Universal Disclosure Statement
Bounce Safe / Overdraft Courtesy Policy
Important Facts About Share Accounts
Regular Savings/Club Savings/IRA Accumulation/SEP Accumulation
Rate Information
The dividend rate and annual percentage yield may change every dividend period based on credit union earnings. We may change the dividend rate at any time for your account as determined by the credit union Board of Directors. The Board of Directors declare the dividend for a dividend period at its regular scheduled board meeting held in the fourth Monday of each month.
Compounding and Crediting
Dividends will be compounded monthly on the average daily balance. Dividends will be posted to your account on the last day of every month.
Dividend Period
For Regular, Club, IRA and SEP Savings the dividend period is monthly. For example, the beginning date for the first dividend period of the calendar year is January 1, and the ending date of the dividend period is January 31. Posing date of dividends is the last day of the month. All other dividends periods follow this pattern.
Minimum Balance Requirement
You must maintain a minimum average daily balance of $25 in your account to obtain the disclosed annual percentage yield.
Accrual of Dividends on Non Cash Deposits
Dividends will begin to accrue on the business day that you deposit non-cash items (checks are non cash items) to your account.
Transaction Limitations
There are no limitations on the number of dollar amount of either deposits or withdrawals. Automatic transfers and/or overdraft coverage tied to any checking account(s) will be limited in accordance with Reg D.
Par Value of Share
Par (Participating) value of share in the credit union is $25. At any time this amount can be on deposit in any account.
Personal Reserve, Personal Reserve IRA and Rainy Day
Rate Information
The dividend rate and annual percentage yield may change every dividend period and is based on credit union earnings. We may change the dividend rate for you account as determined by the credit union Board of Directors. The Board of Directors declare the dividend for a dividend period at its regular scheduled board meeting held in the fourth Monday of the month. Benchmark rate based on current Kentucky Telco Regular Savings PLUS index:
Personal Reserve -
Average monthly balance:
| Minimum balance $5,000 | 50 basis points | |
| balance $10,000 | 100 basis points | |
| balance $20,000 | 125 basis points | |
| balance $30,000 | 150 basis points | |
| balance $40,000 | 200 basis points |
| Less $3,000 | 15 basis points | |
| $3,000 or more | 35 basis points | |
| 100 basis points equals 1 percent | ||
Health Savings Account –
Average monthly balance:
| Less $3,000 | 15 basis points | |
| $3,000 or more | 35 basis points | |
| 100 basis points equals 1 percent | ||
Minimum Balance Requirement - Personal Reserve
You must maintain a minimum daily balance of $5,000 in your account to obtain the disclosed annual percentage yield, other wise the standard dividend for Regular Savings will apply.
Minimum Balance Requirement - Rainy Day
You must maintain a minimum daily balance of $25 in you account to obtain the disclosed annual percentage yield.
Accrual of Dividends on Non Cash Deposits
Dividends will begin to accrue on the business day that you deposit non-cash items (checks are non cash items) to your account.
Transaction Limitations
There are limitations on the number or dollar amount of either deposits or withdrawals.
Personal Reserve - Withdrawals limited to not less than $500.
Rainy Day - No more than three withdrawals, of not less than $50 each, per calendar month. Must deposit at least $50 per calendar month into account.
Personal Reserve and Rainy Day are not MAX24 or ATM accessible.
Classic Checking
Rate Information
Classic Checking accounts earn no dividends.
Minimum Balance Requirements
No minimum balance requirements apply to this account.
Transaction Limitations
There are no limitations on the number of dollar amount of either deposits or withdrawals. Federal regulations limit the number of cross account transfers that can be made on any checking account to no more than six in any calendar month.
Business Checking
Rate Information
Business Checking accounts earn no dividends.
Minimum Balance Requirement
No minimum balance requirements apply to this account, however to avoid a monthly fee a $5,000 Average Daily Balance must be maintained.
Transaction Limitations
There are no limitations on the number or dollar amount of either deposits or withdrawals. Federal regulations limit the number of cross account transfers that cc an be made on any checking account to no more than six in any calendar month.
Fees and Charges
The monthly fees for Business Checking is $10.00 unless a $5,000 Average Daily Balance is maintained.
Corporate Reserve (requires Business Checking)
Rate Information
The dividend rate and annual percentage yield may change every dividend period and is based on Credit Union earnings. We may change the dividend rate for your account at any time based on market conditions. Dividends are based on the current Kentucky Telco Regular Savings rate PLUS index:
Average Monthly Balance:Minimum balance $5,000 50 basis points Balance $10,000 100 basis points Balance $20,000 125 basis points Balance $30,000 or more 150 basis points
Compounding And Crediting
Dividends will be compounded monthly on the average monthly balance. Dividends will be posted to your account on the last day of every month.
Dividend Period
For the Corporate Reserve the dividend period is monthly, for example, the beginning date for the first dividend period of the calendar year is January 1, and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern.
Minimum Balance Requirement
You must maintain a minimum daily balance of $5,000 in your account to obtain the disclosed annual percentage yield. If you do not maintain minimum balance, no dividends are earned.
Accrual of Dividends on Non Cash Deposits
Dividends will begin to accrue on the business day that you deposit non-cash items (checks are non cash items) to your account.
Transaction Limitations
There are limitations on the number or dollar amount of either deposits or withdrawals.
Withdrawals are limited to $500 minimum. No restrictions on deposit amount or frequency. Automatic overdraft coverage in minimum transfer amounts of $500. Limited to three transfers per month with $5 per daily transfer.
Money Market Plus Checking
Rate Information
The dividend rate and annual percentage yield may change every dividend period based on credit union earnings. We may change the dividend rate for your account at any time based on market conditions and rates. Dividends are based on the current Kentucky Telco Regular Savings PLUS five basis points.
Compounding ac Crediting
Dividends will be compounded monthly on the average daily balance. Dividends will be posted to your account on the last day of every month.
Dividend Period
For Money Market Plus Checking the dividend period is monthly. For example, the beginning date for the first dividend period of the calendar year is January 1, and the ending date of the dividend period is January 31. Posting date of dividends is the last day of the month. All other dividend periods follow this pattern.
Minimum Balance Requirement
You must maintain a minimum balance of $1,500 in you account to obtain the disclosed average daily annual percentage yield.
Accrual of Dividends on Non Cash Deposits
Dividends will begin to accrue on the business day that you deposit non-cash items (checks are non cash items) to your account.
Transaction Limitations
There are no limitations on the number of dollar amount of either deposits or withdrawals. Federal regulations limit the number of cross account transfers that can be made on any checking account to no more than six in any calendar month.
Fees and Charges
The monthly fee for Money Market Plus Checking is $10.00 unless a $1,500 average daily balance is maintained.
Freedom Club Checking
Rate Information
The dividend rate and annual percentage yield may change every dividend period based on credit union earnings. We may change the dividend rate for your account at any time based on market conditions and rates. Dividends are based on the current Kentucky Telco Regular Savings PLUS ten basis points.
Compounding and Crediting
Dividends will be compounded monthly on the average daily balance. Dividends will be posted to your account on the last day of every month.
Dividend Period
For Freedom Club Checking the dividend period is monthly. For example, the beginning date for the first dividend period of the calendar year is January 1, and the ending date of the dividend period is January 31. Posting date of dividends is the last day of the month. All other dividend periods follow this pattern.
