New Regulation D Violation Fee


New Regulation D Violation Fee

Regulation D is a directive of the Federal government that is imposed on all financial institutions (banks and credit unions). To maintain compliance with Regulation D, the credit union places a monthly limit on certain kinds of transfers and/or withdrawals from savings accounts. 

Transactions that count toward the Regulation D limit include the following:

  • Overdraft transfers (made automatically to cover insufficient funds in other accounts)
  • ACH withdrawals by third parties
  • ACH transfers to other deposit accounts. (transfers to credit union loans are not counted toward the limit.)
  • Internet Banking ( ITSME247) transfers
  • Phone Banking transfers (whether performed by a credit union representative or by the member via the Audio Banking system CUTALK)
  • Payroll transfers (except for those to credit union loans)

Members are allowed a total of six of the above listed transactions per month, per account.*

On May 1st, 2013, the credit union will begin to charge a $5.00 fee for every transaction in violation of Regulation D. In other words, you will be charged $5.00 for every transaction over the six (6) allowed.  On the last day of the month, all fees will be deducted from the member savings account that is in violation of the regulation.

The credit union also reserves the right to take other action as necessary to ensure compliance.

*Transfers/withdrawals done in-person at the credit union, including lobby and ATM transactions, are not affected by the Regulation. Therefore, the fee will not apply to such transactions.