Consumer Banking Services Agreement
Welcome to Salem Five Cents Savings Bank. Salem Five is a mutually owned savings bank, chartered in the Commonwealth of Massachusetts in 1855. We offer a full range of deposit products to meet your financial needs.
Please take the time to familiarize yourself with the agreement terms below. If you have any questions, please call us (800) 850-5000 or email us. If you wish to retain a copy of our Consumer Banking Services Agreement, click here.
Are you opening an account online? After reviewing this document, please close the window and you will be returned to your application to complete it.
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What This Agreement Covers
This Consumer Banking Services Agreement (“Agreement”) explains the terms and conditions of our consumer deposit banking services as well as the regulations that govern them. When you open an account or sign a signature card, or when you transact business, you agree to be bound by the terms and conditions set forth in this Agreement. Please read the Agreement carefully and retain it for your records. If you have any questions, we will be happy to answer them for you.
In this Agreement, the words “you” and “your” refer to the consumer who maintains a deposit account with the Bank. The words “the Bank,” “we,” “our,” and “us” refer to Salem Five Cents Savings Bank. All terms are effective as of the date of this Agreement and may be amended from time to time by notice to you, if required by law.
In addition to the terms stated in this Agreement, your account is governed by the laws and regulations of the United States and the Commonwealth of Massachusetts, including the Uniform Commercial Code. In the event of any conflict between these provisions and applicable law or regulation, this Agreement shall be considered changed to the extent necessary to comply with such law or regulation.. -
Disclosure of Account Terms
When you open your deposit account, or upon request, you will receive a disclosure of account terms and a fee schedule, which are part of this Agreement. Your account disclosure will provide you with information pertaining to your account, such as the interest rate and applicable annual percentage yield, minimum balance requirements (if any) and method of compounding and crediting interest. If any information in this disclosure or the fee schedule changes, and that change adversely affects you, we will provide notice to you. When required by law, we will notify you in writing at least 30 days prior to the effective date of the change. -
Deposit Protection
Your deposit accounts at Salem Five are fully insured by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).The basic insurance amount provided by the FDIC is $250,000 per depositor per deposit category. All deposits above this amount are insured by DIF. -
Taxpayer Information
When you open a deposit account, you are required to certify the Taxpayer Identification Number (TIN) you provide us. You must also certify that you are not subject to backup withholding of federal income taxes. If you are a U.S. person and you fail to furnish us with a certified TIN, if the IRS notifies us that the TIN you gave us is incorrect, or if the IRS notifies you that you failed to report all your interest and dividends on your tax return, we may be required to close your account or withhold a percentage of your interest payments and provide it to the IRS. This is known as “backup withholding”. -
Account Opening
Consumer deposit accounts may only be opened for personal, family or household purposes. Deposit accounts will be considered open once the Bank has received and approved all required account opening documentation. We reserve the right to require additional signature or other verification documentation from you during your account relationship. -
Account Ownership
You may open your account in one or more names. Minors may not open accounts as sole owners.
Joint Accounts: If opened in more than one name, your account will be treated as a joint account with right of survivorship. If one owner dies, funds will be payable to the surviving owner(s). The TIN assigned to the account for IRS reporting purposes shall be that of the first listed owner. Any account owner may withdraw any or all of the funds, regardless of any information we may have regarding actual ownership of the funds on deposit. We may honor instructions concerning the account from any account owner or the legal representative of any account owner, including instructions regarding account closure, account re-titling, and/or the removal of account owners. Each joint account owner guarantees the signature of the other joint owner(s). All owners on a joint account are jointly and individually liable for any overdrafts created in the account, regardless of which joint owner made the withdrawal overdrawing the account or who benefited from the payment.All owners must sign a permanent signature card and provide the required documentation of identity. Failure to provide us with this completed document may result in the Bank’s refusal to negotiate checks or payment orders against the account.
For your convenience, we may allow you to establish a joint account, even if only one joint account owner signs the signature card. If we allow you to do this, you agree to indemnify and hold us harmless from and against losses we may incur, or other harm arising from, or in any way relating to, establishing your joint account without having a signature card signed by another joint account owner. By transacting any business on the joint account, a joint account owner who has not signed the account’s signature card agrees to be bound by this Agreement, the Consumer Banking Fee Schedule, and any other applicable agreement. If any joint account owner has not provided us with a signed signature card, your joint account may not qualify as a joint account for purposes of Federal Deposit Insurance coverage under applicable law concerning inheritance or the transfer of property upon death. We reserve the right to refuse to pay or honor checks and other orders of withdrawal signed by a joint account owner who has not signed the account’s signature card. We may, in our sole discretion, convert your joint account into an individual account.
Each joint account owner hereby appoints each other joint owner as his or her agent for the purpose of requesting services relating to the account, such as ATM or debit cards, Online Banking, and telephone banking.
Beneficiary Accounts: An informal trust account is the account of the trustee depositor(s) only. For IRS reporting purposes, the TIN shall be that of the first listed trustee depositor. When the trustee depositor(s) dies, ownership of funds in the account passes to the beneficiary. However, the beneficiary will have no rights to the funds until all trustee depositors have died.
MUTMA Accounts: Massachusetts law allows an adult to make an irrevocable gift or transfer of property to a minor under the terms of the Massachusetts Uniform Transfer to Minors Act (MUTMA). This account is opened under the TIN of the minor. However, the adult, as custodian of the funds, is the only person who may transact business on the account. It is the obligation of the custodian to use the funds for the sole benefit of the minor and to turn the funds over to the minor when the minor attains age 21. We will not be liable to the minor or anyone representing the minor for the conduct of the custodian with regard to the account..
