Regulation-E

Dear Customers, Consumers and Visitors to our Website,

This information is to inform ATM and Debit card holders of important changes to Regulation-E (Electronic Funds Transfers Act) and how it affects your checking account and the use of Bounce Protection.

*Please note customers of Hawthorn Bank who are ATM and Debit card holders will receive further information in the mail concerning the changes to Regulation-E.

ATM and Debit Card users starting August 15, 2010, your checking account(s) will NOT be covered for overdrafts with your debit card at an ATM and or for merchant purchases (one-time Point of Sale) as they previously were under our current Bounce Protection service, unless you choose to OPT-IN to the service as now required by the changes to Regulation-E.

We understand our customers sometimes make honest mistakes in their checking accounts. Mistakes like calculating balance or forgetting to make a deposit. Hawthorn Bank has traditionally covered debit card related overdrafts to save you the embarrassment of a declined transaction. Many of our customers have occasionally needed and enjoyed this service for years.

What do the Regulation-E changes mean to you? It means that should you attempt to withdraw funds from any ATM and have insufficient money to support the transaction; the bank will not be able to continue to make a choice and provide the funds requested. This also applies to Merchant Purchases, so should you be in your favorite store and use your debit card to pay for your purchase and the account lacks sufficient funds, would you want your bank to have the option and possibly approve the transaction, charge you a fee and avoid possible embarrassing moments? The decision is yours.

Please find on the provided link the changes to Regulation-E with all the information to make an informed decision concerning overdraft protection and your right to Opt-In for this service. We ask that you take a moment to review this information and should you have questions concerning these changes or need more information on the Opt-In option please contact a Customer Service Representative at a branch near you.

Sincerely,
Your friends at Hawthorn Bank