Overdraft Protection / Courtesy Pay

The Basic Facts

Let’s face it, sometimes with our busy schedules we forget some things that might come back to affect us. One of those things is making sure we have enough money in our checking accounts to cover the transactions we make every day. When we do not, that is called an overdraft. This is where courtesy pay comes in to play. An overdraft occurs when you make a purchase or ATM transaction but don’t have enough money in your account to pay for it. For a fee, we will cover you when you become overdrawn. This fee can apply each time you overdraw your account. In the past, some financial institutions would grant you a line or credit or Overdraft Protection loan. Currently, California Bear Credit Union does not offer an overdraft protection line of credit. We offer Courtesy Pay instead.

California Bear Credit Union offers standard overdraft practices that come with your account, which we refer to as Courtesy Pay. This covers any checks and automatic recurring payments that may overdraw your account. We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive. Please note that unless you have completed a Courtesy Pay A-9 Form, we WILL NOT PAY your ATM and Debit transactions if your available balance will not cover the transaction. We will cover your transaction for a flat fee of $30 each time you overdraw your account.

To become eligible for either of our courtesy pay options, you must complete and sign a Courtesy Pay A-9 Form.

Important Notes

You choose. In the past, some financial institutions automatically enrolled you in their standard overdraft practices for all types of transactions when you opened an account. Under new rules, your financial institution must first get your permission to apply its standard overdraft practices to everyday debit card and ATM transactions before you can be charged overdraft fees. To grant this permission, you will need to respond to the notice and complete and sign a Courtesy Pay A-9 Form.

Checks and automatic bill payments. California Bear Credit Union does not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities.

If you have any additional questions about Courtesy Pay please call our Member Service Center at (800) 954-BEAR (2327).