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Credit Reference
You agree that the Bank may, from time to time, obtain credit and other reference information necessary, including information about you from a consumer reporting agency, credit bureau or a similar service provider. -
Deposits
All checks and items deposited or cashed are received and credited by the Bank subject to final collection. In receiving items for deposit or collection, the Bank acts solely as your agent and assumes no responsibility beyond the exercise of ordinary care. You may determine the availability of your funds by referring to the section titled “Your Ability to Withdraw Funds.” If a deposited or cashed item is returned unpaid for any reason and at any time, we have the right to charge the item back to your account or to require a refund from you, plus applicable fees, even if the dishonored item is returned after the drawee bank’s midnight deadline. We may alternatively redeposit the item, in which case you waive the right to notice of dishonor. We may process a copy, electronic entry, or other evidence of a returned item.Foreign Collection Items: We may refuse to accept a foreign item for deposit or collection. If accepted, checks drawn outside the continental U.S., whether payable in U.S. or foreign funds, will be accepted for deposit on a collection basis only, and, at our discretion, may be provisionally credited to your account or not credited until we receive the proceeds in cleared funds from the paying bank. Any provisional credit will not affect our right of chargeback if the item is returned, even if returned months later. You bear all the risks associated with the collection process, and you acknowledge that your deposit of a foreign item will be subject to adjustment based on the applicable exchange rate and bank fees for the collection of foreign items.
Automated Deposits: Funds deposited through an automated clearing house (ACH) or other electronic means are always provisional and are subject to the rules of the applicable automated clearing house (ACH) or other system. That is, they may be revoked prior to final settlement and are subject to adjustment by the originator. Interest in your account will be subject to adjustment in the event of any chargebacks. We will not provide you with next day notice of the receipt of an ACH credit to your account. You will receive notice of such credits in your periodic statements.
Deposit of Substitute Checks: You agree that you will not deposit, without our prior written consent, “substitute checks” as defined by federal law or Image Replacement Documents that purport to be substitute checks and have not been previously endorsed by a bank. If you deposit such an item, you agree to reimburse us for losses, costs and expenses we may incur associated with warranty or indemnity claims. -
Withdrawals
You may only make withdrawals with checks, drafts, or other withdrawal forms supplied or approved by the Bank. The Bank reserves the right to return unpaid any other form of order presented or any order incompletely or defectively drawn and to impose a charge therefore. We may also refuse a request for a withdrawal or check encashment if any document or identification required by law or the Bank in connection with the withdrawal or encashment has not been presented to us.Standard of Care: Most checks and other debit items are processed automatically, without review of each check or item. You agree that we are acting within common and reasonable banking practices by such automated processing and that the use of automated systems in the processing of checks constitutes ordinary care. You also agree that the Bank does not fail to exercise ordinary care in paying an item solely because its procedures don’t provide for sight-review, or provide for sight-review only for items above a threshold level, or on a sample basis, at the discretion of the Bank. The exercise of ordinary care does not require us to detect forgeries or alterations that could not be detected by an ordinary person acting with reasonable care.
Safeguarding Your Checks: You agree to use care in safeguarding unsigned checks on your account against theft or misuse. You agree to tell us immediately if any such checks are lost, missing, destroyed or otherwise unaccounted for.
Order of Payment Posting: “Posting” is the process by which we record transactions received for credit to (eg, deposit) or debit from (eg, withdrawal) your account. When a transaction is “posted,” the monetary value of that transaction is added to or subtracted from the balance of your account. Generally, your transactions will post as follows: Scheduled transfers (eg, electronic transfers you scheduled in advance) will post in the morning; Automated Clearing House transactions, or “ACH” transactions (eg, external transfers, direct deposit of Social Security benefits, electronic check conversions, etc.), will post throughout the day, when ACH credits and ACH debits are received simultaneously, ACH credits will post before ACH debits; In-clearing items (eg, checks not presented for payment at a Salem Five location) post at night during nightly processing, in serial number order, including online bill payments that are issued as checks; In-person transactions (eg, deposits, withdrawals, internal transfers, checks cashed, wire transfers, etc.) and internal transfers initiated via online banking will post as they are processed; ATM and PIN-based debit card transactions are posted in the order in which you initiated the transaction (please note that signature-based debit card transactions are processed in the order they were conducted based on the date and time provided to us by the merchant); Transaction-related fees (eg, NSF fees) post at the time the transaction triggering the fee posts to your account (eg, an NSF fee resulting from an ATM transaction that overdraws your account will post simultaneously with the transaction causing the overdraft); Interest paid to your account posts next, followed by service fees/charges occurring at the time of statement cycle/period.Multiple Signatures: We do not assume a duty to enforce multiple signature requirements that you may decide or agree upon yourselves. If you indicate on your checks or signature card or other account documents that more than one signature is required for withdrawal, this indication is for your own use and is not binding on us. We may disregard any instructions to permit withdrawals only upon more than one signature with respect to checks, electronic fund transfers and other withdrawal requests. We may pay out funds from your account if the check, item, or other withdrawal or transfer instruction is signed or approved by any one of the persons authorized to sign on the account and we are not liable to you if we do this.
Facsimile Signatures: If your checks or other withdrawal items are signed with the use of a facsimile signature, you acknowledge that it is solely for your own convenience and benefit. You assume the risk for any unauthorized use of such facsimile signature. We may honor any check, draft, or other order drawn on your account when the facsimile signature on such item bears or reasonably resembles an authorized signature, regardless of whether the person affixing it was authorized to do so or by what means it was affixed. You agree to indemnify and hold us harmless from all claims, costs, losses and damages, including attorneys’ fees, that result from our payment of a withdrawal bearing or purporting to bear a facsimile signature that we believe you authorized.
Faulty Check Stock: Checks you write may be converted into electronic images (truncated) during the check collection and return process. If you elect to have your checks printed by a vendor that has not been approved by us, or you use check stock or features (e.g., security features) that cause critical data to disappear or to be obscured upon truncation, or you make your check out in a way (e.g., using a lightly colored ink) that causes critical data to disappear upon truncation, you agree to bear the risk of loss. You also agree to bear the risk of loss if you use check stock that contains printing inaccuracies, faulty magnetic ink, faulty encoding, or duplicate serial numbers.
