Frequently Asked Questions
What you need to know about your checking account

The following Questions and Answers were compiled to help consumers better understand how new federal regulations are impacting them and their credit union accounts.

1.  What new federal regulations for financial institutions are driving so many changes?
The new federal regulations include Regulation E (Electronic Funds Transfers), Regulation Z (Lending) and the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act).

2.  Why did Congress make these changes?
With recent economic challenges, and a focus on the practices of some large financial institutions, the new government regulations include requirements such as new disclosures, specific wording, limits on fees and other changes to provide consumers information to help them make smart money management decisions.

3.  What is "Opt-In" that I am hearing so much about?
The changes causing confusion for many consumers relate to the fact that financial institutions can no longer charge a fee, without your consent, when you overdraw your checking account using a debit card or ATM.   Many financial institutions are asking their customers to sign up for, or "opt‐in" to, new checking overdraft programs.  They are asking you for permission to charge you a fee.  

4.  Does Westerra have an "Opt-In' Program?
No - we have chosen to not implement an overdraft program asking members to "opt‐in" to pay a fee if they overdraw their checking account with a debit card or ATM transaction.  We will not charge any fee in these situations.  At Westerra, our approach is to help members better manage their accounts and minimize fees.    

5.  What happens if I use my debit card or ATM card and there are no funds in my account?
If there are not funds in your checking account (or line of credit) to cover a debit card or ATM transaction, the transaction will simply be denied at the time it is requested. There will be no fee.  You can then choose to use another payment option. If a debit card or ATM transaction was approved, and then a check cleared before the debit transaction was processed, we will cover the debit card transaction, too, and notify you of the need to make a deposit, if you have not done so already - again, with no fee.

6.  What happens if I write a check or have an automated payment and there are no funds in my account?
The new federal regulation described in Question 3 applies only to debit cards and ATM transactions.  If there are not funds in your account (and savings or line of credit) to cover checks or automated payments, the transactions may be paid or returned at our discretion and you will be assessed a fee of $28.

To help consumers better manage checks and automated payments, Westerra is implementing new restrictions August 16 for qualifying to continue to have Westerra pay checks and automated payments at our discretion when there are no funds in the checking account (up to $500). The fee to honor/pay these transactions remains unchanged at $28. 

Some members will find with the new restrictions (which include credit score), checks and automated payments may potentially be returned and they will be assessed an NSF fee if there are not sufficient funds in the account to cover these transactions.  Our staff is working individually with these members by calling them and following up with letters, as appropriate, to ensure they are aware of the changes and to provide assistance, as needed.  We want to ensure members have the information they need to change their routines and to minimize fees.

7.  I've heard news reports that say not to "Opt-In" with any financial institution.
Financial Editor Jean Chatzky told viewers on the June 15 NBC Today Show to not opt-in to overdraft protection with financial institutions.  With banks losing billions of dollars of revenue under new credit card legislation, they are looking to make up the loss with checking and overdraft fees, she said.  She suggests linking checking and savings accounts as alternatives to avoid extra payments.  Chatzky's recommendation is the same approach Westerra has adopted, unlike most financial institutions.

8.  I've also heard reports that free checking may no longer be available at financial institutions, as they try to make up the fees lost as a result of the new federal regulations.
Westerra continues to offer free checking.  News reports indicate many financial institutions may eliminate free checking accounts in reaction to regulatory changes. Westerra members can continueto enjoy free checking through our Better Than Free Checking account. Members using Value Checking will be assessed an annual debit card fee of $25 per account at the anniversary of the debit card issue date, beginning in 2011. Those using Better Than Free or Preferred Checking continue to enjoy free debit cards.  (Simply contact us for details on your checking account options - and watch for loan discounts and other benefits coming soon with these accounts.)

9.  The July Westerra Way newsletter mentioned a cap on fees?
Fees for checks and automated payments (honored or returned) when there are insufficient funds will be capped at three per day beginning this Fall, saving some members a considerable amount of money. Our goal is to help members manage their accounts in a way that enables them to access funds on deposit in checking, another account, or through a pre‐arranged line of credit-and help them earn a better credit score-rather than paying high fees for us to cover the transactions.   Additional checks and automated payments, over three in a day, will be returned unpaid, with no fee.  Our staff is working closely with these members to help them better manage their accounts and avoid fees.

10.  What action should I take?
Most members do not need to take any action.  Simply continue the practice of ensuring there are funds in your checking account before you initiate transactions on the account.  If past routines indicate the new restrictions may impact you, the credit union provided information to you recently by mail and telephone.

If you use Value Checking, continue to enjoy a free debit card in 2011 by contacting us to switch to Better Than Free Checking (direct deposit and eStatements required) or Preferred Checking ($10,000 minimum balance required).  Watch your mail for even more rewards as a benefit of using Better Than Free or Preferred Checking-and additional ways to protect from overdrafts with minimal or no fees.

At Westerra, we are committed to working with you to help you manage your accounts.   If you have any questions, please contact us at 303-321-4209 or
1-800-858-7212.