Policies

Privacy Policy . VISA Credit Card  •  Home Equity Loans
Share Draft  •  VISA Debit Card  •  Truth-in-Savings

Privacy Policy

Sterling Heights Community Federal Credit Union is owned by its members and run by a board of directors elected by the members.  We want you to know that the privacy and confidentiality of your personal information is a top priority.  We are required by law to provide you with a privacy policy in order to inform and explain to you how we collect, use, and safeguard your personal financial information. 

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If you have any questions about this disclosure or what it says, please contact us.

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Home Equity Loans Policy

Items listed below refer to home equity loans granted to SHCFCU members:

  1. Principal residence, or second home owned by member will be accepted as security.

  2. Interest rate will be a fixed rate equivalent to prime lending rate, based on The Wall Street Journal the first of each month, plus fees, established at time of application.  Member will pay all fees including, but not limited to document preparation, recording, appraisal, title policy, application fee, title insurance, and attorneys fees (Floor Limit 7% APR).

  3. The maximum amount loaned to a member will be 80% of the appraisal value of the residence less the amount owed.

  4. Any loan amount over $125,000 requires approval by the board of directors.

  5. Minimum loan amount is $5,000.

  6. Sterling Heights Community Federal Credit Union will limit the total loans outstanding under this policy to the discretion of the Board of Directors.

  7. Maximum term is 5 years with a balloon note.  Loan may be amortized for up to fifteen (30) years to reduce monthly payment amount.

  8. At the end of the balloon note, Member will have an option to either pay off balance due or to extend mortgage for additional 5 years at an interest rate equivalent to prime rate on due date of balloon payment plus processing fees.

  9. Loan payment will be due on the last day of each month of the loan term.

  10. A written real estate appraisal valuation from a Certified Appraiser may be require on larger loans, but in most cases State Equalized Value (SEV) x 2, will be acceptable.

  11. A Title Policy is required for each loan as proof of ownership and free of liens.

  12. The SHCFCU will require proof of insurance with standard mortgage clause stating "loss payable to" SHCFCU Michigan Federal Credit Union, and proof paid property taxes at the time of closing, and during the full term of the loan.

  13. Optional Credit Life Insurance will be available upon request at member expense.

  14. Monthly debt-to-income ratio, which includes mortgage debt, taxes, and insurance, will not exceed 40% of the gross income or 55% of net income per month considered over a representative period of time.

  15. Any sale of collateral will activate the "due on sale clause" of the home equity loan agreement.

  16. The presence of an attorney or title company representative may be required at closing for each home equity loan.

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VISA Credit Card Program Board Policy

  1. Interest Rates
    VISA Credit Card Program will be offered at an interest rate of 13.9%

  2. Minimum Monthly Repayment of Loan Balances
    Minimum monthly repayment will be the greater of 3.0% of the outstanding loan balance or $25.00.

  3. Maximum Loan Maturity
    The maximum maturity for repayment of outstanding VISA Credit Card loan balances shall be 36 months.

  4. Finance Charge Calculation
    Finance charge calculations will be made using the grace period method. The cardholder will have a period of 25 days from the billing date to pay the new balance of purchases in full without incurring a finance charge.

  5. Security Requirements
    All parties applying the VISA must be members of the Credit Union residing at the same address. The maximum number of cards issued per joint user account shall be two.

  6. Credit Life Insurance
    Credit Life Insurance coverage will not be extended to VISA accounts.

  7. Application Fee
    One-time fee of $10.00 will be charged to help with start up costs on VISA program.

  8. Over Credit Limit Fee
    A $10.00 over-limit penalty fee will be imposed on members who charge in excess of their contracted limit.

  9. Late Charge
    A $20.00 late fee will be imposed on members if minimum payment is not made within 15 days from statement due date.

  10. Miscellaneous Fee
    Direct costs resulting from member's special inquiry requests (i.e., photocopies, original copies, etc.) will be passed on par.

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Share Draft Policy

  1. Member will receive Share Draft books with carbon copy for their records, since drafts are not returned.

  2. Members will pay for their own drafts.  The charge will be $12.00 and up.

  3. All charges and policies relative to the Share Draft Program are as follows:

    1. When a member wishes a physical copy of a cleared draft, a $5.00 fee will be charged for each draft reproduced.

    2. Where a stop payment instruction has been issued, a $25.00 fee will be charged.

    3. Draft written on accounts with NSF will be returned as a $25.00 fee will be charged.

    4. No monthly service fee will be charged under our program.

  4. We will not certify any drafts under our program.

  5. Will will use monthly statements on the Draft Accounts and no dividends will be paid on this account.

  6. We will use the following overdraft protection:

    1. To be eligible for a line of credit for overdraft protection, you must have one year on the job or you must have been a member of the Credit Union for one year.