Defective Substitute Checks: Checks you write may be converted during processing to Image Replacement Documents or “substitute checks.” If the Bank is presented with an item that purports to be a substitute check, but does not qualify as such due to an image defect, the Bank may pay the item if, in its discretion and judgment, the item appears to be “properly payable.”
Overdrafts: We may, at our sole discretion, refuse a withdrawal request in excess of the available funds in your account in addition to any overdraft protection you may have. If your account is in good standing, the Bank will consider, without obligation on its part, approving your reasonable inadvertent overdrafts. However, unless you authorize us to do so, we will not honor, and will not assess a fee for, an ATM withdrawal or non-recurring debit card transaction that exceeds your available account balance. Authorization by any owner of a joint account is considered authorization by all joint owners. If we honor a draft, check, withdrawal order, electronic funds order or transfer request, other than an ATM withdrawal or non-recurring debit card transaction, that exceeds your available balance, you agree to pay the amount of the overdraft immediately and without demand plus the applicable fee. However, the honoring of one or more of your overdrafts does not obligate the Bank to honor any future overdrafts, and you should not rely on the Bank to honor an overdraft. If we do pay an overdraft, you consent to the application of any directly deposited governmental benefits, including Social Security, to the overdraft and associated insufficient funds fees. Consult our Fee Schedule for the fees that apply when we pay your overdrafts.
Communicating Your Preferences: You may communicate your preferences as to the payment of your inadvertent overdrafts at any time by visiting a branch, calling or writing to us. If you want us to approve your inadvertent ATM and non-recurring debit card overdrafts you should advise us that you wish to “opt in” and we will not honor such items unless you do opt in. You may revoke your authorization at any time. If you do not want us to approve your inadvertent overdrafts by other payment methods such as check, draft or electronic funds transaction (other than ATM and non-recurring debit card transactions), you should advise us that you wish to “opt out.” You may communicate your preference during business hours in person, or by calling us at (800) 850-5000 or by writing to us at: Attn: Contact Center., Salem Five Cents Savings Bank, 210 Essex Street, Salem, MA 01970. Let us know if you would like information about alternative overdraft programs, such as a traditional line of credit or a savings-to-checking link.
Restrictive Legends: We shall not be liable for payment of any check contrary to a restrictive legend, inscription, message, requirement or other limitation contained in or on the check unless we have specifically agreed in writing to the restrictions or limitations.Transfers by Wire: Wire transfer requests must be authorized in writing by an individual authorized on the Bank’s account documentation to perform such transfers.
We may accept on your behalf, payments to your account or transfers from your account that have been or will be transmitted by Fedwire. Your rights and obligations with respect to such transfers are governed by Federal Reserve Regulation J. If other systems are used for transmitting the payment order, the rules of those systems will also be applicable to the extent permitted by law.
No payment order is accepted until executed by the Bank. The Bank reserves the right to refuse to accept any payment order. We will not be liable for any errors resulting from incorrect or inaccurate information you provide when authorizing a wire transfer. If you give us a payment order which identifies the beneficiary (the person or business to whom you are wiring funds) by both name and an identifying account number, payment may be made by the beneficiary’s bank on the basis of the identifying account number, even if the number identifies a person other than the named beneficiary. If you give us a payment order which identifies an intermediary or beneficiary financial institution by both name and identifying routing number, we and a receiving institution may rely on the number even if it identifies a different financial institution than the one you named. We will provide you with notification of any incoming wire transfers in your periodic statement, but we will not provide a special notice every time we receive a wire transfer into your account. You may, however, contact us if you are expecting a wire transfer into your account and we will tell you if it has been received.
Foreign wire transfers will be sent and received at the then prevailing foreign exchange rates. The Bank will not be responsible for fluctuation in these rates.
Transaction Limitations: Some types of transactions from money market accounts and savings accounts are limited by federal regulation. If you exceed these limits, the Bank may assess a service fee and convert your account to a transaction account. You should consult your account disclosure for details.
Withdrawals from passbook savings accounts and certificates of deposit for which a certificate or passbook was issued will be permitted only upon presentation of the certificate or passbook. Under FDIC regulations, we reserve the right to require seven days’ advance written notice from you prior to your withdrawal from your interest-bearing account, other than a term deposit account..
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Senior Citizen and Minor Accounts
Customers 18 years of age or younger or 65 years of age or older will be entitled to one savings account and one checking account free of specified service charges, upon request and presentation of proof of age. Such qualified customers must be the sole or primary (first listed) account owner. Please refer to our Fee Schedule for information about fee waivers.
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Transferability
Your deposit account is nontransferable except on the books of the Bank. No account may be pledged or assigned to a third party except with the prior written consent of the Bank. We may refuse to acknowledge a pledge or assignment of an account or purported security interest in an account. If you transfer or assign your interest, your successors and assigns are bound by this Agreement. -
Powers of Attorney
As an accommodation to you, we may accept a power of attorney executed by you authorizing another to act on your behalf with respect to your account. Any power of attorney must be acceptable to us in form and content. If you give someone such authority, you assume all risk of improper acts by such person. When we accept a power of attorney, we may continue to recognize the authority of your attorney-in-fact until we receive written notice of revocation from you and have had a reasonable opportunity to act upon it. -
Notices and Statements
All notices and statements will be sent to the last address provided by you in our records. Any notice sent to you at that address will be presumed to have been received by you and will be binding on you for all purposes. For joint accounts, notices sent to the address of one account owner are binding on all account owners. You agree to promptly notify us in writing of any change in your address. If notices or statements are returned to us undelivered, we may destroy them and discontinue further correspondence with you until notified by you in writing of a valid mailing address.
