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Bounce Protection℠ Policy

At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be costly and inconvenient. At CommunityBank of Texas, we do not encourage overdrafts. As always, we encourage you to manage your finances responsibly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check is returned. That’s why we provide Bounce ProtectionSM , a special overdraft service for CommunityBank of Texas’ customers.

WHAT IS BOUNCE PROTECTIONSM?

Bounce Protection is a discretionary overdraft service, requiring no action on your part, that provides you a safety net up to an automatically assigned overdraft limit. Your Bounce Protection limit may be available for checks and other transactions made using your checking account number or automatic bill payment and recurring debit card payments; and for business accounts only, ATM and everyday debit card transactions. For personal accounts, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit.

HOW DOES BOUNCE PROTECTION WORK?*

Bounce Protection will not be activated until 30 days from the date of the opening of your account, provided that by that time, you have deposited an amount that is equal to or greater than the overdraft limit assigned to your account.

As long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Bounce Protection limit as a non-contractual courtesy.

For overdraft privilege consideration, your account is in “good standing” if you (1) deposit enough money to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit; and (3) there are no legal orders, levies or liens against your account.

Please note that the amount of the overdraft plus our paid item NSF fee of $30 for each item will be deducted from your overdraft limit. If the item is returned, the returned item NSF fee of $30 will be deducted from your account. No interest will be charged on the overdraft balance.

*Please refer to the bounce protection overdraft policy for additional details.

WHAT DOES BOUNCE PROTECTION COST?

There is no additional cost associated with this privilege unless you use it.

For personal accounts, you will be charged our paid item NSF fee of $30 for each overdrawn item created by a traditional paper-based check, a teller withdrawal, an automatic payment (ACH) transaction or a recurring debit card payment. Also, if you have requested us to do so, we may authorize and cover ATM transfers or withdrawals and everyday debit card purchases. Your available balance may be affected by authorizations which could create additional overdrafts and associated fees.

For business accounts, you will be charged our paid item NSF fee of $30 for each overdrawn item created by a traditional paper-based check, a teller withdrawal, an automatic payment (ACH) transaction, recurring debit card payment, ATM transfer or withdrawal and everyday debit card purchase.

For example, three paid items in one day will result in $90 in paid item NSF fees. To help you manage your account, the total fees you have paid for items (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.

If your account is for consumer use, we will not charge more than $150.00 per day in paid item NSF fees. In addition, if the overdraft balance at the end of the day is not more than $5.00, then no NSF fees are charged for that day.

HOW QUICKLY MUST I REPAY MY BOUNCE PROTECTION?

You should make every attempt to bring your account to a positive end-of-day balance as soon as possible, and must do so within 30 calendar days. If you are not able to do so, you will receive a letter from CommunityBank of Texas informing you that your Bounce Protection limit has been suspended and additional items will be returned. If your limit is suspended, unless we notify you otherwise or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.

WHAT IF I AM HAVING TROUBLE REPAYING MY BOUNCE PROTECTION OR USE IT FREQUENTLY?

Please contact us at 866.427.9306 or 409.861.7200 if you:

(1) do not believe you will be able to bring your account to a positive end-of-day balance within the required time period;

(2) find that you are using Bounce Protection more often than you intend; or

(3) don’t understand why your account becomes overdrawn. We would like to discuss your situation with you.

We will contact you to discuss possible alternatives to Bounce Protection, that may better meet your short-term credit needs, if your usage of Bounce Protection exceeds either of the following;

• Ten or more non-sufficient funds items are paid within a five-day period.

• Ten or more non-sufficient funds items are paid or returned within a three-day period.

• Any account that has been overdrawn 30 or more days within a 90-day period.

In the event you ask us to stop contacting you because you have determined Bounce Protection is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Bounce Protection is still the most appropriate option available to you for covering your short-term credit needs.

HOW DO I KNOW WHEN I USE THE OVERDRAFT LIMIT?

You will receive an overdraft notice each time items are paid, including fees. You will need to subtract the total fees when balancing your checkbook.

WHAT ARE SOME OF THE WAYS I CAN ACCESS MY BOUNCE PROTECTIONSM LIMIT? WILL MY LIMIT BE REFLECTED IN THE BALANCE I RECEIVE?

The chart below shows the different ways you can access your Bounce Protection limit and indicates whether or not this limit will be reflected in the balance provided.                

Access PointsIs my Bounce Protection limit available?Does the balance provided reflect
  my Bounce Protection Limit?

Teller

Yes

No

Writing A Check

Yes

-NA-

Debit Card   (recurring)

Yes

-NA-

Debit Card   (everyday)

No**

-NA-

ATM Withdrawal

No**

No

ACH-Auto Debit

Yes

-NA-

Community XPress   Online Banking

Yes

No

Bill Pay

Yes

-NA-

U Phone (bank by   phone)

Yes

No

**With the exception of business accounts, Bounce Protection will be made available for ATM and everyday debit card transactions upon your request. Call 866.427.9306 or 409.861.7200 or visit one of our branches to arrange for your ATM and debit card coverage.

WHAT IS MY BOUNCE PROTECTION LIMIT? IF I HAVE TWO CHECKING ACCOUNTS, CAN I GET BOUNCE PROTECTION ON BOTH?

