Overdraft Coverage Details

At times, unanticipated expenses or unforeseen problems can leave you with too little cash in your checking account. Having a check returned due to insufficient funds can be a costly, inconvenient and potentially embarrassing experience. At First Western Bank, we do not encourage overdrafts. To avoid fees, we encourage you to manage your finances responsibly by keeping track of your account balance and reconciling it regularly. However, we want to save you from the additional merchant fees and possible damage to your credit history that might result if a check, automatic payment, or any other payment is returned. That is why we provide Overdraft Privilege, a special overdraft service for First Western Bank's customers.

What is Overdraft Privilege?

Overdraft Privilege is a discretionary overdraft service requiring no action on your part that provides you a safety net up to an automatically assigned overdraft limit.

Your Overdraft Privilege limit may be available for checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic (ACH) payment transaction, automatic bill payment or recurring debit card payment. If you request us to do so (opt in), we may authorize ATM transfers or withdrawals and everyday debit card purchases using your available balance and your Overdraft Privilege limit. For business accounts the limit may be available for ATM and everyday debit card transactions with no action required.

Balances displayed do not include the Overdraft Privilege limit.

How does Overdraft Privilege work?

There are several ways your account can become overdrawn, such as (1) the payment of checks, electronic funds transfers or other withdrawal requests; (2) payments authorized by you (i.e., debit card at point of sale); (3) the return of unpaid items deposited by you; (4) bank service charges; or (5) the deposit of items which, according to the bank’s Funds Availability Policy, are treated as not yet available.

As long as you maintain your account in “good standing,” we may approve your overdraft items within

your unused Overdraft Privilege limit as a non-contractual courtesy.

For Overdraft Privilege consideration, your account is in “good standing” if you (1) make sufficient deposits to bring your account to a positive end-of-day balance at least once every 30 calendar days (including the payment of all bank fees and charges); (2) avoid excessive overdrafts suggesting the use of Overdraft Privilege as a continuing line of credit; (3) have no legal orders, levies, or liens against your account; and (4) you are not in default on any loan or other obligation to us.

First Western Bank reserves the right to limit participation to one account per household or business or to suspend, revoke, or discontinue this service without prior notice.

What if I go beyond my Overdraft Privilege limit?

Normally, we will not approve an overdraft for you in excess of the predetermined limit assigned to your account. So as not to exceed your limit, please remember that the amount of the overdraft plus our Overdraft fee of $32.00 for each item will be deducted from the Overdraft Privilege limit. Overdrafts above and beyond your established Overdraft Privilege limit may result in checks or other items being returned to the payee. You will be charged an Overdraft Return fee of $32.00 for each item returned.

Returned items may be presented for payment by the payee or their financial institution multiple times, which may result in multiple Overdraft Return fees.

An OD/NSF notice will be sent to notify you of items paid and/or returned.

What does my Overdraft Privilege cost?

There is no additional cost associated with Overdraft Privilege unless you use it. If you do use the Overdraft Privilege limit, you will be charged our Overdraft fee of $32.00 for each overdrawn item created by checks and other transactions made using your checking account number, such as a teller withdrawal, an automatic payment (ACH) transaction, automatic bill payment, or recurring debit card payment.

If you request us to do so (opt in), we may authorize ATM transfers or withdrawals and everyday debit card purchases by using your available balance and your Overdraft Privilege limit. Your balance at the time these transactions post will determine the overdraft status and the assessment of fees. Other transactions initiated by you, or a delay in processing authorized transactions by the merchant, may result in previously authorized transactions posting against an insufficient balance. An Overdraft fee of $32.00 will be charged for each ATM or everyday debit card transaction that posts against insufficient funds. Once opted in, you may revoke your authorization at any time by contacting us at 479-878-3411.

For business accounts, ATM and debit card transactions will be handled as described above with no action required on your part.

In the normal course of business, for each business day, all deposits received to an account are posted first; then debits are subtracted in the following order: wire transfers, cash withdrawals, FWB ATM transactions, Foreign ATM Transactions, recurring debit card transactions, debit card purchases, ACH’s, bank service charges, automatic transfers to internal accounts and electronic bill pay transfers, and checks. Within each debit category, transactions will be paid lowest to highest dollar amount with the exception of checks, which will be paid in check number order. Transactions may not be processed in the order in which they occurred. Checks are often converted to electronic transactions which may post to your account more quickly, affecting the order in which they post. Holds on funds and the order in which transactions are posted may impact the total amount of Overdraft fees or Overdraft Return fees assessed. We reserve the right to change the order of payment without notice to you if we suspect fraud or possible illegal activity affecting your account.