If your account includes check writing capability, your original canceled checks will not be returned to you. Instead, we will send you images of the front of all checks paid during the statement period. Copies of the front and back of all canceled checks will be retained as required by law and are available for your review for seven years from the date of the statement on which the paid check appeared. A fee will be charged for copies of checks you request in excess of 25 per year. The original checks will be destroyed within a reasonable period of time. -
Examining Your Statement
You are in the best position to discover a forged, unauthorized or missing signature or endorsement; a material alteration; or a missing or diverted deposit or any other error or discrepancy relating to a check, deposit or other credit or debit entry to your account. Therefore, you should review your account statements for accuracy as soon as you receive them. Statements, including check images, will be deemed to correctly reflect all transactions posted to the account during the statement period unless you notify the Bank of an error or unauthorized transaction item or debit within 30 days after the statement date (60 days for an electronic transaction error). You may provide notice to the Bank in writing at 210 Essex Street, Salem, MA 01970, or by calling (800) 850-5000. If you call to report an error or unauthorized transaction, we may require that you confirm your notification in writing. Any written notice you send to the Bank will not be effective until receipt. -
Inactive and Abandoned Accounts
Massachusetts law requires that any account which remains inactive for a period of 3 years or longer is to be considered abandoned property, and must be turned over to the Commonwealth. We will attempt to notify you in writing at least 60 days prior to turning over the account to the state. Such notification will include instructions on how you may prevent remittance of the funds to the state. A fee may be charged for the processing of unclaimed property to the state.The Bank reserves the right to service charge any account that remains inactive for a period of 12 months. (Refer to our Fee Schedule.)
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Fees and Charges
Your account will be subject to service charges and fees as set forth in our Consumer Banking Fee Schedule. A then current Fee Schedule will be provided at account opening and a current schedule is available at any of our branches. You may request a copy at any time in person or by phoning the Bank. Any fees may be deducted against funds already or later on deposit, including deposits of Social Security or other benefits. Fees and service charges may change from time to time. -
Endorsements
All checks you cash or deposit to your account must be endorsed in the first 1.5 inches of the trailing edge of the back of the check. You may identify the "trailing edge" of a check by viewing the check from the front; the trailing edge is the left edge of the check. Your endorsement must contain your signature. Improper endorsements may result in a chargeback of the item or may delay the processing of the check, and, consequently, the availability of the funds to you. -
Stale and Postdated Checks
The Bank reserves the right, in its sole discretion, to pay or dishonor a check, other than a certified check, presented for payment more than 6 months after its date. You may not date a check with a date later than the day on which the check is written. If you do, you agree to notify the Bank in writing at least 3 business days prior to its presentment. -
Closing of Accounts
By the Bank: The Bank has the right to close an account or to refuse to do business with any customer at any time. We may close it without notice to you if we reasonably believe it will prevent loss to us or you have violated this Agreement. If we close your account, we may return deposits, checks and other items that we receive after your account is closed, even if doing so overdraws your account, without being liable to you.
By You: You may close your account at any time. However, if you close your account prior to the crediting of interest, you will not receive the accrued interest.
The closing of your account by you or the Bank will not release you from any fees or other obligations incurred before the closing, those you incur in the process of closing out your account, or your liability on outstanding items. -
Lost or Stolen Passbooks
If a passbook is lost or stolen, the Bank will issue a replacement only upon receipt of (a) an application for replacement, including confirmation of loss or theft, in the form requested by the Bank, (b) presentation of identification satisfactory to the Bank, (c) payment of a replacement fee, and (d) payment of any bond or other form of indemnification, if required by the Bank. -
Checking Accounts
Sub-Accounting: If you have a Salem Five checking account, your account may be structured on the books of the Bank into two sub-accounts, a transaction sub-account and a savings sub-account. This process will not, however, affect your available balance, access to your funds, your interest earnings (if any), your periodic statement, or any other feature or term of your overall account. Your account remains 100% insured by a combination of FDIC and DIF insurance.Check Verification: You authorize us to disclose information about funds availability to individuals and firms who represent to us that they have received a check from you in a particular amount. In such a situation, we will tell the caller whether a check in that amount would clear at that time.
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Your Liability for Disclosure
If you voluntarily give information about your account (such as our routing number and your account number) to a person who is seeking to sell you goods or services, and you don’t physically deliver a check to that person, any debit to your account initiated by that person to whom you gave the information is deemed authorized. This provision shall not apply when a remotely created check is fraudulently presented and paid. -
Stopping Payment
You may request a stop payment on a check or draft drawn on your checking or money market deposit account that has not already been paid or certified or an automated clearing house (ACH) payment that has not yet been presented. A fee will apply for this service, as indicated on theConsumer Banking Fee Schedule. On a joint account, we may accept a stop payment order from any account owner, even if the check or other debit transaction was authorized by another joint owner. We must have a reasonable time to act on your stop payment request after we receive it. Unless you notify us within 14 days of your request that the information on the stop order confirmation is incorrect, we will assume your confirmation and, unless you subsequently revoke the stop order in writing, we will continue to honor your request for 6 months from the date of your request, after which you may renew it for an additional fee, by notice to us.
Your stop payment order must be accurate and contain the exact amount, date, number of the check (if applicable), and the name of the payee. The Bank will not be responsible if the information you gave us is incorrect or if you fail to give any other information required to identify the check, draft or other payment order with reasonable certainty and the stop payment cannot be completed.
If you have authorized the conversion of your check to an electronic transaction or if you have authorized the assessment of a fee by a payee for the re-presentment of your check as an electronic transaction, you must tell us so at the time you request that payment be stopped on your check. (Your authorization for these electronic transactions may be implied by the merchant's or other payee's notice to you at the time you offer the check.)
If you order us to stop payment on an ACH transaction you have previously authorized, your stop order will be honored indefinitely.
To stop a payment you have previously authorized through Salem Five Online Banking, please refer to instructions provided to you in the Salem Five Online Banking Agreement.
