Your Overdraft Line of Credit

Why is the balance in my Electric Orange negative?
How does the Overdraft Line of Credit work?
Do you pull my credit if I apply for Electric Orange and the Overdraft Line of Credit?
How do I apply for an increase on my existing limit or reapply for an Overdraft Line of Credit?
Is there a charge for using the Overdraft Line of Credit?
How will I know if my Electric Orange balance has gone below zero and I’ve gone into my Overdraft Line of Credit?
What is the interest rate on the balance my Overdraft Line of Credit covers?
What is the ING DIRECT Prime Rate?
How is interest calculated on my Overdraft Line of Credit balance?
How do I repay the Overdraft Line of Credit balance?
How do I pay the interest on my Overdraft Line of Credit balance?
If I’m carrying an outstanding balance on my Overdraft Line of Credit, when and how much will I have to pay?
What happens if I don’t pay my Overdraft Line of Credit on time?
Why is my Overdraft Line of Credit showing zero when I haven’t exceeded my limit?

Why is the balance on my Electric Orange negative?

You’ve made a withdrawal or debit that has taken your balance below $0.00, and your Overdraft Line of Credit has kicked in to cover the difference to prevent NSF (Non-Sufficient Funds) charges.

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How does the Overdraft Line of Credit work?

It’s connected right to your Electric Orange and is accessed anytime your balance goes below $0.00.

Here’s an example: An Electric Orange Customer has $1,000 in his Electric Orange, and an Overdraft Line of Credit limit of $165. He buys a new laptop computer for $1,100 using his Electric Orange Card. This transaction will be processed using the $1,000 balance in his Electric Orange, and $100 from his Overdraft Line of Credit. His Electric Orange balance will now appear as -$100 on our website, which reflects the $100 credit used from his Overdraft. He will then pay a competitive interest rate on the $100 he borrowed until it’s paid down with his next deposit.

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Do you pull my credit if I apply for Electric Orange and the Overdraft Line of Credit?

Yes, as part of your application, ING DIRECT will obtain information about you from a consumer credit reporting agency (a “hard pull”) to confirm that you are eligible for Electric Orange.

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How do I apply for an increase on my existing limit or reapply for an Overdraft Line of Credit?

It’s easy, just follow these simple steps:

1. Login to ingdirect.com with your Customer Number and PIN, click on your Electric Orange, then select ‘Account Maintenance’.
2. In the ‘Overdraft Line of Credit’ section, click on the 'Apply' link.
3. Provide the requested information. You'll receive an email in 2-3 banking business days with our response.

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Is there a charge for using the Overdraft Line of Credit?

No, there’s no fixed charge to use your Overdraft Line of Credit. Instead, you’ll pay a competitive interest rate – based on ING DIRECT Prime – on the amount you borrow.

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How will I know if my Electric Orange balance has gone below zero and I’ve gone into my Overdraft Line of Credit?

You’ll receive an email notification alerting you when this occurs. Whenever your Overdraft Line of Credit kicks in to cover a withdrawal or debit that exceeds your Electric Orange balance, you’ll receive an email alert. When you login to ingdirect.com, you’ll also see a negative balance on your Electric Orange along with a reminder that your Overdraft Line of Credit is providing automatic protection and in order to pay back the balance, you’ll need to make a deposit.

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What is the interest rate on the balance my Overdraft Line of Credit covers?

The current variable interest rate as of is APR. It’s based on the ING DIRECT Prime Rate - a highly competitive rate much lower than most banks.

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What is the ING DIRECT Prime Rate?

The ING DIRECT Prime Rate is used as the base rate index for some of our variable rate loans, and may be used as an index for other lending products. Adjustments to the ING DIRECT Prime Rate occur periodically, sometimes in line with changes to the Federal Funds Rate.

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How is interest calculated on my Overdraft Line of Credit balance?

Whenever you dip into your Overdraft Line of Credit, we'll calculate the interest owed from the day the transaction amount is posted until the balance is paid in full. There is no interest grace period for transactions that post against your Overdraft Line of Credit. Interest owed will be calculated by:

• Multiplying the daily ending balance on your Overdraft Line of Credit by the daily periodic rate.
• Periodic rate is found by using the current APR divided by 365 – or 366 in a leap year.
• At the end of the month, we’ll add all of the interest owed amounts for the days that you held a balance in your Overdraft Line of Credit.
• Then deduct that amount – the finance charge – from your Electric Orange balance.

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How do I repay the Overdraft Line of Credit balance?

Simply make a deposit into your Electric Orange. You can do this by using the ‘Transfer Money’ tab. Any recurring deposits, either through Direct Deposit or an Automatic Savings Plan, will also count as a payment.

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How do I pay the interest on my Overdraft Line of Credit balance?

At the end of each month, we'll automatically subtract any interest owed from your Electric Orange balance. If you dip into your Overdraft Line of Credit at any point in the month, the interest will be deducted at the end of that month.

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If I'm carrying an outstanding balance on my Overdraft Line of Credit, when and how much will I have to pay?

If your Electric Orange balance is negative at the end of the month, you must at least make a deposit for the minimum deposit due by the last day of the following month. Here’s how to calculate your minimum deposit:

• If your month end balance is over $3333.33 – you pay 3% of your outstanding balance.
• If your month end balance is between $100 and $3333.33 – you pay $100.
• If your balance is less than $100 - you must pay the entire outstanding balance.

We’ll send you a reminder email before your payment is due and additional reminder emails when you miss a payment. When you login to ingdirect.com, you’ll also see a message that provides instructions on how to make a deposit.

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What happens if I don’t pay my Overdraft Line of Credit on time?

If you do not make the minimum deposit due by the last day of the following month, any missed payments will be included in the next payment due. If you miss a payment, a temporary hold will be placed on your account. Until a payment is made, you will not be able to use your Electric Orange Debit Card or make any withdrawals (including Bill Pay, Electric Checks, and paper checks).

If you miss more than three payments, your Overdraft Line of Credit limit will be reduced to zero ($0), and your Electric Orange may be closed altogether. In addition, you’ll still need to make payments to the outstanding Overdraft Line of Credit balance.

Please note, this does not affect any other accounts you may have at ING DIRECT.

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Why is my Overdraft Line of Credit showing zero when I haven’t exceeded my limit?

It could be reduced to zero for several reasons, including a request made by you to lower your limit, an adjustment on your available limit as a result of late payments or an account review. If this does occur and you’re not sure why, give us a call at 1-888-464-0727 and one of our Associates will be able to provide you with more detailed information.

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