Minimum Balance Requirement
No minimum balance requirements apply to this account.
Accrual of Dividends on Non Cash Deposits
Dividends will begin to accrue on the business day that you deposit non-cash items (checks are non cash items) to your account.
Transaction Limitations
There are no limitations on the number of dollar amount of either deposits or withdrawals. Federal regulations limit the number of cross account transfers that can be made on any checking account to no more than six in any calendar month.
Fees and Charges
Freedom Club membership is a requirement for having a Freedom Club Checking Account. The Freedom Club is limited to persons 50 years of age and older or retired. The monthly fee for Freedom Club membership is $1.50.
Prestige Checking
Rate Information
The dividend rate and annual percentage yield may change every dividend period based on credit union earnings. We may change the dividend rate for your account at any time based on market conditions and rates. Dividends are indexed to the current Kentucky Telco Regular Savings rate; 200 basis points will be added to the rate paid on the first $10,000 each month when all Prestige Checking Requirements are met, the Regular Savings rate will be paid on any amount over $10,000 and will be paid on all balances if Prestige Checking Requirements are not met.
Compounding and Crediting
Dividends will be compounded monthly on the average daily balance.
Dividends will be posted to your account on the last day of every month.
Dividend Period
For Prestige Checking the dividend period is monthly. For example, the beginning date for the first dividend period of the calendar year is January 1, and the ending date of the dividend period is January 31. Posting date of dividends is the last day of the month. All other dividend periods follow this pattern.
Minimum Balance Requirement
No minimum balance requirements apply to this account.
Accrual of Dividends on Non Cash Deposits
Dividends will begin to accrue on the business day that you deposit noncash items (checks are non-cash items) to your account.
Transaction Limitations
There are no limitations on the number of dollar amount of either deposits or withdrawals. Federal regulations limit the number of cross account transfers that can be made on any checking account to no more than six in any calendar month.
Account Requirements
Prestige Checking requires that you have an active Kentucky Telco loan or Kentucky Telco VISA Platinum Credit Card or Line of Credit, Kentucky Telco SmartCash VISA Debit Card and Direct Advantage. All products must reflect minimum activity every 90 days. Repeated months of non-usage may disqualify you from having Prestige Checking and or earning Prestige bonus dividend.
Certificate Account
IRA Certificate Account
Rate Information
We may change the dividend rate at any time for your account as determined by the credit union Board of Directors. The dividend rate and annual percentage yield may change every dividend period based on credit union earnings. We may change the dividend rate for your account at any time based on market conditions and rates.
Compounding and Crediting
Dividends will be compounded monthly on the average daily balance. Dividends will be posted to your account on the last day of each month as well upon maturity for certificates with maturities longer than six months. For Certificates with maturities six months or less, credit for dividends will be posted at maturity.
Dividend Period
For Certificate Accounts with maturities of six months or longer the dividend period is each calendar quarter and, if the maturity falls on a date other than the end of a calendar quarter, at maturity. For example, the beginning date for the first dividend period of the calendar year is January 1, and the ending date of the dividend period is January 31. All other dividend periods follow this pattern. A Certificate purchased January 20 would then receive dividend on January 31 and again each month after that, as well as upon maturity.
For Certificate Accounts with maturities of six months or less, the dividend period will be determined by the length of the Certificate. For example, if the beginning date for the Certificate is January 1 and the maturity date is April 30, then the maturity date is the ending date for the dividend period.
Early Withdrawal
If you close your account prior to maturity there will be a dividend penalty assessed, which at no time will exceed dividends accrued or paid. Penalty would be assessed at the following Rate:
Up to 12 Months - 30 Days Dividend
Over 12 Months - 90 Days Dividend
Minimum Balance Requirement
You must maintain a minimum balance of $500 in your account to obtain the disclosed annual percentage yield.
Accrual of Dividends on Non Cash Deposits
Dividends will begin to accrue on the business day that you deposit non-cash items (checks are non cash items) to your account.
Transaction Limitations
You may not deposit additional fund to this account during the term of the certificate. Withdrawals are allowed, subject to terms and conditions set forth. The initial deposit must be at least $500. Early withdrawal is subject to a penalty of an amount equal to the interest that would be earned for one quarterly dividend period, not to exceed total dividends paid and/or accrued.
Renewal
Your Certificate Account will automatically renew at maturity at the then current rate for a like term certificate. The credit union will mail you a written notice 10 -days prior to maturity of Certificate Accounts. You will have a 7-day grace period following maturity date to withdraw funds in the account without a penalty.
Common Features
Bylaw Requirements
Membership in credit union is a requirement for any service. Minimum Par (Participating) value of a share in credit union is $25, to be deposited to any account. Members must maintain an amount equal to one share in an account at all times.
Members are bound by such rules and requirement as may be set from time to time by the Board of Directors. The credit union may require members to give written notification 9not more than 60 days) of intent to withdraw funds. No member may withdraw funds pledged as security for any loan, except as permitted by credit union. The credit union may restrict withdrawals if a member is delinquent on any primary or contingent liability to the credit union.
Transaction Limitations
The credit union may from time to time amend rules governing deposits, transactions, fees, charges and withdrawals.
Nature of Dividends
Dividends are paid from current income and available earnings, after required transfers at the end of the dividend period.
Average Daily Balance Method
Dividends are figured by adding up each balance in the account for each day in the dividend period and dividing by the number of days in the period. The periodic rate is then applied to that average daily balance.
Example: Dividend Period = monthly or 30 days
Days 1 - 15: $1,500 (balance) X 15 = $22,500
Days 16 - 30: $3,000 (balance) X 15 = $45,000
($22,500 + $45,000) / 30 = $2,250 (avg. daily balance)
The periodic rate is calculated by multiplying the daily rate by the number of days in the period.
Example: .0136 (daily rate) X 30 days = .408 periodic rate)
.408 (periodic rate) X $2,250 (avg. daily balance) = 49.18 dividends for period
Minimum Balance Requirements
The amount needed to open an account, and the average daily balance you must maintain in an account to earn dividends or avoid a service fee.
Account Insurance
Member accounts are federally insured to $100,000 by the National Credit Union Share Insurance Fund, which is backed by the full faith and credit of the United States.
YOUR ACCOUNT
There are accounts you have opened or asked about. Details regarding these accounts are included in this brochure. Additional information may be included with your account materials, certificates, separate disclosures and periodic statement.
Dividend Rate is the annual rate paid on an account before compounding.