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Right of Set-Off
The Bank reserves the right of set-off, which means that, under most circumstances, we have the right to use funds in your deposit account to pay any debts or amounts you owe us whether or not they are then due, and even if withdrawal results in an interest penalty or dishonor of subsequent checks. For joint accounts, the Bank may exercise its rights against the entire balance to pay the individual debts of any owner of the account. Each joint owner agrees that the Bank may use the funds in his or her individual or joint accounts to satisfy obligations of the joint account. Any garnishment or other levy against your account(s) is subject to the Bank’s right to set-off and any security interest the Bank may have. In addition to any right of set-off, you hereby grant to the Bank a security interest in your deposit accounts to secure all loans or other extensions of credit, now or in the future. -
Legal Process
We may accept and comply with any legal process that we believe to be valid and binding, without any liability by us to you, regardless of the method or place of service of such process. “Legal process” includes a writ of attachment, execution, garnishment, tax withholding order, levy, restraining order, subpoena, warrant, injunction, search warrant, or other similar order. We generally give you notice of our receipt of legal process involving your account, but we are not required to give you notice and will not do so if prohibited by law. We will hold and turn over funds to the court or creditor as directed by the legal process. We do not pay interest on the funds during the period we hold them. If we use funds from a term deposit account (CD), we may impose an early withdrawal penalty. -
Expense Reimbursement
If you fail to pay any amount owed to us, you will be liable to pay any expenses reasonably incurred by the Bank, including attorneys’ fees.You also agree to be liable to the Bank for any loss, costs, or expenses, including, without limitation, administrative costs of responding to an attachment, garnishment or other levy, and reasonable attorneys’ fees, that the Bank incurs as a result of any dispute involving your account, or any actions taken by you or a third party with respect to the account, that causes the Bank, in good faith, to seek the advice of counsel, and you authorize the Bank to deduct any such loss, costs or expenses from your account without prior notice to you. This obligation applies to disputes between you and the Bank involving your account and situations where the Bank becomes involved in disputes between you and an authorized signer, another joint owner or a third party claiming an interest in the account.
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Prohibition Against Illegal Use
You may not use your account or any other financial service we provide for any illegal purpose, including the origination, receipt, or processing of illegal Internet gambling transactions and activities in violation of United States economic sanctions, laws, and regulations, including regulations issued by the Office of Foreign Assets Control (OFAC). You agree to indemnify and hold us harmless from any and all actions arising out of your illegal use of your account or our services. -
Waiver and Severability
The Bank reserves the right to waive the enforcement of any of the terms of this Agreement with you with respect to any transaction or series of transactions. Any such waiver will not affect the right of the Bank to enforce any of its rights with respect to other customers, or to enforce any of its rights with respect to later transactions with you and is not sufficient to modify the terms and conditions of the Agreement.
A determination that any part of this Agreement is invalid or unenforceable will not affect the remainder of this Agreement. -
Limitation of Liability
Reasonable care will be taken with respect to all transactions. We are not liable to you for any claim, cost, loss or damage caused by an event or circumstances beyond our reasonable control that prevents us from, or delays us in, acting on a payment order, processing a transaction or crediting your account. Events beyond our reasonable control include, but are not limited to, a natural disaster, war, terrorist attack, riot, fire, computer problem, loss of electric power, communications, or transport. Except as may be limited by applicable law, we are not liable for special, incidental, exemplary, punitive or consequential losses or damages of any kind, including, but not limited to, lost profits. -
Amendment
We reserve the right to modify or amend this Agreement at any time, and we will notify you prior to any such changes that would adversely affect your account, as required by law. If you continue to use your account or keep it open after the effective date of the change, you accept and agree to the change. -
Your Ability to Withdraw Funds
Our general policy is to make funds from your deposit of checks available to you on the first business day after the day we receive your deposit. At that time, you can withdraw the funds in cash and we will use the funds to pay checks that you have written. For determining the availability of your deposits at a branch, every day is a business day, except Saturdays, Sundays and federal holidays. If you make a deposit on a non-business day, we will consider that the deposit was made on the next business day.ATM deposits have a daily settlement time of 3:30 P.M. ATM deposits made before settlement Monday through Friday are available on the next business day. Deposits made after settlement and deposits on a Saturday, Sunday or federal holiday are available on the second business day following the day of deposit. All times are Eastern Time.
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Same Day Availability
Funds from the following deposits will be available on the business day of your deposit: cash, wire transfers, electronic payments, including preauthorized credits such as Social Security benefits and payroll payments, and checks drawn on Salem Five Cents Savings Bank for which there are sufficient available funds on deposit. -
Longer Delays May Apply
In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. However, the first $225 of your deposits will be available on the first business day after the day of your deposit.If we are not going to make all the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our tellers, or if we decide to take this action after you have left the premises, we will mail you the notice by the business day after we receive your deposit.
If you will need the funds from a deposit right away, you should ask us when the funds will be available.
In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:
- We believe a check you deposit will not be paid.
- You deposit checks totaling more than $5,525 on any one day.
- You redeposit a check that has been returned unpaid.
- You have overdrawn your account repeatedly in the last six months.
- There is an emergency, such as failure of communications or computer equipment.
- We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the fifth business day after the day of your deposit.
- We may also, from time to time, need to temporarily suspend the processing of an ACH (automated clearing house) deposit received from or through another country (IAT) for further investigation; this additional required handling may delay settlement until the investigation is completed.
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Holds on Other Funds
If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. You must therefore maintain an available account balance sufficient to cover any check you present for cashing.If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately by delaying your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.
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Special Rules for New Accounts
If you are a new customer, the following special rules may apply during the first 30 days your account is open.Funds from electronic direct deposits to your account will be available on the day we receive the deposit. The first $5,525 from the deposit of U.S. Treasury checks and checks drawn on a Federal Reserve Bank or Federal Home Loan Bank will be available on the first business day after the day of deposit. The excess over $5,000 will be available on the fifth business day after the day of your deposit. Funds from wire transfers into your account will be available on the first business day after the day we receive the transfer.
Funds from deposits of cash and the first $5,525 of a day's total deposits of cashier's checks, certified checks, teller's checks, money orders, traveler's checks, and Massachusetts state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. For example, the check must be payable to you. The excess over $5,525 will be available on the fifth business day after the day of your deposit. If you do not make the deposit in person to one of our tellers, the first $5,525 will not be available until the second business day after the day of your deposit.
