The L Card Cardholder Agreement Effective: April, 2015 Disclosure Statement and Arbitration Agreement
This Cardholder Agreement (“Agreement”), the Arbitration Agreement, the accompanying sheet entitled “Account Opening Disclosure” and the application you signed or otherwise submitted (collectively, the “Cardholder Documents”) govern the use of The L Card VISA® credit card (“Card”) account (your “Account”). The L Card Visa credit card is issued by Beneficial State Bank (“BSB”) pursuant to a license from Visa U.S.A., Inc. All of the Cardholder Documents are part of and are incorporated into this Agreement. By signing (including by any electronic or digital signature) your Card, your Account application, any accepted sales slip, or any other document in connection with the use of your Card or your Account, or by using your Card or allowing someone else to use it, you agree to the terms and conditions of this Agreement. Please read this Agreement thoroughly and retain a copy for your records. As used in this Agreement: we, us, our and similar terms mean Beneficial State Bank, the issuer of the card and its parents, wholly or majority owned subsidiaries, affiliates, predecessors, successors, assigns, employees, officers, directors and agents (collectively, “BSB”). The words you, yours and Cardholder mean all persons responsible for complying with this Agreement, including the applicant and any co-applicant who applied and we have approved to open the Account and the person to whom we address Account statements. Since you asked us to open the Account, you are the “Primary Cardholder,” and you will have an Account with us. You may request that we issue a Card to another person and, in our discretion, if we do, that person will be called an “Additional Cardholder” on your Account and the Card will be an “Additional Card.” The Federal Truth-in-Lending Disclosures shown above are incorporated into and made part of this Agreement.
Use of the Card: You may use the Card to obtain legal goods and services from any person or establishment accepting the Card (“Purchase(s)”), to obtain loans (“Cash Advance(s)”) from us up to the applicable limits on your Account and to take advantage of other features of the Card. As used in this Agreement, the term “Cash Advances” will include; a) Cash Advances, b) obtaining funds through an automated teller machine (ATM) or a financial institution, c) purchasing a wire transfer, money order, foreign currency, travelers checks, or stored value load, or d) engaging in another similar transaction. As used in this Agreement, all amounts charged to an Account, which include the Annual Card fee, or other fees, and any Finance Charges imposed under the Agreement, will be called “Charges”. Charges include (but are not limited to) any Purchase or Cash Advance in which you have evidenced intent to incur a Charge, regardless of whether you have signed a charge form.
You are responsible for paying all amounts charged to the Account by either you or any Additional Cardholders, and for all fees. You agree to notify us at once if the Card(s) we may issue on your Account are lost or stolen, or if you suspect they are being used without your permission. You agree to use the Account only for legal purchases of goods and services. Cards may not be used for gambling purposes, whether online or otherwise. If you do use your Card for illegal purposes or gambling, you will be in default under this Agreement and we may terminate your Account, but you still will be liable to us for all Charges relating to such transactions and all other transactions on your Account. You should not use the Card after the expiration date. If you want to cancel your Account or any Additional Cards, you must contact us and destroy the Card or any Additional Cards. We reserve the right to deny authorization for any requested Charge. We have no liability if any merchant refuses to honor any Card issued to access your Account, operational difficulties prevent the authorization of a transaction, an authorization is declined because your Account is overlimit or delinquent, or your credit has been restricted.
Joint Accounts: If the application was for more than one person, or if an application was made and accepted by us to add a new cardholder to an existing Account, this is a “Joint Account.” Each of you individually may use the Account to the extent of the credit limit established for the Account, and each of you is jointly and severally liable for the full outstanding balance, including but not limited to charges made by any Cardholder. Each of you shall also be jointly and severally liable for any charges made by any person given permission to use the Account by any Cardholder. You agree that we are authorized to act on the instructions of any Cardholder. Instructions from any one of you will constitute instructions from all of you. Requests from a Cardholder to terminate the privileges of another Cardholder on the Account will be deemed a request for termination of the Account.
Transfers: You may not transfer your Account or any of your rights and obligations under this Agreement. Any such transfer will be void.
Additional Cards: You, as the Primary Cardholder, are responsible for all Charges on your Account. Any Additional Cards may be canceled by you or by us. You agree to make sure that any Additional Cards issued on your Account are used in a manner consistent with this Agreement. You also authorize us to discuss your Account with Additional Cardholders in the course of maintaining your Account. If you provide an Additional Cardholder with any information that enables him/her to access or use your Account, you shall be liable for the Additional Cardholder’s use of that information, and we will have no responsibility or liability for any of the Additional Cardholder’s actions. We may, in our sole discretion, pursue Additional Cardholders for payment of their own Charges if you fail to pay those Charges. By designating an Additional Cardholder, you are acknowledging that the person will be at least 15 years old. The Additional Cardholder will have access to certain account information, such as balance, available credit and payment information.