Annual Percentage Yield or APY is the percentage rate reflecting on the total amount of dividends earned on an account, at the base dividend rate, when the dividend is compounded and the funds left in the account for a 365 day (one year) period. The APY includes the effect of compounding and assumes that the principal (balance) and all dividends remain in the account for 365 days.
| Automatic Overdraft | Free – 3 checks per month $1.00 per item after 3 |
| Checking NSF Overdraft | $26.00 per item |
| Deposit Item Returned | $11.00 per item |
| Stop Payment | $20.00 |
| Certified Check | $5.00 |
| Debit Card | $1.00 per month w/out D.A. Free w/ MMP, Freedom Club & Classic w/ D.A. |
| Official Check Fee | $5.00 |
| Check Order | Dependent on style ordered |
| MMP Checking falls below $1,500 minimum balance | $10.00 |
| Freedom Club | $1.50 per month |
| Business Checking | $10.00 per month |
| ATM NSF Overdraft | $26.00 |
| ACH NSF Overdraft | $26.00 |
| ATM Usage | Unlimited Free in network |
| Replacement ATM Card | $10.00 |
| Replacement Credit Card | $10.00 |
| Replacement Debit Card | $10.00 |
| Rush card fee | $20.00 |
| Replacement P.I.N | $5.00 |
| Document Copy Fee | $5.00 |
| Check Copy Fee | $5.00 |
| Statement Copy (per month) | $5.00 |
| Inactive Account (per month) | $5.00 |
| Missing Address | $5.00 |
| Money Orders | $2.00 Free w/ Personal Reserve |
TravelMoney Card | $10.00 $2.00 each $4.00 $2.50 $2.00 $10.00 $0.50 $0.50 $2.00 Free $1.25 after 12 months with no reload, cash out or withdrawal $15 |
| US Bond & Coupon Collection | Free w/ checking $5.00 per item w/out checking |
| Municipal Bond & Coupon collection | $45.00 |
| Transaction History since last statement | Free |
| Account Research | $15 per hr w /min of $15 |
| Collection Items | $11.00 |
| Garnishment/Levy | $45.00 |
| Excess Credit Limit | $10.00 |
| Late Payment (10 days) | $20.00 |
| Returned Check – Loan Payment | $25.00 |
| Early w/d of Certificate | forfeit one dividend period |
| Account reinstatement fee | $5.00 |
| Close Account fee (within 90 days of opening) | $10.00 |
| Self-Directed IRA | Free |
| Close IRA/Distribution | Free |
| Close Ira/Early or Transfer | $25.00 |
| International Draft | $25.00 |
| Remote Fund Fee | $5.00 |
| Wire Transfer – out | $10.00 |
| International Wire – out | $25.00 |
| Wire Transfer – in | $2.00 |
| Tax Pmt/ACH Origination | $30.00 |
| Tax Pmt/ACH Debit | Free |
| Member Account Balances On-Line | Free |
| Bill Payer – Initial Set Up | $10.00 |
| Bill Payer – Monthly User Fee w/ D.A. w/out D.A. | Free $3.00 |
| Bill Payer NSF | $26.00 |
| Bill Payer Stop Payment | $20.00 |
| Keyline Below Minimum w/d | $25.00 |
| Loose Coin Deposit | 5% |
| Corporate Reserve Transfer | $5 Daily |
| Western Union | |
| $50 or less | $17.00 |
| $50.01 -- $200.00 | $19.00 |
| $200.01 – $500.00 | $29.00 |
| $500.01 -- $1,000.00 | $33.00 |
| $1,000.01 -- $2,500.00 | $42.00 |
| $2,500.01 -- $5,000.00 | $47.00 |
| $5,000.01 -- $7,500.00 | $50.00 |
| $7,500.01 -- $10,000.00 | $57.00 |
| Safe Deposit Box Rental | |
| 2x5x24 | $20.00 |
| 3x5x24 | $20.00 |
| 2x10x24 | $20.00 |
| 5x5x24 | $20.00 |
| 3x10x24 | $20.00 |
| 5x10x24 | $20.00 |
| 10x10x24 | $20.00 |
Universal Disclosure Statement
Checking/ATM/SmartCash Debit Card/Bill Payer/Electronic Fund Transfer/Bounce Safe Overdraft Courtesy
AGREEMENT
This agreement and disclosure statement (hereafter called "Agreement") applies to any checking account (Classic Checking, Money Market Plus Checking, Business Checking or Freedom Club Checking), ATM (Automatic Teller Machine) card, debit card (SmartCash Visa Check Card), any Bill Payer Service and any EFT (Electronic Fund Transfer) issued by, or for Kentucky Telco Federal Credit Union, Louisville, Kentucky ("we," "us," or "our"). By signing an application for, or using any account, card or electronic transfer, you agree to be bound to the provisions of this Agreement and Disclosure Statement. ("You," "Your" and "Yours" refers to each person who signs any application or uses any account, card or electronic transfer.)
MEMBER OBLIGATION
If you believe your Kentucky Telco issued checks, ATM card, SmartCash Visa Check Card or personal identification number has been lost or stolen you must tell us upon discovery. You will have no liability if you tell us within 2 business days after you learn of loss or theft of your SmartCash Visa Check Card unless it is used at an ATM, as an Interlink card or cards issued outside the U.S. After 2 business days you can lose no more than $50 if someone used your SmartCash Visa Check Card without your knowledge and/or permission. If you tell us within 2 business days after you learn of loss or theft of your ATM card or Personal Identification Number you can lose no more than $50 if someone used your card without your knowledge and/or permission. Use of any card and/or personal identification number for any purpose by any member of your household or a related family member will be considered to be authorized use by you. If you do NOT tell us within 2 business days after learning of loss or theft of your ATM/SmartCash card or Personal Identification Number you could lose up to $500. If your statement shows transfers, withdrawals or other activity you did not authorize or make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any of the money you lost if we prove that we could have stopped someone from taking the money had you told us. Provisional credit for unauthorized use of SmartCash Visa Check Card's will be given within 5 business days of receipt of notification from you. For billing errors we have 10 business days to give provisional credit. For errors involving point of sale transactions or transactions outside of the U.S. we have 20 business days to correct the error. We can, at our option, extend the time period if a good reason (such as extended hospital stay) kept you from telling us.
ERROR RESOLUTION
If an error involves a purchase of goods or services with your card or a point of sale or debit card transaction, you must first make a good faith effort to return the item, resolve dispute and/or provide merchant with a chance to correct the problem before we will do anything. If you tell us about an error or problem orally, we may ask that you provide us with your complaint or question in writing within ten business days for us to take any further action. Providing you follow steps outlined here and above in MEMBER OBLIGATION to report an error or problem we will tell you the results of our investigation within ten business days after we hear from you and will correct any error promptly. If more time is needed to complete our investigation we may take up to 90 business days. If we do this we will notify you and provisionally credit your account with the disputed amount during the period of our investigation. If your written complaint involves EFT activity on an account within 30 days of the first deposit to the account, our time period for response/credit shall be 20 business days instead of 10 business days. If we ask you to put your complaint in writing, and do not receive it in ten business days, we may not credit your account. If we decide there was no error, we will notify you in writing within two business days after we complete our investigation.
ADDRESS & TELEPHONE NUMBER FOR NOTIFICATION
Call (502) 459-3000 or (800) 292-9490 during regular business hours. After regular business hours for credit cards call (800) 654-7728, for debit cards call (800) 264-5578 or write:
Kentucky Telco Federal Credit Union
Post Office
Box 18303
Louisville, KY 40261-0303
BUSINESS DAY
Our business days are Monday through Friday, 8:30 a.m. to 4:00 p.m. Eastern Time. Credit Union holidays are not included.
SERVICES/USE OF BILL PAYER SERVICE AVAILABLE
You authorize Credit Union to post payment transactions generated by Personal Computer, Telephone or other device from the Bill Payer Service to the account indicated on the form sent electronically or otherwise. If at any time you wish to discontinue service you must provide written notification to us. Payments may take up to five (5) business days to reach the vendor and may be sent either electronically or by check. The credit Union is not liable for any service fees or late charges levied against you. You are liable for any loss or penalty that may occur due to lack of sufficient funds or other conditions that may prevent the withdrawal of funds from your account. All charges will be automatically deducted from your account.
