Kaiperm

To Opt-In or to Opt-Out…that is the Question!

Confused about the upcoming legislation since receiving a postcard from the credit union which stated:

PREPARE FOR THE COMING LEGISLATION…PROTECT YOUR CREDIT UNION ACCOUNT!

Well, here’s the simplified version.

TODAY:

KaiPerm Northwest Credit Union has always transferred funds on your behalf from savings 01 as a courtesy for the members. Generally, the savings #01 and line of credit (LOC) #75 are used for overdraft protection. This helps protect our members when they are running short on funds. Overdraft protection provides automatic transfers when making purchases as long as funds are available in the other share/loan. This has been a service we offer automatically for our membership.

 AFTER AUGUST 15^th:

 If you have chosen to opt-out and you attempt to make a purchase while there are not sufficient funds in your checking account, your transaction gets denied.  The computer system would not attempt to transfer funds from any other share accounts. End of story.

 If you have chosen to opt-in with share types #01 and #35 (savings and holiday club) and you attempt to make a purchase while there are not sufficient funds in your checking account the computer system transfers funds from the available balance and your purchase is completed. No denial of transaction, no delay in making your purchase.

 The key is that you must choose which share types to include in your opt-in notice. We will only be able to transfer from share types you include on the letter. You must be specific in order to have the service provided per federal regulations. Here is the list of share types and what they represent:

 01 – Regular Savings
 02 – Special Savings
 05 – Money Market
 55 – Money Market (Direct Advantage)
 06 – High Yield Money Market
 66 – High Yield Money Market (Direct Advantage)
 30 – Holiday Club  
 35 – Holiday Club (Direct Advantage)

Click here to obtain a copy of the opt in/opt out letter. If you have any questions, please contact a friendly credit union employee at 503.813.3242. We will be happy to help.