Overdraft Privilege & Overdraft Protection

Overdraft Coverage Options

Life happens! First Federal Bank of Louisiana understands that unexpected overdrafts occur from time to time – Overdraft Coverage can help. Consider these ways to cover overdrafts:

Call us at (800) 860-1238 or stop by any branch if you have any questions about these services.  

Overdraft Privilege

* If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Overdraft Privilege coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

You can discontinue the Overdraft Privilege in its entirety by contacting us at (800) 860-1238.

If you would like to select Extended Coverage for future transactions:

• Call us at (800) 860-1238,
• Complete the Extended Coverage Consent Form and click submit
• Visit any branch
• Complete the consent form, and mail it to us at
  PO Box 1667 Lake Charles, LA 70602

What Else You Should Know

• A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile banking, Internet banking, and telephone banking services to track your balance. For additional financial education resources, please visit www.mymoney.gov.
• The $28 NSF Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate NSF Fee or a Return Fee of $28. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
• For consumer accounts, there is a limit of 6 Paid NSF Fees ($168) per day we will charge. We will not charge an NSF Fee if the amount of the item is $5 or less. These exceptions do not apply to business accounts.
• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the NSF Fee from funds that you deposit or that are deposited into your account may call us at 800.860.1238 to discontinue Overdraft Privilege.
• If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, First Federal Bank of Louisiana (“We”) will charge a Return Fee each time we return the item because it exceeds the Available Balance in your account. Because we may charge a Return Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge a Return Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an NSF Fee. We may use the terms “item” and “transaction” interchangeably.
• We generally post items lowest to highest dollar amount within each type in the following order: 1) credits, 2) over the counter transactions, 3) ATM transactions, 4) Debit Card transactions, 5) ACH debits, 6) checks (serial number); however, exceptions may occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of NSF Fees or Return Fees assessed.
  Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.
• We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
• Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring NSF Fees for transactions that we would otherwise be required to pay without assessing an NSF Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
• We reserve the right to close your account at any time. In the event the overdrawn balance is not paid within 60 days, the account will be closed and may be reported to Consumer Reporting Agencies.

Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.

• We authorize and pay transactions using the Available Balance.
• Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
• Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
• The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Privilege limit.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege limit.
• Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Terms and Conditions of Your Account, which will reduce the amount in your Available Balance.
• Please be aware that the Overdraft Privilege amount is not included in your Available Balance provided through online banking, mobile banking or First Federal Bank of Louisiana’s ATMs.
• We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an NSF Fee may be assessed.
• Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Overdraft Privilege Limits

• New consumer accounts will receive a $100 Introductory Overdraft Privilege limit at account opening that may be increased to $500/$750 after 35 days in good standing.
• An Overdraft Privilege limit of $750 will be granted to eligible Business Checking accounts opened at least 35 days in good standing.
• Overdraft Privilege may be suspended if you default on any loan or other obligation to us, if your account becomes subject to any legal or administrative order or levy, or if the balance is not brought positive within 60 days of the date it became overdrawn. Overdraft Privilege may be reduced to $100 if you fail to maintain your account in good standing by not bringing your account to a positive balance within thirty-two (32) days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Privilege limit reinstated.

Extended Coverage

Extended Overdraft Privilege is also available for ATM and Debit card transactions. Enroll Now if you would like to select Extended Overdraft Privilege for future transactions. Accounts that are open less than 35 calendar days are eligible but have a limit of $100.00. All consent forms are subject to approval.

Enroll Now

Sweep Overdraft Protection

Avoid the hassle of returned checks and costly overdraft fees by linking your checking account to another First Federal Bank account. In the event your account becomes overdrawn, the funds will automatically sweep to cover the item(s).