CHARGES FOR BILL PAYER
At our option we may charge a set up fee, monthly access fee, per transaction fee or other charges we elect. The current charges are:
Initial set up charge $10.00
Monthly User Fee with Direct Advantage FREE
Monthly User Fee without Direct Advantage $3.00
We may amend these charges from time to time
SERVICES/USE OF ATM CARD AVAILABLE
You may use your ATM card to:
Withdraw cash from your primary (or designated) savings or checking account.
Make deposits to your primary savings or checking account at selected Automatic Teller Machines. Transfer funds between your primary (or designated) savings and checking account.
Pay for purchases at places that have agreed to accept the ATM Card.
Some of these services may not be available at all terminals.
SERVICES/USE OF SMARTCASH CARD AVAILABLE
You may use the SmartCash Card to purchase goods or services from any merchant or company that accepts Visa cards or to obtain cash from any financial institution that accepts the Visa card. You agree to sign a sales draft or withdrawal voucher for each purchase or cash withdrawal, and you authorize us to debit or credit (whichever is appropriate) your designated checking or saving account for the total amount shown on any sales draft, withdrawal or credit voucher originated by the use of the card. You may also use the SmartCash Card to:
Withdraw cash from your primary (or designated) savings or checking account.
Make deposits to your primary savings or checking account at selected Automatic Teller Machines.
Transfer funds between your primary (or designated) savings and checking account.
Pay for purchases at places that have agreed to accept the ATM Card.
Some of these services may not be available at all terminals.
FOREIGN TRANSACTIONS
To the extent that you use the SmartCash card in any country other than the United States of America, your statement may reflect the conversion into U.S. dollars transactions occurring in that other country in a different currency. The exchange rate applied to such transactions in effect by the processing agent on the date of processing plus one percent will be charged. Limitation on use in some foreign countries may be placed from time to time by the credit union.
POINT OF SALE
In addition, cards may be used through Point of Sale terminals at selected merchants to access your checking account to:
Purchase goods and services from merchants who have agreed to accept your card as means of payment.
Withdraw cash in conjunction with a purchase of goods and services if permitted by merchant.
Perform balance inquiries if permitted by merchant.
CONDITIONS OF USE OF SMARTCASH/ATM/POINT OF SALE CARDS
When you use a Card to purchase goods or services from a merchant or make cash withdrawals from a financial institution, the merchant, company or financial institution may be required to obtain authorization for the transaction. As a security measure we limit the amount that may be withdrawn from your account by use of the card over a certain period of time. We may otherwise limit the use of the card at our discretion, and the provider of service or owner of the ATM. The privilege of using your card in no way constitutes an absolute right to withdraw funds from your account through the use of the card. If a transaction is approved we reserve the right to place a hold on your accounts with us for the approved amount. This means we may not approve subsequent transactions and we may not pay other items drawn on your checking account, even if the approved transaction is not completed. We will have no liability to you if, as a result of holds placed on your account when we approve any authorized use of the card, we refuse to pay any check, draft or other item drawn on your checking account. We will have no liability to you if we do not authorize any use of the card issued to you for any reason.
LIMITATIONS ON AMOUNTS AND FREQUENCY OF ATM/SALE TRANSACTIONS
You may make withdrawals, not to exceed $500 per day, at ATM networks subscribed to by the credit union which we may modify as from time to time. For security reasons there may be times when we further limit this amount.
You may make point of sale transactions in amounts not to exceed your daily authorization limit. For security reasons there may be times when we further limit this amount.
On deposits, you may withdraw up to $100 on the day of your deposit. This cash back feature is in addition to your available balance, but cannot exceed $500 per day. For security reasons there may be times when we further limit this amount.
You may use your ATM card for up to 15 transactions each day. For security reasons there may be times when we further limit this amount.
STOP PAYMENT
You waive any right to stop payment on any sales draft or other item originated by use of the card issued to you. To stop any pre authorized payments you have authorized you must contact us as specified in this agreement to obtain an affidavit of unauthorized debit activity and return the signed and notarized form to us by no later than one business day or more before the payment is scheduled to be made. We will assess a fee for each stop payment order you give.
CHARGES
You may make unlimited ATM transactions per calendar month at no cost at in network ATMs. SOME FINANCIAL INSTITUTIONS MAY ASSESS A FEE AT THEIR ATM. THIS FEE IS CHARGED BY THAT INSTITUTION FOR USE OF THE ATM AND WILL BE DISCLOSED PRIOR TO COMPLETION OF THE TRANSACTION BY YOU. To avoid the charge, simply cancel the transaction at that point. Otherwise the charge will be debited from your account in addition to the amount of any withdrawal. There is no other fee or charge associated with the Kentucky Telco ATM Card. SmartCash cards are free when issued with a Classic Checking with Direct Advantage (net deposit of payroll). SmartCash cards issued with a Classic Checking without Direct Advantage have a $1 per month fee. There is no additional monthly fee when issued with either a Money Market Plus or Freedom Club Checking Accounts. We may amend these charges from time to time.
DOCUMENTATION
You will receive a receipt at the time of transaction at any ATM or point of sale terminal. You will receive a statement of account detailing each transaction in any month there is activity, or in any event at least quarterly. No copy or facsimile of any sales draft or item originated by use of your ATM or SmartCash Card will be provided to you with any statement. Providing you make a request in a reasonable time following procedures established by us, and such copies can be reasonably obtained from the merchant involved, a copy or facsimile of a sales draft or item may be made available to you for inspection.
LIABILITY FOR FAILURE TO MAKE TRANSFERS
If we fail to complete a transfer from a checking or saving account held by us on time or in the correct amount, according to our agreement with you for that account transaction, we will be liable for specific and reasonable losses or damages. There are exceptions, which include but are not limited to:
If, through no fault of ours, you do not have enough money in your account to make the transfer.
If you attempt to draw on deposits of checks, drafts or other non-cash items, that have not yet been collected by us.
If you attempt to draw on funds deposited in an ATM before the amount of the deposit can be manually verified by us and credited to your account.
If the transfer exceeds any overdraft limit, credit limit or line of credit limit that you have with us.
If the ATM or point of sale terminal you use is not able to provide the service or cash you request.
If the ATM or point of sale terminal is not functioning, malfunctions or is out of service due to reasons or circumstances beyond our reasonable control including acts of nature.
If funds that would have been available otherwise are offset by us in payment of indebtedness you owe to us or if the funds are attached or otherwise proceeded against as a result of legal action or levy brought against you or another person who is joint owner of your account.
DISCLOSURE OF ACCOUNT INFORMATION TO THIRD PARTIES
We will disclose information to third parties about your account or transactions you make as follows:
When necessary to complete a transaction.
To verify existence and condition of your account for a credit bureau, merchant or other bona fide commercial purpose.
If we close or restrict your account due to deficit balance, excessive overdrafts or other reason.
To comply with court or government order or action.
If you provide us with written permission.
OVERDRAFTS
The ATM/Debit card is not a credit card. If any use of the card results in an overdraft you will be notified and you agree to make immediate payment to us of the amount of such overdraft together with any service charges and fees we assess. If you have overdraft protection, payment of overdrafts will be subject to the terms of the overdraft protection agreement.
