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VISA CLASSIC, GOLD AND PLATINUM CREDIT CARD PROGRAMS
Disclosure of Account Terms
This Agreement establishes the terms and conditions of your Visa Credit Card Line of Credit loan account with Financial Plus Federal Credit Union. In this Agreement the words “you” and “your” mean or refer to each and all persons who have applied for the Account and any other person who has agreed to be responsible for the Account. “Card” means the Visa Credit Card or Cards and duplicates and renewals thereof or substitutions therefore we may issue. “Account” means your Visa Credit Card Line of Credit loan account (Visa Classic, Visa Gold, or Visa Platinum) with us. “We,” “us” and “our” means or refers to Financial Plus Federal Credit Union. This Agreement, along with the enclosed sheet entitled “Important Information Regarding Your Account,” is your Truth-In-Lending Disclosure Statement and contract. Use of your Card or Account confirms your acceptance of the terms and conditions of this Agreement.
1. Responsibility - You are applying to us for a Visa Credit Card Line of Credit loan. If we approve the loan and issue you a Card, you promise to repay all debts, fees, charges and the FINANCE CHARGE thereon arising from any use of the Card. You agree not to let someone else use the Card. If you do, you are agreeing with us that you authorize all use that person makes of the Card. Therefore, you will be liable for all such use of the Card. Of course, once you notify us we will take prompt steps to try to prevent any further Card use by that person. If two or more persons have applied for the Account, the Account is joint; that is, each of you, separately and jointly with each other, are liable for all debts on the Account and FINANCE CHARGE thereon. Your obligation to pay all such debts, and FINANCE CHARGE thereon continues even though an agreement, divorce decree or other court judgment to which we are not a party may direct that only one of you, or some other person other than you (or both of you), must pay such debts and FINANCE CHARGE. If we receive notice from any person obligated on this Agreement disclaiming liability for amounts owed under this Agreement, we may close the Account.
2. Credit Line - If we approve your loan application, we will establish a self-replenishing line of credit for you and will notify you of the amount thereof (credit-limit) in the mailer in which we will send you your Card. That mailer is hereby incorporated herein as part of this Agreement. You agree not to let your Account balance exceed such amount. Each payment you make on the Account will replenish your credit limit by the part of that payment which is applied to the principal. You may request an increase in the credit limit by submitting a written application, which must be approved by us. We may, at our discretion, increase your credit limit. We may reduce your credit limit from time to time or may, with good cause, revoke your Card and terminate this Agreement; in either event, we will give you written notice of such action. “Good cause” includes your failure to satisfy the terms of this Agreement, or our adverse reevaluation of your creditworthiness. However, you may terminate this Agreement, at any time and for any reason, by giving us written notice mailed to the address which appears on your monthly billing statement. Nevertheless, termination by you or by us does not affect your obligation to pay all debts and FINANCE CHARGE thereon arising from authorized use of your Card. The Cards remain our property and you must recover and surrender to us all Cards, upon request, or upon termination of this Agreement.
3. Using the Card - We will send you a Card or Cards embossed as you have directed. As soon as received, each Card must be signed (in the space provided on the back) by the person whose name is embossed thereon. That signature must be in the same form as embossed on the front of the Card. The Card must be signed in order to be valid. The Card may be used to make purchases or cash advances at participating merchants or financial institutions. You can also get a cash advance from any automated teller machine (ATM) that accepts the Card. We may, from time to time, issue checks that may be used to access your Account. These checks may be used to purchase goods and services, or obtain cash, up to the amount of your unused credit limit, however, may not be used to pay any amount owed to us under this or other Card Agreement(s). Checks will be posted to your Account as a cash advance. Please note that we are not responsible if a particular merchant, financial institution or ATM refuses to honor your Card or checks. We may limit the number of purchases or cash advances which may be approved in one day. If we detect unusual or suspicious activity on your Account, we may temporarily suspend your credit privileges until we can verify the activity. Your credit card may not be used for any illegal transaction including internet gambling transactions.
4. Monthly Payment - A statement will be mailed every month in which you have either a balance or monthly activity showing your “Previous Balance,” the transactions posted to your Account since the last statement, the “New Balance,” the Finance Charge due to the date of the statement, the “Minimum Payment” required, the “Due Date,” any “Unused Credit,” fees or charges, if any, and any past due amount which may be owing. You must pay at least the Minimum Payment shown on your statement within 25 days of the closing date on the statement. By separate authorization, you may allow us to charge the scheduled monthly payment, or other payment authorized by you, automatically to the share account with us which you have designated. Of course, you may pay any amount greater than the Minimum Payment, including the entire New Balance on the statement on any of our business days, without any penalty for prepayment. And you can make payments on the Account as often as you wish. The Minimum Payment will be either (a) 3 1/2% of your New Balance or $15, whichever is greater, or (b) your full New Balance, if less than $15; provided however, the Minimum Payment shown on your statement will also include any unpaid portions of Minimum Payment(s) shown on earlier statements. In addition, if at any time your total New Balance exceeds the credit limit, you must pay us that excess immediately. We will apply your payments in the following order:
(a) To (1) FINANCE CHARGE due to the date of the most recent monthly statement and (2) to FINANCE CHARGE not yet billed on a monthly statement, if paying current balance in full;
(b) To any fees or charges which may be owing as of the most recent monthly statement;
(c) To (1) the portion of “New Balance” on your most recent monthly statement which was obtained as Cash Advances and (2) any Cash Advances not yet billed on a monthly statement;
(d) To (1) the portion of “New Balance” on your most recent monthly statement which was obtained as Purchases and (2) any Purchases not yet billed on a monthly statement.
