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TRUTH IN LENDING / REGULATION Z
INITIAL DISCLOSURES
The initial disclosures required by federal law are included on this document along with the statement containing important information regarding your rights to dispute billing errors. Keep this form so you can refer to it if you have any questions regarding your account.
- Finance Charge Calculation Method.
Cash Advance: The finance charge on cash advances is calculated in accordance with Method A which is described on the bottom of this document.
Credit Purchases. The finance charge on Credit Purchases is calculated in accordance with Method G which is described on the bottom of this document.
- Periodic Rate; Annual Percentage Rate.
Fixed Periodic Rate.
Credit Purchases. The Periodic Rate used to compute the FINANCE CHARGE for credit purchases is 1.24% per month. The corresponding ANNUAL PERCENTAGE RATE is 14.88%.
Cash Advances. The periodic rate used to compute the FINANCE CHARGE for cash advances is
1.24% per month. The corresponding ANNUAL PERCENTAGE RATE is 14.88%
- Other Finance Charge.
Cash Advance Fee. There is a transaction charge of 2% of the amount of the cash advance, but not less than $2.00 or more than $10.00.
- Minimum Periodic Payment.
The minimum periodic payment required is the total New Balance as shown on your monthly statement if the amount is under $25.00. If the New Balance exceeds $25.00, the minimum periodic payment is 4.00% 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 $25.00, whichever is greater.
- Other Charges. In addition to Finance Charges, the following other charges may be assessed and shall be treated as a Credit Purchase for purposes of calculating Finance Charges, unless prohibited by law.
Annual Fee. The Annual Fee for your card account will be $30.00, plus $5.00 for each additional card. This fee is for membership in the issuer's credit card plan.
Late Fee. If a payment of at least the amount of the minimum required payment is not received within 10 days after the Closing Date subsequent to the Payment Due Date, a late charge equal to the greater of 5.00% of the past due amount or $15.00 shall be imposed.
Over-the-Credit Limit Fee. If you exceed your assigned credit limit, a fee of $15.00 will be charged to your account for each billing cycle in which your account exceeds your credit limit.
Duplicate Statement Fee. If you request a duplicate copy of your monthly statement, a charge of $2.00 may be assessed.
Special Order Fee. If you request special, expedited processing of your application to open a new account or request a new card on an existing account there is a special order fee of $15.00.
Returned Check Charge. If a check submitted as payment is returned for any reason, a returned payment fee of $15.00 will be assessed.
- Security Interest.
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, unless you expressly agree otherwise, your household goods and primary dwelling will not secure your obligations under this agreement even if Issuer has or later acquires a security interest in the household goods or a mortgage on the dwelling.
If you have executed a written agreement granting a security interest in any deposit accounts (checking, savings, or share accounts) or other funds held by issuer to secure your obligations under this credit card plan, such accounts and/or funds are additional security for your obligations to issuer arising from the use of your Card.
- Billing Errors/Cardholder's Rights. See section entitled "Your Billing Rights" for important information regarding your rights to dispute billing errors.
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FINANCE CHARGE CALCULATION METHODS
The Finance Charge Calculation Method applicable to your account for Cash Advances and Credit Purchases of goods in services that you obtain through the use of your card is specified in Paragraph's 1 above and explained below:
METHOD A - A Finance Charge will be imposed on Cash Advances from the date made or from the first day of the billing cycle in which the Cash Advance is posted to your account, whichever is later, and will continue to accrue until the date of payment. A Finance Charge will be imposed on Credit Purchases from the date the Credit Purchases are posted to your account and will continue to accrue until the date of payment.
The Finance Charge for a billing cycle is computed by applying the monthly Periodic Rate to the average daily 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 is determined by adding to the Previous Balance (the outstanding balance of your account at the beginning of the billing cycle) and new Cash Advances received and any new Credit Purchases posted to your account, and subtracting any payments as received or credits as posted to your account but excluding any unpaid Finance Charges.
Method G - A Finance Charge will be imposed on Credit Purchases only if you elect not to pay the entire New Balance shown on your monthly statement for the previous billing cycle within 25 days from the closing date of that statement. If you elect not to pay the entire New Balance shown on your previous monthly statement within that 25 day period, a Finance Charge will be imposed on the unpaid average daily balance of such Credit Purchases from the previous statement closing date and on new Credit Purchases from the date of posting to your account during the current billing cycle, 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 or until the date of payment if more than 25 days from the closing date.
The Finance Charge for a billing cycle is computed by applying the monthly Periodic Rate to the average daily balance of Credit Purchases, 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 outstanding unpaid balance of Credit Purchases, at the beginning of the billing cycle any new Credit Purchases posted to your account, and subtracting any payments as received or credits as posted to your account, but excluding any unpaid Finance Charges.
