TABLE OF CONTENTS 

Executive Summary 

Section I: Introduction

Background................................................................................................................................. 1 

Overview of the Project .............................................................................................................. 1 

Structure of this Report............................................................................................................... 3 

Section II: Research on Current Disclosure Forms

Focus Groups (May and June, 2006).......................................................................................... 4 

Preliminary Cognitive Interviews in Baltimore, Maryland (August 2006) ................................ 8 

Key Implications for Development of Revised Forms ............................................................. 14 

Section III: Development and Testing of Revised Disclosure Forms

Objectives and Methodology.................................................................................................... 17 

Guiding Principles for Disclosure Design ................................................................................ 18 

Structure of Section III ............................................................................................................. 20 

Interviews in Kansas City, Missouri (November 2006) ........................................................... 21 

Interviews in Denver, Colorado (January 2007)....................................................................... 29 

Interviews in Boston, Massachusetts (February 2007)............................................................. 37 

Interviews in Dallas, Texas (March 2007)................................................................................ 45 

Section IV: Conclusion and Discussion of Need for Consumer Education

Proposed Revisions to Regulation Z......................................................................................... 52 

Note on Need for Consumer Education.................................................................................... 52 

Appendices 

Appendix A: Demographic and Background Information about Focus Group and Interview 

Participants 

Appendix B: Disclosure Forms Used in Testing 
EXECUTIVE SUMMARY 

BACKGROUND AND DESCRIPTION OF PROJECT 

The Truth in Lending Act (TILA) was enacted by Congress in 1968. The primary purpose of 

this act was to protect consumers by requiring that lenders disclose key pieces of information to 

consumers at various points in time. The Federal Reserve Board (the “Board”) was assigned by 

Congress the responsibility of implementing TILA, and currently does so through its Regulation 

Z. 

In 2004 the Board began the process of revisiting some portions of Regulation Z to determine 

whether revisions were necessary. The rules being reviewed relate to open-end credit, of which 

the primary example is general-purpose credit cards. The goal of the review is to ensure that the 

regulations lead to disclosures that consumers would most likely to pay attention to, understand 

and comprehend, and be able to use in their decisionmaking. 

In April 2006, the Board contracted with Macro International Inc. (“Macro”) to assist the Board 

in this effort. Macro is a research and evaluation company headquartered in Calverton, MD, that 

has 40 years of experience working with government and non-profit clients. Their role in the 

project is to work with the Board to conduct consumer testing and design improved credit card 

disclosures based on the results of that research. 

This project thus far has consisted of two phases. In the first phase, Macro conducted four focus 

groups1

1

 Each focus group consisted of between eight and thirteen people that discussed issues identified by the Board staff

and raised by a moderator from Macro. 

 (two at Macro’s headquarters in Calverton, MD and two in Birmingham, AL) and one 

round of cognitive interviews2

2

 The cognitive interviews consisted of one-on-one discussions with consumers. 

 in Baltimore, MD that focused on how consumers use credit card 

disclosures that they currently receive. The focus groups gathered information about the types of 

information that consumers currently use for financial decisionmaking, while the one-on-one 

cognitive interviews studied how they read and use specific credit card disclosure forms. 

The second phase of the project, which took place between September 2006 and March 2007, 

was devoted to the development and testing of revised forms. This phase consisted of four 

additional rounds of one-on-one cognitive interviews with a total of 33 participants in Kansas 

City, MO; Denver, CO; Boston, MA; and Dallas, TX. A set of revised model forms was 

developed for each round. In the interviews, participants were asked to read and use these mock 

forms just as they normally would, and data was collected on which aspects of each form were 

most successful in providing information clearly and effectively. The findings from each round 

of interviews led to revisions to the models for the next round. 

This consumer testing informed the Board’s proposed revisions to Regulation Z, which the 

Board will be releasing for public comment in May 2007. The revised disclosure forms that 

were developed through the testing will be included as model forms with the proposal. 

i 
SUMMARY OF FINDINGS 

The testing conducted by Macro focused on six different types of disclosures related to credit 

card accounts: 

• Solicitation and Application Disclosures: These disclosures (often referred to as the 

“Schumer Box” disclosures) are provided on or with direct-mail solicitations and 

applications for credit cards to help consumers compare and shop for credit cards. Of the 

disclosures addressed in this study, this is the only one for which a specific tabular layout 

is required by the Board. 

• Initial or Account-Opening Disclosures: These disclosures are provided when the 

credit card account is opened to inform consumers about the terms of the account. These 

disclosures are mostly provided in cardholder agreements, along with other legal and 

contractual information that issuers opt to include. 

• Periodic Statements: These disclosures are usually provided to consumers on a monthly 

basis to inform them about transactions, fees, and interest charges incurred in the 

previous billing cycle. These statements inform consumers of when they must make a 

payment in order to avoid additional charges, as well as how large their payment must be. 

Periodic statements also include the interest rates that apply to the account. 

• Change-in-Terms Notices: These disclosures are given to consumers whenever a 

change is made to the terms of the account. They are either included as an insert with 

periodic statements or sent in a separate mailing. 

• “Convenience Checks”: These checks (sometimes called “balance transfer checks”) are 

given to consumers as additional devices to access their credit card accounts. They are 

usually included with periodic statements or sent to cardholders in a separate mailing. 

• Solicitation Letters: Credit card offers that are sent in the mail usually include a 

solicitation letter, along with a required Schumer Box. This letter is primarily for 

marketing the offer to consumers, but it usually includes a description of some of the 

account terms. Although these letters are not required disclosures, the Bankruptcy Act, 

which was passed in 2005, requires the solicitation letter to contain certain disclosures if 

the letter discloses a discounted introductory rate. 

The following is a summary of key findings from consumer testing that informed the Board’s 

proposed revisions to the disclosures listed above. 

Findings Related to the Schumer Box 

Annual Percentage Rates 

Separation of “Other APRs” into Different Lines 

The current Schumer Box model form lists APRs in two rows—one for the APR for Purchases, 

and another for “Other APRs” (i.e., rates for other types of transactions and the Default APR). 

However, the first round of testing in Baltimore demonstrated that participants had difficulty 

ii 
finding and distinguishing the rates in the Other APRs row. Subsequent interviews showed that 

disclosing these rates in separate rows helped participants distinguish between them. It also 

increased the likelihood that readers would notice and understand the significance of the Default 

APR. Therefore, this design was used in the proposed Schumer Box model. 

Format of Annual Percentage Rates 

A variety of different formats was tested for how APRs could best be displayed in separate rows. 

The format that made it easiest for consumers to quickly identify and compare APRs for 

different transactions was to present the rates first in each line in bolded text, and then to indent 

each subsequent line. This enabled quick scanning down the page, which is how most 

participants seemed to read the Schumer Box. A similar format was used in the fees section of 

the Schumer Box. 

Selection of Initial APR Based on Creditworthiness 

When shown a credit card offer that displayed a range of possible APRs for purchases, many 

participants in the focus groups were unaware that the rate they would be offered within that 

range would be determined by their credit history. To clarify this point, a notice was added 

indicating that the initial rate would be selected “based on your creditworthiness.” Testing 

showed that while participants did not see this disclosure when it was provided in a footnote, 

they both noticed and understood it when it was located immediately following the range of 

rates. Therefore, the proposed model form displays the information in this location. 

Font Size of APR for Purchases 

Current regulations require that the APR for purchases be printed in size 18 point font to ensure 

that it is conspicuous. In our models, we varied the size of this rate to test whether or not this 

larger type size is necessary. Findings showed that participants tended to identify the APR for 

purchases more quickly and accurately when it was in a larger font size than other rates on the 

form. However, a font size of 16 seemed to make this information sufficiently conspicuous; 

there was no evidence that this APR necessarily needed to be printed in size 18 point font. 

Fixed and Variable Rates 

Labeling of Fixed Rates 

In the first three rounds of interviews, participants were asked to indicate what the phrase “fixed 

rate” meant to them. While some responded that a “fixed rate” could still change, a significant 

number indicated that these rates could not change regardless of what happened (similar to a 

“fixed-rate mortgage”). Because of this misconception, the word “fixed” was removed from 

Schumer Box models in relation to interest rates. 

Labeling of Variable Rates 

Currently, if a rate disclosed in the Schumer Box is a variable rate, issuers must indicate that the 

rate may vary, and disclose the index and margin used to calculate the rate. Participants in the 

first three rounds of testing interpreted the meaning of “variable rate” in different ways. Some 

interpreted it correctly as a rate that would vary based on changes to an index, such as a Prime 

Rate. Others, however, incorrectly assumed that a variable rate would primarily change based on 

cardholder behavior or creditworthiness. Other participants understood that the rate could 

iii 
change, but did not know why or how. For this reason, following the Denver interviews the label 

“variable” in the Schumer Box was replaced with the phrase: “This rate will vary with the market 

based on the Prime Rate.” Testing showed that following this change, participants more clearly 

understood the principal reason that variable rates change over time. 

Removal of Detailed Variable Rate Information from the Schumer Box 

Focus groups and early rounds of interviews demonstrated that most participants do not find 

valuable the details about how variable rates are calculated, including the margins that are used 

in these calculations. In addition, interviews in Kansas City and Denver showed that this 

information was distracting for a significant percentage of participants, since they confused the 

margins with actual APRs. Therefore, detailed information about how variable rates are 

calculated was removed from subsequent models of the Schumer Box. 

Penalty APR and Penalty Triggers 

Label of Default/Penalty APR 

Some participants in early rounds of interviews believed that the Default APR would only apply 

in extreme circumstances, such as when an account was closed due to delinquency. Some 

assumed, incorrectly, that this APR could not be triggered by one late payment. In the Denver 

interviews, the labels “Highest Possible APR” and “Penalty APR” were tested as alternatives to 

“Default APR.” Of the three possibilities, the label “Penalty APR” was best understood by 

participants as applying to events such as paying late or exceeding a credit limit, so in all future 

models this term was used. 

Location of Penalty Triggers in the Schumer Box 

Participants who looked at current credit card offers had a great deal of difficulty identifying the 

specific instances in which the Penalty APR would be applied. (Currently, the triggers for the 

Penalty APR must be included outside the Schumer Box.) As a result, models were tested that 

included these triggers in the Schumer Box. Testing in Kansas City and Denver showed that the 

significance of these triggers was best understood if they were located in close proximity to the 

Penalty APR itself so that readers could connect the two. The proposed model form includes the 

Penalty APR and triggers together in the same row of the Schumer Box. 

Information About the Balances to Which the Penalty APR Would Apply and How Long the 

Penalty APR Would Apply 

Some participants in later rounds of testing indicated that they thought that the Penalty APR 

would only be charged on the amount by which they went over their credit limit, rather than on 

their whole balance. Others thought that this rate would only apply during the month of their 

transgression (e.g., the month they paid late or went over the credit limit), and their rates would 

immediately return to the normal rate after that month. In actuality, however, some credit card 

issuers apply the Penalty APR to all existing and future balances, and reserve the right to apply 

this Penalty APR indefinitely. To correct these misconceptions, the proposed regulations would 

require in the Schumer Box information about the balances to which the Penalty APR will apply 

and how long the Penalty APR will apply. 

iv 
References to the Penalty APR 

A significant percentage of participants in early rounds of interviews knew that penalty fees 

could be charged, but did not notice in the forms tested that their APRs could also be raised in 

penalty situations. As a result, models for the Boston and Dallas interviews included a 

parenthetical reference next to information about penalty fees that alerted readers to the fact that 

the “Penalty APR may also apply.” (A cross-reference to the Penalty APR also was added to the 

models tested in the Dallas interviews.) The addition of this information increased the number of 

readers who noticed the Penalty APR. 

Fees 

Inclusion of Fees in the Schumer Box 

Participants in the focus groups indicated that annual fees, transaction fees, and penalty fees are 

key factors that they consider when evaluating credit card offers. Interviews in Kansas City 

confirmed that consumers can find information about fees much more easily when it is provided 

inside the Schumer Box, rather than underneath the box. (Currently, card issuers are allowed to 

disclose transaction fees and penalty fees inside or outside the Schumer box.) Therefore, all 

subsequent models that were developed included annual fees, balance transfer fees, cash advance 

fees, and penalty fees in the Schumer Box. Participants in the interviews indicated that fees for 

foreign transactions were less important to them when shopping for a credit card, so these fees 

are not included in the proposed Schumer Box model. 

Separate Section for Fees 

In Kansas City and Denver, models were tested that integrated transaction fees with APRs (e.g., 

displaying the APR and fee for balance transfers in a single row). However, participants found it 

easier to find transaction fees when all fees were displayed together in a separate labeled section. 

