March 16, 2015 - 4:36pm
#1
Good Afternoon,
I am need of some help.
Currently, when a member abuses the courtesy pay system, we remove the service from their account. In most instances, transactions will be declined at the point of sale. However, if a member is pre-authorized for a minimal dollar amount, the transaction will be approved, regardless of whether the member has the funds for the full purchase price in their account. When this happens on accounts that we have removed courtesy pay on, we still assess an overdraft fee.
If the member formally opts-out of courtesy pay, we will not.
Is this how you handle things? If so, what regulations do you reference if / when a member questions this policy?
