Courtesy Pay Disclosure

Life happens! TNConnect Credit Union understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

Service Cost
Overdraft Protection Link to Another Deposit Account you have at TNConnect Credit Union1  No charge per transfer
Overdraft Protection Line of Credit1, 2  Subject to interest
Courtesy Pay  $30 Overdraft Fee per item.

1Call us at (865) 688-2424, visit our website at http://www.tnconnectcu.org, or come by a branch to sign up or apply for these services; 2subject to credit approval.

Overdraft Protection services apply to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account, or line of credit you may have at TNConnect Credit Union for a finance charge. Please note that overdraft lines of credit are subject to credit approval.

Courtesy Pay allows you to overdraw your account up to the disclosed limit for a fee in order to pay a transaction. Even if you have overdraft protection, Courtesy Pay is still available as secondary coverage if the other protection source is exhausted.

Transactions Covered with Courtesy Pay Standard Coverage
(No action required)
Extended Coverage
(Your consent required)*
If you would like to select Extended Coverage for future transactions:

  • call us at (865) 688-2424
  • complete the online consent form found at www.tnconnectcu.org/opt-in-for-courtesy-pay/
  • visit any branch
  • print and complete the form from the address above and mail it to TNConnect P.O. Box 52990, Knoxville, TN  37950
Checks X X
ACH – Automatic Debits X X
Recurring Debit Card Payments X X
Online Bill Pay Items X X
Teller Window Transactions X X
ATM Transactions X*
Everyday Debit Card Transactions X*

*If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage

You can discontinue the Courtesy Pay in its entirety by contacting us at (865) 688-2424 or visiting a branch.

What Else You Should Know

  • A link to another account or a line of credit may be a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobile banking, online banking, and audio response (PAL) services to keep track of your balance. TNConnect also offers free and confidential counseling through BALANCE. Visit www.balancepro.net for more details.
  • The $30 Overdraft Fee is the same fee amount that would be charged if a check was returned as unpaid. If multiple items would overdraw your account on the same day, each item would be assessed an appropriate Overdraft Fee or a Returned Item Fee of $30. All fees and charges will be included as part of the Courtesy Pay limit. Your account may become overdrawn in excess of the Courtesy Pay limit as a result of a fee.
  • For consumer accounts, there is no limit on the total Overdraft Fees per day we will charge.
  • Items post in the order they are received. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Item Fees assessed.
  • Although under payment system rules, TNConnect Credit Union may be obligated to pay some unauthorized debit card transactions, TNConnect Credit Union will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).
  • Giving us your consent to pay every day debit card and ATM overdrafts may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to your Courtesy Pay limit and may also help you avoid overdrafts in excess of your available funds that could result in restriction of your debit card.
  • TNConnect Credit Union authorizes and pays transactions using the available balance in your account. TNConnect Credit Union may place a hold on deposited funds in accordance with our Deposit Account Agreement and Disclosure, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Courtesy Pay limit and any available overdraft protection. The available balance for ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available overdraft protection, but does NOT include the Courtesy Pay Limit. For accounts with Extended Coverage, the Courtesy Pay Limit is included in the available balance for authorizing ATM and everyday debit card transactions.
  • Please be aware that the Courtesy Pay amount is not included in your available balance provided through online banking, mobile banking, audio response (PAL) or TNConnect Credit Union’s ATMs.
  • TNConnect Credit Union will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction.  When the hold ends the funds will be added to the available balance in your account.  If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.
  • Except as described in this letter, TNConnect Credit Union will not pay items if your account does not contain available funds (including the Courtesy Pay limit) to cover the item(s) and the amount of any fee(s).
  • TNConnect Credit Union may suspend your debit card if you incur overdrafts in excess of the available balance in your account, including any Courtesy Pay limit. Debit cards on your account will remain suspended until you make sufficient deposits so that your available balance, taking into account any Courtesy Pay limit, is positive and then you contact us.
  • TNConnect Credit Union may also suspend your debit card if your account is overdrawn more than 32 consecutive calendar days. Debit cards on your account will remain suspended until you make sufficient deposits so that your account balance is positive.
  • TNConnect Credit Union may also suspend your debit card if we are unable to contact you due to an incorrect mailing address or phone number(s). You must contact us with your correct mailing address and/or phone number(s) to have your debit card reinstated.
  • If your debit card is suspended, you will be unable to use your debit card for purchases or to access your account at the ATM, and if you use your debit card for recurring payments, e.g., utilities, you are responsible to make other arrangements for your recurring debit payment(s).
  • Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Courtesy Pay may be discontinued if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have Courtesy Pay reinstated.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Deposit Account and Disclosure Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Courtesy Pay, please call us at (865) 688-2424 or visit a branch.