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Overdraft Honor Service

Overdraft Honor Service
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Summary

Fulfilling your financial needs is our bank's top priority. To protect you from the headaches of returned checks, we offer free discretionary OverdraftHonor Service to help you avoid inadvertent overdrafts. Standard overdraft fees still apply.

For more information call (800) 422-3641.

Policy

Discretionary OverdraftHonor Privilege Policy

Sutton Bank will generally pay checks and permit transactions to be paid up to the established limit per account for NSF items, on checking accounts in good standing. Good standing may include any or all of the following criteria:

1. The account has been open at least 30 days.

2. The account has regular deposits consistent with past practices.

3. The account holder is not in default (30 days delinquent or more) on any loan obligation to Sutton Bank.

5. There are no current legal or administrative actions or levies.

Sutton Bank is not obligated to pay any item presented for payment if the account does not contain sufficient collected (available) funds. Any discretionary service payment of any NSF item(s) does not obligate us to pay any additional NSF item(s) or to provide prior written notice of our decision to refuse to pay any additional NSF item(s).

Q & A

Questions and answers about our discretionary OverdraftHonor Policy.

A non-sufficient-fund item (NSF item) is a transaction on your account where the amount of the transaction is greater than the available balance in your account.

Q: What is OverdraftHonor?

A: OverdraftHonor is our discretionary, non-contractual courtesy for qualified account holders, where we will, as a discretionary service and not as a right or obligation guaranteed to you, strive to pay your reasonable overdrafts when your account is in good standing. We will generally pay checks and permit transactions to be paid up to the established overdraft limit per account, including applicable fees, and charge our standard NSF/OD fee per item presented. This program is a discretionary courtesy and payment of your NSF item is NOT guaranteed.

If an item such as a check, ATM withdrawal, debit card transaction, preauthorized automatic debit, telephone-initiated transfer or other electronic transfer is processed by us and insufficient funds exist to pay that item, we are under no obligation to pay that item. However, in an effort to provide excellent service, we will strive to pay, at our discretion, items, including any applicable fees, up to the established overdraft limit per account, for accounts in good standing. OverdraftHonor is not a line of credit. It is a discretionary policy, and not a right or obligation guaranteed to you to pay your overdrafts. Please see the OverdraftHonor Policy tab for more information. Our standard overdraft fee will be assessed for each non-sufficient fund item that is processed.

Q: How will it benefit you?

A: We hope this policy helps you understand how we make overdraft payment decisions and that you will manage your finances carefully. In the event something unexpected happens where your account does not have the available funds to cover your checks, ATM withdrawals, debit card transactions, preauthorized automatic debits, telephone-initiated transfers or other electronic transactions, our policy may help you avoid the embarrassment and costs of returned items.

Q: Will my ATM and everyday Debit Card transactions be included in the OverdraftHonor program?

Effective July 1, 2010, we must have your authorization on file before setting up the service for ATM and everyday debit card transactions. There is no additional charge to activate the service for your ATM and everyday debit card transactions. A link is located on our front page (Quick Links) to provide your opt-in.

Q: Is OverdraftHonor a line of credit or loan?

A: OverdraftHonor is not a line of credit or a loan. As a non-contractual courtesy, we may pay your overdrafts up to the OverdraftHonor limit, which can be suspended or withdrawn at any time.

Q: Do I have to apply for OverdraftHonor?

A: No. This is an internal policy that covers checking accounts which meet our requirements and are in good standing. Please see the OverdraftHonor Policy for more information.

Q: What do I have to do to use it?

A: Subject to the OverdraftHonor policy, if you overdraw your account and we choose to cover your overdraft, the transaction will take place automatically. Account holders should not become dependent on this policy to meet short-term cash needs.

Q: How will I know if I am overdrawn?

A: We will mail you a letter to notify you immediately each time there is a non-sufficient fund item processed on your account.

Q: How quickly do I have to deposit funds to cover an overdraft?

A: Our expectation is that you deposit funds immediately to cover any overdrafts. If you do not deposit funds to cover your overdraft in 10 days, we will send you additional letters and contact you to discuss any problems you may have. If you go 45 days with a negative balance and do not reply or deposit funds, your account will be closed and reported to a consumer reporting agency and/or collection agency.

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