The Home Equity Line of Credit (HELOC) Overdraft Protection service allows clients with CCB checking accounts to preauthorize the transfer of funds from their HELOC for overdraft protection. The owners of the receiving DDA checking account must match the borrowers of the HELOC. HELOC Overdraft Protection may be used to protect up to nine CCB checking accounts, but they must be titled the same as the HELOC agreement.
Clients who use this service will only pay interest on the amount used, in addition to a daily transfer fee of $10 per linked account utilized.
How it Works
Features:
- Automatic advances based on Overdraft Protection (ODP) Agreement
- Transactions appear on monthly checking statements
- Coverage provided by the HELOC ODP Service begins after agreement is executed
Fees:
- Interest on the HELOC is paid only on the amount used for ODP, at the same APR
- In addition to interest paid, clients also pay a daily transfer fee of $10 per linked account utilized. The system debits the $10 fee from the HELOC account and generates a notice for the client.
For HELOC ODP agreements dated before 04/03/2015, the following applies:
Note: The account has a minimum draw/advance limit of $100.00.
When the receiving account is overdrawn, the system transfers an amount in $100.00 increments from the HELOC account to cover the overdraft and to maintain the minimum required balance in the receiving account. However, if the minimum draw is not available, the system transfers all the remaining available funds from the HELOC account to the receiving account.
For HELOC ODP agreements dated after 04/02/2015, the following applies:
Note: The account has no minimum draw limit.
When the receiving account is overdrawn, the system transfers enough money to cover the overdraft and to maintain the minimum required balance in the receiving account from the HELOC account to the receiving account. However, if the HELOC account balance is not sufficient to cover the overdraft, the system transfers all the remaining available funds from the HELOC account to the receiving account.
Enroll in HELOC ODP
When the client requests the Home Equity Line of Credit (HELOC) Overdraft Protection service, do the following:
- Verify the client's identity.
- Provide the client an ODP brochure.
- Complete an Overdraft Protection (ODP) Modification of Credit Agreement form.
- Have all borrowers on the Home Equity Line of Credit sign the agreement. Note: Borrowers on HELOC must match owners on checking account being linked.
- Create a Synapsys service event by doing the following:
- In Xperience click Customer & Account Inquiry.
- Search for client using name, CIF, or Tax ID.
- Click Related Functions > CRM.
- Click New Event/Activity > New Event > Service Session.
- Click Loan Maintenance > ODP from Existing LOC.
- Click OK.
- Complete all applicable fields.
- Scan the Overdraft Protection (ODP) Modification of Credit Agreement form.
- Attach the scanned form to the service event by clicking Attachments > Add New > Complete applicable fields > Submit.
- Click Save > Save & Submit Session.
Cancel HELOC ODP
When the client requests to cancel the HELOC Overdraft Protection service, do the following:
- Create a Synapsys service event:
- In Xperience click Customer & Account Inquiry.
- Search for client using name, CIF, or Tax ID.
- Click Related Functions > CRM.
- Click New Event/Activity > New Event > Service Session.
- Click Loan Maintenance > All Other Requests.
- Click OK.
- Complete all applicable fields.
- Scan the form.
- Attach the scanned form to the service event by clicking Attachments > Add New > Complete applicable fields > Submit
- Click Save > Save & Submit Session.