Funds from all other check deposits will be available on the fifth business day after the day of your deposit.
PLEASE NOTE: This Funds Availability Policy does not affect our right under this Agreement to charge back to your account, or otherwise obtain a refund from you for any item that is not finally paid for any reason.
Electronic Fund Transfer Disclosure
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Disclosure of Consumer’s Liability for Unauthorized Transfers
IF YOU BELIEVE YOUR CARD OR PERSONAL IDENTIFICATION NUMBER ("PIN") HAS BEEN LOST OR STOLEN OR THAT SOMEONE HAS TRANSFERRED OR MAY TRANSFER MONEY FROM YOUR ACCOUNT WITHOUT YOUR PERMISSION, CALL US IMMEDIATELY, DURING BANKING SERVICE HOURS: MONDAY THROUGH FRIDAY BETWEEN THE HOURS OF 8:00 A.M. AND 6:00 P.M., SATURDAY BETWEEN 9:00 A.M. AND 3:00 P.M., OR SUNDAY BETWEEN THE HOURS OF 11:00 A.M. AND 3:00 P.M., EASTERN TIME. CALL (978) 745-5555 OR TOLL FREE AT (800) 850-5000. YOU MAY WRITE US AT: CONTACT CENTER, 210 ESSEX STREET, SALEM, MA 01970. TO REPORT A LOST OR STOLEN DEBIT CARD BEFORE OR AFTER BANKING HOURS, PLEASE CALL CARD SERVICES AT (800) 850-5000, option 3.
Tell us AT ONCE if you believe your Card or your PIN has been lost, stolen or used without your permission. Telephoning is the best way of minimizing your losses. You can lose no more than $50 if you fail to give us notice of a lost or stolen Card or a disclosed PIN and someone uses your Card or PIN without your permission.
Please notify us as soon as you are aware of any possible loss or theft.
Business Days
For purposes of this Agreement, our business days are Monday through Friday. Bank holidays are not included.
Use of Your Card or Electronic Banking PIN By using your Card or PIN, you agree that:
Ownership of Card
Your Card is not transferable and remains the property of the Bank. You agree to return the Card to us immediately upon our request.
PIN Security
Your PIN is confidential to you. You should not write it on your Card or disclose it to other persons. If you believe your PIN is no longer a secret, you agree to notify us immediately.
Minimum Balance
A minimum account balance of $10 is required in order to qualify for ATM or POS privileges.
Misuse of Card
The Bank may suspend your Card privileges if you misuse your account or your Card. If your Card privileges have been suspended, we may impose additional restrictions before returning your Card to you or we may cancel your Card privileges. -
Types of Available Transfers and Limits on Transfers
When you request electronic access, you designate the accounts to which you want access by electronic means.You may designate your money market, checking or statement savings account(s) for ATM access. Debit card access is limited to checking accounts.
The following transactions are available to your designated account(s) using your Card and PIN:
a. Cash Withdrawals At Salem Five ATMs and locations of other participating networks, you may make withdrawals up to your allowable daily limit, which is disclosed to you upon receipt of the Card. You have the right to limit the daily amount to $50 per day. Contact us if you would like to do so.
b. Deposits At most Salem Five ATMs and at designated Plus® ATMs, you may make deposits to your account.
c. Transfers You may transfer funds between your designated accounts.
d. Payments on Loans You may make a payment on your loan with us at most Salem Five ATMs. These will not be credited to you until the following business day.
e. Balance Inquiries You may make balance inquiries on your designated account(s).
f. Point of Sale (POS) Purchases At certain POS terminals you may withdraw funds from your designated account to pay for the retail purchases of goods and services, subject to your daily withdrawal limit and normal charges pertaining to your account. POS transactions are restricted on savings and money market accounts. (Refer to your account disclosure.)
g. Debit Card Purchases
In addition to the transactions listed above, if you have a Salem Five debit card you may make purchases with that Card anywhere VISA® is accepted. Cardbased purchases are restricted to checking accounts and are subject to a daily aggregate Card limit which is disclosed to you upon receipt of your Card.h. Cash Advances
You can use your Salem Five debit card to get cash advances in amounts up to your authorized daily debit card limit, from participating financial institutions and others that are authorized to make cash advances.Some cardholder services may not be available at all terminals at all times.
When you use Salem Five AccessLine Telephone Banking, the following transactions are available on your designated accounts, using your personal AccessLine ID number:
a. Transfers You may transfer funds between your designated accounts, including by advancing any available lines of credit.
b. Payments on Loans You may make a payment on your loan with us by transferring funds from your deposit account. These will be credited the following business day.
c. Balance Inquiries You may make balance inquiries on your designated account(s). This balance may not reflect the most recent transactions involving your account.
d. Account Information You may obtain information on recent deposits and withdrawals, interest rates and earnings.
If you use Salem Five Online Banking, the following transactions are available on your designated checking account(s), using your personal Online Banking ID number:
a. Transfers
You may transfer funds between your designated deposit accounts within Salem Five (Internal Transfers), between your designated Salem Five checking account and your account at another financial institution (External Transfers), or to other individuals (person-to-person transfers, also referred as Zelle™ transfers), including by advancing any available lines of credit. Refer to the Salem Five Online Banking Agreement for information about dollar limitations on External Transfers and Zelle™ transfers.b. Payment on Loans You may make a payment on your loan with us, to be credited immediately or on a future date, depending on the method you choose.
c. Balance Inquiries You may make balance inquiries on your designated account(s). This balance will reflect all transactions posted as of the day you inquire.
d. Bill Payments You may make payments to third parties by telephone or personal computer. Refer to the Salem Five Online Banking Agreement for further information about Bill Payments.