The Person ("Cardholder") whose name is embossed on the face of the VISA credit card ("Card") provided to Cardholder and issued by CorTrust Bank ("Issuer") and each Cardholder, in the event more than one Card is provided to Cardholder bearing the same account number, by signing or using the said Card, agrees with Issuer to the following terms:
- Establishing an Account. This is the agreement with CorTrust Bank that will cover your account. The first time you or someone you authorize uses your account, or upon the expiration of 30 days from the date of issuance, whichever occurs first, it means that you have accepted this agreement and you will be responsible for all authorized use of the account. If you have signed an application, each person signing the application will be bound by this agreement and responsible for paying all amounts owed. If you do not want to enter into an account agreement, you must cut the card in half and return it to us before thirty days have expired.
- Credit Information. By applying for and renewing this account, I authorize the Bank to obtain a credit report and to verify and exchange credit information about me with third parties, including, without limitation, credit bureaus for the purposes of processing my application and for later purposes related to any resulting account such as reviewing, updating and renewing it, increasing the credit line, and collecting. I understand upon written request, the Bank will inform me of the name and address of any consumer reporting agency which has provided the Bank with such information.
- Joint Account. If this is a joint account, each person who signed the application (1) may obtain purchases and cash advances (but the total of these advances cannot exceed the credit line); (2) will be responsible for paying all amounts owed; and (3) can close the account.
- Credit Purchases; Cash Advances. 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 Cash Advances ("Cash Advances") may be obtained through use of such Card (a) upon execution of a written request of Cardholder in a form furnished to him from any bank that it is a member, alone or in association with others, of VISA and (b) upon execution of a written separate agreement with Issuer for a Visa overdraft financing agreement, if offered by Issuer.
- Cardholder Liable For All Charges. Subject to paragraph 18 of this agreement, Cardholder shall be liable and agrees to pay Issuer for Credit Purchases made by, or for Cash Advances 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 Cardholder receives no benefit. Additionally, Cardholder shall be jointly and severally liable and agrees to pay for all Credit Purchases and Cash Advances 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 account number shall hereinafter collectively be called "Related Cards").
- Annual Fee. Cardholder agrees to pay to Issuer the annual membership fee disclosed to Cardholder in the Initial Disclosures for participation in Issuer's credit card plan. The membership fee shall be charged to Cardholder's account each year in the month of Issuer's choice. The annual membership fee is not refundable in the event of termination of the Cardholder's account by either Cardholder or Issuer except as otherwise provided for by law. This annual fee is waived if the card account is used two times in the previous 12 months before renewal.
- Property of Issuer: Cancellation Rights. Each Card is the property of Issuer, is not transferable and must be surrendered upon demand. Each card can be canceled as well as repossessed by Issuer or its designee, and the privileges thereof revoked, at any time without prior notice.
- Credit Limit: Over Limit Fees. Cardholder shall not use Card or permit the use of Related Cards to obtain Credit Purchases or Cash Advances that would increase Cardholder's Visa/MasterCard indebtedness to Issuer to an amount in excess of the limit established by Issuer. In the event Cardholder incurs charges in amounts exceeding such maximum authorized credit, Cardholder shall pay immediately the amount by which the Total New Balance exceeds such maximum authorized credit, and an over limit fee ("Over Limit Fee") in the amount disclosed to Cardholder in the Initial Disclosure.
- No Liability For Refusal To Honor Card: No Cash Refunds. All Credit Purchases and Cash Advances are effected 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 which shall be shown as a credit on Cardholder's account statement with Issuer. Purchases and Cash Advances may require the Bank's authorization. We may limit the number and/or the maximum dollar amount of authorizations in a given day. You agree that neither the Bank nor its agents shall be liable for refusing an authorization request.
- Monthly Statements: Cardholder Payments. Issuer will send to Cardholder, at monthly intervals determined by Issuer, a statement reflecting for the prior monthly period all Visa 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 as provided for in the Initial Disclosure. Cardholder will pay such statement by remitting to Issuer within 25 days from the closing date. All payments by Cardholder will be made in U.S. dollars. Charges incurred in currencies other than U.S. dollars will be converted to U.S. dollars at the rate in effect at the time such charges are converted by Issuer, it's agents or other authorized party making such conversion.
- Rate of Interest: Finance Charge Calculation Method. Interest on Cash Advances and Credit Purchases will be charged in accordance with the finance charge calculation method disclosed to Cardholder by Issuer in the Initial Disclosure. 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 the Initial Disclosures provided to Cardholder by Issuer.
- Immediate Payment of All Amounts Owed. Cardholder's Credit Card Account ("Account") balance will, at Issuer's option, become immediately due and payable, without notice, in the event that (a) Cardholder dies or becomes bankrupt or insolvent, or (b) Cardholder fails to make payments due on the Account, incurs charges for Purchases and Cash Advances which exceed the maximum authorized credit, or otherwise breaches these terms and conditions, or (c) Issuer receives information which causes it to believe Cardholder is unwilling or unable to perform under these terms and conditions, or (d) attachment or garnishment proceedings are instituted against Cardholder, or (e) Cardholder does not agree to new terms announced by the Issuer and elects to terminate credit availability on the account. Failure by Issuer to assert any rights hereunder shall not waive such rights.
- Closing Your Account. You can close your account at any time. Simply notify us in writing, stop using your account and destroy your credit cards. We can also close your account at any time. We'll notify you in writing before closing is to become effective unless we have accelerated payment of the entire balance of your account. If we close your account, you agree to destroy your credit cards. No matter who closes the account, we will keep all rights we have and you will still have to repay all purchases and cash advances made for your account, even if made after the account has been closed, together with Finance Charges.
- Security Interests. 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, unless the Cardholder expressly agrees otherwise, the Cardholder's household goods and primary dwelling will not secure Cardholder's obligation sunder this agreement even if Issuer has or later acquires a security interest in the household goods or a mortgage on the dwelling.
- Attorney's Fees. Cardholder agrees to pay all costs incurred by Issuer in collecting Cardholder's indebtedness or in enforcing this agreement, including attorney's fees and costs, as well as those costs, expenses and attorney's fees incurred in appellate, bankruptcy and post-judgment proceedings, except to the extent such costs, fees or expenses are prohibited by law.
- Applicable Law. Except to the extent that Federal law is applicable, the validity, construction and enforcement of this agreement and all matter arising out of the issuance and use of the Card shall be governed by the laws of the State of South Dakota.
- Additional Charges. Additional charges, plus applicable taxes, may also be assessed against Cardholder as detailed in the Initial Disclosure and as otherwise allowed by Reg. Z and State Law.
- Illegal Transactions. Your CorTrust Bank, N.A. card cannot be used for any illegal transactions. Use of your Card for gambling transactions (including obtaining cash advances for purposes of gambling), whether such transaction is legal or illegal, is prohibited.
- Cardholder Liability for Unauthorized Use. 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:
Credit Card Security Department
P.O. Box 30035
Tampa, FL 33630
(813) 886-9726
If Cardholder has a consumer account or a business account 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.
- Monitoring. In order to maintain quality service in its authorizations, security, customer service and other departments that have need to communicate with Cardholder from time to time, Issuer or its agents may monitor any telephone communication between Issuer's or its agent's employees in those departments and Cardholder, without further notice or disclosure.
- Modifications to Agreement. We can change any term of this Agreement, including the rate at which or manner in which finance charges are calculated, at anytime upon such notice to you as required by law. At our option, any change will apply both to your new activity and to your outstanding balance when the charge is effective. If you do not wish to be subject to change, you must notify us in writing within 25 days of the effective date of the change and close your account. Use of the card after the effective date of the change is deemed acceptance of the new terms. For the changes in the agreement terms write to: CorTrust Bank, P.O. Box 1246, Mitchell South Dakota, 57301. Issuer may, in its sole discretion, waive imposition of the fees referenced in the Initial Disclosure or any other provision(s) of these terms; however, Issuer shall have no obligation to do so, and any such waiver shall be limited to the particular instance or transaction involved and shall not constitute a waiver or authorize the non-observance of the same or any other provision of these terms or any other or future occasion.
- Notices. Any notice we send you will be considered effective when it is delivered personally to you or mailed, postage paid, to the last address we have for you in our records. Notice from you will be considered effective when we receive it at the address shown in previous paragraph. If this is a joint account, we can notify one of you and the notice will be effective for the both of you. Similarly, one of you can notify us and we'll consider it to be notice from both of you.
- VISA Rules and Regulations; Conflicts. Cardholder and Issuer agree to abide by all applicable rules and regulations of VISA U.S.A., Inc. ("VISA"), as applicable, as well as all applicable laws. If there is any conflict between the provisions of this Agreement and the rules and regulations of VISA, the rules and regulations of Visa shall control.
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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 it 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 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 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 RULES 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, 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.
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Contact us about a Business Credit Card application at:
CorTrust Bank
100 E Havens
Mitchell, SD 57301
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