Questions members frequently ask about Direct Deposit and Direct Payment

How does Direct Deposit work?
Direct Deposit is a confidential and secure way for you to receive a payment from companies and organizations. Direct Deposit electronically transfers money from an organization's account into your Lake Trust Credit Union Checking or Savings Account.

What type of payments can I receive using Direct Deposit?
Many people use Direct Deposit for their payroll checks. You can also use it to deposit expense reimbursements, pensions, dividends, annuities, royalty payments, commissions, tax refunds, and benefit payments.

How many people use Direct Deposit?
More than half of Americans use Direct Deposit for their payroll check, and the number continues to grow. Over 40% of taxpayers use Direct Deposit for their tax refunds.

Why is it good to use Direct Deposit?
Direct Deposit is secure, convenient, and fast. Typically, your funds are available early on payday morning. The satisfaction rate for Direct Deposit is 97%. Find Out More°

What does Direct Deposit cost?
Direct Deposit is a free service.

How do I sign up for Direct Deposit?
Lake Trust has authorization forms for both active and retired State of Michigan employees, as well as for Social Security recipients. Others should check with their human resources or payroll department for an authorization form. If Direct Deposit is not currently available, ask your human resources representative to consider offering it.

Does Direct Deposit begin immediately after enrollment?
Usually, Direct Deposit begins two or three pay periods after you submit your authorization form.

How do I know when my payment has been deposited?
Most employers issue a pay stub that is identical to what you receive with a traditional paycheck. It shows the deposit to your account as well as deductions for taxes, insurance, and other items. You can verify the deposit through Lake Trust's online or phone banking or on your monthly Lake Trust statement.

How can I switch my Social Security, VA, or Railroad Retirement deposited at another financial institution to my Lake Trust account?
Contact a Lake Trust representative at any branch or call 517.267.7200 or 888.267.7200. Ask for a Quick$tart™ enrollment form to authorize the deposit in your Lake Trust account. Electronic funds transfer is quick and reliable, and the switch should take place quickly. However, don't close your existing account until the transfer is verified.

How can I have my funds directly deposited to a new or different account?
Contact a Lake Trust representative at any branch or call 517.267.7200 or 888.267.7200. Ask for a new enrollment form to authorize the deposit of funds into the new account. This process may take up to 30-60 days, just as it did when you first signed up. Leave the old account open until all organizations have acted on the new information.

Direct Payment

What are the benefits of Direct Payment for members?
With Direct Payment, you spend less on postage and checks, and save time paying bills. There may be additional benefits as well. Some companies offer lower interest rates or vouchers for free services when you use Direct Payment.

What types of companies and organizations offer Direct Payment?
More and more companies offer Direct Payment for recurring payments:

• Mortgage lenders
• Insurance companies
• Mutual funds and investment companies
• Vehicle loan lenders
• Newspapers/magazines
• Utilities
• Cable TV companies
• Health clubs
• Credit card companies
• Non-profits and fundraisers

How do I sign up for Direct Payment?
Complete the Direct Payment information and sign-up form°. Contact the companies not listed directly to start Direct Payment. Your payments will start being taken out of your account automatically within one or two billing cycles.

How many people use Direct Payment?
A recent poll indicates that 54 percent of consumers use Direct Payment for at least one recurring payment. The most common payments are insurance, regular investment or savings, utility, and mortgage payments.

Are there any other names for Direct Payment?
Other terms companies use include automatic bill payment, automatic debit, electronic bill payment, or direct debit.

How will I know when a Direct Payment has been taken out of my account? How will I know the amount?
Your funds are deducted from your account on the due date agreed upon by you and your biller. If the date falls on a federal holiday, the money is deducted on the next business day. Most companies issue a billing statement, and federal regulations require a statement if the payment varies each month. You can verify Direct Payments through Lake Trust's online or phone banking, or your monthly Lake Trust statement.

Will I still get a monthly bill from the companies?
For most bills, the answer is yes, but check to be sure. Companies that bill for fixed amounts, such as insurance and mortgage companies, are not required to send a statement in advance of the transaction.

What if I don't have enough money in my account when the Direct Payment is posted to my account?
You are obligated to have the funds in your account for Direct Payments, just as you do when you write a check. If your account lacks funds, Lake Trust will charge a Non-Sufficient Funds (NSF) fee and the biller may charge you returned item fees.

How do I cancel Direct Payment?
You need to notify your billers to cancel your Direct Payment.

How do I have my Direct Payment withdrawn from a new or different account?

• Contact the biller directly
• Complete and submit a new enrollment form to authorize withdrawal of funds from the new account (Approval may take 30-60 days, just as it did when you first signed up)
• Keep the old account open or cancel the Direct Payment option until all companies have processed the new information

What do I do if I didn't authorize ABC Company to deduct from my account for a Direct Payment?

• Contact a Lake Trust representative at any branch, or call 517.267.7200 or 888.267.7200.
• Sign a Written Statement Under Penalty of Perjury
• Provide your name, account number, the date of the transaction, and amount of the unauthorized transaction
• Lake Trust will recredit your account for the amount of the unauthorized transaction, and charge it back to the originator

How quickly must I notify Lake Trust of an unauthorized electronic transaction?
Contact a Lake Trust representative as soon as you are aware of the error. We can return an unauthorized electronic transaction to the originator up to 60 days from the transaction date.

I received a Non-Sufficient Funds (NSF) charge for an ACH transaction I didn't authorize.
Contact a Lake Trust representative at any branch, or call 517.267.7200 or 888.267.7200, and ask for an ACH stop payment on the item. This prevents the item from being paid and avoids another NSF charge if the item is presented again.

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