You may authorize the Direct Electronic Transfer of funds to or from your designated account(s). For example:
a. You may authorize a third party, such as a government agency or your employer, to periodically make deposits to your account.
b. You may authorize a one-time or periodic transfer of funds from your designated checking account to pay your obligations to third parties.
c. Electronic check conversion: In order to purchase goods or services or pay bills, you may authorize a merchant or other payee to make a one-time electronic payment from your checking account using information from your check.
d. If you initiate a transaction by check and the check is returned for insufficient or uncollected funds, the payee may assess a fee when re-presenting the check electronically, if at the time you offered the check, the payee gave notice to you that such a fee may be assessed.
There may be other limits set by law or in our agreements with you concerning your account(s), Card, AccessLine Telephone Banking, or Online Banking. We also may limit or refuse to complete transactions when we have to for security reasons. PLEASE CONSULT YOUR ACCOUNT DISCLOSURE AND FEE SCHEDULE. You may contact us for current rates and fees.
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Disclosures of Account Information to Third Parties
In order that your privacy may be protected, we will not disclose any information about you or your account to any person, organization, or agency except:a. For certain disclosures necessary for the completion of a transfer; or
b. For verification of the condition and existence of your account for a third party such as a credit bureau or merchant; or
c. To persons authorized by law in the course of their official duties; or
d. To our employees, auditors, service providers, attorneys or collection agents in the course of their duties; or
e. Pursuant to a court order or lawful subpoena; or
f. To a consumer reporting agency as defined in Chapter 93 of the Massachusetts General Laws; or
g. By your written authorization which shall automatically expire after 45 days.
If an unauthorized disclosure has been made, we must inform you on the particulars of the disclosure within 3 days after we have discovered that an unauthorized disclosure has occurred.
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Right to Receive Documentation of Transfers
a. Terminal Transfers
You will get a receipt at the time you make any transfer to or from your account using our ATMs.b. Preauthorized Credits
If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, either the person or company making the deposit will tell you every time they send us the money or you can call us at (800) 850-5000 to find out whether or not the deposit has been made.c. Notice of Varying Amounts
If regular payments from your account to a third party will vary in amount, the person or company you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be.d. Periodic Statements
You will get monthly account statements unless there are no transfers in a particular month. In any case, you will get statements at least quarterly.e. Passbook Accounts Where the Only Possible Transfers are Preauthorized Credits
If you bring your passbook to us, we will record any electronic deposits that were made to your account since the last time you presented your passbook. Your passbook should be updated at least quarterly. -
Limitation of Bank’s Responsibility
The Card and associated electronic banking services are made available for your convenience and, except to the extent provided by applicable law, we will not be liable for the unavailability or failure to operate all or any part of the electronic banking services system, including any POS terminal, card authorization terminal or other link in the authorization system. We will also not be liable for the refusal of any merchant or bank to honor a Card. We will not be liable for any personal injury or tangible property damage suffered or incurred by you through use or attempted use of your Card at any terminal. -
ATM Fees
We will not impose a charge on Salem Five Cardholders for use of a Salem Five or Salem Five affiliate bank ATM. However, if you initiate a transaction at an ATM not operated by Salem Five or an affiliate bank, a surcharge may be applied by that ATM operator and/or by an automated transfer network. -
Direct Debit of Your Account
When making a merchant purchase or procuring a cash advance, you authorize the Bank to debit from your designated account for the total amount of the transaction as shown on any sales draft or withdrawal order originated by use of your Card, whether or not signed by you, and we are permitted to handle such sales drafts or withdrawal orders in the same way we handle checks drawn on your designated account, with the exception that you have no right to stop payment. -
Prior Authorization Required
We may require the merchant or bank that honors your Card to obtain prior authorization for any transaction over a certain dollar amount, which is set at our discretion and may be changed from time to time. -
Authorizations to Result in Holds on Funds in Your Account
We reserve the right to place a hold on your account based on the authorization prior to settlement (the actual posting of the transaction to your account). This could result in an overdraft if sufficient funds are not available in your account to cover both the hold and any checks or other items posting to the account. -
Cash Refunds on Purchases Not Available
We will not make cash refunds on purchases. Any claim or defense for purchases must be handled by you directly with the merchant or other business establishment which accepted your Card. You may not assert disputes you may have with a merchant against us, as, for example, when you believe that the goods or services paid for with your Card were defective, not delivered or not as promised. Any such dispute is solely between you and the merchant, and you must still pay the total amount of the sales draft plus any appropriate charges we may be authorized to make. Any merchant credit vouchers for returns or adjustments will be credited to your designated account when received by us. -
Foreign Transactions
Purchases, cash advances and cash withdrawals made in foreign countries and foreign currencies using your Card will be converted by Visa, Inc. (“Visa”) and charged to your account in U.S. dollars. The Visa currency conversion procedure includes use of either a government-mandated exchange rate or a wholesale exchange rate selected by Visa. The government-mandated exchange rate or wholesale exchange rate used for a particular transaction is the rate Visa selects for the applicable currency on the day the transaction is processed, which may differ from the rate on the date the transaction actually occurred or was posted to your account. You may consult our Fee Schedule for the current rate. -
Documentation as Evidence
Any documentation provided to you which indicates that an electronic funds transfer was made shall be admissible as evidence of such transfer and shall constitute prima facie proof that such transfer was made.
Right to Stop Payment and Procedure for Doing so, and Financial Institution’s Liability for Failure to Stop Payment
a. Right to Stop Payment and Procedure for Doing So If you have told us in advance to make regular payments from your account, you can stop any of these payments as follows: Call us at (800) 850-5000 or write us at: Salem Five Contact Center, 210 Essex Street, Salem, MA 01970 in time for us to receive your request at least 3 business days before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call, in a form that we provide for you. The information you provide to us must be accurate and complete. At the same time, you should give notice directly to the merchant or other third party whom you authorized to periodically debit your account by electronic means, in accordance with your agreement with them.
b. Liability for Failure to Stop Payment of a Preauthorized Transfer. If you properly order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.
c. Canceling an Online Banking Transaction Please refer to the Salem Five Online Banking Agreement for information on canceling an Online Banking transaction you have previously authorized.
d. Stop Payment of an AccessLine Telephone Banking Transaction
AccessLine transfers you authorize are posted immediately and cannot be stopped.
e. No Stop Payments on Debit Card Transactions
You cannot stop a debit card payment that you have already authorized.The initiation by you of certain electronic fund transfers from your account will, except as otherwise provided in this disclosure, effectively eliminate your ability to stop payment of the transfer. UNLESS OTHERWISE PROVIDED IN THIS DISCLOSURE OR ACCOMPANYING STATEMENT, YOU MAY NOT STOP PAYMENT OF ELECTRONIC FUND TRANSFERS; THEREFORE, YOU SHOULD NOT EMPLOY ELECTRONIC ACCESS FOR PURCHASES OR SERVICES UNLESS YOU ARE SATISFIED THAT YOU WILL NOT NEED TO STOP PAYMENT.
