Frequently Asked Questions about New Overdraft Regulations (Regulation E)
When does an overdraft occur?
An overdraft occurs when a True Blue® Direct VISA® debit card is used for a purchase but there is not enough money in the bank account to pay for it. The bank may at its discretion pay for these transactions, but charge a fee as a standard overdraft service. This service was designed to prevent embarrassment for our customers by permitting the overdraft on the account when we believe it is likely that the overdraft is only a temporary situation.
What does "opt-in" mean?
"Opt-in" means you agree to allow Capitol Federal to charge an overdraft fee should the bank elect to approve a debit card transaction that causes you to become overdrawn in your account. This choice will allow your debit card transaction to be reviewed and potentially approved and paid, but you would be charged a fee for such paid transactions.
What will be different when the new regulation goes into effect?
If you choose to "opt-in," nothing will change on your account. Debit card transactions that overdraw your account will continue to be covered and a fee will be charged. If you opt-out, we will decline debit card transactions on accounts with insufficient funds. Thus, you will be declined at the point-of-purchase, and no fee will be charged.
By selecting NOT to "opt-in" will I never have a negative balance because I will always be declined?
By selecting to NOT "opt-in" there are instances when you may overdraw your account and then be charged a fee. The following are a couple of examples that could result in an overdraft fee, even though you have selected to opt-out of the overdraft service.
- Automatic bill payment withdrawals are not covered by the new rules. If you set up a bill to be paid, such as your mortgage, cable bill or rent, you should have enough funds to cover these payments. If not, standard overdraft fees will apply.
- The new regulation does not impact checks or other paper transactions. You can still be assessed a fee if overdrawing with this payment method.
- There could be limited circumstances wherein a debit card transaction creates an overdraft on your account due to the manner of transaction processing by the merchant. If you have not opted-in, you will not be charged a fee but you are responsible for the overdraft. However, if you do not "opt-in," Capitol Federal will not knowingly approve any debit card transaction that would create an overdraft, and we will decline your purchase at the time and place of the transaction.
What happens if I do not opt-in by August 15?
You will automatically be opted-out of the service. In order to continue to receive the standard overdraft service, you must opt-in.
What if I have more than one account?
Each account, with a True Blue® Direct VISA® Debit card, must be opted-in individually. By selecting "opt-in" for one account, it does not make a selection for any other accounts you may have.
What if I have a joint account?
Only one person signed to the account needs to "opt-in" and then the account will be covered.
Can I change my mind and switch my decision?
You may change your mind at any time with regards to your Overdraft Service selection. Keep in mind that due to regulatory notice requirements, any changes do not take effect until two business days after we receive the notification of your selection. You may "opt-in" by calling 1-888-8CAPFED, visiting a Capitol Federal branch, using an option on telephone banking (1-888-5TRUBLUE) or sending a secure message via True Blue Online®.
How do I prevent my account from being overdrawn?
The key to avoiding overdraft fees is to properly balance your account often. This process has been made easier with True Blue Online®. If you are not yet a user of TBO, sign up here. You may check your account anytime, anywhere, making sure you have the needed funds to make a purchase. Also, if you have Internet access on your cellular phone, take advantage of our free service - Mobile Banking. All TBO users have free access to this at mobile.capfed.com. In addition, continue to review your account statements when they arrive each month.
Do I have any other options?
Besides keeping a balanced account, or opting in to new overdraft regulations, you may choose to register for an overdraft protection plan.
An overdraft protection plan links a companion account (savings, checking, money market or Execuline Home Equity Line of Credit account) that you hold with our Bank to your debit card account and funds will be transferred from the designated account into your debit card account if you create an overdraft. While a fee is charged when your overdraft protection plan is used, it may be less than the standard overdraft method. To learn more,
visit your local Capitol Federal branch. Separate enrollment is required in this overdraft protection plan.