Also, the order we pay your items may create multiple overdraft items during a single banking day and you will be charged our Overdraft fee of $32.00 for each overdraft item paid. For consumer accounts, there is a limit of six (6) Overdraft Fees ($192.00) per day we will charge. We will not charge an Overdraft Fee if a consumer account is overdrawn by $5.00 or less. These exceptions do not apply to business accounts.

Multiple paid items will result in multiple fees. For example, three paid items in one day will result in

$96.00 in Overdraft fees. To help you manage your account, the total fees you have paid for items (both paid and returned) during the current month and for the year-to-date will be reflected on your monthly checking statement.

Additionally, if your account balance remains overdrawn for longer than 10 business days, after the 10th business day we will charge your account a Continuous Overdraft Charge of $1.00 every business day, until the account is brought to a positive balance.

What is my Overdraft Privilege limit? If I have two checking accounts, can I get Overdraft Privilege on both?

Locate your account type below and make note of the corresponding limit. If you have multiple accounts for your household or business you may have a limit on each eligible account.

Consumer Checking Accounts……… $ 500.00

Business Checking Accounts………… $ 1,000.00

How quickly must I repay my Overdraft Privilege?

You should make every attempt to bring your account to a positive end-of-day balance as soon as possible and must do so within 30 calendar days. If you are not able to do so, you will receive a letter from First Western Bank informing you that your Overdraft Privilege limit has been suspended and additional items will be returned.  If your account balance remains overdrawn for longer than 10 business days, after the 10th business day we will charge your account a Continuous Overdraft Charge of $1.00 every business day, until the account is brought to a positive balance. Unless we advise you differently or you request this service be removed from your account, your limit will be made available to cover overdrafts again the first business day after you bring your account to a positive end-of-day balance.

What are some of the ways I can access my Overdraft Privilege limit? Will my limit be reflected in the balance I receive?

The chart below shows the different ways you can access your Overdraft Privilege limit and indicates whether or not this limit will be reflected in the balance provided.

*Overdraft Privilege service will be made available for ATM or everyday debit card transactions on consumer accounts upon your request. Call 479-878-3411 or 877-631-0107 or visit one of our branches to arrange for your ATM and debit card coverage. No action is required for business accounts.

What if I am having trouble repaying my Overdraft Privilege or use it frequently?

Please contact us at 479-878-3411 if you: (1) do not believe you will be able to bring your account to a positive end-of-day balance within the required time period; (2) find that you are using Overdraft Privilege more often than you intended; or (3) do not understand why your account becomes overdrawn. We would like to discuss your situation with you.

We may refuse to pay an overdraft item at any time even though we may have previously paid overdrafts for you. For example, we typically do not pay overdraft items if your account is not in good standing as defined above, or, if based upon our review of your account management, we determine that you are using Overdraft Privilege excessively or seem to be using Overdraft Privilege as a regular line of credit. You will be charged an Overdraft Return fee of $32.00 for each item returned.

Following regulatory guidance, we will contact you if you are paying multiple Overdraft fees(i.e., more than six fees in a rolling 12-month period), to discuss possible alternatives to Overdraft Privilege that may better meet your short term credit needs. In the event you ask us to stop contacting you because you have determined Overdraft Privilege is appropriate for your needs, we will honor your wishes. However, if we identify that the number and frequency of overdrafts increases materially for an extended period of time at some point after that, we may contact you again to ensure Overdraft Privilege is still the most appropriate option available to you for covering your short term credit needs.

How do I know when I use the overdraft limit?

You will receive an overdraft notice each time items are paid, including fees. You will need to subtract the total fees when balancing your account.

We have no obligation to notify you before we pay or return any item. The amount of any overdraft including our Overdraft fee of $32.00 and/or an Overdraft Return fee of $32.00 that you owe us is due and payable upon demand even if we do not ask you for payment. You must repay us no later than 30 calendar days after the creation of the overdraft. If there is more than one owner on the account, each owner and agent, if applicable, shall be jointly and severally liable for all overdrafts including all fees charged.

How soon can I use my Overdraft Privilege?

We will advise you 30 or more days after your account is opened that you may use the Overdraft Privilege service. This is provided you have maintained satisfactory activity in the account, including making regular deposits, consistent with our internal standards for the account type for which the Overdraft Privilege is offered. Once you are notified your Overdraft Privilege limit is available to you, it may continue to be available provided you maintain the account in “good standing” as defined in this disclosure.

What are some other ways I can cover overdrafts at First Western Bank?

The best way to avoid overdrafts and fees is to keep track of your account balance by entering all checks, debit card purchases and ATM withdrawals in your check register, reconcile your account regularly and manage your finances responsibly. Other suggestions may be found at https://www.fdic.gov/moneysmart and https://www.consumerfinance.gov/.

First Western Bank offers additional ways to cover overdrafts in addition to Overdraft Privilege.