CLOSED ACCOUNTS
If for any reason your account is closed you agree to pay to us any money owed resulting from use of your card. You also agree to immediately discontinue use of the card and to return the card to us. The card at all times remains our property and may be repossessed by us at any time. We may cancel, revoke or take your card with or without cause or notice, other than as provided by federal or state law. The cancellation of card privileges by you or us in no way affects other rights and privileges of your membership or account or their terms and conditions.
OTHER TERMS
We have no liability what so ever if, for any reason, the card is not honored by any merchant, financial institution or other business establishment. All other terms and conditions set forth in your membership or account relationship with us will continue to apply to the extent they are not covered by this agreement. We may rely on the address for your mailing residence that you provide to us until such time as you provide written notification of change. We may modify, amend or change this agreement in whole or in part upon reasonable notice to you in compliance with any applicable state or federal law or regulations. If any part of this agreement is declared invalid in any court or appropriate regulatory body, the remaining provisions of this agreement shall not be affected. The headings of each section of this agreement are for convenience only and do not control or affect the meaning or construction of this document. When applicable this agreement will be governed by Federal law, otherwise it will be governed by the laws of the Commonwealth of Kentucky.
THIS AGREEMENT IS SUBJECT TO ARTICLE 4A OF THE UNIFORM COMMERCIAL CODE.
Funds Transfers, as adopted in the state of New York, or if a separate agreement has been signed by the parties to the transaction that reference another version of 4A, that version will apply. If you originate a fund transfer by wire and you identify, by name and number, a beneficiary financial institution, an intermediary financial institution, or a beneficiary, We, and every receiving beneficiary or financial institution may rely on the identifying number to make payment. We may rely on the number, even if it identifies a financial institution, person, or account other than the one named. You agree to be bound by the Automated Clearing House (ACH) Association Rules. These Rules provide, among other things, that payments made to you, or originated by you, are provisional until final settlement is made through a Federal Reserve Bank, or payment is otherwise made in Article 4A-403(a) of the Uniform Commercial Code. If We do not receive such payment, you are hereby notified and agree, that We are entitled to a refund from you in the amount credited to your account, and the party originating such payment will not be considered to have paid the amount so credited. If We receive a credit to an account you have with us by wire or ACH, We are not required to give you any notice of the payment order or credit.
UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT POLICY AND PROCEDURES
It is the Policy of Kentucky Telco to fully comply with Regulation GG, the Unlawful Internet Gambling Enforcement Act (UIGEA) and prohibit knowingly accepting payments in connection with unlawful Internet gambling. This includes payments made through credit cards, electronic funds transfers, and checks to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet, where such bet or wager is unlawful under any applicable federal or state law in the state or tribal lands in which the bet or wager is initiated, received, or otherwise made. However, horse racing and in-state tribal gaming are both identified as being exempt from UIGEA and Regulation GG, thereby acknowledging them as legal activities. Lawful Internet gambling businesses will be required to provide documentation from federal and state governing authorities to operate at account opening.
Bounce Safe / Overdraft Courtesy Policy
It is the policy of Kentucky Telco Federal Credit Union to comply with applicable laws and regulations, and to conduct business in a safe and sound manner.
Insufficient balances may result from: A) Check payments, electronic funds transfer, or other withdrawal requests; B) Payments authorized by accountholder; C) Unpaid return of items deposited by the accountholder; D) Imposition of financial institution service charges; E) Deposit of items which according to the Credit Union’s Funds Available Policy, are treated as not yet “available” or finally paid.
We are not obligated to pay any item presented for payment if the account does not contain sufficient collected funds. However, if the accountholder maintains the account in good standing, as defined as A) Making regular deposits sufficient to cover transactions; B) Brining the account to a positive balance at least once every thirty day or less; and C) There are no legal orders outstanding, we may, at the credit union’s sole discretion, pay reasonable overdrafts as a non-contractual courtesy. Generally, we will not pay an overdraft in excess of $544 for Personal Checking accounts. These limits include our Non-Sufficient Funds and/or Overdraft Courtesy Charge(s).
We may refuse to pay an overdraft at any time, even thought we may have previously paid the overdrafts. The accountholder will be notified by mail of any Non-Sufficient funds items paid or returned. However, we have no obligation to notify the accountholder before we pay or return an item. The amounts of any overdrafts, plus our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charge(s) that the accountholder owes us are due and payable upon demand. If we pay an overdraft on an account with more than one (1) owner on the signature card, each owner, and/or agent where applicable, drawing/presenting the item, thereby creating the overdraft, are jointly and severally liable for such overdrafts plus our Non-Sufficient Funds and/or Overdraft Courtesy Charges.
Limitations: This feature is available only to personal accounts for personal and household use. We may limit the number of accounts eligible for Overdraft Courtesy to one account per household. Additionally, we reserve the right to not approve any overdrafts against any account until we can verify that the account is being maintained in good standing, as defined above.
Account Fees: Whether we pay or return a Non-Sufficient Funds item, a per-item fee in the amount of $26 will be charged to your account as a Non-Sufficient Funds or Overdraft Courtesy Charge, as set forth in our fees schedule.
Overdraft Courtesy Disclaimer: Kentucky Telco’s Overdraft Courtesy plan is a non-contractual courtesy and is discretionary. It is not an obligation of the credit union and the credit union may refuse to provide the courtesy any personal checking account at any time and from time to time. The accountholder does not have a contractual right to Overdraft Courtesy and courtesy payment is not guaranteed by the Overdraft Courtesy plan. If you choose not to participate in Telco’s Overdraft Protection Program and prefer to have your checks sent back to the originating party, please contact any credit union service representative and we will note this on your account.
Kentucky Telco will adhere to all the provisions of the United States Patriot Act including the gathering of personal identification/information on all member and non-member transactions. Included may be the need to require a state or government issued photo identification be shown and that a record of the form of identification be maintained by the credit union.
Back to TopImportant information about the personal data Kentucky Telco collects and how it is used.
To assure the continued privacy and confidentiality of your personal financial information, Kentucky Telco observes these practices and procedures:
Information we collect
Kentucky Telco collects nonpublic information about members from the following sources:
Information we disclose
We do not disclose any nonpublic personal information about our members and former members to affiliates or non-affiliated third parties except as permitted by law.
Security measures
Kentucky Telco restricts access to nonpublic information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
We do Business in Accordance with Federal Fair Lending Laws
UNDER THE FEDERAL FAIR HOUSING ACT, IT IS ILLEGAL, ON THE BASIS OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, HANDICAP, OR FAMILIAL STATUS (HAVING CHILDREN UNDER THE AGE OF 18), TO:
Deny a loan for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling, or to deny any loan secured by a dwelling; or
Discriminate in fixing the amount, interest rate, duration, application procedures, or other terms or conditions of such a loan, or in appraising property.
IF YOU BELIEVE YOU HAVE BEEN DISCRIMINATED AGAINST, YOU SHOULD SEND A COMPLAINT TO:
Assistant Secretary for Fair Housing and Equal Opportunity
Department of Housing and Urban Development
Washington, DC 20410
For processing under the Federal Fair Housing Act and to:
National Credit Union Administration
Office of Examination and Insurance
1775 Duke Street
Alexandria, VA 22314
For processing under NCUA Regulations
UNDER THE EQUAL CREDIT OPPORTUNITY ACT, IT IS ILLEGAL TO DISCRIMINATE IN ANY CREDIT TRANSACTION:
On the basis of race, color, national origin, religion, sex, marital status, or age,
Because income is from public assistance, or
Because a right has been exercised under the Consumer Credit Protection Act.