References to Transaction Fees 

There were a number of participants in early rounds of testing who did not notice that fees could 

be charged for balance transfers and cash advances, even when these fees were included in the 

Schumer Box in the fees section. To address this problem, references were added to the “APR 

for Balance Transfers” and “APR for Cash Advances” lines of the Schumer Box that alerted 

consumers to these fees. Interviews in Boston and Dallas showed that these references were 

effective at increasing consumer awareness of these potential charges, so they were included in 

the proposed models. 

Other Disclosure Notices 

Disclosure of Balance Calculation Method 

In the focus groups and first two rounds of interviews, participants indicated that the balance 

calculation method was the piece of information in current Schumer Boxes that they found least 

useful. In Denver, several models included language that attempted to explain the significance 

of balance calculation methods, including one that stated that, compared to other methods, “twocycle” billing could lead to higher interest charges if a consumer pays his or her balance in full 

some months but does not in other months. Most participants did not understand this disclosure; 

they appeared to need more information about how balances are calculated. However, Macro 

v 
and Board staff had concerns that adding sufficient detail to explain the balance calculation 

methods would likely add too much text to the disclosures and detract from other information in 

the Schumer Box. In addition, respondents continued to indicate that balance calculation 

information was not important to them and that they would be unlikely to use it when making 

credit card decisions. Therefore, information on the balance calculation method was moved 

from inside the Schumer Box to directly underneath the Box. 

Disclosure of Payment Allocation Method 

In the first round of interviews in Baltimore, a significant portion of participants did not 

understand that credit card issuers usually allocate payments to lower-APR balances first, and 

that this practice leads to larger interest charges for cardholders who also carry balances at 

higher-APR rates. As a result, a disclosure was added to the Schumer Box explaining this 

practice. Further testing showed that this disclosure was most conspicuous when it was placed in 

the APR section of the Schumer Box, since payment allocation was based on rates for different 

balances. Testing in later rounds showed that after reading this disclosure, a significant 

percentage of participants still did not fully understand how payment allocation could affect their 

interest charges. Further testing may be needed to determine whether the payment allocation 

concept can be clearly and concisely explained to consumers in the Schumer Box. 

Grace Period 

Credit card issuers currently must disclose in the Schumer Box any “grace period” for purchases 

– which is the time period a consumer is given to pay off the entire balance each month to avoid 

paying interest on purchases. Some participants in early rounds misinterpreted the phrase “grace 

period” to mean the period of time after the payment due date that cardholders could make 

payments without being charged a penalty fee. To counter this misconception, various models 

were tested that attempted to define the grace period more clearly, with some models containing 

detailed descriptions. However, these longer descriptions tended to confuse participants. As a 

result, the proposed Schumer Box model uses a more concise description. 

Minimum Interest Charge 

Currently, credit card issuers must disclose in the Schumer Box the amount of any minimum or 

fixed finance charge that could be imposed during a billing cycle. Some participants in early 

rounds interpreted a “minimum finance charge” of $0.50 to mean they would pay this charge 

every month. (In actuality, consumers would pay this charge only in those months where a 

consumer would otherwise incur an interest charge that is less than the minimum charge.) To 

address this misconception, the proposed model forms include a brief statement explaining the 

minimum interest charge. In addition, the proposed model forms refer to this charge as the 

“minimum interest charge” instead of the “minimum finance charge” because participants did 

not appear to understand the term “finance charge” in this context. 

Reduction of Available Credit Due to Fees 

Subprime consumers (i.e., those with low credit scores) are often charged “account set-up” fees 

at account opening that decrease the amount of credit that is available to them. When 

cardholders are unaware of these set-up fees they can unknowingly go over their credit limit, 

bringing about additional penalty fees. To address this concern, models tested in Boston and 

Dallas included a disclosure in the fees section that alerts consumers to the impact of set-up fees 

vi 
on available credit. Nearly all participants noticed this disclosure, understood it and found it 

useful, so it was included in the proposed models. 

Website for Additional Information 

Models that were tested in later rounds included a reference to a Board website where consumers 

could get more information about what to consider when choosing a credit card. Based on initial 

testing, the wording of this reference was revised to clarify what kind of information would be 

available on the website and to emphasize that it was administered by the Board, not an 

individual credit card issuer. Although some participants indicated they were likely not to use 

the website, other participants indicated they might find the website helpful, so it was included in 

the proposed model forms. 

Findings Related to Periodic Statements 

Interest and Fees 

Use of the Term “Finance Charge” 

Findings from the first two rounds of interviews showed that consumers do not have a consistent 

understanding of the phrase “finance charge”—some equated it with interest, while others 

believed that transaction and/or penalty fees were also included. The more specific terms 

“interest” and “fees,” on the other hand, were generally understood by participants. As a result, 

subsequent models that were developed did not use the term “finance charge” on periodic 

statements, and instead referred specifically to “interest” and “fees.” 

Inclusion of Interest in Transaction List 

When shown a sample statement and asked to identify the charges to the account in the past 

month, most participants in the first two rounds of interviews did not mention interest charges. 

While many were aware that interest was being charged, the fact that it was not “top-of-mind” to 

cardholders indicated a need to make it more conspicuous on the statement. Because the 

transaction list was a portion of the statement that most participants reviewed carefully, models 

were developed for interviews in Denver that included interest charges in this list. Testing 

showed that this change increased respondents’ awareness of interest charges, so all subsequent 

models included interest charges in the transaction list. 

Year-to-Date Totals for Interest and Fees 

Early rounds of interviews led to concerns that some consumers may not appreciate the 

cumulative effect of paying a small amount of interest and fees each month. With this in mind, 

year-to-date totals for interest and fees were added to models tested in Boston. Participants 

reacted very positively to these year-to-date totals, and indicated that this information would help 

them review their spending habits and make financial decisions. Therefore, year-to-date totals 

were retained in the proposed model forms. 

vii 
Annual and Periodic Interest Rates 

Labeling of Annual Interest Rates 

Because annual interest rates are typically called “Annual Percentage Rates” on credit card 

offers, participants in the first two rounds of interviews were confused when alternative labels 

(such as “corresponding annual percentage rate”) were used on periodic statements. Therefore, 

all forms in subsequent rounds of testing used the term “Annual Percentage Rate” to describe 

annual interest rates. 

Removal of Periodic Rate from the Statement 

All rounds of interviews tested statement models that displayed a periodic rate (i.e., a daily or 

monthly rate) in addition to the Annual Percentage Rate. However, findings consistently showed 

that some participants did not understand what periodic rates were. In addition, most of those 

who did understand them indicated that they did not find these rates useful. Therefore, the 

proposed model forms do not include a periodic rate. 

Effective APR 

Relabeling/Removal of Effective APR 

The effective APR, a figure that issuers are currently required to disclose on periodic statements, 

is the rate that consumers paid in the previous month when certain fees, such as transaction fees, 

are included along with interest charges. However, participants in the testing had a great deal of 

difficulty interpreting this term. Regardless of the explanatory text that was provided, most 

participants did not understand that the effective APRs shown on the mock periodic statements 

included both interest and transaction fees, and many of those who did understand the rates 

indicated that they did not provide useful information. In addition, the presence of the effective 

APRs was often confusing to participants; in each round there were some who mistook these 

rates for the annual interest rate. In the final round of testing in Dallas, the effective APR was 

relabeled the “Fee-Inclusive APR.” There was some indication that this new label increased 

participants’ understanding that the term included both interest and transaction fees. Further 

testing is needed to determine whether the presentation of the “Fee-Inclusive APR” in the 

proposed model is successful in explaining the term to consumers, as well as whether they find 

this information useful. 

Transaction List 

Grouping of Transaction List by Transaction Type 

Currently, most periodic statements display transactions in a single list chronologically. One of 

the early models that was tested, however, categorized the transaction list by type. Evidence 

from the Denver and Boston rounds of interviews showed that participants preferred this type of 

list, and that respondents who saw “grouped” transaction lists more easily identified fees that 

they had been charged. Therefore, this format was used in the proposed model forms. 

viii 
Other Disclosures and Notices 

Minimum Payment and Late Payment Disclosures 

The Bankruptcy Act requires banks to include two disclosures on their periodic statements: a) a 

notice that indicates the consequences of only making minimum payments each month; and b) a 

warning that explicitly spells out what could happen if a consumer makes a late payment. In the 

early rounds of interviews, participants appeared to understand the wording of these two 

disclosures, so focus then shifted to their placement on the statement. Models were developed 

that had these notices in a variety of locations, including on the payment coupon and in a 

separate “Bank News” section. Testing eventually showed that the disclosures were most 

noticeable when located in close proximity to payment information such as the due date and 

minimum payment. 

Inclusion of Summary of Key Changes to Account 

Many participants in the focus groups indicated that they usually throw away any inserts that are 

included with their periodic statements without reading them, including any that describe 

changes to their account terms. Therefore, a summary of key changes was tested on the 

statement itself. Models were developed and tested that contained this summary in a variety of 

locations, but results from interviews showed that it was most noticeable when it was on the 

front page and appeared before the transaction list. Later rounds of interviews also showed that 

this disclosure was more noticeable when it contained a tabular summary of changes to key 

terms, such as a table showing the new rate for purchases and the new amount of the late fees. A 

general reference to the types of changes that were being made, such as a statement that some of 

the changes affect APRs on purchases and late fees with a reference to the insert for more details, 

was not as noticeable or useful to participants. 

Time Payment Is Due 

Testing in Baltimore found that many consumers assume that payment is due either at midnight 

or by the close of business on the payment due date. Most were not able to find information on 

the back of the statement that indicated that payment was due earlier in the day. Therefore, all 

models that were subsequently developed included a reference on the front of the statement to 

the time that payment was due. Participants who saw these models found this information 

extremely helpful, so this information is in the proposed forms. 

Findings Related to Solicitation Letters 

Placement of Go-To Rate and Expiration Date of Introductory Offer 

When participants in the interviews were given a Schumer Box to review, they were also given a 

marketing solicitation letter that offered a 0% introductory rate on balance transfers. On these 

letters, the zero percent APR was first mentioned in a heading at the top of the page in large type. 

When the go-to rate (i.e., the APR after the introductory offer ends) and expiration date were 

located in the text of the letter or in a footnote, a large percentage of readers did not notice them 

in their first reading and had difficulty finding this information when asked. When this 

information was displayed in the heading along with the introductory rate, however, participants 

were much more likely to see it. This finding is consistent with the requirements in the 

ix 
Bankruptcy Act that require the go-to rate and the expiration date to be in a “prominent location 

closely proximate” to the introductory rate. 

Findings Related to Account-Opening Disclosures 

Inclusion of Summary Insert with Account-Opening Disclosures 

Most participants in the focus groups indicated they do not read the cardholder agreements that 

they receive when they open a new credit card account because these documents are often 

written with small print and dense prose. At the same time, they expressed a desire for some 

way to: a) check when they receive their card to make sure that the terms of their account are 

what they expected; and b) have a clear and easily readable summary of account terms to which 

they could refer at a later date. Participants in the Baltimore interviews responded very 

positively when shown a cardholder agreement that included a separate insert that summarized 

key terms such as APRs and fees. They indicated that they would be much more likely to read 

this insert than the agreement itself, and would also be more likely to save it for future reference. 

In Denver, a summary of key terms in a format very similar to the Schumer Box was tested as 

part of the account-opening disclosures. Participants in that round of interviews indicated that 

they found this summary to be clear and understandable, and that they would be much more 

likely to review it than their cardholder agreement when they received their card. For this 

reason, the proposed regulations would require that issuers provide a tabular summary of key 

terms at account opening similar to the Schumer Box. 

Findings Related to Change-in-Terms Notices 

Inclusion of Summary of Changes to Key Terms 

Participants indicated in focus groups and interviews that they often do not carefully read 

change-in-terms notices that they receive from their bank in the mail. Many indicated that they 

are frustrated by the small type size in these notices, and that because the text is technical and 

complicated they have difficulty identifying the information in the document that they consider 

important. Testing showed that when a tabular summary of key changes is provided, either at the 

beginning of the notice or on a separate piece of paper, consumers are more likely to read the 

notice and to understand what terms are being changed. Proposed regulations, therefore, would 

require that such a summary be provided by issuers in most situations. 

