Overdraft Honor Customer Overdraft Policy

Overdraft Honor is a courtesy service that allows Heartland Bank and Trust Company to accommodate its personal checking account customers in good standing by paying overdraft items and fees up to certain limits on a discretionary, ad hoc basis. 

Unless you, the customer, decline to participate in the program, Overdraft Honor is automatic for your personal checking account.  Your initial overdraft limit including paid items and fees is $100.  If you continue to maintain your account in “good standing” as per the Bank’s criteria (e.g., the account has been open 60 days, deposits are regularly made that bring the account to a positive balance at least once every 30 days, excessive overdrafts are avoided, and there are no legal restrictions against the account including, but not limited to, levies, garnishments, and liens), your overdraft limit may be increased to $500.

Overdraft Honor extends to a variety of transactions and is intended to protect you from inadvertent, rather than routine or intentional, overdrafts.  The service covers checks, ACH/automatic debit, TeleBank and Online banking transactions.  With your specific authorization, as required by federal Regulation E, the service will also extend coverage to ATM and debit card transactions.  Please note that coverage for checks, ACH/automatic debit, TeleBank and Online banking transactions does not depend on your authorization for ATM and debit card transaction coverage.

Overdraft Honor is a non-contractual courtesy service, so the Bank is not obligated to pay any transaction where the amount exceeds the sufficient collected funds in your account.  While the Bank has the discretion to pay overdrafts pursuant to Overdraft Honor, we may also refuse to pay an item without prior notice.  Even if we have previously paid overdrafts for you, we are not obligated to cover subsequent overdrafts.  The Bank’s procedure dictates the payment of electronic transactions first and then the payment of checks in ascending check number order.  We reserve the right to change the order of payment if there is a suspicion of fraud or illegality on your account.  The order items are paid can affect total overdrafts and related fees incurred in a single day. 

Overdraft Honor does not replace the terms of your Deposit Account Agreement.  Any and all bank fees and charges set forth in our Deposit Account Agreement and fee schedules are applicable.  This means that unless you have specified that NSF items be returned, when you present an item for payment creating an overdraft under our Deposit Account Agreement you have agreed to pay us the amount of the overdraft plus our normal overdraft fees regardless of whether the overdraft is paid pursuant to Overdraft Honor.  On joint accounts, all account owners are jointly and severally liable for the payment of overdrafts and fees pursuant to the Deposit Account Agreement.

Overdraft Honor should not replace good account management.  The Bank does not encourage its customers to overdraw their account.  Overdraft Honor is not a line of credit.  Customers interested in a line of credit to cover overdrafts may apply for Reserve Line, which is a loan product subject to annual fees, advance fees, interest, and late charges. Customers may also authorize transfers from another Heartland Bank deposit account by completing an Overdraft Transfer Service Authorization.

We trust you to bring your account positive as quickly as possible. If you are overdrawn for more than three business days, you will be charged $5.00 each business day the account remains overdrawn, in addition to any per item overdraft fees.  All fees and charges, including but not limited to these overdraft fees, will be included in your $100 or $500 Overdraft Honor coverage limit, as applicable.  For example, based on a $500 limit:

Let’s assume you have written two checks, each for $100. There is only $50 in your account, which is not enough to cover either check. With Overdraft Honor, the Bank will pay the two checks and you will be assessed the paid item fee of $32 for each check ($64). You have incurred $264 in checks and fees, utilizing $214 of your Overdraft Honor coverage. Your account balance is now -$214. You can be covered for an additional $286 in overdrafts and fees through the Overdraft Honor service should you need it. If this balance remains negative, you will be assessed a daily overdraft charge of $5.00 on the 4th business day and each business day thereafter until the account becomes positive.

While you may opt-out of Overdraft Honor at any time, you will remain responsible for previously incurred negative balance on an overdrawn account.  If you choose to remain in the program you must bring your account positive at least once every 30 days.  If your account remains overdrawn beyond 30 days, Overdraft Honor privileges will be suspended.  The Bank reserves the right to further limit participation in Overdraft Honor or to discontinue or suspend the service in whole or part without prior notice. If your account remains overdrawn for 60 consecutive days, your account will be closed and may be reported to collection and/or credit reporting agencies.

Please refer to your Deposit Account Agreement for further terms and conditions controlling the rights and obligations of the Bank, you and the authorized users of your account.  If a conflict should ever arise between the Bank’s overdraft policies and the Deposit Account Agreement, the terms and conditions of the Deposit Account Agreement shall control the outcome.

Any questions regarding this service can be directed to your local branch or to the Customer Care Center at 888-897-2276.