Overdraft Protection Section contents:


Courtesy Pay helps protect you from the unpaid return of non-sufficient items presented on your Checking account.

Eligibility
Available to all members with a share draft (checking) account in "good standing" that has been open for at least 60 days, receives regular deposits sufficient to cover transactions, has a positive balance at least once every thirty days or less, and has no legal orders outstanding against it.

Summary
Courtesy Pay offers a variety of beneficial features:

  • Checks will be paid even when sufficient funds are not available.
  • Checks will be paid up to a limit of $500 including Courtesy Pay fees
  • $20 Courtesy Pay fee for each check paid
  • Checks paid and fees shown on statements
Minimum Requirements
  • Checking account must be open for at least 60 days
  • Regular deposits sufficient to cover transactions
  • Account must be brought to a positive balance at least once every 30 days or less
  • No legal order outstanding on the account
Frequently Asked Questions
 

» How far overdrawn can my account go?
» What do I have to do in order to apply for Courtesy Pay?
» How will I know if I have Courtesy Pay on my checking account?
» Is there a cost for this service?
» What transactions will access Courtesy Pay?
» Will my Courtesy Pay limit be reflected in my available balance?
» Is Courtesy Pay a loan?
» Can I use Courtesy Pay to pay a Northrop Grumman FCU loan payment?
» When do I have to repay the overdraft?
» I would like a larger Courtesy Pay limit.
» Can the Courtesy Pay charge be waived?
» What are the checking account requirements associated with Courtesy Pay?
» Do I have Courtesy Pay on all of my checking accounts?
» What if I do not want Courtesy Pay?

» What if I opt out of Courtesy Pay and change my mind later?
» Can Courtesy Pay be taken away by the credit union?
» Does Northrop Grumman FCU offer traditional overdraft protection?
» What is the difference between Overdraft Protection and Courtesy Pay?
» Are you encouraging me to write bad checks?
» Can I overdraw my account using an ATM card or point-of-sale transaction?
» I thought I had Courtesy Pay. Why did you return my check as NSF?
» If I use Courtesy Pay and do not bring my account into a positive end-of-day balance at least once every 30 days, will you report me to credit reporting agencies?
» How will I know if I have Courtesy Pay on my checking account and what is considered "good standing"?

How far overdrawn can my account go?
If eligible, items will be paid up to an overdrawn limit of $500.00 (including Courtesy Pay fees of $20.00 per item).
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How do I apply for Courtesy Pay?
There is no need to apply for Courtesy Pay.  This is a service provided to every accountholder in "good standing."
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How will I know if I have Courtesy Pay on my checking account?
If you have maintained your account in good standing, we will assign you an overdraft courtesy of $500.00.

Good standing can be defined as:

  • Making regular deposits sufficient to cover transactions.
  • Account is brought to a positive end-of-day balance at least once every 30 days or less.
  • There are no legal orders outstanding on your account.
  • Your account does not have NGFCU loans more than 30 days delinquent.
  • Your account does not have a derogatory history.
  • Your account does not have questionable transactions.

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Is there a cost for this service?
Courtesy Pay does not cost anything unless you use it. If you overdraw your account within the Courtesy Pay limit (including fees) we will assess a $20.00 Courtesy Pay fee for each item presented and paid. Items that exceed the Courtesy Pay limit of $500.00 (including Courtesy Pay fees) will be assessed a $20.00 non-sufficient fund fee for each item and returned as NSF.

For example, if you use the Courtesy Pay service for two overdrawn items, your account will be charged two separate Courtesy Pay fees ($20.00 for each overdrawn item).
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What transactions will access Courtesy Pay?
If you inadvertently overdraw your account, Courtesy Pay will cover checks and withdrawals from ATMs up to a total of $500 including Courtesy Pay fees.
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Will my Courtesy Pay limit be reflected in my available balance?
No. When you view your available balance on your statement, Call 24, online or at an ATM, the Courtesy Pay amount will not be added to your account balance. For example, if your account balance is $1,000.00, your funds available will appear as $1,000.00, not $1,500.00.
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 Is Courtesy Pay a loan?
No. We extend this non-contractual courtesy to members who maintain their checking accounts in "good standing." This service is available to you at the discretion of the Credit Union.
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 Can I use Courtesy Pay to pay a Northrop Grumman FCU loan payment?
No. You cannot use Courtesy Pay to meet this obligation.
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When do I have to repay the overdraft?
You will need to bring your account to a positive end-of-day balance at least once every thirty (30) days.
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 I would like a larger Courtesy Pay limit.
The limit is $500.00 for all eligible members and cannot be increased at this time.
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 Can the Courtesy Pay charge be waived?
No. Courtesy Pay fees are not eligible for discounts or reimbursements.
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What are the checking account requirements associated with Courtesy Pay?

  • Make regular deposits sufficient to cover transactions
  • No legal orders outstanding on your account
  • Bring your account to a positive end-of-day balance at the end of the business day at least once every thirty days
  • All outstanding loans must be no more than 30 days past due

     The following accounts are excluded from accessing the Courtesy Pay service.

  • Accounts not currently in good standing
  • Accounts with a loan more than 30 days delinquent
  • Accounts that are not brought to a positive end-of-day balance at least once every thirty days
  • Accounts with legal orders outstanding
  • Money market accounts
  • Share (savings) accounts
  • Loans
  • Personal Line of Credit accounts
  • Home Equity Line of Credit accounts

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Do I have Courtesy Pay on all of my checking accounts?
If you qualify for Courtesy Pay, all your checking accounts are eligible.
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What if I do not want Courtesy Pay?
We can change your account status so that no overdrawn items are paid using the Courtesy Pay service. If you choose to opt out of the Courtesy Pay service, any future overdrawn items presented for payment against your account will be returned unpaid and a $20.00 NSF fee will be assessed after funds for overdraft protection (if applicable) have been depleted. You may also be charged additional fees by the merchant/payee. Carefully consider your decision to opt out of this program. (If you decide to opt out of Courtesy Pay, call us at 800-633-2848, or download and fax the signed opt-out form.)
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 What if I opt out of Courtesy Pay and change my mind later?
Speak with a Northrop Grumman Federal Credit Union Member Service Representative at 800-633-2848 or click here to download an opt-out/opt-in form.
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Can Courtesy Pay be taken away by the credit union?
Yes. If the Credit Union determines an account is no longer in good standing, the Courtesy Pay service can be taken away at any time. The Credit Union is not obligated to honor any future Courtesy Pay items, even though it may have previously approved Courtesy Pay items for you.
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Does Northrop Grumman FCU offer traditional overdraft protection?
Yes. Credit Union members can choose one or both of the following overdraft protection options:

  • A transfer from your regular share or money market account, and/or
  • A transfer from a regular share or money market account on another account number, and/or
  • An advance from an overdraft line of credit on your account, and/or
  • An advance from an overdraft line of credit on another account

The transfer feature from a deposit account and/or an advance from a line of credit will be processed before the Courtesy Pay feature is used.
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What is the difference between Overdraft Protection and Courtesy Pay?
With Overdraft Protection funds are transferred fee-free from a previously designated account to your share draft account to pay an item. Overdraft Protection will NOT allow the account to overdraw (go into a negative balance) to pay an item. A MoneyMaster Line of Credit may be used for overdraft protection. In order to receive a MoneyMaster Line of Credit, you must receive credit approval.

Courtesy Pay is a non-contractual courtesy offered at the sole discretion of the Credit Union to members who maintain their Share Draft accounts in good standing. Any Courtesy Pay amount covered by the Credit Union in the Courtesy Pay process is NOT considered an accountholder loan, and is not subject to interest. Each overdraft item that is paid is subject to the Courtesy Pay fee.

Overdraft Protection and Courtesy Pay are two completely separate services offered by Northrop Grumman FCU.
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Are you encouraging me to write bad checks?
No. We are simply responding to frequent member requests to pay items that were being returned when the amount available in the checking account was only a few dollars less than the amount of the check. With Courtesy Pay, we are now helping members by helping to prevent embarrassment and additional fees associated with returned checks assessed by payees.
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Can I overdraw my account using an ATM card or point-of-sale transaction?
Yes, you can overdraw your checking account when making an ATM or POS transaction with your Northrop Grumman FCU Visa ® ATM/Check Card or ATM Card.  A $20 Courtesy Pay fee will be assessed for each transaction.
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I thought I had Courtesy Pay. Why did you return my check as NSF?
Remember, the Courtesy Pay maximum is $500.00 (including all Courtesy Pay fees). Items are returned NSF when the payment of the item, combined with the item fee, is more than your Courtesy Pay available amount.
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If I use Courtesy Pay and do not bring my account into a positive end-of-day balance at least once every 30 days, will you report me to credit reporting agencies?
Yes. If this account is charged off, the account will be referred to a collection agency and we will report you to Chexsystems. We will, however, work with any members who find themselves in such situations.
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How will I know if I have Courtesy Pay on my checking account?
If you have maintained your account in good standing, we will assign you an overdraft courtesy of $500.00.

Good standing can be defined as:

  • Making regular deposits sufficient to cover transactions.
  • Account is brought to a positive end-of-day balance at least once every 30 days.
  • There are no legal orders outstanding on your account.
  • Your account does not have Northrop Grumman FCU loans more than 30 days delinquent.

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