5. FINANCE CHARGE - You can avoid Finance Charge on purchases by paying the full amount of the “New Balance,” including purchase and cash advance balances, Finance Charge and other charges, within 25 days (grace period) of your statement closing date. If you fail to pay the entire “New Balance” shown on any statement within 25 days of the closing date, Finance Charge will begin to accrue on purchase balances the first day of the billing cycle immediately following the statement on which the entire balance was not paid in full, or the posting date of new purchases on that statement, and continue through the closing date of that statement. Cash advances are always subject to Finance Charge beginning on the date they are posted to your Account. Finance Charge is based on the Average Daily Balance method and is determined by applying a daily periodic rate, which corresponds to an Annual Percentage Rate (discussed in Section 6 below) to the average daily principal balance for a billing cycle. Daily principal balances and corresponding average daily balances are calculated separately for purchases and cash advances and are determined as follows. For each day during the statement period (billing cycle), the previous day’s principal balance of purchases and cash advances are increased by any new purchases, cash advances, or adjustments, and decreased by any payments, credits, or adjustments posted to the Account that day. Each separate daily principal balance is then multiplied by the number of days that balance was owing. The sum of all of the daily principal balances are then divided by the number of days in the statement period (the average daily balance) and then multiplied by the daily periodic rate in effect for the Account at that time.
6. Variable Rate Feature - This Account has a variable rate feature, and the ANNUAL PERCENTAGE RATE, corresponding to the daily periodic rate, may change as a result. The ANNUAL PERCENTAGE RATE on your Account may vary each calendar quarter to reflect increases and decreases in the Prime Lending Rate within the maximum and minimum rates. Any increase in your ANNUAL PERCENTAGE RATE will result in increased FINANCE CHARGES. The Prime Lending Rate means the prime rate published under Money Rates in the Wall Street Journal which is the base rate on corporate loans at large U.S. Money Center commercial banks (or substitute publication, as permitted by law). The ANNUAL PERCENTAGE RATE will be a percentage, called a margin, above the Prime Lending Rate in effect three business days prior to the first day of each calendar quarter. Your ANNUAL PERCENTAGE RATE shall be adjusted on the first day of each calendar quarter (January 1, April 1, July 1, and October 1) and the adjusted rate shall apply to the existing Account balance, as well as new purchases and cash advances, for the entire calendar quarter. The maximum ANNUAL PERCENTAGE RATE will not exceed 18% ANNUAL PERCENTAGE RATE. Please refer to the enclosed sheet entitled “Important Information Regarding Your Account” for the current “margin” on purchases and cash advances, daily periodic rate(s), ANNUAL PERCENTAGE RATE(S) and minimum ANNUAL PERCENTAGE RATE(S) on your particular credit card program. Except for the minimum and maximum rates that can apply, there is no limit on the amount by which the ANNUAL PERCENTAGE RATE can change. The ANNUAL PERCENTAGE RATE includes only interest and not other costs. The current ANNUAL PERCENTAGE RATE(S) will appear on your monthly billing statement.
7. Other Charges - If your Account balance exceeds your credit limit, we may treat your Account as being in default under the “Default” provisions of this Agreement and demand payment in full. If we choose not to demand payment in full in such a situation, we may impose an over-the-credit-limit fee for each statement cycle in which the New Balance reflected on your monthly statement exceeds your credit limit. Please refer to the enclosed sheet entitled “Important Information Regarding Your Account” for the amount of the over-the-credit-limit fee you will be charged. No over-the-credit-limit fee will be imposed, nor will your Account be considered in default, if the over-the-credit-limit condition results solely from the reduction of your credit limit and you do not use your credit card until the Account balance is below the new credit limit.
8. Credits - Merchants who honor your Card will give you a credit for returns or adjustments, by sending us a credit transaction which we will post to your Account. You should keep your copy of the credit receipt to verify your monthly statement. If your credits and payments exceed what you owe us on the Account, we will credit such excess to the Account and, if the amount is $1.00 or more, we will refund it after 6 months or upon your written request.
9. Payment Postponement Feature - From time to time we may offer to allow you to skip one or more payments during the year. This postponement is optional. The notice of program offering will state the fee for postponing the payment and the duration of the postponement, if accepted by you. Finance Charge will continue to accrue on your Account for the duration of the postponement according to the terms of this Agreement. Regular payments will resume at the end of the postponement period.