Findings Related to Convenience Checks 

Inclusion of Key Disclosures on Front of Checks 

In the last two rounds of interviews, participants were shown a set of convenience checks and 

asked a series of questions about the terms. Testing in Dallas showed that participants were 

more aware of applicable fees and the lack of a grace period when this information was on the 

front of the page containing the checks, rather than the back. The interviews also showed that 

participants often did not notice disclosure text stating that the interest rate on convenience 

checks would be “the current rate on cash advances” because they were looking for an APR 

written in numerical form. Therefore, proposed regulations would require that issuers disclose 

on the front of the page containing the check any transaction fees applicable to the checks, the 

type of rate that will apply to the checks (such as the cash advance rate) and the APR that will 

apply, and whether a grace period applies to use of the checks. 

x 
SECTION I: INTRODUCTION 

BACKGROUND 

In 1968, the Truth in Lending Act (TILA) was enacted by Congress to protect consumers by 

requiring that certain information be disclosed to them by lenders at various points in time. The 

Federal Reserve Board (the “Board”) was assigned by Congress the responsibility of 

implementing TILA, and currently does so through its Regulation Z. 

In 2004, the Board began the process of revisiting some portions of Regulation Z to determine 

whether revisions were necessary. The rules being reviewed relate to open-end credit, of which 

the primary example is general-purpose credit cards. The goal of the review is to ensure that the 

regulations lead to disclosures that consumers would most likely pay attention to, understand and 

comprehend, and be able to use in their decisionmaking. 

The Board contracted with Macro International Inc. (“Macro”) in April 2006 to assist the Board 

in this effort. Macro is a research and evaluation company headquartered in Calverton, MD that 

has 40 years of experience working with government and non-profit clients. For this project, the 

firm has three primary roles. The first is to conduct consumer testing through focus groups and 

one-on-one cognitive interviews to inform the development of the Board’s revisions to 

Regulation Z. The second is to design revised model disclosure forms based on findings from 

qualitative research. Macro’s third role will be to conduct quantitative testing of the revised 

forms to determine whether they are more effective than the current versions. The work 

conducted thus far has focused on the first two roles; the quantitative testing has not yet taken 

place. 

As of May 2007, Macro had conducted four focus groups and five rounds of cognitive interviews 

in seven different locations in the United States. Representatives of the Board attended all of the 

consumer tests, and Macro has provided interim findings multiple times since the project began. 

The results of this research have had a strong influence on the proposed revisions to 

Regulation Z that the Board will be releasing for public comment in May 2007, and many of the 

revised disclosure forms that were developed through the testing will be included as model forms 

with the proposal. 

OVERVIEW OF THE PROJECT 

The project thus far has consisted of two phases. In the first phase (which is covered in more 

detail in Section II of this report), Macro conducted four focus groups and one preliminary set of 

cognitive interviews that were focused on gaining knowledge about how consumers use the 

credit card disclosures that they currently receive. The focus groups, which took place in 

Calverton, MD, and Birmingham, AL, gathered information about the types of information that 

consumers currently use for financial decisionmaking. The preliminary round of interviews 

(carried out in Baltimore, MD) studied how consumers read and use specific credit card 

disclosure forms. 

1 
The second phase of the project (described in Section III) was devoted to the development and 

testing of revised forms. This phase consisted of four additional rounds of one-on-one cognitive 

interviews in different locations: Kansas City, MO; Denver, CO; Boston, MA; and Dallas, TX. 

A set of revised models was developed for each round. Participants in the interviews were then 

asked to read and use these mock forms just as they normally would, and data were collected on 

which aspects of each form were most successful in providing information clearly. The findings 

of each round then informed revisions to the models for the next round. This iterative process 

continued until the final round, after which the proposed models to be released for public 

comment were finalized. 

Six different types of disclosures related to credit card accounts were examined. The following 

is a list of these disclosures, along with some of the key research questions associated with each: 

• Solicitation and Application Disclosures: These tabular disclosures (often referred to as 

the “Schumer Box” disclosures) are provided on or with direct-mail solicitations and 

applications for credit cards to help consumers compare and shop for credit cards. Of the 

disclosures addressed in this study, this is the only one for which a specific layout is 

currently required by the Board. 

o Key Research Questions: 

 What credit terms are important to consumers as they shop for credit cards? 

 What format is most effective in presenting these key credit terms to consumers? 

 Is there information that should be included in the Schumer Box because 

consumers would find it useful? 

 Is there information that should be removed from the current Schumer Box 

because consumers do not understand or use it? 

 Is there information in the Schumer Box that needs to be more clearly explained 

to consumers? 

• Initial or Account-Opening Disclosures: These disclosures are provided when the 

credit card account is opened to inform consumers about the terms of the account. These 

disclosures are typically provided in cardholder agreements, along with other legal and 

contractual information that issuers opt to include. 

o Key Research Questions: 

 How do consumers currently use their cardholder agreements? 

 What information do consumers want to have when they receive their card? 

 What format is the most effective way to highlight key terms to make them more 

conspicuous for consumers? 

• Periodic Statements: These disclosures typically are given on a monthly basis to inform 

the consumer about transactions, fees, and interest charges incurred in the previous 

billing cycle. These statements inform consumers of when they must make a payment in 

order to avoid additional charges, as well as how large their payment must be. Periodic 

statements also include the interest rates that apply to the account. 

o Key Research Questions: 

 What information on the periodic statement is most useful to consumers? 

2 
 Are there pieces of information that are not currently required on statements that 

consumers would find useful? 

 How can warnings and notices about late payments and minimum payments 

required by the Bankruptcy Act3

3 The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Public Law 109-8, 119 Stat. 23.

, passed in 2005, be made conspicuous? 

• Change-in-Terms Notices: These disclosures are provided to consumers when a change 

is made to key terms of the account. They are either included with monthly statements or 

sent in a separate mailing. 

o Key Research Questions: 

 How carefully do consumers read change-in-terms notices that they currently 

receive? 

 What format is most effective in presenting key changes to consumers so they 

notice and understand this information? 

• “Convenience Checks”: These checks (sometimes called “balance transfer checks”) are 

given to consumers as additional devices to access their credit card accounts. They are 

usually included with monthly statements or sent to cardholders in a separate mailing. 

o Key Research Questions: 

 What terms do consumers consider most important when deciding whether or not 

to use convenience checks? 

 What format is most effective in presenting these terms to consumers so they 

notice and understand this information? 

• Solicitation Letters: Credit card offers that are sent in the mail usually include a 

solicitation letter, along with a required Schumer Box. This letter is primarily for 

marketing the offer to consumers, but it usually includes a description of some of the 

account terms. Although these letters are not required disclosures, the Bankruptcy Act 

requires that the solicitation letter contain certain disclosures if the letter discloses a 

discounted introductory rate. 

o Key Research Questions: 

 How do consumers review solicitation letters that they get in the mail? 

 Where should information be placed to make it most conspicuous to consumers? 

STRUCTURE OF THIS REPORT 

This report provides a summary of the work that has been carried out this far, the methodologies 

that have been used, and the key findings that had a strong influence on the development of the 

proposed forms that are being released for public comment. Section II describes the initial 

research on how consumers use current credit card disclosures. Section III details how revised 

forms were developed and tested, and tracks their evolution through four rounds of cognitive 

interviews. Finally, Section IV addresses some general findings related to the need for consumer 

education, as well as next steps for this project. 

3 
SECTION II: RESEARCH ON CURRENT 

DISCLOSURE FORMS

FOCUS GROUPS (MAY AND JUNE, 2006) 

Objectives and Methodology 

Before any testing was done with specific disclosure forms, it was necessary to gather more 

general information about a) what information credit card consumers use in making decisions 

regarding their accounts; and b) how they currently find and process this information. Macro 

gathered this information through a series of four focus groups in the spring of 2006. Two 

groups were held in Calverton, MD, on May 31, and two more groups were held in Birmingham, 

AL, on June 13. 

Participants for the groups were recruited by telephone using a structured screening instrument 

(see Appendix A for a summary of participants’ demographic information). In each location, 

Macro attempted to ensure that one of the two groups was made up of consumers with prime 

credit cards, and that the other was made up of consumers with low credit cards. For the 

purposes of recruiting, consumers with subprime credit cards were identified as consumers who 

either had a credit limit of less than $1,500 on their primary credit card or had paid a set-up fee 

or security deposit to initiate that card. The groups were separated in this way because subprime 

consumers are frequently less knowledgeable about credit cards, so the researchers were 

concerned that they might participate less actively in a mixed group. In addition, the types of 

credit cards offered to prime and subprime consumers are often different; for example, subprime 

cards often charge additional account set-up fees. Therefore, some topics of discussion were 

only relevant for subprime cardholders. 

For the most part, the focus group discussions proceeded chronologically through the life of an 

account. The questions focused on four points in time: solicitation, account opening, monthly 

statements, and other communication during the life of the account. At each of these four points, 

participants were first asked what credit card information they find most useful. Participants 

were then shown a sample of a current credit card disclosure to see if it stimulated any additional 

thoughts. The samples that were used are provided in Appendix B. 

Although these focus groups represented the first phase in the redesign of disclosures for credit 

card accounts, participants were not shown any revised models. The goal was to get baseline 

information about how consumers use current forms so that new models could then be designed 

to meet their informational needs. 

4 
Key Focus Group Findings 

Communication with Credit Card Companies and General Account Management 

• Participants indicated that they communicate with their banks primarily by phone, rather than 

by e-mail or mail. In most cases they call when there is a problem with their account, not for 

routine account maintenance. 

• Most participants said that they do not save the original solicitations for the credit cards for 

which they apply. However, most said that they do save other documentation (e.g., 

cardholder agreements), as well as their monthly statements. 

• When asked whether the interest rate on their account had ever increased, only a few 

participants indicated that it had. Those that did say their rate had increased said that they 

noticed the change when looking at their monthly statements. However, a significant number 

of participants said that they do not track their interest rate carefully on their monthly 

statements, so it was possible that their rate changed and they did not know. 

Solicitation Disclosures 

• When asked to list the most important account terms that they considered when shopping for 

a credit card, participants mentioned the following terms most frequently: 

 Interest rate on purchases 

 Interest rate on balance transfers 

 Credit limit 

 Fees (i.e., annual fees, late fees, cash advance fees, over-the-credit limit fees) 

 Incentives such as frequent flier miles or cash back 

• The sample solicitation disclosure that was shown to the groups displayed three different 

APRs for purchases, labeled “elite,” “premium,” and “standard.” Most participants in the 

group of prime consumers recognized that the issuer would select which rate an applicant 

received based on his or her credit score. Participants in the subprime group, however, did 

not understand how the issuer would choose a rate. 

• When asked whether there was any information in current Schumer Boxes that they did not 

use and did not feel was important to include, most participants indicated that they did not 

find it valuable to know the method that their bank used to calculate account balances. 

• When asked how they would compare the terms of their current account with those that were 

offered in a solicitation, most said that they would find the terms of their current account on 

their most recent monthly statement. Some said that they would call their credit card 

company to get this information, but admitted that they would not be sure what questions to 

ask. 

5 
• A very small percentage of participants indicated that when deciding whether to apply for a 

card they would call the credit card issuer or go online to get more information about the 

offer. Most, however, said that they would make the decision based solely on the 

information in the written solicitation. 

Account-Opening Disclosures 

• Participants were asked what information they would like to have included in the envelope 

when they first receive their cards. Most frequently, they indicated that they wanted to be 

able to confirm that they were receiving the same terms and conditions that they had been 

offered. Other pieces of information that were mentioned as important included: 

 Credit limit 

 Date first payment is due 

 What happens if the card is lost (i.e., what to do, and who is responsible for charges) 

 Whether or not a balance was successfully transferred 

 Contact information for the credit card issuer 

• When shown a sample cardholder agreement, few of the participants said they would read the 

entire document if they received it. Others said that they would skim it and look for what 

they felt were the most important headings. In each group about half of participants said that 

they would not look at the cardholder agreement at all. 

Periodic Statements 

• Participants were asked which pieces of information they considered most important on their 

periodic statements. The most frequent responses were: 

 Minimum payment 

 Balance 

 Due date 

 Individual transactions 

 Finance charges 

 Available credit 

 Interest rate 

• Those participants who said that they look at finance charges were asked whether they 

focused more on their interest rate or the dollar amount of interest that was being charged. 

Most said that the dollar amount was more important, since that was what they would have to 

pay. 

• Nearly all participants said that they never look at the back of their periodic statements. A 

few said that they do look at the back when they have an issue with their card, because that is 

where information about problem resolution is listed. 

• Participants indicated that they would be unlikely to read a change-in-terms insert that was 

included with their periodic statement, and would probably throw it away with other 

6 
marketing material. One suggested that changes to terms be explained on the monthly 

statement itself, since most cardholders read their statements relatively carefully. 

Change-in-Terms Disclosures 

• Few of the participants remembered ever having received a change-in-terms disclosure in the 

mail. 

• When shown a sample of a change-in-terms disclosure, most participants said that they 

would be unlikely to read it at all because of its small font size and dense, complicated text. 

About half said that they would keep the document for future reference, while the others said 

they would throw it away. 