    2. If the funds are not available in the member's Share Draft Account, an automatic transfer will be made to the line of credit loan in the minimum amount of $100.00 — not to exceed member's individual limit.  A $3.00 fee will be charged.

    3. If no loan funds are available on the line of credit, the Credit Union will attempt to transfer it from your share account in minimum transfer of $100.00. A $2.00 fee will be charged.

    4. If assistance is needed to balance your Share Draft Account, a nominal fee will be charged.

  7. If a member continually abuses his or her Share Draft privileges, warning will be sent first.  Then, if member still continues abusing account, the member will receive notice by certified mail to discontinue writing drafts and return any unused drafts to the Credit Union Office.  Remember — Intentionally writing a draft on a closed account ordinarily constitutes a crime under State law.

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VISA Debit Card

Members must complete Application for Debit Card.  A Credit Report and a Telecheck search will be required.  Upon approval, the Member will open a Share Draft account with a Line of Credit attached for overdraft purposes.  Our Debit Card will allow ATM access with use of a pin number.

Fees for Debit Card Program
Overdraft Fee
$25.00
Replacement Card Fee
$10.00
New PIN Number Fee
$5.00
Escheat an Account
$25.00
Loan Transfer Fee
$3.00
Savings Transfer Fee
$2.00

We will use Monthly Statements and no dividends will be paid on this account.

To be eligible for a Line of Credit Loan for overdraft protection, you must have one year on the job or be a member of the Credit Union for one year.

If funds are not available in the member's Share Account, an Automatic Transfer will be made to the Line of Credit Loan in the minimum amount of $100.00, not to exceed the member's individual limit.  A $3.00 fee will be charged. If no funds are available on the Line of Credit Loan, the Credit Union will attempt to transfer it from the member's share account (minimum transfer of $100.00.  A $2.00 fee will be charged.

If member continually abuses his or her Share Draft privileges under the Debit Card Program, a warning will be sent first.  Then, if member still continues abusing Account, the member will receive notice by certified mail to discontinue writing drafts and return any unused drafts along with the Debit Card to the Credit Union office.  Remember — Intentionally writing drafts or using a Debit Card on a closed account ordinarily constitutes a crime under State Law.

Members will not be surcharged at SC24 ATMs or Alliance One ATMs per our agreement with Service Centers and Alliance One.

Security Requirements:  All parties applying for VISA Debit Card must be members of the Credit Union, residing at the same address.  The maximum number of cards issued per joint user account shall be two.

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Truth-in-Savings Disclosures

Except as specifically described, the following disclosures apply to all of the accounts.  All accounts described in this Rate and Fee Schedule are share accounts.

  1. Rate Information
    The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period.  For Certificate accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account.  The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity.  A withdrawal of dividends will reduce earnings.

  2. Nature of Dividends
    Dividends are paid from current income and available earnings after required transfers to reserves at the end of the dividend period.

  3. Dividends Compounding and Crediting
    The compounding and crediting of dividends applicable to each account is set forth in the Rate Schedule.  The Dividend Period begins on the first calendar day of the Dividend Period and ends on the last calendar day of the Dividend Period.

  4. Balance Information
    The minimum balance requirements applicable to each account are set forth in the Rate Schedule.  For Certificate accounts, dividends are calculated by the Average Daily Balance method which applies a periodic rate to the average daily balance in the account for the period.  The average daily balance is determined by adding the full amount of the principal in the account for each day of the period and dividing that figure by the number of days in the period.

  5. Accrual of Dividends
    For Certificate accounts, dividends will begin to accrue on non-cash deposits (e.g., checks) on the business day you make the deposit to your account.  For Certificate accounts, if you close your account before accrued dividends are credited, accrued dividends will not be paid.

  6. Transaction Limitations
    After your account is opened, your ability to make additional deposits to your account or withdrawals of dividends and any limitations on such transactions are set forth in the Rate Schedule.

  7. Maturity
    Your account will mature as indicated on this Rate and Fee Schedule or on your Account Receipt or Renewal Notice.

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Please contact us if you have any questions.