Financial Institution’s Liability for Failure to Make Electronic Funds Transfers If we do not properly complete a transfer to or from your account on time or in the correct amount according to our agreement with you and if you have properly instructed us to do so, we will be liable for your losses or damages. However, there may be some exceptions. We will not be liable, for instance:
a. If, through no fault of ours, your account does not contain sufficient available funds to make the transfer.
b. If the transfer would go over the credit limit on your line of credit, if any.
c. If the ATM where you are making the transfer does not have enough cash.
d. If the system was not working properly and you knew about the breakdown when you started the transfer.
e. If the funds in your account are subject to legal process or other encumbrance restricting transfer.
f. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
g. If we are legally restricted from transferring the funds in your account.
h. If we have reason to believe that you or someone else is attempting to make a transfer for fraudulent or illegal purposes.
There may be other exceptions stated elsewhere in this or another agreement with you or imposed by applicable law. The foregoing is a summary of our liability as provided by federal and state law if we fail to complete transfers. It is provided for your information and is not intended to affect our or your rights under those laws.
In Case of Errors or Questions About Your Electronic Transfers Telephone us at (800) 850-5000 between the hours of 7:00 A.M. – 8:00 P.M. Monday through Friday, 8:00 A.M. – 4:00 P.M. Saturday, or Sunday 10:00 A.M. – 4:00 P.M., Eastern Time, or write to us at 210 Essex Street, Salem, MA 01970, as soon as you can if you think your statement or receipt or a preauthorized transaction reflected in your passbook or on a separate statement we have sent you listing those deposits is wrong, or if you need more information about a transfer listed on the statement or receipt, or about preauthorized transactions. We must hear from you no later than 60 days after we sent you the FIRST statement on which the problem or error appeared.
a. Tell us your name and account number.
b. Describe the error or the transfer you are unsure about as clearly as you can and why you believe it is an error or why you need more information.
c. Tell us the dollar amount of the suspected error.
If you notify us orally, we have the right to require you to send us your complaint or question in writing within 10 business days following the date you notified us.
We will determine whether an error occurred within 10 business days following the date you notified us. We will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to use more time to investigate, we will re-credit your account within 10 business days following the date you notified us for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete your investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not re-credit your account.
For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.
We will tell you the results within 3 business days after completing our investigation. If we determine that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.
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Electronic Communications
If you are an Online Banking customer, you agree that we may communicate with you by electronic means. This means that we may send you electronic messages regarding your account or the Online Banking Services. These messages may include any disclosures required by applicable federal or state law or regulation. For example, if you assert an electronic transaction error in your account, we may communicate the results of our investigation to you via the e-mail feature of the Online Banking Services. (If you verbally or electronically communicate to us an assertion of an error, we may require you to confirm your claim in writing.) You should check your e-mail messages on the Online Banking Services frequently in order to ensure that you have received any important information about your account or the services. You will be deemed to have received any information, including any required disclosure, as of the date we transmit such information to you. -
Termination of Electronic Services
The Bank may terminate any of its electronic banking services, or revoke your Card at any time, by sending written notice to you. For security purposes, we may, without notice to you, deactivate your debit card if you have not made a transaction with it for one year or more.If you wish to terminate an electronic fund banking service, call us at (800) 850-5000 or write us at: Salem Five Contact Center, 210 Essex Street, Salem, MA 01970.
If you no longer wish to use your Card, cut the Card(s) in half and forward it to us at the above address. If you wish to cancel your transaction capability through AccessLine Telephone Banking, you will have to notify the Bank in writing at the above address.
To cancel your Online Banking service, you must notify us by phone, e-mail or in writing, as directed in the Salem Five Online Banking Agreement. We are unable to terminate any agreement which you may have initiated with another financial institution or company. Please contact that organization directly.
SUBSTITUTE CHECKS AND YOUR RIGHTS AS A CONSUMER
Important information about your checking account
What is a substitute check? To make check processing faster, federal law permits banks to replace original checks with "substitute checks." These checks are similar in size to original checks with a slightly reduced image on the front and back of the check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check." You may use a substitute check as proof of payment just like the original check. Some or all of the checks that you receive back from Salem Five may be substitute checks. This notice describes rights you have when you receive substitute checks from Salem Five.
What are my rights regarding substitute checks? In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that Salem Five withdrew the wrong amount from your account or that Salem Five withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, returned check fees).
The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law.
If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after Salem Five receives your written claim and the remainder of your refund (plus interest if your account earns interest) no later than 45 calendar days after Salem Five receives your written claim. Salem Five may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.
How do I make a claim for a refund? If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact Salem Five by mail at: Salem Five, Bank Operations, 210 Essex Street, Salem, MA 01970, or call us at (800) 850-5000. If you make your claim to Salem Five, you will be required to follow up with a written description of your claim. You must contact Salem Five within 40 calendar days of the date that Salem Five mailed (or otherwise delivered by means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. Salem Five will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.
Your claim must include:
- A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);
- An estimate of the amount of your loss;
- An explanation of why the substitute check you received is insufficient to confirm that you suffered a loss; and
- A copy of the substitute check and/or the following information to help us identify the substitute check, such as the check number, the name of the person to whom you wrote the check, and the amount of the check.