• The most common complaint about the sample that was shown was that the font was too 

small. Participants also noted that the language was difficult to follow, and that there was no 

summary to which they could refer. 

Convenience Checks 

• Nearly all participants had received convenience checks from their banks in the past. 

However, only a few said that they had ever used them. 

• Of those participants that had used convenience checks, some said that they had faced 

unexpected charges because they used the checks without fully understanding the terms. The 

most common misunderstanding was that participants did not realize that they would be 

charged the interest rate on cash advances. 

• When asked what information they would want to know about convenience checks before 

they used them, participants said that they would primarily want to know the interest rate that 

they would be charged. 

7 
PRELIMINARY COGNITIVE INTERVIEWS IN BALTIMORE, MARYLAND 

(AUGUST 2006) 

Objectives and Methodology 

Following the focus groups, Macro conducted nine cognitive interviews in Baltimore, MD, on 

August 16 and 17, 2006. The goal of these interviews in Baltimore was to gather data on the 

usability of current credit card disclosures. While the focus groups provided valuable 

information about the kinds of information that consumers use when making credit card 

decisions, the focus group format did not allow for an in-depth study of how people interacted 

with specific documents. For this reason, one-on-one interviews were conducted to identify any 

usability problems that could be addressed through revised models. 

Participants for this set of interviews were recruited by telephone using a structured screening 

instrument. The recruiting process was designed to ensure the selection of a range of participants 

in terms of gender, age, and ethnicity. Cardholders’ credit limits were also included as a 

recruiting criterion, as a rough proxy for credit score. For a summary of participants’ 

background information, see Appendix A. 

Each interview session lasted 90 minutes, and was divided into four sections. In each section the 

participant was given an envelope containing one of the following: 

1. A credit card solicitation letter, including a Schumer Box 

2. An account-opening packet made up of a card carrier (holding a mock credit card) and 

cardholder agreement 

3. A periodic statement, along with marketing materials that are often included with 

cardholders’ statements 

4. A change-in-terms notice. 

The four documents were given to each participant in the same order that they would receive 

them in the life of an account: first solicitation, then account-opening disclosures, then periodic 

statement, then change-in-terms notice. 

In each section of the interview, participants were first asked to open the envelope and read the 

contents just as they normally would. Participants were asked to “think aloud” as they did so— 

that is, to say aloud what they were thinking and doing as they looked at the documents. The 

interviewer did not ask any questions or provide any prompts during this section of the interview, 

so that participants’ behavior was as much as possible an authentic reflection of what they do in 

the “real world.” 

8 
After the participants had completed their initial review of what was in the envelope, the 

interviewer then asked a series of more targeted questions about that particular disclosure. In 

some cases, the interviewer asked about specific terms, to see whether the participants could find 

that information in the disclosures. In other cases, participants were asked to explain what a 

word or phrase meant to them. 

After this series of questions was completed, the interviewer handed participants the next 

envelope and the interview proceeded. 

Two different versions of each disclosure were used in the Baltimore interviews; each participant 

was shown one version of each disclosure type. The models that were used were actual 

disclosures, with information about the credit card issuer redacted. These models are provided in 

Appendix B. 

Key Interview Findings 

Solicitation Letters and Schumer Boxes 

General Reading Patterns 

• When opening a credit card offer, nearly all participants first reviewed the solicitation letter 

that was included in the envelope. Most looked first at the pieces of information that were 

most prominent on the letter (i.e., those in headings, graphics, and bullet points), and then 

went on to read the text of the letter itself. The pieces of information that they considered 

most closely were the zero percent introductory APR that was offered for balance transfers, 

the credit limit, the annual fee, and the length of the introductory period for any discounted 

rate. 

• When reading credit card solicitations, a majority of participants specifically looked for the 

Schumer Box. Although they did not call it by this name, these participants understood that a 

summary box of account terms would be included with the solicitation. Several commented 

that they considered this box to be the most important part of a credit card offer. 

• When reading Schumer Boxes, most participants focused primarily on the rate for purchases, 

and then skimmed down to the bottom of the box to read the information on fees. Other than 

information on fees, most did not read any smaller text that appeared underneath the box. In 

several cases participants had difficulty understanding information that was located in 

footnotes, either because they did not follow the footnote to the bottom of the page, or 

because they read the footnote first and did not understand to which part of the box it related. 

Annual Percentage Rates 

• Most participants understood that when a range of possible APRs was offered in the Schumer 

Box, the actual rate that an applicant received would be based on his or her creditworthiness. 

However, there were some who did not understand how their rate would be selected. These 

9 
participants did not notice that this information was provided in the solicitation (although not 

in the Schumer Box itself). 

• Most of the participants were able to identify the APR on purchases by looking at the 

Schumer Box. However, less than half were able to identify the rate that would apply to 

balance transfers after the introductory rate expired (the so-called “go-to rate”). Several 

assumed that the APR would be the same for purchases and balance transfers. 

Fixed and Variable Rates 

• When asked to define what a “fixed” rate was, most participants said that it was a rate that 

would not change. While some indicated correctly that credit card issuers could still change 

these rates, others believed that this was not the case. 

• Nearly all participants said that the word “variable” meant that a rate could change. A vast 

majority of participants said that variable rates could change based on changes in “prime” or 

“general interest rates.” A few participants said that banks could also change these rates for 

other reasons if they wished. 

Default APR and Triggers 

• While most participants understood that their APR would change if they “messed up” 

somehow (i.e., make a late payment, etc.), few were able to locate any information on the 

solicitation about the specific actions that could trigger this change. Most were also unable 

to identify what the new rate would be. 

Fees 

• Most participants were able to find information about transaction and penalty fees underneath 

the Schumer Box. In some cases, however, it took several minutes for them to do so. 

• Participants indicated that they considered penalty fees to be an important factor when 

shopping for a card. Those that transfer balances and take out cash advances said the same of 

fees for those transactions. None, however, said that fees for foreign transactions would be 

important to them. 

• When asked whether credit card issuers could charge additional fees that were not disclosed 

in the Schumer Box, almost all participants indicated that they could. 

Other Disclosure Notices 

• When asked about the balance calculation method that was described in the Schumer Box, all 

participants indicated that they did not understand what the “average daily balance” 

calculation method was. Reviewing additional information on the solicitation that described 

this method did not improve understanding because participants found both the text and 

mathematics involved to be too complex. In any case, nearly all said that this was not a piece 

of information that would be important to them when considering a credit card offer. 

10 
• Participants were asked whether the issuers represented in the offers would first allocate 

payments towards low-introductory APR balance transfers or higher-APR purchases. About 

half of participants understood that the banks would allocate any payments to balance 

transfers first, either because of prior knowledge or because they found the information in the 

disclosure that indicated as such. The other half either thought that banks would allocate 

payments to purchases or did not understand why payment allocation would make a 

difference in how much interest they paid. 

• Several participants incorrectly thought that the “grace period” referred to the amount of time 

after the due date during which they could make a payment without being charged a late fee. 

• A few participants believed that the presence of a “minimum finance charge” in the Schumer 

Box meant that they would have to pay that amount every month. (In actuality, this figure 

refers to the amount they would be charged in those months where they would otherwise 

incur a finance charge that is less than the minimum charge.) 

Account-Opening Disclosures 

• The second envelope that each participant was given contained a cardholder agreement and a 

“card carrier” that contained marketing and account information. After opening the envelope 

most participants skimmed the text on the card carrier quickly, but many did not notice key 

pieces of information (e.g., their APRs). 

• Participants paid very little attention to the cardholder agreement; only a few participants 

looked at it at all, and these only skimmed it briefly. When asked, a vast majority of 

participants indicated that they generally do not look at their cardholder agreements. Most 

participants indicated that the reasons they do not read their agreements are that the type size 

is very small and they find them difficult to understand. 

• When prompted, less than half of participants were able to find information in the account 

agreement that described what actions might trigger the default rate. 

• One of the two models that were used in this round included an insert that summarized APRs 

and fees, while the other model only provided this information on the card carrier and in the 

cardholder agreement. When asked specific questions about their account APRs and fees, 

participants who received the insert responded much more quickly and accurately than those 

who did not. Those who were given a summary insert were also more likely to notice and 

review APRs and fees on their own, whereas those who did not receive an insert usually only 

did so after being prompted. 

Periodic Statement 

General Reading Patterns 

• None of the participants looked at the back of the statement unless they were prompted to by 

the interviewer. 

11 
• Most of the participants did not read inserts that were included with the monthly statement, 

but instead set them aside. 

Interest and Fees 

• Participants had various interpretations of the phrase “finance charge.” Some thought it 

referred specifically to fees, some thought it was synonymous with interest charges, and 

some thought it included both. (In the mock periodic statements, the amount of the “finance 

charge” included interest and transaction fees.) 

• Most participants understood that their interest charges were calculated through the 

multiplication of a percentage and an account balance. However, most could not correctly 

identify the percentage and balance that were multiplied. For example, several thought that 

the APR itself was multiplied against the balance, rather than the periodic rate. 

• Participants who were asked to read the more detailed description provided on the back of 

the statement describing how interest was calculated found it very confusing, and said that 

they would not be able to do these calculations themselves. None indicated that they had 

ever attempted to calculate their own interest (e.g., to check the bank’s calculations), or that 

they would be likely to do so in the future. Most said that if the figures on their periodic 

statement looked incorrect, they would call their credit card issuer. 

• Only half of participants were able to correctly identify all of the fees that were listed on the 

model statements; others missed at least one fee. 

Annual and Periodic Interest Rates 

• While most participants were able to identify the annual interest rate being charged on 

purchases, others misidentified one of the other rates on the form (e.g., “effective APR,” 

“periodic APR,” etc.) as the interest rate. 

• Several participants were confused because what had been called the “APR” on solicitation 

and account-opening disclosures was called the “corresponding APR” on one of the 

statement models. 

Effective APR 

• The two models used in Baltimore provided the effective APR in two different ways; Model 

A listed it as a column labeled “Annual Percentage Rate” in the “Finance Charge” box, while 

Model B labeled it “Effective Annual Percentage Rate” and placed it underneath the box. In 

both cases, most participants indicated that these rates seemed high but did not understand 

what they signified. After reading the descriptive information provided on the forms, only 

one participant understood that the effective APR was higher than the corresponding APR 

because it included transaction fees in addition to interest. 

12 
Time Payment is Due 

• When asked what time on the due date a payment was due, almost all participants assumed 

that it was due either at midnight or at 5:00 P.M. Only one participant was able to find a 

notice on the back of the statement that payment was due earlier on that day. 

Change-in-Terms Notice 

• All participants said that if they got an envelope from their credit card issuer that was labeled 

“Important Information about Your Account,” they would open it. 

• Participants were shown two different change-in-terms notices—one which was printed in 

the form of a letter on one side of an 8 1⁄2” x 11” paper, and another that was in the form of a 

folded booklet with smaller font. All indicated that they would be more likely to read the 

larger sheet, primarily because it had larger print. 

• Most participants did not understand the changes described in the notices. Both notices were 

informing cardholders of an increase in the amount of penalty fees (e.g., late fees). However, 

some participants thought that the notices indicated that they were being charged those fees. 

Others thought the notice was simply a reminder that penalty fees existed on the account. 

13 
KEY IMPLICATIONS FOR DEVELOPMENT OF REVISED FORMS 

As noted above, the purpose of the focus groups and preliminary interviews was to learn more 

about the types of information that consumers use when making credit card decisions, as well as 

how they review and use current credit card disclosures. This section describes some of the 

ways in which findings from this round of research were used to guide the development of 

revised disclosure forms in the next phase of the study. 

Schumer Box 

Annual Percentage Rates 

• Because many participants (particularly those who have subprime credit cards) did not 

understand how a bank would select an initial APR from a range of possible rates, models 

were developed and tested that explained more explicitly that the applicant’s initial APR 

would be based on his or her creditworthiness. 

• Since participants had some difficulty distinguishing APRs for different transactions, models 

were developed for testing that separated the rates in the “Other APRs” row into separate 

rows. 

Default APR and Triggers 

• Participants were unable to find information about default triggers when it was provided in 

text outside of the Schumer Box. Therefore, models were developed for testing the 

disclosure of these triggers within the box itself. 

Fees 

• Because fees are one of the primary factors that participants consider when shopping for 

credit cards, future rounds of testing investigated the possibility of including fees in the 

Schumer Box itself. 

Other Disclosure Notices 

• Because participants in the focus groups and Baltimore interviews indicated that the balance 

calculation method is not important to them, some models were tested in later rounds that did 

not include this information in the Schumer Box. 

• A significant percentage of participants did not seem to understand that banks would allocate 

their payments to lower-APR balances first—and in fact were not even aware that this 

practice could impact their interest payments. Therefore, models tested the inclusion of a 

disclosure on this topic in the Schumer Box. 

