Founders Privilege Disclosure

Overview. Founders Privilege is a service that offers an overdraft protection for your Checking Account. It is your duty to use your Checking Account in a responsible manner; however, we understand situations occur causing a financial shortfall. Paid items are subject to the fees listed in the Truth-in-Savings Rates and Fees Schedule. Founders Privilege is not a loan and is not subject to interest charges or late fees. Founders Federal Credit Union (FFCU) may change the terms of this program or revoke your privileges without notice unless required by law.

Applicable Fees. Overdraft transactions greater than $3.00 will be charged $32.00 per transaction. Items $3.00 or less resulting in an overdraft transaction will not incur a fee.

Cumulative Limit. Your Founders Privilege benefit is limited to allowing your available balance to reach no less than $500.00 negative. However, applicable fees may cause your balance to exceed $500.00 negative. FFCU holds the discretion to pay each overdraft item and we reserve the right not to pay. The maximum daily fee amount is $160 per suffix.

Services. You may choose to enroll in Founders Privilege at any time. Use Founders Privilege to cover overdrafts caused by items such as checks and preauthorized ACH debits. Founders Privilege may also cover transactions conducted with a Debit Card only if you have agreed to have FFCU pay these transactions in a separate agreement. FFCU provides additional overdraft options. Those are:

  1. Overdraft Protection Transfer
    If you have other accounts with the Credit Union, you can authorize us to set up an automatic transfer and move the funds needed to cover any overdraft.
  2. Personal Line of Credit or Home Equity Line of Credit Transfer
    You may qualify for a Personal Line of Credit or Home Equity Line of Credit to cover overdrafts. This service requires you to complete an application. Approval will be based on your creditworthiness. Draws on any line of credit are loan advance and are subject to interest charges and the terms of the loan agreement.

We also offer free services to help monitor your account. You may use Founders Online, the Founders app, Founders Mobile, and Call24 to minimize the risk of incurring an NSF fee. Visit your local branch,, or call 800-845-1614 for more information on all services mentioned.

Decline. If you do not want to take advantage of Founders Privilege, please call 1-800-845-1614 or visit a Financial Services Representative at an office near you to remove this benefit from your account. There is no fee to remove this benefit. By removing Founders Privilege from your account, you understand that any transactions that would result in a negative available balance in your Checking Account will be returned. Returned items are subject to the insufficient funds (NSF) fees outlined in the Fee Schedule. If a check or ACH transaction is presented and returned more than once an NSF fee will be charged for each occurrence.

Eligible Accounts. Founders Privilege provides protection for personal Checking Accounts. Accounts not eligible are savings accounts, Money Market Plus accounts, business accounts, fiduciary accounts, organizational accounts, and public funded checking accounts.

Member Eligibility. Eligibility is at the sole discretion of the Credit Union and is based on you managing your Checking Account in a responsible manner and other factors. You must be 18 years or older, have no negative deposit balances or delinquent loans over 30 days, and your account must not be dormant. You may not receive Founders Privilege if you have had a loan charged off, caused a member loss, filed for bankruptcy, or have had loans modified through troubled debt restructuring. Reasons your Founders Privilege may not be available, suspended, or permanently removed may include but are not limited to:

  • You are more than 30 days past due on any Credit Union loan or delinquent on any other obligations to the Credit Union.
  • Your account has been modified through troubled debt restructuring.
  • You are subject to any legal or administrative orders or levies, or you are currently a party in a bankruptcy proceeding.
  • Your account is classified as inactive/dormant.
  • We believe you are managing your account in an irresponsible manner which may harm you or us.

Responsibility to Repay. You have a responsibility to return your account to a positive balance within thirty (30) days of the transaction causing an overdraft. If you do not, we may, terminate your account, exercise the right to offset without prior notice, begin collection action, and report negatively to the credit bureaus. Joint owners have equal responsibility for the overdraft and are subject to the prior mentioned actions and fees. The Credit Union reserves the right to apply any other or later deposits, including direct deposits, to pay your overdrafts or applicable fees.

Understanding Actual vs Available Balance. Actual Balance means the total amount of funds in your account(s). Available Balance means the amount of the Actual Balance that is available for transactions (withdrawals, checks, debit transactions, online banking, or other authorized transactions). Fees are based on your Available Balance versus you Actual Balance.
For example, a gas station may disclose to you they submit authorizations for $100.00 before processing your payment. If your purchase of gas is only $20.00, they charge your account $20.00. But the $100.00 authorization reduces your available balance by that amount until we receive the corresponding charge from the gas station.

Payment Order of Items. The order items are presented may affect the fees assessed to your account. Most transactions are posted when you conduct them.* However, transactions such as ACH entries and checks are received in batch files and posted in the following manner: We post each day’s ACH credits first followed by ACH Debits, then checks. We post ACH debits and checks in the order they are received.

*Funds availability rules apply and funds deposited on a real time basis may not be made immediately available. See our Funds Availability Policy for details. Debit card holds for purchases conducted through the Card network post immediately. The transaction settlement may not post to your account hours or days after based on when the merchant submits them.

Waiver. We reserve the right to waive or choose not to enforce any and all terms, rights, or remedies under this Founders Privilege Disclosure, or any provision of the Membership Agreement and Disclosures, and such waiver shall not affect our right to enforce that or another term, right, or remedy at a later time.


Form 4343 11/2021