-800-636-7622 (press option 0).