• In subsequent models a description was added to the grace period disclosure in order to more 

clearly define this term. 

14 
Account-Opening Disclosures 

• Both the focus groups and Baltimore interviews suggested that a summary page of key 

account terms and conditions would be very helpful to consumers, because most do not find 

other materials that are provided at account opening (e.g., the cardholder agreement) to be 

easily readable or useful. A summary table of this type was tested in subsequent rounds. 

This table was formatted much like the Schumer Box, since this box is familiar to consumers. 

Periodic Statement 

General Format of Statement 

• Findings from the focus groups and Baltimore interviews suggest that most consumers do not 

look at the back of their periodic statements. Therefore, on subsequent models that were 

developed all essential account information (i.e., information that consumers need or find 

important to effectively manage their accounts) was located on the front of the statement. 

Interest and Fees 

• Because the phrase “finance charge” was unclear to participants and was interpreted in 

different ways, models were developed for the next round of interviews that used the terms 

“interest charges” and “fees” in place of “finance charges.” 

• Because only half of participants were able to correctly identify all fees that were charged, in 

future rounds the researchers experimented with different ways of highlighting these fees 

(e.g., by providing a separate fees total, or by grouping fees together in the transaction list). 

Changes to Account Terms 

• The Baltimore testing confirmed what participants had said during the focus groups; most did 

not look at the inserts that were included with the sample periodic statements they were 

shown. Therefore, model forms were developed that included a summary of key changes on 

the statement itself. 

Time Payment is Due 

• Because participants were unable to find information easily on the back of statements 

indicating the time at which payment was due on the due date, model forms were developed 

that included this time on the front of the statement. Subsequent rounds tested whether this 

was effective in increasing cardholders’ awareness that payment was not due at the close of 

business on that day. 

Change-in-Terms Notice 

• Because participants’ understanding of the purpose of change-in-terms notices was poor, 

model forms were developed that included a summary of key changes at the beginning of 

these disclosures. 

15 
• The Baltimore testing provided evidence that consumers find change-in-terms notices more 

useful when they are printed on a single sheet of paper in larger font, rather than in a folded 

booklet. However, because of the potential challenges of requiring banks to use a particular 

size of paper for their disclosures, future testing focused on the development of an effective 

summary of key changes that could be used with any style of notice. 

Convenience Checks 

• Because some participants in the focus groups said that they had used convenience checks 

without fully understanding the terms, in later rounds of interviews models were tested that 

listed key terms (such as applicable rates and fees) on the front of a page of checks. 

16 
SECTION III: DEVELOPMENT AND TESTING OF REVISED 

DISCLOSURE FORMS 

OBJECTIVES AND METHODOLOGY 

After the interviews in Baltimore, the project entered its second phase—the development and 

testing of revised disclosure forms. Testing of these forms was carried out through a series of 

interviews in four locations: Kansas City, MO; Denver, CO; Boston, MA; and Dallas, TX. 

Before each round of interviews, Macro developed model disclosures for testing. In most cases, 

multiple versions of each type of disclosure were developed so that the impact of varying 

language or format could be studied. After each round, the findings from that round of 

interviews were then used to develop new model forms to use at the next location. This process 

continued through the final set of interviews in Dallas, which produced the proposed models that 

are being released for public comment. 

Participants in each of the four locations were recruited by telephone using a structured screening 

instrument in order to ensure the selection of a range of participants in terms of gender, age, and 

ethnicity. The screening criteria that were used were very similar, although there were small 

variations between locations. A summary of participants’ background and demographic 

information can be found in Appendix A. 

Interviews for each participant in each location were 90 minutes long. The structure of these 

interviews was very similar to that used in Baltimore. Participants were given envelopes 

containing mock credit card disclosures (e.g., a solicitation letter and Schumer Box). They were 

first asked to read the information in the envelope just as they normally would, and to “think 

aloud” while doing so. When they indicated that they were finished, the interviewer asked 

follow-up questions to test their understanding of the document. Each envelope contained one of 

the following: 

1. A solicitation letter and Schumer Box 

2. An account-opening packet, including a card carrier, cardholder agreement, and summary 

insert page 

3. A monthly statement, along with marketing materials, a page of convenience checks, and 

an insert notifying the cardholder of change in terms 

4. A change-in-terms notice. 

Interviews in different locations focused on different disclosure forms; all four envelopes were 

not used in all cases. 

17 
GUIDING PRINCIPLES FOR DISCLOSURE DESIGN 

As noted above, the primary goal of this phase of the study was to develop revised disclosure 

models that presented information to consumers in a more understandable and useful format than 

current forms. Many of the revisions that were eventually made to the proposed forms were in 

reaction to specific findings from consumer testing. However, the following is a list of general 

principles that guided the development and revision of these forms throughout the project. 

1) In cases where consumers expressed familiarity with current disclosures, significant 

revisions to structure or format were only made when absolutely necessary. Because 

experienced credit card consumers have received disclosures in their current form for a long 

period of time, many have grown accustomed to finding information in a particular location 

or configuration. For example, findings from the focus group and first round of interviews in 

Baltimore indicated that many consumers recognize the Schumer Box and specifically look 

for it when evaluating a credit card offer. For these consumers, dramatically changing the 

appearance of this document would likely have a negative effect on comprehension. 

Therefore, most of the models that were tested preserved the basic two-column structure of 

the Schumer Box. 

Early rounds of testing also showed that there are some types of credit card disclosures, such 

as those that are presented at account opening, that many consumers do not read carefully. In 

these cases, more latitude was taken in developing revised forms because consumers had less 

attachment to current versions. 

2) Information was provided as efficiently, and in as few words, as possible. In the focus 

groups, most participants indicated that they do not spend very much time reading credit card 

disclosures. Many said that they never read their cardholder agreements or change-in-terms 

notices they receive in the mail, and one of the primary reasons was that they were so long. 

In cognitive interviews, even when notices were only two or three sentences long, 

participants often did not read to the last sentence. Therefore, unless adding text clearly 

increased comprehension of a particular term, form designers used as few words as possible 

to describe a particular concept. 

3) Whenever possible, consistency was preserved between disclosures. In most cases, the 

content and purpose of the disclosures are directly related to each other. For any given card, 

for example, the Schumer Box displays the terms that are offered to consumers, the accountopening disclosure shows the actual terms on the account, and change-in-terms notices alert 

cardholders when these terms are changed. When information is provided in different 

formats for these disclosures (e.g., a tabular format in the Schumer Box vs. text in a 

cardholder agreement at account opening), consumers may find it difficult to track their 

account terms over time. As a result, the focus groups showed, many do not track their terms 

at all. For this reason, the structure of revised forms was made consistent so that consumers 

would find it easier to compare the information shown on different types of disclosures. 

18 
4) In most cases, the information that was emphasized on disclosures was that which 

consumers indicated that they find most useful. Because the purpose of disclosures is to 

provide consumers with information that they need for financial decisionmaking, the terms 

that are displayed most conspicuously and clearly should be those that are most important to 

consumers. For example, because participants in the focus groups indicated that fees were 

one of the most important considerations to them when shopping for a card, the proposed 

Schumer Box model includes fees in a separately-labeled section. On the other hand, 

participants indicated that they do not review or consider margins that are used to calculate 

variable interest rates, which are now required in the Schumer Box. As a result, in the 

proposed form these margins have been removed from the Schumer Box. 

Not all of these decisions were based solely on consumer preference in early focus groups, 

however. For example, in the focus groups none of the participants indicated that the default 

APR (i.e., the interest rate to which APRs can be increased if the cardholder breaks account 

rules) was important to them. However, through interviews it became clear that the reason 

many consumers were uninterested in the default APR was that they did not know what it 

was. Once they became familiar with the term, they indicated that it was an important piece 

of information that they would consider when shopping for a card. As a result it was not 

only retained in the Schumer Box, but also made more conspicuous. 

5) Plain “everyday” language was used whenever possible. When shown current 

disclosures, one of the most common complaints from participants was about the complexity 

of the language and vocabulary that was used. Cognitive interviews showed when many 

participants encountered words or phrases that they did not understand, they simply ignored 

those sections of text, rather than trying to determine their meaning. For this reason, every 

attempt was made to use everyday vocabulary to explain information in the disclosures, 

rather than resorting to terms that consumers were less familiar with. For example, it became 

clear early in testing that many consumers did not understand the term “finance charge.” For 

this reason, subsequent models used in testing did not use this phrase, but instead referred to 

“fees” and “interest charges”—two terms with which consumers were more familiar. 

6) Decisions related to the placement of information on disclosures were driven by how 

consumers read the forms. Early interviews showed that there were consistent patterns in 

how consumers interacted with different types of disclosures. When this was the case, these 

patterns were taken into consideration when revised models were developed. For example, 

cognitive interviews showed that participants did not usually follow footnotes when reading 

Schumer Boxes. Therefore, footnotes were removed and all subsequent forms displayed key 

information within the box itself. Interviews also showed that when reading periodic 

statements, participants tended to focus on only a few pieces of information—usually 

information about payments, a summary of account activity over the past period, and the list 

of specific transactions. This finding drove subsequent revisions—for example, the proposed 

model includes totals of fees and interest within the transaction list, and several disclosure 

notices are located in close proximity to information about payments in order to increase 

their conspicuousness. 

19 
STRUCTURE OF SECTION III 

The remainder of this section of the report describes each of the four individual rounds of 

interviews. For each location, three different kinds of information are provided. The 

“Objectives and Methodology” section describes the specific goals for that set of interviews, as 

well as the specific types of forms that were tested. It also identifies the models that were used 

in testing, which can be found in Appendix B. The “Key Interview Findings” section 

summarizes the most important results of the cognitive interviews. The last section, labeled 

“Subsequent Design Decisions,” details the specific decisions that were made following that 

round of interviews regarding the development of forms for the next round. These three sections 

should allow the reader to follow the logic of form development over the course of the four 

rounds. 

20 
INTERVIEWS IN KANSAS CITY, MISSOURI (NOVEMBER 2006) 

Objectives and Methodology 

Nine cognitive interviews were conducted in Kansas City on November 28 and 29, 2006. These 

interviews represented the first opportunity to develop revised disclosure forms and test the 

extent to which they were clearer and more helpful to consumers. This round of testing focused 

on four types of forms: solicitation letters, Schumer Boxes, periodic statements, and change-interms notices. Because this was the first round of interviews, the variation between different 

versions of the forms was fairly wide; for example, on different forms the Schumer Box 

contained one, two, or three separate sections. With each subsequent round of interviews, the 

variation between forms decreased as it became clearer what types of language and formats 

worked best for consumers. 

The following model forms were shown to participants in this round and can be found in 

Appendix B: 

• Solicitation Letter: SL-1, SL-2, SL-3 

• Schumer Box: SB-1, SB-2, SB-3, SB-4 

• Periodic Statement: PS-1, PS-2, PS-3, PS-4 

• Change-in-Terms Notice: CT-1, CT-2, CT-3, CT-4 

Key Interview Findings 

Credit Card Solicitation Letters and Schumer Boxes 

Solicitation Letters 

• As in Baltimore, most participants read the solicitation letter fairly carefully. Again, they 

focused first on information that was printed most prominently (e.g., in color and in the 

largest font size), and then often went back to read the text of the letter itself. 

• Putting the go-to rate and introductory period for the balance transfer rate at the top of the 

letter next to the introductory balance transfer rate made it much more likely that participants 

would be able to find this information. When these terms were provided in the body of the 

solicitation letter, or in a footnote, participants were much less likely to notice them. 

Schumer Boxes: Consumer Reading Patterns 

• This round of interviews confirmed the finding in Baltimore that the Schumer Box does have 

recognition among consumers, and is seen by them as containing important information. 

• Participants consistently read from the top of the Schumer Box to the bottom, but then 

stopped and did not continue to the text underneath. 

21 
• As in Baltimore, most participants did not read footnotes when they encountered them. In at 

least three cases, participants did not understand that a footnote meant they should look 

below for more information. 

Annual Percentage Rates 

• Almost all participants understood that their “APR” related to how much interest they would 

be charged. However, very few were able to correctly describe the calculation that would be 

used to determine their interest charges. 

• Participants found it easier to identify the balance transfer and cash advance APRs when 

these percentages were provided on separate rows, rather than combined in a single “Other 

APRs” row. Creating a separate row for the default APR also made it more likely that 

participants would notice it when they initially reviewed the Schumer Box. 

• When the purchase APR was displayed in the same font size as other APRs, participants had 

more difficulty correctly identifying this rate. This was particularly true when balance 

transfer, cash advance, and default APRs were provided on different rows. 