Just ask a customer service representative for the Bounce Protection limit associated with your checking account. CommunityBank of Texas reserves the right to limit participation to one account per primary account owner and to suspend, revoke, or discontinue this service without prior notice.

WHAT IF I GO BEYOND MY BOUNCE PROTECTION LIMIT?

Overdrafts above and beyond your established Bounce Protection limit may result in checks or other items being returned to the payee. The returned item NSF fee of $30 will be charged per item and assessed to your account. A NSF notice will be sent to notify you of items paid and/or returned.

HOW SOON CAN I USE MY BOUNCE PROTECTION?

If yours is a new account, we will advise you 30 or more days after your account is opened that you may use the overdraft privilege service. This is provided you have maintained satisfactory activity in the account, including regular deposits, consistent with our internal standards for new account types that may offer Bounce Protection. Once you are notified your Bounce Protection limit is available to you, it may continue to be available provided you maintain the account in "good standing" as defined in this brochure.

WHAT ARE SOME OTHER WAYS I CAN COVER OVERDRAFTS AT COMMUNITYBANK OF TEXAS?

The best way to avoid overdrafts and fees is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register, reconcile your checkbook regularly and manage your finances responsibly. However, if a mistake occurs, CommunityBank of Texas offers additional ways to cover overdrafts in addition to Bounce Protection.

Ways to Cover Overdrafts at CommunityBank of TexasExample of Associated Fees*

Good account management

$0

Link to savings account

No transfer fee**

Overdraft line of credit

17.99% APR***

Bounce Protection

Paid item NSF fee of   $30 for each item

*This information is effective as of November 2016 and is provided as examples. Please ask us about our current specific products, rates and fees.                                                    

**On all consumer accounts eligible for Bounce Protection. See bank for details.                                                                                                                                                         

***Annual Percentage Rate subject to change without notice.

WHAT IF I DO NOT WANT TO HAVE BOUNCE PROTECTION ON MY CHECKING ACCOUNT?

If you would like to have this service removed from your account, please call 866.427.9306 or 409.861.7200.

 

BOUNCE PROTECTIONSM OVERDRAFT POLICY 

There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e. signature-based point of sale transactions); (3) the return of unpaid items deposited by you; (4) bank service charges; or (5) the deposit of items which, according to the bank’s Funds Availability Policy, are treated as not yet available or finally paid.

While we are not obligated to pay any item presented for payment if your account does not contain enough money, as long as you maintain your account in “good standing,” we may approve your overdraft items within your current available Bounce Protection limit as a non-contractual courtesy. For overdraft privilege consideration, your account is in “good standing” if you (1) deposit enough money to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit; and (3) have no legal orders, levies or liens against your account.

In the normal course of business, we generally pay electronic transactions first and then checks in serial number order, per the bank’s policy. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account. Also, please be aware that the order we pay your items in may create multiple overdraft items in a single banking day and you will be charged our paid item NSF fee of $30 for each overdraft item paid. If your account is for consumer use, we will not charge more than $150 per day in paid item NSF fees.

You may opt out of the privilege at any time, but you are responsible for any overdrawn balances at the time of opting out. Normally, we will not approve an overdraft for you in excess of the predetermined amount assigned to your account type. So as not to exceed your limit, please note that the amount of the overdraft plus the bank’s paid item NSF fee of $30 per item will be deducted from the overdraft limit. If your ending balance on any day is no more than $5.00 overdrawn, you will not be charged any paid item NSF fees for that day.

We may refuse to pay an overdraft item at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft items if your account is not in good standing as defined above, or, if based upon our review of your account management, we determine that you are using Bounce Protection excessively or seem to be using Bounce Protection as a regular line of credit. You will be charged a returned item NSF fee of $30 for each item returned.

We will notify you promptly of any non-sufficient funds items 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 overdraft including our paid item NSF fee of $30 and/or a returned item NSF fee of $30 that you owe us is due and payable upon demand. Even if we do not ask you for payment, you must repay us, no later than 30 calendar days after the creation of the overdraft. If there is an overdraft on an account with more than one owner on the signature card, each owner and agent, if applicable, is jointly and severally liable for all overdrafts including all fees charged.

Bounce Protection should not be viewed as an encouragement to overdraw your account. To avoid fees, we encourage you to keep track of your account balance by entering all items in your check register, reconcile your check book regularly, and manage your finances responsibly. If you would like to have this service removed from your account, please call 866.427.9306 or 409.861.7200.

Please note that your Bounce Protection limit may be available for each item paid under the limit created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, or automatic bill payment and recurring debit card payment; and for business accounts only, ATM and everyday debit card transactions. For personal accounts, at your request, we may authorize and pay ATM transfers or withdrawals and everyday debit card purchases using your limit. Your available balance may be affected by authorizations which could create additional overdrafts and associated fees. When you ask for your account balance, please remember the amount we show you does not include your overdraft limit.

LIMITATIONS: Bounce Protection is a non-contractual courtesy that is available to individually/jointly owned accounts in good standing for personal or business use. CommunityBank of Texas reserves the right to limit participation to one account per primary account owner and to suspend, revoke, or discontinue this service without prior notice. If your limit is suspended, unless we notify you otherwise or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.

Rev. 02/17

 

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