Overdraft and Reg E

Overdraft and Reg E

What You Need to Know About First Community Bank's
Overdraft Privilege Service

For Personal Accounts

Your account includes an Overdraft Privilege. The privilege is $100.00 during the first 35 days following account opening. On day 36 (review date), the privilege amount increases to $500.00. On day 61 (review date), the privilege amount increases to $700.00. If your review date falls on a Saturday, Sunday or federal holiday, the increase will be effective the next business day. At First Community Bank, we understand that sometimes circumstances occur that cause payments to be made when you have an insufficient balance in your account to cover the transaction.

An insufficient balance may result from:

A. The payment of checks, electronic funds transfers, in-person withdrawal, ATM withdrawal, debit card transaction, or other electronic means;

B. Payments authorized by you;

C. The return, unpaid, of items deposited by you;

D. The imposition of bank service charges; or

E. The deposit of items which according to Bank's Funds Availability Policy, are treated as not yet "available"or finally paid.

We are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. Transactions may not be processed in the order they occurred which can affect the total amount of overdraft fees incurred. Items will be considered for payment in the following order: 1) Debit card transactions; 2) ATM, teller checks, and other withdrawals authorized by you; 3) Checks (smallest to largest check amounts); 4) ACH and electronic items; 5) Bank fees. As long as you maintain your account in good standing, defined as: A) Make a deposit at a minimum of every 30 days; B) Bring the account to a positive balance every 45 days or less; C) There are no legal orders outstanding on your account; D) Account holder or holders are not in default on any loan obligation with First Community Bank, your account will be eligible for Overdraft Privilege.

Overdraft Privilege means that we will consider - as a discretionary courtesy or service and not a right of yours or an obligation on our part - approving your reasonable overdrafts caused by any payment method other than ATM transactions and every day debit card transactions. In order for us to consider approving and paying overdrafts caused by ATM and everyday debit card transactions, you must provide separate written consent. The amount of this discretionary service is limited as disclosed above. Whether your overdrafts will be paid or not is at our sole discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing as described above. Our normal fees and charges including, Returned Item and Overdraft (OD) fee, currently $32.00 per item, will be charged for transactions initiated for payment from your checking account that do not have sufficient collected funds. Our Returned Item and Overdraft (OD) fees will be included in and count against your assigned Overdraft Privilege limit.

We may refuse to pay an overdraft for you at any time, even though we may have paid overdrafts for you previously. You will be notified by mail of any nonsufficient funds paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts, plus our Returned Item and Overdraft (OD) fee(s) that you owe us, shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner and agent, if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our Returned Item and Overdraft (OD) fee(s).

ACCOUNT FEES: Whether we pay or return a non-sufficient funds item, a flat per-item handling fee will be charged to your account as a Returned Item or Overdraft (OD) Fee, currently $32.00 per returned or overdraft item. More than one Returned Item or Overdraft (OD) fee may be charged per day, depending on the number of checks presented on, and other withdrawals made from your account.

LIMITATIONS: Available to consumer accounts (excluding Savings and Money Market accounts) for personal and household use. We may limit the number of accounts eligible for Overdraft Privilege to one account per household. The amount of this discretionary service is limited as disclosed above. Additionally, we reserve the right to not approve any overdrafts against your account until we can verify that your account is being maintained in good standing, as defined above. “Overdraft Privilege” may be discontinued at any time without prior notice.

OPTIONAL OVERDRAFT PROTECTION SERVICES: We offer additional overdraft protection services that you may choose to utilize. These include automatic funds transfers/sweeps from another account of yours with our bank and a loan reserve (subject to credit approval). If you choose these optional services, you may save money on the total fees you pay us for overdraft protection services.

OPT-OUT: You may choose at any time to not participate in the Overdraft Privilege by notifying one of our Customer Service Representatives who will explain what this means.

FINANCIAL ASSISTANCE: Overdrafts should not be used to pay ordinary or routine expenses, and you should not rely on overdrafts as a means to cover these expenses. If at any time you feel you need assistance with managing your financial obligations, please contact one of our Customer Service Representatives at 870-612-3400 or toll free at (888) 780-8391.

ALWAYS A DISCRETIONARY SERVICE: Our Overdraft Privilege does not constitute an actual or implied agreement between you and us. Nor does it constitute an actual or implied obligation of or by us. Our service represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.

It is the policy of our Bank to comply with applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

What You Need to Know about Overdrafts and Overdraft Fees

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

  1. We have standard overdraft practices that come with your account.
  2. We also offer overdraft protection plans, such as, a link to your savings account and a line of credit, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains our standard overdraft practices.

* What are the standard overdraft practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined.

* What fees will I be charged if First Community Bank pays my overdraft?

Under our standard overdraft practices:

* What if I want First Community Bank to authorize and pay overdrafts on my ATM and everyday debit card transactions

You have the right to OPT OUT at any time by calling us at 870-612-3400 or 1-888-780-8391 or writing and mailing to First Community Bank, P.O. Box 4327, Batesville, AR 72503, or coming by any First Community Bank location.