What You Need To Know About “Regulation E”
Los Angeles Police Federal Credit Union wants to make members aware of the Electronic Fund Transfer Act (EFTA), how the Federal Reserve Board is implementing it though Regulation E, and what this means to you. If, after reading the frequently asked questions below, you have questions or wish to opt-in to overdraft protection for your account(s), please contact us. You may also wish to visit the FDIC website for more information.
What is the Electronic Fund Transfer Act (EFTA)?
EFTA is an act designed to protect consumers by giving them a choice regarding payment of overdrafts for ATM and one-time debit card transactions. Instead of automatically receiving overdraft protection, consumers will now be required to opt-in, or affirmatively consent, to overdrafts for ATM and one-time debit card transactions before overdraft fees may be assessed on their account. They must also receive written confirmation of their choice, if they choose to opt-in.
Please note: LAPFCU does not offer overdraft protection for ATM transactions.
What types of transactions are covered?
EFTA covers the transfer of funds initiated through ATM, point-of-sale terminal, automated clearinghouse (ACH), telephone bill payment plan, or remote banking service.
Why should I consider opting-in to overdraft protection for my account(s)?
Overdraft protection can help ensure that a one-time transaction is processed, even when the funds in your account do not cover the cost of your purchase. Without overdraft protection, your purchase could be rejected at the point of sale, possibly causing you inconvenience.
What do I do if I want to opt-in to overdraft protection?
Call us at 877 -MY-LAPFCU (877-695-2732) or visit your nearest LAPFCU branch during regular branch hours.
What are LAPFCU’s overdraft protection fees?
LAPFCU charges $22 per overdrawn item. Please refer to our
schedule of fees to see all of our fees. Most of our services have no fees or lower fees than banks.
Do the terms and conditions of my account change if I do or do not opt-in?
No. Whether or not you opt-in to overdraft protection, you will still receive the same account terms, conditions, features, and price (if applicable).
If I opt-in to overdraft protection, can I opt-out later on?
Yes, you may opt-out at any time. You may also opt-in any time.
When does Regulation E go into effect?
New Accounts: July 1, 2010
Existing Accounts: August 15
