Regulation E

Frequently Asked Questions

What does the regulation mean?

Recent regulatory changes now require members to consent, Opt In, to participate in our Carefree overdraft protection service for ATM and everyday debit card transactions.  This regulation only affects members with Carefree Checking. It does not apply to overdraft by check, ACH, automatic payment, online bill payment, or recurring debit card transactions. 

What is an overdraft?

An overdraft occurs when there are not enough funds in the account to cover a transaction, but with Carefree Checking the credit union honors it anyway.

Since we do this at our discretion, we cannot guarantee that the credit union will cover every transaction that may take your account negative. However, we will, as we always have, continue to honor these transactions whenever possible.

How will this change affect the way I do business today?

By choosing to Opt In, your ATM withdrawals and debit card transactions will work EXACTLY AS THEY DO TODAY if you have Carefree Checking.  Your authorization provides important protections for you in the event you are running short of cash, or simply make a mistake in your checking account; your authorization gives us permission to cover that transaction so you can avoid the embarrassment of having your transaction declined.

If you choose not to Opt In, any ATM withdrawal or debit card transaction that forces your account negative will be declined and an alternative form of payment would be required to continue your transaction.

Why would I want to authorize this service?

To continue having your accounts operate exactly as they do today.  Many members appreciate this service because it provides access to funds in urgent situations. 

Is there a fee if I choose to authorize this service?

The fee is the same as if the account is overdrawn by check or a pre‐authorized debit/payment —$29.00 per ATM or debit transaction if we allow the one‐time debit card or ATM transaction. The fee is a service fee, not a penalty.  When we authorize payment without sufficient funds, there is an element of risk on our part. The fee is charged to offset that risk.

Do I need to sign the authorization form to Opt In?

Yes, if you receive a notification by mail, please follow the instructions to Opt In and mail the authorization form in the postage paid envelope.

You may also call our communications center at 800.865.2612 and our staff will complete an authorization form, noting “phone request” as your Opt In method.  A copy of this authorization will be mailed to you for your records. 

Can I Opt In online?

Yes.  You can Opt In through the Hoosier Hills website by clicking on the link to our secure form.  The form will be submitted to our communications team and a confirmation letter will be generated and sent by mail. 

What is the difference between an “everyday” and “recurring” debit transaction?

Everyday debit transactions include things like groceries, gas, and coffee. If you go to the mall and make a few purchases, these are considered "everyday" as well, as opposed to "recurring." Recurring debit transactions are those where you have established a payment relationship with a biller, who periodically charges your debit card. If you have certain utility bills set up, for example, to automatically debit your card, these will generally be considered recurring.

How are checks and scheduled electronic payments affected by Regulation E?

These kinds of transactions, along with any debit transactions that have been designated as "recurring" (such as regular membership fees or dues that are charged to your debit card), are not affected by the recent changes to Regulation E. If you have Carefree checking they will continue to operate as they do today. 

What happens if I don’t Opt In?

Beginning August 15, 2010, any ATM or everyday debit transactions you attempt when there are insufficient available funds in your account will be declined. You will still be covered by overdraft protection via automatic account transfer (if funds are available in these accounts), but beyond that, we will only be able to cover certain transactions.