Fixed and Variable Rates 

• Most participants said that since the zero percent introductory rate was labeled “fixed,” the 

bank could not change it during the introductory period. Three of the nine correctly indicated 

that this rate could increase if the cardholder went into default, while the other six said that it 

could not change under any circumstances. 

• While they understood that variable rates could change, most participants could not find 

information in the Schumer Boxes that indicated how or why these rates would change. This 

was true even for those who were shown a form that provided detailed variable rate 

information within the box (as is currently required by Regulation Z). 

• Of the three participants who did find information in the Schumer Box about the margins that 

were used to determine variable APRs, two incorrectly thought that the margins themselves 

were the interest rates. 

Understanding of Default Rates and Triggers 

• The term “default rate” was misunderstood by some participants. A few said that the word 

“default” implied that either the account was being closed due to delinquency, or that the 

cardholder was no longer able to make payments. Others indicated that the word “default” 

sounded like the “normal” rate, not something that would be applied when the cardholder did 

something wrong. 

• The Schumer Boxes that participants were shown in Kansas City all contained information 

about default triggers. Two contained this information in a separate section in the box 

labeled “How Your Actions May Affect Your Rates,” while two others provided the triggers 

underneath the box. Regardless of which form participants were shown, however, most were 

unable to find this information when asked. 

22 
Fees 

• When fees were listed within the Schumer Box (as opposed to underneath it) participants 

were more likely to notice fees when they initially reviewed the document, and were able to 

find them more quickly and easily when asked. 

• One of the Schumer Box models that was tested in Kansas City (SB-4) grouped account 

terms by transaction type, combining APRs and fees for a particular transaction in a single 

row. While a few participants seemed to prefer this format, more were confused by it 

because they assumed that all fees for the card would be listed together. 

• As in Baltimore, participants indicated that penalty fees and fees for balance transfers and 

cash advances were important to them when shopping for a card, but that fees on foreign 

transactions were not. 

Other Disclosure Notices 

• As in the Baltimore round, participants did not consider the method that a bank used to 

calculate their balance to be an important piece of information in credit card offers. This was 

in part because they did not understand the “average daily balance” method, and also because 

they considered this term less significant than others in the Schumer Box when shopping for 

a card. 

• Unlike in Baltimore, most participants in this round of testing were able to find a disclosure 

about the way in which their payments would be allocated to different balances—particularly 

when viewing models in which this disclosure was clearly labeled. However, the majority 

did not fully understand what this disclosure meant. For example, several indicated that their 

interest charges would not be affected by how their payment was allocated, and two did not 

realize that their balances for different transaction types were tracked separately. 

• Some of the Schumer Box models that were used in this round of testing displayed the 

minimum and maximum credit limits that would be offered to consumers initially. The 

impact of this row on participants’ understanding was minimal; most learned the maximum 

credit limit from the solicitation letter, and did not feel that the minimum credit limit was a 

factor they would consider when shopping for a card. 

• As in Baltimore, there were a few participants that incorrectly thought the term “grace 

period” referred to the period of time after the due date during which they would be allowed 

to pay without being charged a late fee. 

23 
Periodic Statements 

General Reading Patterns 

• After opening the statement, nearly all participants looked first at information in the Account 

Activity and Account Summary sections (i.e., payment due date, new balance, etc.), and then 

at the transaction list. Participants were less likely to look carefully at other portions of the 

statement, including the “Finance Charges” box that described how interest charges were 

calculated. Very few participants looked at the payment coupon portion of the statement. 

• Only one of the nine participants noticed the change-in-terms insert that was included with 

the statement. The other participants indicated that they would throw that insert away along 

with the marketing material in the envelope. 

Interest and Fees 

• Some of the statement forms that were tested used the phrase “finance charges,” while others 

referred to “interest” and “fees.” As in the Baltimore interviews, participants often 

misunderstood the term “finance charge” (which most participants in this round assumed 

would always be synonymous with “interest.”) 

• When asked to identify the “charges” shown on the statement, participants usually identified 

transactions and fees but not interest. This is an indication that while most consumers 

understand that they are charged interest, this cost is not “top-of-mind” when they are 

reviewing their statement. 

Annual and Periodic Interest Rates 

• Participants did not understand the term “% Periodic Rate,” which was used as a label for 

monthly interest rates in the Finance Charges section of one of the models. The term 

“Monthly Interest Rates” was clearer to most, although some participants still did not 

understand what this percentage represented. Most of the participants indicated that they 

would not find these rates valuable on their own statements. 

• As in Baltimore, participants were confused when they were shown a model that identified 

the interest rate as the “corresponding APR.” Most assumed that the interest rate would be 

labeled the “Annual Percentage Rate,” as it is on credit card offers. 

Effective APR 

• Two of the statements used in Kansas City included the effective APR. Only two 

participants who read these statements were able to explain that the effective APR included 

both interest and transaction fees; others noticed that it was higher than the annual interest 

rate but did not understand why. Both participants who understood that the effective APR 

included both interest and transaction fees and was higher than the annual interest rate as a 

result indicated that they would not find this term useful; both thought it should not be 

included on the form because it could be misleading to consumers. 

24 
• Several participants thought the effective APR represented the annual interest rate on the 

account, particularly those who were shown a model in which the effective APR was labeled 

“Annual Percentage Rate.” 

Transaction List 

• When looking at the transaction list, most participants were able to correctly identify the fees 

that were charged, the credit for payment, and the cash advances on the statement. However, 

those who were given a form in which the list was grouped by transaction type were able to 

find this information more quickly and easily. All participants who were shown both a list 

grouped by transaction type and a chronological list found the former easier to read; one 

participant, for example, said that it looked “bolder” and “better spaced.” 

Late Payment and Minimum Payment Disclosures 

• The models used in Kansas City included two notices on the front—one about the impact of 

making only the minimum payment on the amount of time it would take to pay off a balance, 

and one about the consequences of late payment. When prompted to read these disclosures, 

nearly all participants understood them clearly. However, most did not notice the disclosures 

when first reading the statement, regardless of whether they were located at the top of the 

form, on the payment coupon, or in a section labeled “Bank News.” 

Changes to Account Terms 

• All four statement models included a notice that account terms were changing in a section of 

the statement labeled “Bank News.” However, the majority of participants neither noticed 

this section nor read the contents. When asked, some indicated that they rarely read similar 

sections on their own statements because they contain primarily marketing content. 

Time Payment is Due 

• As in Baltimore, participants did not notice information about the time that a payment was 

due when it was located on the back of the statement. When shown models that included the 

“time due” immediately next to the due date, they did see this time and understood its 

significance. 

Change-in-Terms Notice 

• Two of the three change-in-terms notices that were tested in this round contained a summary 

of key account changes—one in the form of a bulleted list, and the other in a tabular format 

similar to that of the Schumer Box. Regardless of whether or not a summary was included, 

however, few participants understood the changes that were being made to their account. 

The primary reason seemed to be that the changes described in the models related to default 

triggers and default rates, two topics with which they had little familiarity. 

25 
Subsequent Design Decisions 

Solicitation Letter 

 Because participants were unlikely to notice the end date of the period for an introductory 

rate and the go-to rate when they were provided in the text of a solicitation letter or in a 

footnote, the letters that were used in subsequent rounds of testing included this information 

at the top immediately following the introductory rate that was being offered. 

Schumer Box 

General Design 

• Results from the Baltimore and Kansas City interviews showed that the Schumer Box is 

familiar to credit card consumers, and that many already see it as the most important piece of 

a credit card offer. As a result, subsequent forms that were tested retained the current 

structure of the table. For example, all Schumer Box models that were developed for later 

rounds used the same two-column format as current Boxes, in which headings are provided 

in the first column and account terms are listed in the second column. 

• Interviews in the Baltimore and Kansas City rounds showed that most participants did not 

read footnotes, and that in some cases the presence of footnotes had the effect of distracting 

readers away from important information. Most participants also did not read text below the 

Schumer Box, particularly when this text was in a smaller font. For these reasons, 

subsequent models were designed such that the terms and conditions considered by 

consumers to be most important were located within the Schumer Box itself, rather than in 

footnotes or below the box. 

Annual Percentage Rates 

 Based on the results of this round, all subsequent forms listed the default APR in its own row 

so that consumers would be more likely to notice it. 

 Findings from Kansas City showed that listing APRs for balance transfers and cash advances 

in separate rows helped participants distinguish between rates for different transactions. 

However, it was determined that this change should be tested further to ensure that increasing 

the number of rows containing APRs did not decrease the conspicuousness of the rate for 

purchases. 

Fixed and Variable Rates 

 Because variable rate margins were so frequently confused with interest rates, model forms 

were developed in which detailed information about how variable rates are calculated 

(including margins) was removed from the Schumer Box itself. Later rounds tested the 

effectiveness of providing this information as a footnote or as text underneath the box. 

26 
Default APR and Default Triggers 

 Model forms were developed using the alternative label “penalty APR” instead of “default 

APR” to see whether this term might be more intuitive and might facilitate consumer 

understanding. 

 Because participants in this round had difficulty finding information about default triggers, 

model forms were developed for the next round that displayed these triggers within the box 

in one of two ways—either in the same row as the default APR, or in a separate box clearly 

linked to the default APR. 

Fees 

 Because the inclusion of fees in the Schumer Box improved participants’ ability to quickly 

identify them, all subsequent models tested included fees within the box. Forms for the next 

round tested two different ways of presenting fees: a) providing all fees in their own, labeled 

section; and b) presenting transaction fees in the same row as their corresponding APRs. 

Other Disclosure Notices 

 Because many participants did not seem to understand how their issuers’ balance calculation 

method could affect the interest charges they might pay, some of the models for the next 

round provided more detail on this topic. 

 Models were developed for the next round of interviews that explained more clearly how 

payment allocation could impact cardholders’ interest charges, since participants in Kansas 

City did not fully understand the language used in this round. 

 Because participants did not have difficulty finding the credit limit being offered in the 

solicitation letter, and because all understood that if they were offered “up to” a certain 

amount they were not guaranteed to receive that amount, minimum and maximum credit 

limits were not included in the Schumer Box in subsequent rounds. 

 Because some participants in the Baltimore and Kansas City rounds did not understand the 

phrase “grace period,” models were developed for the next set of interviews that explained 

the term in greater detail. 

Periodic Statement 

Interest and Fees 

 Because interviews in Kansas City confirmed that consumers do not have a consistent 

understanding of the phrase “finance charge,” all subsequent models used the words 

“interest” and “fees” in place of “finance charge.” 

Annual and Periodic Interest Rates 

 Because participants clearly expected annual interest rates to be labeled “Annual Percentage 

Rates,” this term was used in all subsequent models. 

27 
 Because participants appeared to understand periodic rates better when the label used to 

describe them included the period to which they applied (e.g., “Monthly Interest Rates” or 

“Daily Interest Rates,” rather than “% Periodic Rate”), subsequent models used these labels. 

Effective APR 

 While labeling the rates that includes interest and transaction fees as the “effective APRs” 

did not improve consumer understanding of what that rate meant, it did decrease the number 

of participants that confused the effective APRs with the annual interest rates on the account. 

Therefore, models for the next two rounds used this label. 

Transaction List 

 Because interest charges did not appear to be “top-of-mind” to participants as they were 

reviewing their statements, models for the next round included interest charges in the 

transaction list to make them more conspicuous. 

Late Payment and Minimum Payment Disclosures 

 Participants did not notice disclosures about the consequences of late payments and of 

making only the minimum payment, regardless of where they were placed on the form. For 

this reason, subsequent models continued to test a variety of locations and formats for these 

notices to determine which made them most conspicuous. 

Changes to Account Terms 

 As with the late payment and minimum payment disclosures, participants did not notice text 

about changes to account terms that was located in “Bank News” section. Therefore, one of 

the goals of future rounds was to find a more conspicuous location for this disclosure on the 

statement. 

Time Payment is Due 

 As in the Baltimore round, in the absence of information to the contrary participants in the 

Kansas City rounds assumed that payment was due either at close of business or at midnight 

on the due date. For this reason, all subsequent models provided the time that payment was 

due in close proximity to every reference to the due date. 

Change-in-Terms Notice 

 Attempts to test whether summaries of account changes were effective were hindered by the 

fact that the changes impacted two account terms—default rates and default triggers—with 

which participants in this round were unfamiliar. Because participants had difficulty 

understanding default rates and triggers themselves, it was difficult to study whether they 

correctly interpreted changes in these terms. Therefore, the change-in-terms notices that 

were developed for the next round focused on terms that consumers were more likely to 

understand—annual fees and transaction fees. 