IF YOU BELIEVE YOU HAVE BEEN DISCRIMINATED AGAINST, YOU SHOULD SEND A COMPLAINT TO:
National Credit Union Administration
Office of Examination and Insurance
1775 Duke Street
Alexandria, VA 22314
VISA PLATINUM CARDMEMBER AGREEMENT
TERMS AND CONDITIONS
The person (Cardholder) whose name is embossed on the face of the VISA PLATINUM card (Card) enclosed herewith, and each Cardholder, in the event more than one Card is enclosed herewith bearing the same account number, by signing or using said Card, receipt of which is acknowledged, agrees with the Issuer of the Card whose name is printed on the reverse (Issuer) as follows:
1. Goods and services (Credit Purchases) may be purchased or leased by means of such card by Cardholder from any retail business establishment (Seller) who honors same upon the execution of a sales slip evidencing such Credit Purchase and bearing the account number of Cardholder embossed on the face of such Card. Additionally VISA PLATINUM Cash Advances (Loans) may be obtained through the use of such Card (a) upon execution of a written request of Cardholder in a form furnished by any bank that is a member alone or in association with others of VISA, Inc. and (b) upon execution of a written separate agreement with issuer for a VISA PLATINUM overdraft financing agreement if offered by Issuer.
2. Cardholder shall be liable and agrees to pay Issuer for Credit Purchases made by or for Loans extended to Cardholder or anyone else using such Card unless the use of such Card is by a person other than the Cardholder (a) who does not have actual, implied or apparent authority for such use and (b) from which the Cardholder receives no benefit. Additionally, Cardholder shall be jointly and severally liable and agrees to pay for all Credit Purchases and Loans obtained through the use of any other Card bearing Cardholder’s account number that has been issued to another person by reason of such person being a member of Cardholder’s family or otherwise issued upon Cardholder’s request (all such Cards bearing the same VISA PLATINUM account number hereinafter collectively called Related Cards.)
3. Cardholder agrees to pay to Issuer an annual membership fee (as stated in the Disclosures on the reverse) for participation in Issuer’s credit card plan. Such annual membership fee shall be imposed whether or not Cardholder uses the card to obtain credit purchases and loans. The membership fee shall be charged to Cardholder’s account each year in the month of Issuer’s choice. The membership fee is not refundable in the event of termination of the account by either Cardholder or Issuer.
4. Each Card is the property of Issuer, is not transferable and must be surrendered upon demand. It can be cancelled as well as repossessed by Issuer or its designee and the privileges thereof revoked at any time without prior notice.
5. Cardholder shall not use Card or permit the use of Related Cards to obtain Credit Purchases or Loans that will increase Cardholder’s VISA PLATINUM indebtedness to Issuer to an amount in excess of the limit established by Issuer.
6. All Credit Purchases and Loans are affected at the option of the Seller and Cash Advancing Bank respectively and Issuer shall not be responsible for refusal by any Seller or Cash Advancing Bank to honor the Card or any Related Card. Any refund adjustment or credit allowed by Seller shall not be by cash but rather by a credit advice to Issuer that shall be shown as a credit on Cardholder’s account statement with Issuer.
7. Issuer will send to Cardholder, at monthly intervals determined by Issuer, a statement reflecting for the prior monthly period all VISA PLATINUM Card and Related Card transactions. Such statement shall be deemed correct and accepted by Cardholder and all holders of Related Cards unless Issuer is notified to the contrary in writing within 60 days of mailing of such statement. Cardholder will pay such statement by remitting to Issuer within 25 days of the closing date reflected on the statement either the full amount billed or at Cardholder’s option an installment equal to at least the required minimum payment stated in Paragraph 3 on reverse.
8. Interest on Loans and Credit Purchases will be charged in accordance with the finance charge calculation method referred to in Paragraph 1 of the Disclosures on the reverse side. The rate of interest shall be established by Issuer from time to time but shall never exceed the maximum rate permitted by law. The current interest rate per annum is the Annual Percentage Rate set forth in Paragraph 2 of the Disclosures on the reverse side.
9. If Card surrender is demanded by Issuer or the Cardholder defaults due to bankruptcy, insolvency, or any attachment or garnishment proceedings are indicated against Cardholder or his property, Issuer may elect to declare all amounts then owed to Issuer to be immediately due and payable without notice or demand of any kind. If Cardholder has other loans from Issuer or takes out other loans with Issuer in the future, collateral securing those loans will also secure the Cardholder’s obligations under this Agreement. However, the Cardholder’s primary dwelling will not secure Cardholder’s obligations under this Agreement, even if Issuer has, or later acquires, a mortgage on the dwelling. Cardholder agrees to pay all costs incurred by Issuer in collecting Cardholder’s indebtedness or in enforcing this Agreement, including attorney’s fees of 20% of the unpaid balance, or such greater amount as may be reasonable and just and also those costs, expenses and attorney’s fees incurred in appellate, bankruptcy, and post judgment proceedings.
10. Issuer may amend this Agreement from time to time. Written notice will be mailed to Cardholder at Cardholder’s last known address.
11. Except to the extent that Federal law is applicable, the validity, construction and enforcement of this Agreement and all matters arising out of the issuance and use of the Card shall be governed by the laws of the state in which the principal office of Issuer is located.
12. A charge of up to $15.00 per copy, plus applicable state sales tax, may be assessed for copies of documents requested by Cardholder, if not prohibited by law or regulation.
13. Cardholder may be liable for the unauthorized use of the Card or Related Cards as provided in this paragraph. The Cardholder will not be liable for any unauthorized use that occurs after Issuer is notified orally or in writing at:
PSCU FINANCIAL SERVICES
P.O. Box 31216
Tampa, Florida 33631-3281
Telephone Number (800) 449-7728
14. Replacement Card fee: If a card is replaced for any reason, a fee of $10 may be charged. If Cardholder has a consumer account or a business for which less than 10 cards have been issued, Cardholder’s liability for unauthorized use of a card will not exceed $50.00. If 10 or more cards are issued for use by employees of a single business or other organization there is no limit to Cardholder’s liability for any unauthorized use that occurs before Cardholder notifies Issuer as provided herein. The business or organization may only impose liability on its employees for unauthorized use of a card as authorized by federal law and regulation.
15. The Cardholder authorizes Issuer to investigate Cardholder’s credit standing when opening, renewing or reviewing the Cardholder’s account, and Cardholder authorizes Issuer to disclose information regarding Cardholder’s account to credit bureaus and other creditors who inquire of Issuer about Cardholder’s credit standing, to the extent authorized in Issuer’s By-Laws, and by state and federal law.
16. The Issuer is committed to the privacy of Cardholder’s financial records. To ensure Cardholder’s privacy, disclosure of account information will be restricted to the following:
a. Where it is necessary for completing the requested transaction.
b. In order to verify the existence or condition of Cardholder’s account for third parties such as a credit bureau or merchant.
c. In order to comply with a government agency or court order.
d. When requested by Cardholder.
