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 an overdraft protection plan which is called an overdraft line of credit.  To learn more, ask us about this plan.

What are the standard overdraft practices that come with my account?
We may or may not authorize and pay overdrafts for the following types of transactions:

• Checks and other transactions made using your checking account number
• Automatic bill payments

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

• ATM transactions
• Everyday debit card transactions

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 Bank of Erath pays my overdraft?
Under our standard overdraft practices:

• We will charge you a fee of up to $25 each time we pay an overdraft.
• Also, if your account is overdrawn for more than 5 consecutive days, we will charge an additional $5 per day.
• There is no limit on the total fees we can charge you for overdrawing your account.

What if I want Bank of Erath to authorize and pay overdrafts on my ATM and everyday debit card transactions?
If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call (337) 893-3761, (337)937-5816 or (337) 685-2310, visit us at bankoferath.com, or complete the form below and present it at a branch, or mail it to: P.O. Box 308, Abbeville, LA  70511, P.O. Drawer B, Erath, LA  70533, or P.O. Box 6, Delcambre, LA  70528. You have the right to revoke your coverage at any time. You revoke your coverage by using the phone numbers and addresses above.  

IMPORTANT ACTION NEEDED ON YOUR ACCOUNT!

An overdraft service is provided by Bank of Erath when we sometimes pay a check, debit card transaction, ATM withdrawals or other items when you have insufficient funds and we charge you a fee.

The new rule under Regulation E requires you to “opt-in” to this service for one time debit card transactions and ATM transactions.  You will need to read the attached notice explaining our overdraft service and sign it and return it to us.  We will need this completed and returned to the bank by August 15th.  If you “opt-in” and later change your mind you will also have the right to revoke this decision.  We will still continue our regular overdraft service on checks, ACH transactions and recurring debits.

We encourage you to try our other services that may help you in this area such as a Line of Credit.  You can call us at 337-893-3761, 337-937-5816, or 337-685-2310 to learn more about this service or to get more information on the “Opt In” requirement.

It has been our pleasure to serve as your “bank of hospitality” and we wish to continue to help you in any way possible.

Click here to opt in.