28 
INTERVIEWS IN DENVER, COLORADO (JANUARY 2007) 

Objectives and Methodology 

Following the Kansas City interviews, new disclosure models were developed that reflected the 

findings of that round. These models were then tested through 7 cognitive interviews in Denver 

on January 9 and 10, 2007. This round of testing focused on four types of forms: Schumer 

Boxes, summaries of key terms to be provided at account opening, periodic statements, and 

change-in-terms notices. Because findings related to the placement of information on the 

solicitation letter had been conclusive in Kansas City, this document was not a focus in this 

round and the same model was used with all participants. 

This was the only round that tested a summary page of key terms similar to the Schumer Box 

that would be provided at account opening. Although multiple versions of the form were used in 

testing, the goal was not to determine which would be most effective, but to study the extent to 

which consumers would find a summary page helpful. The focus group and Baltimore 

interviews had shown that consumers rarely read their cardholder agreements, and the hope was 

that a summary would make it easier for them to review their terms when they first receive their 

card. These summary pages were formatted exactly like the Schumer Boxes being tested, with 

the thought that these two documents should mirror each other (see “Guiding Principles for 

Disclosure Design”). 

The following model forms were shown to participants in this round and can be found in 

Appendix B: 

• Solicitation Letter: SL-4 

• Schumer Box: SB-5, SB-6, SB-7, SB-8 

• Account-Opening Summary Pages: AO-1, AO-2, AO-3, AO-4 

• Periodic Statement: PS-5, PS-6, PS-7, PS-8 

• Change-in-Terms Notice: CT-5, CT-6, CT-7 

Key Interview Findings 

Schumer Box 

Annual Percentage Rates 

• As in Kansas City, participants who were shown models that displayed cash advance and 

balance transfer APRs in separate rows were better able to find and identify these rates. 

• The models used in this round provided a range of possible APRs for purchases and indicated 

that the initial rate the applicant received would be selected from this range based on his or 

her creditworthiness. The placement of information about how the initial rate would be 

selected had a large impact on the conspicuousness of the disclosure; participants were much 

29 
more likely to notice it when it was provided in the APR for Purchases row, rather than in a 

footnote. Participants had no difficulty understanding the word “creditworthiness”; they 

associated it with the quality of their credit history or their credit score. 

• Participants were less likely to confuse rates for different transactions (e.g., assume that the 

APRs for purchases and balance transfers were the same) when the rate for purchases was 

printed in larger font than other text. 

Fixed and Variable Rates 

• When asked what it meant if a rate was labeled “fixed,” most participants responded that 

these rates would not change for any reason. 

• About half of participants understood that rates labeled as “variable” would change based on 

the Prime Rate; others assumed that these rates varied based on consumers’ creditworthiness, 

or on their credit card behavior. Although the forms directed readers to more information 

underneath the box about variable rates, few read the additional text. As in Kansas City, 

several of those participants who did notice the detailed information about variable rates 

initially confused the margins with actual APRs. 

Default APR and Default Triggers 

• As in previous rounds, several participants said that “default” sounded as if it would only 

apply when the account was closed due to delinquent payments. Most thought, incorrectly, 

that a “default APR” would not apply after a single late payment. Participants in this round 

were also shown two alternative labels for the default APR. The term “highest possible 

APR” was not effective; some participants misinterpreted it to mean the highest level to 

which variable rates could increase. The term “penalty APR,” however, was correctly 

understood by the majority of participants as applying to events such as paying late or 

exceeding a credit limit. 

• Participants were much more likely to notice and understand the significance of the default 

APR when this rate was provided in the same row as the default triggers. When the default 

APR and triggers were listed in separate sections of the Schumer Box, participants were 

more likely to overlook both of them. 

Fees 

• Participants were able to identify transaction fees more quickly and accurately if they were 

listed in a separate section, rather than integrated with APRs (as was done in one of the 

models for this round). Participants who were shown both formats indicated that they found 

more useful having all the fees listed together in a single section. 

• Because of concerns that consumers do not notice minimum transaction fees, two different 

wordings were tested for cash advance fees in these models: “3% of the amount of each cash 

advance, but not less than $5” versus “Either $5 or 3% of the amount of each cash advance, 

whichever is greater.” Participants who read the second version were significantly more 

likely to notice the $5 minimum fee. 

30 
Other Disclosure Notices 

• The models contained several different versions of a disclosure about how balances are 

calculated on the card, ranging from a very simple notice that simply named the method to a 

more detailed disclosure that explained that “two-cycle” billing might be more expensive 

than the “average daily balance” method under certain circumstances. Regardless of which 

wording they were shown, however, most participants did not understand how or why “twocycle” billing would impact interest charges, and nearly all indicated that they did not find 

this information important or useful. 

• The disclosure on payment allocation continued to be problematic for participants; when 

prompted, just under half were able to correctly identify the bank’s policy towards payment 

allocation. Less than half understood why interest charges would be higher if the issuer paid 

off balance transfers made on the card before purchases. 

• Within the disclosure about grace periods, some of the models used in this round noted that 

there is no grace period for cash advances or balance transfers. However, most participants 

did not notice this information and could not find it when asked. 

• Three participants were shown a notice that relabeled the grace period an “interest-free 

period”; they seemed to prefer the “interest-free” label by a small margin because they felt it 

was more descriptive. However, there was no evidence that this new label increased 

consumer comprehension. 

• As in Baltimore, there were a few participants that incorrectly indicated that they would have 

to pay the “minimum finance charge” every month. 

Account-Opening Disclosures 

• Participants in this round of testing were given an envelope containing a card carrier (with a 

mock credit card), a cardholder agreement, and a summary insert of terms and conditions that 

was nearly identical to the Schumer Box. While very few looked at the cardholder 

agreement, all noticed and read the summary insert. Several participants specifically noted 

that they found this summary useful, and said that in its absence they would probably have 

activated the card without reviewing the terms. 

Periodic Statement 

Interest and Fees 

• When asked how much interest they were charged, participants first looked to the 

transactions list. If their model did not provide information about interest in the transaction 

list, most then looked in the Account Summary box. 

• When asked to identify the total amount of fees that they had been charged, nearly all 

participants calculated the total by adding up the fees in the transaction list—even when a 

figure for total fees was included in the Account Summary box on the statement. 

31 
Annual and Periodic Interest Rates 

• Most participants were able to find the annual interest rates they were being charged on 

purchases and cash advances on the statement. Most participants also understood what the 

“Monthly Interest Rate” shown on the statement signified. However, most also indicated that 

this periodic rate would not be important to them. 

Effective APR 

• After reading the description provided on the statement, less than half of participants could 

explain why the effective APR for balance transfers was higher than the annual interest rate 

(i.e., because it included transaction fees). Of those that understood that the effective APR 

included transaction fees, only one indicated that he would find this information useful. 

• As in Kansas City, some participants confused the effective APR with the annual interest 

rate. However, this seemed to be less of a problem when the effective APR was provided in 

its own separate table, rather than as a column in the table related to interest calculation. 

Transaction List 

• When shown two statements and asked whether they found it more useful to have the 

transactions listed chronologically or grouped by transaction, just over half indicated that 

they preferred the grouped list. 

Late Payment and Minimum Payment Disclosures 

• Just over half of participants noticed the disclosures about the impact of paying just the 

minimum payment and the consequences of late payment. The different forms for this round 

provided these disclosures in a variety of locations and in a variety of formats (e.g., with or 

without a surrounding box). However, there did not appear to be any patterns as to which 

locations or formats were most effective. 

• Most participants indicated that the minimum payment warning was important information to 

have on the disclosure, and that including this statement on the form would increase the 

percentage of consumers that pay more than the minimum amount. However, they felt that 

the warning would be more effective if it listed information about the cardholder’s own 

account, rather than a hypothetical example. 

Changes to Account Terms 

• None of the participants noticed the change-in-terms notice that was included with the 

periodic statement; all immediately set this notice aside along with promotional inserts. This 

behavior was consistent with findings from previous rounds of interviews. 

• Most participants noticed the change-in-terms summary on the statement, although only one 

saw it in his first reading of the statement. Participants were significantly more likely to find 

the notice when it was printed on the first page, rather than the second page. 

32 
Change-in-Terms Notice 

• Of those participants who were shown a change-in-terms notice that contained a summary of 

key changes, all but one noticed the summary and read it carefully. The tabular format of the 

summary appeared to make it more conspicuous, since the rest of the notice consisted 

primarily of dense text. 

• Participants who were given notices with summaries were more likely to correctly identify 

the changes being made to their account. When no summary was given participants 

attempted to scan the notices to determine which changes in terms were most important to 

them, but had great difficulty doing so. 

• There was no clear evidence that providing the summary on a separate page was more 

effective than displaying it on the first page of the notice itself. 

Subsequent Design Decisions 

Schumer Box 

Annual Percentage Rates 

• Based on findings from the Kansas City and Denver interviews, models tested in future 

rounds provided APRs for different types of transactions in different rows. 

• Because participants were much less likely to notice the disclosure of how initial APRs were 

selected if it was in a footnote, all subsequent models provided this information in the “APR 

for Purchases” row immediately following the range itself. 

• Because findings from Kansas City and Denver showed that consumers were less likely to 

confuse the APR for purchases with rates for other transactions when it was displayed in a 

larger font size, all subsequent models disclosed the purchase APR in larger font type than 

the rest of the information in the Schumer Box. 

Fixed and Variable Rates 

• Because findings from the first three rounds of interviews showed that participants frequently 

assume that a rate that is labeled “fixed” cannot be changed for any reason, this label was 

removed from models in later rounds. 

• Like those in earlier rounds, participants in Denver confused variable rate margins with 

APRs. Participants also indicated that detailed information about how variable rates are 

calculated is not important to them. For these reasons, all subsequent models of the Schumer 

Box did not include variable rate margins. 

33 
• To improve consumer awareness of how variable rates change over time, models tested in the 

next round replaced the term “variable rate” in the APR rows with the phrase “This rate will 

vary with the market based on the Prime Rate.” 

Default APR and Default Triggers 

• Since most participants were more likely to read information about penalty fees than 

information about the default APR, for the next round references were added next to each 

penalty fee informing the reader that the default APR might also apply. 

• Results from this round led to the use of the phrase “penalty APR” rather than “default APR” 

in later models, because the label appeared to be clearer and more descriptive to participants 

as applying to events such as paying late or exceeding a credit limit. The remainder of the 

report reflects this change, and refers to the “penalty APR” and “penalty triggers.” 

• Participants were most likely to find and understand both the penalty APR and the actions 

that triggered this rate when they were located in the same row. Therefore, all subsequent 

models displayed both pieces of information in a row labeled “Penalty APR and When It 

Applies.” 

Fees 

• Because participants were able to identify fees much more easily when they were located in a 

separate labeled section, rather than integrated into the APR rows, all subsequent models 

included a separate section labeled “Fees.” 

• Because participants generally were better able to find the APRs for balance transfers and 

cash advances than the fees for these transactions, models for the next round included a 

reference to transaction fees in the transaction APR rows (e.g., “Balance transfer fees will 

apply.”). The goal of these references was to increase consumers’ awareness of the existence 

of these fees by directing their attention to this section of the Schumer Box. 

• Because participants were more likely to notice a minimum fee if it were listed first, all 

subsequent models did so (e.g., the cash advance fee is “Either $5 or 3% of the amount of 

each cash advance, whichever is greater.”) 

Other Disclosure Notices 

• When detailed information was provided in the Schumer Box about the potential impact of 

the balance calculation method on interest charges, most participants neither understood 

these disclosures nor indicated that they would use the information when deciding whether or 

not to apply for the card. As a result, information on balance calculation was moved from 

inside the Schumer Box to directly below the box. 

• Some participants continued to be confused by the concept of payment allocation, in part 

because they didn’t understand that balances for different transactions are calculated 

separately. Therefore, the models for the next round re-worded this disclosure to explain 

payment allocation more clearly. The disclosure was also moved into the APR for Balance 

34 
Transfers row to improve its conspicuousness, since one of the contexts in which payment 

allocation is most important is how it relates to low introductory rate balance transfers. 

• Including text in the grace period disclosure that no grace period exists for balance transfers 

or cash advances did not appear to improve consumer understanding, primarily because few 

participants noticed this information. Therefore, this text was removed for the next round. 

• Because some consumers in Baltimore and Denver incorrectly indicated that they would have 

to pay the “minimum finance charge” every month (when in fact it would only apply in 

months where they would otherwise incur a finance charge that was less than the minimum 

charge), explanatory text was added to this row of the Schumer Box in models for the next 

round. 

Account-Opening Disclosures 

• Participants in the focus groups and Baltimore interviews indicated that they would be 

unlikely to read their cardholder agreements. However, participants in this round who 

received a summary insert in addition to their agreement did look at it and review the terms 

of their card. These findings support the idea that the inclusion of a summary table along 

with other account-opening disclosures would make it easier for consumers to understand the 

terms of their new card. 