Credit Limit: We have provided you a separate written notice stating the credit limit for Purchases on your account. In addition, your monthly statements will show the amount of credit available to you for Cash Advances and the ANNUAL PERCENTAGE RATES (APRs) for Purchases and for Cash Advances, as of the monthly statement date. You agree not to use the Account in any way that would make the unpaid balance of your Account exceed the applicable credit limit. We will not honor any Card transaction that would cause the unpaid balance of your Account to exceed applicable credit limits (“Over Limit Transactions”). However, if we, in our discretion, honor any Over Limit Transaction, you agree to promptly pay the amount that is in excess of the applicable credit limit. At our discretion, and subject to applicable law, we may increase, reduce, or cancel your credit line or cash advance portion of your credit limit, at any time. This may include automatic increases or decreases in your credit limit based upon, among other things, your performance under this Account. You may request a credit limit increase at any time after your Account has been open at least six (6) months. Decisions on credit limit increases may be based on your performance under this Account and other credit criteria. We reserve the right to decline your request for a credit limit increase in our sole discretion. A change to your credit limit does not affect your obligation to pay us. If we extend credit over your credit limit for either Purchases or Cash Advances, we will not be obligated to do so again and such extension will not result in any waiver of our rights.
Cash Advance Limit: Your Account is subject to a Cash Advance limit equal to 25% of your total credit limit. This means we will not honor Cash Advance transactions that would cause the total amount of outstanding and unpaid Cash Advances to exceed 25% of your overall credit limit.
Renewal of Cards and Cancellation: The Card will be valid within the period embossed on the Card. We will issue you renewal or replacement Cards before the current Card expires unless your Account is cancelled by you or by us.
Liability for Charges and Finance Charges: You may use the Card to obtain Purchase(s) and Cash Advance(s) from us up to the applicable limits on your Account. You are liable to us for all Charges you make and all Charges made by holders of any Cards and Additional Cards issued to you. Additional Cardholders using a Primary Cardholder’s Account are not liable for obligations incurred by the Primary Cardholder or by other Additional Cardholders. However, by each use of the Additional Card, the Additional Cardholder will be indicating his or her agreement to pay us for that transaction and related Charges if you fail
Payments: Your Account will be on a monthly billing cycle. Each month’s total minimum payment (as described below) for your Account is due by the Payment Due Date on your monthly statement. The Total Minimum Payment will include any amount past due. You must pay us in U.S. currency, with a draft or a check drawn on a U.S. bank and payable in U.S. dollars, with a negotiable instrument payable in U.S. dollars and clearable through the U.S. banking system, or with a telephonic or electronic payment authorization in U.S. Funds. If we decide to accept a payment made in some other form, your payment will not be credited until it is converted into one of the forms described in the previous sentence. We may charge you any costs we incur in converting your payment. If any payment made on your Account is not honored for its full amount, because of insufficient funds, an incorrect account number or for any other reason, we may charge your Account a late payment fee or a returned check fee to cover collection costs on that payment in addition to any other applicable fees. We may accept late payments, partial payments, or any payments marked as being payment in full or as being settlement of any dispute without losing any of our rights under this Agreement or under the law. Our acceptance of such payments does not mean we agree to change this Agreement in any way. You agree to pay all court costs plus all reasonable attorney’s fees if we must refer your Account to any attorney who is not our employee, subject to the law of your jurisdiction. You agree that we do not accept any postdated checks; all checks shall be submitted on the day we receive it.
Monthly Statement – Total Minimum Payment: The Total Minimum Payment required is the new balance shown on your monthly billing statement if the amount is equal to or less than $25.00. Otherwise, it is the greatest of: (A) 3.0% of the New Balance (rounded up to the nearest dollar), (B) $25.00, or (C) 1% of the New Balance (rounded up to the nearest dollar) plus any unpaid FINANCE CHARGES and unpaid fees. If applicable, the Total Minimum Payment will include any amount in excess of your credit limit and any amount past due. You may pay more than the Total Minimum Payment or you may pay the total New Balance at any time. Although, your Total Minimum Payment will be applied in any order at our discretion, payments in excess of the Total Minimum Payment will be applied to balances with the highest APR first and then to lower rate balances in descending order of APRs.
How to Avoid Payment of Finance Charges for Purchases:
Grace Period for Purchases: To get a grace period on purchases, you must pay the new balance in full by the due date each billing period. If you do not, you will accrue INTEREST CHARGES on all Purchases from the date the Purchase is posted to your Account. The grace period is not less than 25 days.
Grace Period for Cash Advances (including other charges defined on page 1): On Cash Advances there is no grace period, and FINANCE CHARGES on Cash Advances are always assessed from the day of the Cash Advance transaction or the first day of the billing cycle in which it is posted to your account, whichever is later, until the day we receive payment in full of all outstanding Cash Advances.
Calculation of Daily Periodic Rate:
A. The Daily Periodic Rates for Purchases and Cash Advances are based on ANNUAL PERCENTAGE RATES for Purchases and Cash Advances, respectively, which may be adjusted monthly. The Daily Periodic Rate for Purchases and Cash Advances for each billing period is 1/365th of the ANNUAL PERCENTAGE RATE for Purchases and 1/365th of theANNUAL PERCENTAGE RATE for Cash Advances respectively in effect for that billing period, rounded to the nearest one hundredth of a percentage point.
B. The Account Opening Disclosure states the ANNUAL PERCENTAGE RATES applicable to your Account, subject to Paragraph C below. Please call us at 1-844-LCARD-00 or write to us at The L Card Visa, 237 Kearny Street, #372, San Francisco, 94108 if you did not receive the Account Opening Disclosure or to learn the most current ANNUAL PERCENTAGE RATES.