17. If this is a joint account, each person on the account must agree to all of the terms contained herein by signing the application. Each Cardholder will be individually and jointly responsible for paying all amounts owed under this Agreement. This means that the Issuer can require any of the Cardholders to repay the entire amount owed under this Agreement. Each Cardholder authorizes the other(s) to make purchases or obtain cash advances individually. Any one of the Cardholders may terminate the account and the termination will be effective as to all of the Cardholders.
18. Each Cardholder grants to Issuer a security interest in any and every
account and certificate, other than IRAs, currently or hereafter on deposit with Issuer. All monies owned by the Cardholder pursuant to the terms of this Agreement, and each such account deposit and certificate is hereby assigned to the Issuer to secure payment of the Cardholder’s obligations under this Agreement.
19. The Issuer is not responsible for the refusal of any plan merchant or financial institution to honor Cardholder’s Card. The Issuer is subject to claims and defenses (other than tort claims) arising out of goods or services Cardholder purchases with the Card only if Cardholder made a good faith attempt, but Cardholder has been unable to obtain satisfaction from the plan merchant, and (a) Cardholder’s purchase was made in response to an advertisement Issuer set or participated in sending Cardholder or (b) Cardholder’s purchase cost was more than $50.00 and was made from a plan merchant in Cardholder’s state or within 100 miles of Cardholder’s home. The Cardholder must resolve any other dispute directly with the merchant.
20. Merchants and others who honor Cardholder’s Card may give credit for returns or adjustments, and they will do so by sending the Issuer a credit slip which will be posted to Cardholder’s account. If Cardholder’s credits and payments exceed what Cardholder owes the Issuer, the amount will be applied against future purchases and cash advances. If the credit balance amount is $1.00 or more, it will be refunded upon Cardholder’s written request or automatically after six (6) months.
21. The Issuer reserves the right to place holds or otherwise restrict access to an available credit limit created by means of credit balances or large payments. Credit balances may be restricted pending an investigation as to reason and expectancy of continued availability of the credit balance. This is generally a period of 7 business days. Payments by means other than cash may be placed on hold for a period of 10 business days or until the Issuer receives credit for the payment item, whichever is greater. A Cardholder wishing to establish a credit balance or make a large payment may contact Issuer for prior approval and initial waiver of holds.
22. Cash advances may not exceed the lesser of the local Automatic Teller Machine (ATM) limit, or Cardholder’s credit limit. The ATM receipt may not indicate the transaction was conducted with a Card. Any ATM withdrawal conducted by a Card will be processed as a Cash Advance.
23. The Issuer may terminate or block the usage of the Card at any ATM, at Issuer’s discretion, when Issuer reasonably believes that there is unusual activity on the account or if Cardholder is in default of this agreement.
24. The Issuer reserves the right to limit the amount Issuer will authorize for a purchase or a cash advance. The Issuer is not responsible for refusal by an ATM to honor Cardholder’s Card.
25. The Card may be used for any transaction permitted by law. Any unlawful use of the Card by the Cardholder or any authorized user is not permitted and will be deemed an action of default and/or a breach of the terms of this Agreement. At Issuer’s discretion, this account and related services may be terminated as a result of unlawful use of the Card. The Cardholder agrees that, should unlawful use of the Card occur, the Cardholder waives the right to sue the Issuer for such unlawful activity, directly or indirectly related to the unlawful use of the Card. The Cardholder also agrees to hold the Issuer harmless from any legal action or liability related to such unlawful use of the Card.
26. Cardholder and Issuer agree to abide by all applicable rules and regulations of Visa U.S.A., Inc. (VISA PLATINUM), as well as all applicable laws. If there is any conflict between the provisions of this agreement and the rules and regulations of Visa, Visa’s rules and regulations will control.
27. This Agreement is the contract that applies to all transactions on your account even though the sales, cash advances, credit or other slips Cardholder signs or receives may contain different terms.
28. The Issuer can delay enforcing any of its rights any number of times without losing them.
29. Statements and notices will be mailed to Cardholder at the most recent address Cardholder has given Issuer. Notice sent to any one Cardholder will be considered notice to all Cardholders.
30. This agreement is the final expression of the terms and conditions of this VISA PLATINUM line of credit between Cardholder and Issuer. This written agreement may not be contradicted by evidence of any alleged oral agreement.
31. The invalidity or unenforceability of any provision of this agreement will in no way affect any of the remaining provisions.
32. The Cardholder acknowledges that Cardholder has received a copy of this agreement.
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 P.O. Box 18303, Louisville KY 40261-0303. 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 may telephone us, but doing so will not preserve your rights.
Your letter must include the following:
• Your name and account number,
• The dollar amount of the suspected error, and
• A description of the suspected error and a full explanation, to the extent possible, of why you believe there is an error.
If you have authorized us to pay your credit card bill automatically from your savings or checking 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 did not 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 10 days telling us that you still refuse to pay, we must tell anyone to whom you are reported that you have a question about your bill. Also, we must tell you the name(s) of those to whom you are reported. When the matter is settled, we must tell those to whom you have been reported. These regulations must be followed in order to 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 the 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.
These limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services.
DISCLOSURES REQUIRED BY FEDERAL LAW
1. The Finance Charge on Cash Advances is calculated in accordance with Method 1 shown on the reverse side. The Finance Charge on Credit Purchases is calculated in accordance with Method 2 shown on the reverse side.
2. The Annual Percentage Rate range consists of 8.90%, 9.90%, 11.90% 14.90%, and 17.90%. The Periodic Rate range used to compute the Finance Charge consists of .741%, .825%, .991%, 1.241% and 1.491%, respectively. Your actual Annual Percentage Rate (APR) will be based on your credit profile. A periodic review of your account and credit history will be conducted and your APR may be adjusted accordingly with the exception of promotional or balance transfer rates.
3.The minimum periodic payment required is the total New Balance as
shown on your monthly billing statement if the amount is under $10.00. If the New Balance exceeds $10.00 the minimum periodic payment is 3.00% of that portion of the New Balance which does not exceed your credit limit plus the entire portion of the New Balance in excess of your credit limit, plus any amount past due, or $10.00 whichever is greater.
4. When a Cardholder makes a payment in excess of the required minimum
periodic payment for a credit card account, the Issuer shall allocate the excess amount first to the balance with the highest annual percentage rate and any remaining portion to the other balances in descending order based on the applicable annual percentage rate. When a balance on a credit card account is subject to a deferred interest or similar program that provides that a consumer will not be obligated to pay interest that accrues on the balance if the balance is paid in full prior to the expiration of a specified period of time 1) Issuer shall allocate any amount paid by the Cardholder in excess of the required minimum periodic payment to the balance with the highest annual percentage rate, except that, during the two billing cycles immediately preceding expiration of the specified period, the excess amount shall be allocated first to the balance subject to the deferred interest or similar program and any remaining portion allocated to any other balances consistent with the general rule above; or 2) Issuer may at its option allocate any amount paid by the consumer in excess of the required minimum periodic payment among the balances on the account in the manner requested by the Cardholder.
5. In event of suit to collect unpaid balances, all costs, including attorney’s fees of 20% of the balance due, or such greater amount as may be reasonable and just, and also those costs, expenses and attorney’s fees incurred in appellate, bankruptcy and post-judgment proceedings, shall be imposed.
6. Documentary stamp taxes as may be required by law shall be imposed on each Cash Advance at the time the loan is made. In the State of Florida, such tax is computed at the rate of $0.15 per hundred dollars or any fraction thereof.
