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 via our
   Bounce Protection program.
2. We also offer overdraft protection plans, such as a link to a savings or checking account at BCSB, which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

Bounce Protection Overdraft Opt-in Rule:
Understanding Reg E

What is Reg E?
Regulation E (Reg E) is a banking regulation that implements a law called the Electronic Funds Transfer Act. Issued in 1979 by the Federal Reserve System, it establishes the rights and responsibilities of both consumers who use electronic services and the financial institutions that offer them.

What changes with Reg E?
The amendment to Reg E prohibits financial institutions from charging overdraft fees for ATM and one-time debit card/point-of-sale transactions unless the account holder requests the service by opting-in.

Why is Reg E changing?
These changes eliminate confusion about overdraft programs. The changes to Reg E will help BCSB customers make well-informed decisions on how they want their financial institution to serve them.

When are these changes happening?
These changes will take place for current and new BCSB customers on July 1, 2010.

Does this affect checks and ACH transactions?
No. The changes to Reg E affect only certain electronic transactions (ATM and one-time debit card purchases). Even debit card transactions set up as a recurring debit or bill pay transactions are not affected by these changes.

Is Bounce Protection going away?
No. Bounce Protection is still available to everyone who currently has this service and for new customers that would like to opt-in to this program.

Why do I have to opt-in?
New regulations require customers to elect to opt-in to this service. By opting-in, you approve BCSB to authorize and pay ATM and debit card purchases using your Bounce Protection limit. Your checks and ACH items will continue to be paid under Bounce Protection.

Why would I want to opt-in?
If you have an unexpected need for funds, having access to your limit at the ATM or with your debit card gives you peace of mind.

What if I don’t choose to opt-in?
If you do not opt-in you will not have access to your Bounce Protection limit at the ATM or with your debit card and these types of transactions will be declined if there are insufficient funds in your account.

Can I opt-in after July 1?
Yes, you can opt-in at any time, now or in the future.

Can I change my mind if I opt-in?
Yes, you can rescind the opt-in at any time.

To continue this valuable safety net, please confirm with your branch representative or call 410.256.1331 to elect Bounce Protection coverage.