10. Security Interest - To secure your Account, you grant us a purchase money Security Interest under the Uniform Commercial Code in any goods or articles you purchase through the Account. If you default, we will have the right to recover any of these goods or articles which have not been paid for through our application of your payments in the manner described herein. If you have given us any security interest for other debts, this Account will also be secured by the property described in the other security agreements, except for your home.
12. Loss or Theft of Card - You agree to notify us immediately upon discovering that your Card has been lost or stolen.
To Report a Lost or Stolen Card
Monday-Friday 9:00 a.m. - 5:00 p.m. • (810) 244-2200
All Other times (800) 991-4961
13. Stopping Payment - Once a charge is made through the use of the Card or account number, we cannot “stop payment” on the charge. If there is a dispute involving a charge on your Account, please refer to the section entitled “Your Billing Rights.” You may stop payment on a credit card check by notifying us in writing at P.O. Box 7006, Flint, Michigan 48507-0006 or by calling us at the telephone number listed on the billing statement. If you call, you must confirm the call in writing within 14 days. A written stop payment order will remain in effect for six months unless renewed in writing. The charge for a “stop payment” is indicated on the enclosed sheet entitled “Important Information Regarding Your Account.”
14. Default - You will be in default, and charged a late fee, if you fail to make at least the “Minimum Payment” shown on a monthly statement within 25 days of the closing date of the statement. Please refer to the enclosed sheet entitled “Important Information Regarding Your Account” for the amount of the late fee you will be charged. You will also be in default (a) if you breach any other conditions of the Agreement, (b) if we determine that your creditworthiness (which includes your ability to repay us) has become unsatisfactory due to a change in employment, increase in your other obligations, if you made any false or misleading statement in any credit application or credit update or because of any other reason, or (c) in the event of your death. In the event of any default or in the event this Agreement is terminated by you or by us for any reason, the entire balance on the Account becomes due and payable forthwith. You also agree that, in case of default, you will pay all usual and customary costs of collection including reasonable attorney fees. You further agree, unless prohibited by law, that in the event legal proceedings are initiated to collect on this Account, proceedings may be filed in any District or Circuit Court in a County where we conduct business.
15. Personal and Credit Information - You authorize us to investigate your credit standing when opening, renewing or reviewing your Account, and you authorize us to disclose information regarding our experience with you under this Agreement to credit bureaus and other creditors. You also agree that we may provide personal data to Visa U.S.A., its Members, or their respective contractors for the purpose of providing Emergency Cash and Emergency Card Replacement Services, where applicable.
16. Effect of Agreement - This Agreement contains our complete contract relating to the Account and applies to every transaction relating to the Account even though a purchase, cash advance, or credit receipt may contain different terms.
17. Amendment of Agreement - From time to time, we may amend this Agreement by giving you written notice of the amendment at least 15 days before it goes into effect, unless a shorter notice period is permitted by law. The notice will be sent to your last known address appearing in our records when it is sent, and will state the date upon which the amendment will become effective. To the extent the law permits, and indicated in the notice to you, the change will apply to your existing Account balance as well as to future transactions.
18. Personal Identification Number (PIN) - We will furnish you with a Personal Identification Number (PIN). You agree to keep the PIN secret. You also agree you won’t write the PIN on the Card or anything you keep with the Card. Your use of the PIN and Card in getting a cash advance or making a purchase is agreed to constitute your signature for purposes of such transaction.
19. Liability for Unauthorized Use - You may be liable for the unauthorized use of your credit card. You will not be liable for unauthorized use that occurs after you notify us orally, or in writing, of the loss, theft, or possible unauthorized use. Additionally, you will not be liable if you report the loss or theft of your Card within two business days of discovery that the Card is missing, unless you have been grossly negligent or fraudulent in the handling of the Account or Card. In any case, your liability will not exceed $50.00 for unauthorized cash advances at ATMs and zero liability for unauthorized credit card purchases.
Your Billing Rights — Keep This Notice for Future Use
This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act.
Notify Us In Case of Errors or Questions About Your Bill
If you think your bill is wrong, or if you need more information about a transaction on your bill, write us on a separate sheet at the address listed on your bill. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first bill on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights.
In your letter, give us the following information:
• Your name and account number;
• The dollar amount of the suspected error;
• Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about.
If you have authorized us to pay your credit card bill automatically from your savings or draft account, you can stop the payment on any amount you think is wrong. To stop the payment your letter must reach us three business days before the automatic payment is scheduled to occur.
Your Rights and Our Responsibilities After We Receive Your Written Notice
We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct.
After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question.
If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If we didn’t make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date that it is due.
If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write to us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is.
If we don’t follow these rules, we can’t collect the first $50 of the questioned amount, even if your bill was correct.
Special Rule for Credit Card Purchases
If you have a problem with the quality of property or services that you purchased with a credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limitations on this right:
(a) You must have made your purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and
(b) The purchase price must have been more than $50.00
These limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services.
Effective 4/1/08
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