7. A charge up to $15.00 per copy, plus applicable state sales tax, may be assessed for copies of documents that you request when the charge is not prohibited by law or regulation.
8. If you have other loans from Issuer, or take out other loans with issuer in the future, collateral securing those loans will also secure your obligations under this agreement. However, your primary dwelling will not secure your obligations under this agreement even if issuer has or later acquires a mortgage on the dwelling.
9. If a payment is late in whole or in part a $20 fee will be assessed on the 10th day following date payment due. A $29 fee will be assessed for any returned check.
10. Foreign Transaction(s). Purchases and cash advances made in foreign countries, in a currency other than U.S. dollars, will convert into a U.S. dollar amount. The currency conversion rate used to determine the transaction in U.S. dollars for such transactions is a rate selected by Visa U.S.A., Inc. (VISA PLATINUM), from the range of rates available in wholesale currency markets for the applicable central processing date, which rate may vary from the rate VISA PLATINUM itself receives, or the government-mandated rate in effect for the applicable central processing date, in each instance, plus or minus any adjustment determined by the Issuer. The International Service Assessment fee will be 1% of the transaction amount.
11. Use of a credit card for illegal transactions, such as illegal gambling, is prohibited.
12. Issuer shall not open a credit card account for a consumer less than 21
years old, unless the consumer has submitted a written loan application and the card issuer has: 1) Financial information indicating that the consumer has an independent ability to make the required minimum periodic payments on the proposed extension of credit in conjunction with the account; or 2) A signed Agreement of a cosigner, guarantor, or joint applicant who is at least 21 years old to be either secondarily liable for any debt on the account incurred by the consumer before the consumer has attained the age of 21 or jointly liable with the consumer for any debt on the account, and financial information indicating such cosigner, guarantor, or joint applicant has the ability to make the required minimum periodic payment on such debts. If a credit card account has been opened for a consumer less than 21 years old, no increase in the credit limit may be made on such account before the consumer attains the age of 21 unless the cosigner, guarantor, or joint accountholder who assumed liability at account opening agrees in writing to assume liability on the increase.
13. Issuer shall give 45 days notice before increasing the APR or changing any other significant term(s) in the Agreement. The new APR will apply to transactions that occur more than 14 days after provision of the 45-day notice. The Cardholder has the right to cancel the account. Cancellation of an account by the Cardholder will not constitute a default and shall not trigger an obligation to immediately repay the entire balance. Issuer will impose a minimum payment calculation that will not exceed twice the minimum payment calculation used before the proposed change in terms. Rejecting the change in term(s) will result in the Cardholder’s inability to use the account for future transactions. The Cardholder will notify the Issuer of their decision to cancel within 45 days of the date on the letter received informing them of a change in term(s). Cardholder may contact Issuer at Kentucky Telco, P.O. Box 18303, Louisville KY 40261-0303 or call toll free 1-800-292-9490.
14. The APR will not be increased in the first year after an account is opened
unless 1) a promotional rate has expired after a specified period of time of no less than six months disclosed to the Cardholder at account opening or 2) the Cardholder fails to abide by the terms of a workout arrangement or 3) payments are 60 days late. If there is a 60-day delinquency, Issuer shall provide, along with the 45-day notice, a statement of the reason for the increase; the increased APR will terminate no later than 6 months if all required minimum payments are received on time during that period. The new APR will apply to transactions that occur more than 14 days after provision of the 45-day notice.
15. Issuer will not increase the APR on an existing balance except for the
following reasons: 1) the APR may be increased after the expiration of a specific time period where we have disclosed prior to the beginning of that time period both the length of the time period and the rate that would apply at the end of that time period; 2) the Cardholder fails to comply with an individual workout plan; or 3) the Cardholder fails to make a payment within 60 days of the due date. In this case involving a 60-day delinquency, Issuer will provide the Cardholder, along with the 45-day notice, a statement of the reason for the increase and that the increased APR will terminate in no later than 6 months if all required minimum payments are received on time during that period. The new APR applies to transactions that occur more than 14 days after provision of the 45-day notice.
16. If Cardholder defaults due to death, Issuer will decline all future transactions and terminate the account upon receiving reasonable notice of the Cardholder’s death. Upon request by the estate administrator, Issuer will provide an account balance in a timely manner deemed to be no later than 30 days. Issuer will impose fees and finance charges, due to the periodic interest rate based on balances for days that precede the date on which Issuer receives a request by the estate for an account balance. Issuer will not increase the Annual Percentage Rate or impose any fees on the account after notice of death has been received. Issuer will rebate any additional finance charge due to a periodic interest rate if payment in full of the balance owed Issuer is received within 30 days after disclosure. This paragraph will not apply if a joint Cardholder remains on the account.
FINANCE CHARGE CALCULATION METHOD
METHOD 1 – A Finance Charge will be imposed on Cash Advances that you obtain through the use of your Card during the current billing cycle from the date of each such Cash Advance.
The balance of Cash Advances subject to Finance Charge is the average daily outstanding unpaid balance, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle. Each daily balance of Cash Advances is determined by adding to the previous balance any new Cash Advances as of the transaction date.
To determine the monthly periodic rate, we divide the Annual Percentage Rate by 12. The Periodic Rate and Annual Percentage Rate used to compute the finance charge is based on your credit profile. The Periodic Rate and Annual Percentage Rate that will apply to your account have been disclosed on the notice that accompanies (and is part of) this Agreement. We will review your Account from time to time and may adjust your Periodic Rate and Annual Percentage Rate based on changes in your credit profile. Any change in the Periodic Rate and Annual Percentage Rate will be applied to new balances, with the exception of promotional rates. The Annual Percentage Rate on existing balances will remain at the rate that was in effect on those existing balances with the exceptions noted in Item #15 preceding.
METHOD 2 – A Finance Charge will be imposed on Credit Purchases of goods and services that you obtain through the use of your Card only if you elect not to pay the entire New Balance shown on your previous monthly statement within 25 days from the closing date of the statement. If you elect not to pay the entire New Balance shown on your previous monthly statement within 25 days from the closing date of the statement, a Finance Charge will be imposed on the unpaid balance of Credit Purchases from the statement closing date, and will continue to accrue until the closing date of the billing cycle preceding the date on which the entire New Balance is paid in full.
The balance of Credit Purchases subject to Finance Charge is the average daily outstanding unpaid balance, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle. Each daily balance of Credit Purchases is determined by adding to the previous balance new Credit Purchases posted through that date if the previous balance was not paid in full within 25 days of the statement closing date, and subtracting each payment and credit on the date of receipt, but excluding any unpaid Finance Charges.
To determine the monthly periodic rate, we divide the Annual Percentage Rate by 12. The Periodic Rate and Annual Percentage Rate used to compute the finance charge is based on your credit profile. The Periodic Rate and Annual Percentage Rate that will apply to your account have been disclosed on the notice that accompanies (and is part of) this Agreement. We will review your Account from time to time and may adjust your Periodic Rate and Annual Percentage Rate based on changes in your credit profile. Any change in the Periodic Rate and Annual Percentage Rate will be applied to new balances, with the exception of promotional rates. The Annual Percentage Rate on existing balances will remain at the rate that was in effect on those existing balances with the exceptions noted in Item #15 preceding.
Revised 02/13/10
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