Important Updates Regarding State and Federal Activities (click on a link below)
C.A.H.P. Credit Union Plans to Accept California Registered Warrants (aka IOUs)
Due to the current California revenue shortfall, the State Controller has indicated Registered Warrants may be issued as early as August, but as of 7/29/2010 no other details are currently available from the State.
If Registered Warrants are issued, C.A.H.P. Credit Union will accept Registered Warrants, issued by the State, in lieu of checks. Individuals who were CAHPCU members as of August 16, 2010 and are in good standing at the time of deposit will have the ability to have their Registered Warrants deposited into a share account at CAHPCU.
Registered Warrants must be deposited into a share account, (i.e., checking, savings, and money market). Because special handling is required to process California Registered Warrants -- the Credit Union will only accept warrants for deposit at our branches -- in person or via the U.S. Mail. Warrants deposited via ATM will be returned and the account assessed the applicable returned deposit fee.
CAHPCU will make every attempt to keep you updated via our website, or you may check for information by visiting the State Controller's Office website, or calling you can call the State Controller's toll-free registered warrants assistance phone line at 1-866-267-4255.
A registered warrant is a “promise to pay,” or an IOU, that is issued by the State when there are not enough funds to pay all of its General Fund obligations. Registered warrants bear interest and are redeemable by the State Treasury only when the General Fund has sufficient money.
C.A.H.P. Credit Union’s State Payroll Loan Available Now
Effective immediately and until the State passes the budget and reinstates full pay, CAHPCU members affected by the State’s budget impasse may obtain an Unsecured Loan1, granted on approved credit.
- 0% APR if paid in full by the first payday following full pay reinstatement for members with Direct Deposit and/or Payroll Deductions with CAHPCU as of June 30, 2010 (16.8% APR if not repaid as specified).
- Members who joined on or before July 1, 2010, but who did not participate in Payroll Deduction or Direct Deposit with CAHPCU may be eligible for an unsecured loan at 4.99% APR, if paid in full by the 15th of the month following full pay reinstatement, up to the difference between previous full net pay and current reduced net pay. Proof of income from State of California required. 16.8% APR applies if not paid in full by the 15th of the month following pay reinstatement date.
- Additional advances, not to exceed original advance amount, are available on the first of each month until the State reinstates full pay.
- Repayment for both 0% APR and 4.99% APR loans payable in one lump-sum payment.
1 Terms and conditions subject to change without notice. All loans and advances granted on approved credit. APR is Annual Percentage Rate.
Courtesy Pay Opt-In for ATM/Debit Card Transactions
Beginning July 1, 2010, Federal regulations require new members to opt-in before C.A.H.P. Credit Union may authorize payment and overdraw your account due to an one-time ATM/debit card purchase. This means that if you run short on account funds, your ATM/debit card purchases, whether large or small, may be refused or returned unless you opt-in.
If you are already a member, effective August 15, 2010 the new Federal regulations require that CAHPCU no longer authorize and pay overdrafts (Courtesy Pay) for one-time ATM/debit card transactions unless you authorize us to do so. You must complete and return the
opt-in form or call us to confirm you wish to receive CAHPCU courtesy pay coverage.
No action is required to continue Courtesy Pay for checks and other transactions using your checking account.
We do have other means of Overdraft protection to protect your account, ask your Financial Service Representative about your alternatives. Contact CAHPCU.
Common Questions:
Why Am I Being Asked to Opt-in?
There is a new Federal regulation that requires financial institutions to receive an affirmative opt-in by the consumer before providing Courtesy Pay on ATM/Debit card transactions. However, financial institutions may still automatically provide this protection to members on their checks and Automated Clearing House (ACH) transactions without an opt-in from the consumer. To have this service available on ATM/Debit Card transactions you must opt-in.
What Is Courtesy Pay?
Courtesy Pay is a service for those days you forget to check your available balance. We've all had those moments in life when you get so busy that you forget to deposit that check into your Checking Account, but don't realize it until you find the check still sitting at home. Courtesy Pay covers check and ACH transactions up to $500 that may otherwise be declined due to the lack of funds.
Is There a Fee?
Should you need to use the service it will automatically cover your expenses up to a $500 tolerance and you will be charged a fee of $25 for each transaction. There is no standing fee to have this service on your account(s).
Should I Opt-in or Not?
This is a personal decision for each member to make. CAHPCU encourages members to understand what it means when you opt-in and what it means if you do not opt-in.
If you opt-in you have an added layer of protection on your account to ensure transactions aren't declined, especially since it's provided as a courtesy that only charges a fee if you are in the situation where you need to use it, which for most folks is very infrequently.
If you do not opt-in and inadvertently go over your available balance your transaction will be declined no matter where you are or what you are purchasing.
Don't I Have This Service Automatically?
Previously CAHPCU applied this service automatically to many transactions related to your Checking account, but recently due to new Federal regulations we are no longer allowed to automatically offer this service to protect any of the transactions on Debit/ATM cards.
How Does the Service Work?
As a member you MUST opt-in to have Courtesy Pay protect a transaction performed using your ATM/Debit Card. Once you do this, your account will be protected when you use your Debit/ATM Card and do not have funds to cover the transaction; CAHPCU pays overdrafts at our discretion, which means that we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. Fees will be charged if the Credit Union pays your overdraft. Under our standard overdraft protection:
What Will Happen if I Don't Opt-In?
If you do not opt-in for this service on your ATM/Debit Card before August 14, 2010, on August 15, 2010 this service will not be associated with your card(s). Courtesy pay will continue to be associated with other transaction methods (checks and ACH).
Should you use your ATM/Debit Card on or after August 15, 2010 for a transaction that exceeds your available balance your card will be declined.
How Do You Opt In?