• Based on this round of interviews, the Schumer Box format appears to be appropriate for an 

account-opening summary as well, particularly since consumers are already familiar with this 

format. 

Periodic Statement 

Transaction List 

• When asked about interest charges, the tendency of most participants was to look for these 

charges in the transaction list. As a result, those who were given models that included these 

charges in the list found it easier to find them when asked. Therefore, all subsequent models 

included interest charges in the transaction list. 

• Although most participants in this round were able to identify the total amount they were 

charged in fees by adding up the individual charges in the transaction list, there was a 

concern that this would be difficult for consumers who were charged a larger number of fees. 

In order to test whether this was true, model forms were developed for the next round that 

included a larger number of fees. Some of these models also included a total of fees in the 

transaction list. 

Effective APR 

• Because the separation of the effective APR into its own table decreased the likelihood that 

participants would confuse it with other rates (such as the annual interest rates on the 

account), all models for later rounds used this format. 

35 
• The description of the effective APR used in this round of testing was not effective in 

communicating to participants that the effective APR included both interest and transaction 

fees. In addition, those that did understand the term indicated that they did not find it useful. 

Subsequent rounds of interviews continued to test whether alternative descriptions of the 

term might make it more understandable to consumers. 

Changes to Account Terms 

• Because participants in this round were more likely to notice a disclosure of changes to 

account terms if it was on the first page of the statement, all subsequent forms located this 

information on the first page. 

Change-in-Terms Notice 

• Based on findings from the focus groups and the first three rounds of interviews, all 

subsequent change-in-terms notices that were tested included a tabular summary of changes 

to key terms. Key terms were defined as any that were required in the account-opening table. 

36 
INTERVIEWS IN BOSTON, MASSACHUSETTS (FEBRUARY 2007) 

Objectives and Methodology 

In early rounds of testing a wider range of possible formats for disclosures was considered. As a 

result, in most cases three or four models of each type were developed for each round, and these 

models differed substantially. As the project progressed, however, it became clearer what 

formats and language were clearest to consumers. The objectives of later rounds, therefore, were 

to a) gather data on a limited number of specific design questions that remained, and b) confirm 

the effectiveness of changes that had been made based on findings from earlier rounds. 

As a result, fewer model variations were needed for testing in Boston, where Macro conducted 8 

interviews on February 7 and 8, 2007. For example, the two basic versions of the Schumer Box 

that were used in this round (SB-10P and SB-10SP) differed only in content, not format. Model 

SB-10SP included set-up and maintenance fees that are often charged to subprime cardholders, 

as well as a notice that these fees might impact the amount of available credit at account opening. 

Model SB-10P, on the other hand, included a charge for a “Required Payment Suspension Plan” 

in the Fees section, which was intended to refer to a plan that would suspend the requirement for 

minimum payments in certain situations. Other than this one difference, these two models were 

identical. 

All previous periodic statement models used up to this point had included an Account Activity 

section in the top-left corner of the first page that provided the previous month’s and new 

balances, payments received, and periodic totals for purchases, balance transfers, cash advances, 

fees, and interest. Although the Board does not require that banks provide a separate section like 

this on their statements, most issuers currently do. In the models used for this round, the 

Account Activity section was moved from the top of the first page to the bottom of the second 

page. This was not done because it was considered an improvement in formatting. The change 

was made because this section was referred to most often by participants when they were asked 

by the interviewer to find information on the form. By making this section more difficult to find 

(and recognizing that some issuers do provide the account summary in this location), the 

researchers were able to test the effectiveness of other pieces of the statement (e.g., the inclusion 

of fee totals within the transaction list). 

In addition to the typical procedure in which participants were handed an envelope and asked to 

read it just as they would if they received it in the mail, this round also included some direct 

comparisons between forms. In this portion of the interview, participants were handed a pair of 

Schumer Boxes, both of which were in the same format but reflected different terms.4 

4 Within each pair there were small variations in the formatting of the Schumer Boxes; for example, they were 

printed in different fonts, and column widths in the table were varied. Since Regulation Z does not require that all 

Schumer Boxes be identical, this was done to simulate variation between disclosures from different issuers.

Participants were asked to review the documents and identify what they considered the most 

important differences. Finally, they were asked to decide which of the two sets of terms they 

37 
would prefer if they were applying for a card. Five different pairs of Schumer Boxes were used 

in this segment of the interview. The goal was to determine how easy it was for potential 

cardholders to quickly and accurately compare cards using the revised Schumer Boxes, since one 

of the primary purposes of this disclosure is to allow consumers to shop for cards more 

efficiently and knowledgeably. The primary difference within each pair was as follows: 

• Pair A: Model A1 offered a Purchase APR of 8.99% to 19.99%, based on 

creditworthiness, and indicated that the rate would “vary with the market.” Model A2 

offered a flat purchase APR of 14.99% and did not indicate that this rate would vary. 

• Pair B: Model B1 had a substantially lower penalty APR than Model B2. 

• Pair C: Model C2 included a number of set-up and maintenance fees that did not appear 

on Model C1. 

• Pair D: The two forms differed in the actions that would trigger the penalty APR. Model 

D1 indicated that actions would trigger the penalty APR if they occurred “two times in 

six months,” while in Model D2 a single action could trigger the penalty rate. Model D1 

also did not include exceeding the credit line as a trigger, while Model D2 did. 

This round of interviews was also the first round that addressed convenience checks. Two 

versions of the checks were used in the testing; the primary difference between the two was that 

one disclosed key terms such as APR and fees on the front, while the other displayed this 

information on the back. 

The following model forms were shown to participants in this round and can be found in 

Appendix B: 

• Solicitation Letter: SL-5 

• Schumer Box: SB-10, SB-10SP, SB-10A (pair), SB-10B (pair), SB-10C (pair), SB-10D 

(pair) 

• Periodic Statement: PS-9, PS-105 

5

 Several different versions of both PS-9 and PS-10 were used for testing in Boston. However, the only difference 

between these versions was a reversal of the placement of the minimum payment and late payment disclosures.

• Convenience Checks: CC-1, CC-2 

Key Interview Findings 

Schumer Box 

Annual Percentage Rates 

• Most participants noticed the information in the “APR for Purchases” row that indicated that 

their initial rate would be selected based on their creditworthiness, and understood what it 

meant. 

38 
• In the models for this round, the Annual Percentage Rates section was re-formatted so that in 

each row the APR or fee was bolded and appeared first. The intent was that this would make 

it easier for readers to identify these rates quickly and accurately. This change appeared to 

be effective; participants in this round tended to identify APRs more easily than in previous 

rounds. 

• When asked to compare different credit card offers, participants were easily able to 

distinguish differences in APRs for different types of transactions. 

Fixed and Variable Rates 

• The more explicit explanation of variable APRs that was used this round (i.e., “This rate will 

vary with the market based on the Prime Rate”) was more effective in communicating that 

the rate moved with an index than simply indicating that a rate was “variable” and requiring 

that readers go elsewhere for more information. In the “APR for Purchases” row, however, 

some participants had difficulty distinguishing between how the initial rate would be 

determined (i.e., based on creditworthiness) and how it would subsequently vary (i.e., based 

on the market). 

Penalty APR and Penalty Triggers 

• Unlike in previous rounds, most participants noticed that their interest rates would be 

increased for paying late of going over the credit limit. Half were able to identify the highest 

rate to which their APRs would increase, in some cases because they followed the references 

to the penalty APR in the penalty fees section. 

• Among participants that were able to identify the penalty APR, some expressed 

misconceptions about how this rate would be applied. Some thought that the penalty rate 

would only be charged on the amount by which they went over their credit limit, rather than 

on their whole balance. Others thought that this rate would only apply during the month of 

their transgression, and would immediately thereafter return to normal. 

• When comparing credit card offers, participants easily identified differences in the penalty 

APR. However, they did not notice differences in the penalty triggers—primarily because 

this required a careful reading of text, rather than a simple numerical comparison. 

Fees 

• Most participants were able to correctly identify transaction fees for balance transfers and 

cash advances. In several cases participants noticed the references to transaction fees that 

had been added to the APR rows. 

• When asked to compare two credit card offers, participants did not have any difficulty 

identifying differences between the two cards in amounts or types of fees. 

Other Disclosure Notices 

• In the models for this round, information about the balance calculation method was moved 

below the box. Most participants were able to find this information without a problem, but 

39 
none knew what a “two-cycle average daily balance method” was. However, only one 

person indicated that this information would be important to them when shopping for a card. 

• More participants in this round noticed the disclosure about payment allocation method, 

primarily because it had been moved to the APR for Balance Transfers row. As in previous 

rounds, however, about half of the participants had difficulty understanding what the notice 

was saying; some continued to believe that payment allocation would not have an impact on 

their interest charges. 

• While almost all participants understood the grace period disclosure used in this round, some 

were confused by text that warned the grace period would be lost if the cardholder did not 

pay the balance in full in each. Several participants incorrectly stated that this meant they 

would lose their introductory APR if they did not make payments on time. 

• Some participants were shown a Schumer Box model that used the phrase “Interest-Free 

Period” instead of “Grace Period.” As in the previous round, this difference did not have a 

significant difference on consumer understanding or on the usability of the disclosure. 

• One of the models included a “Required Payment Suspension Plan” in the fees section. This 

label was intended to refer to a plan that would suspend the requirement for minimum 

payments if one of several qualifying events occurred (e.g., the cardholder lost his or her 

job). However, none of the participants interpreted the label in this way. For example, one 

thought that the plan would allow you to return things that you purchased, while another 

thought you would be charged this amount if the bank closed your account. 

• One of the models included a notice that because of fees that would be charged, the amount 

of available credit at account opening would be lower than the actual credit limit. Most 

participants noticed this text in their initial reading of the Schumer Box, and all who read it 

understood it and found it useful. 

Periodic Statement 

Interest and Fees 

• The models used in this round included “year-to-date” interest and fee totals. Participants 

reacted positively towards the inclusion of these totals, and indicated that they would be 

helpful to have on their statements. However, there were some cases in which participants 

confused the year-to-date totals with the monthly totals. 

Annual and Periodic Interest Rates 

• Most participants who were given models that included a “Daily Periodic Rate” indicated 

that they would not find this information valuable. None indicated that they would use this 

rate for checking interest calculations. 

40 
Transaction List 

• Participants who were shown statements with transaction lists that were grouped by 

transaction type found it easier to identify the number of fees that were charged, as well as 

the total amount. Those who were given “ungrouped” transaction lists had much more 

difficulty with these tasks. Participants who were shown both types of lists expressed a 

strong preference for the “grouped” lists. 

Effective APR 

• Information about the effective APR was formatted differently in this round, and new text 

was added that highlighted the difference between the APR and effective APR. However, as 

in previous rounds of testing a large majority of participants (in this case, all but one) were 

unable to effectively explain that the effective APR was higher than the annual interest rate 

because the effective APR included interest and transaction fees. 

Late Payment and Minimum Payment Warnings 

• In the models for this round the notice about the consequences of paying only the minimum 

payment was located near the top of the statement, under the Account Summary section. 

Most participants noticed this text while reviewing the statement. 

• A warning about the consequences of paying late was included on the payment coupon. Less 

than half of participants noticed this warning, primarily because people did not tend to look 

at the payment coupon. 

Changes to Account Terms 

• Half of participants were shown a statement that had a notice on the first page indicating that 

the terms of their account were being changed. Two different versions of this notice were 

tested—one that included a table that summarized key account changes, and one that simply 

stated that changes would be made and referred cardholders to an insert for more details. 

Participants that were given the version that included the table were better able to understand 

the changes that were being made to their account. 

Convenience Check 

• Most participants reported having received checks from their bank similar to the ones shown 

in the testing, but only one said that he had ever used these checks. 

• While almost all participants were able to identify the introductory APR that would be 

applied, less than half were able to describe what would happen to the rate when the 

introductory period ended (the “go-to” rate). The primary reason was that when answering 

this question, participants scanned the text for a numeric percentage figure, but there was 

none—the disclosures simply indicated that the go-to rate would be equal to “the APR on 

cash advances.” Whether this disclosure was on the front or back of the document that 

contained the checks did not seem to impact participants’ ability to locate this information. 

41 
• About half of the participants were able to correctly indicate that there was no way to avoid 

paying interest on payments they made with convenience checks (i.e., that there was no grace 

period). Again, whether this disclosure was on the front or back of the document that 

contained the checks did not seem to impact participants’ ability to locate this information. 

• Information that was provided on payment allocation was not useful to participants; most 

were unable to find this information, and some of those that found it did not understand what 

this disclosure was saying. