Helpful Answers to Your Questions on

Overdraft Protection Changes

 

Q:  What exactly is going to change on my account?

A:  You may have Automatic Overdraft Protection on your account, a service that we call AOP.  When you utilized your debit card at a retailer, online or at an ATM in the past, we have allowed you to access AOP, even when funds were not in your account.  Now, in order for us to continue to allow you to access your AOP under these circumstances, you must tell us in advance that you want to authorize us to pay overdrafts for your everyday debit card and ATM transactions.

 

Q:  What does opt-in mean?

A:  That is the term used to state that you have authorized Bank of Tennessee in advance to pay overdrafts for your everyday debit card and ATM transactions.

 

Q:  What will be different for me if I opt-in?
A:  Nothing.  Your transactions will continue to be approved as they have in the past. 

 

Q:  What happens if I opt-out?

A:  We will decline your everyday debit card and ATM transactions unless you have the actual funds in your account.

 

Q:  What happens if I do not respond at all to the opt-in notice?

A:  If we do not receive a response from you, you will automatically be opted out.  We will decline your everday debit card and ATM transactions unless you have the actual funds available in your account

 

Q:  What do I need to do to opt-in?

A:  You can opt-in by calling our customer care center at (866) 378-9500, by email to customercare@bankoftennessee.com or by visiting any Bank of Tennessee branch.

Q:  What changes can I expect when I write checks or have other types of debits to my account that are overdrawn? 

A:  There are no changes for accessing your AOP by writing checks, ACH debits, transfers or online banking transactions.

 

Q:  Can I change my mind?

A:  Yes.  You may opt-in or opt-out at any time.

Q:  If I change my mind, will I be able to access my AOP funds immediately after contacting you?

A:  Federal regulations require that we provide you with a confirmation of your opt-in decision.  If you visit a branch prior to 4:00 pm, we can hand you the confirmation and turn on your access that day.  If you call or email us, we cannot provide you access until we have placed that confirmation in the mail.  With that requirement and our mailing processes, it will be up to 2 business days from the time you notify us you want to opt-in before you will have access to your AOP for everyday debit card and ATM transactions.

Remember:  You can still access your AOP using a check or by visiting a branch for an over-the-counter transaction at anytime and without opting in.

Q:  What if I have more than one account?

A:  You may make a different decision on different accounts.  If you are returning the notice we sent you, indicate your response on each notice for each account.  If you are contacting us at the branch or via phone, you may tell us your decision on each account.

 

Q:  I have a joint account with two debit cards.  Can one of us opt-in and the other opt-out?

A:  No.  The account can only have one decision, even though there may be multiple debit cards issued that access the account.  Either accountholder may provide us with the authorization to opt-in or opt-out.  We will recognize the last decision received. 

 

Q:  What about Business Accounts?  Do the changes apply to them?
A:  No.  The new rules only apply to consumer accounts.

 

Q:  So by opting-out I'll never have a negative balance because my ATM or debit card will be declined?

A: Not necessarily! There are a few ways that your account can be overdrawn even with an opt-out:

·         A preauthorized transaction (i.e., paying at the gas pump, adding a tip at a restaurant bill, or receiving a hotel reservation “hold”) could cause a negative balance. In these situations the business preauthorizes a transaction amount that might not be the final transaction total. A gas station might preauthorize $1 when you pay at the pump. If you have $5 in your account the transaction will be approved because the preauthorized amount is less than your balance. If you then spend $20 on gas your account will be overdrawn by $15. If you opt-out you will be responsible for the amount of money overdrawn but you will not be charged a fee.

·         An overdraft can also be caused by the timing of actual presentation (processing) of the transaction to your account. You may have sufficient funds in your account at the time of the transaction, but by the time the transaction is applied to your account, there may no longer be enough money to cover the transaction. This would cause a negative balance or an overdraft situation. If you have opted-out you will not be charged a fee for the card transactions.

In either of the above cases, you will not incur a charge if you have opted out.

Q:  Are there other ways to cover overdrafts that may occur on my account?

A:  Yes. You can arrange in advance for other services we offer, such as automatic transfers from savings or a pre-approved line of credit we call Ready Reserve*.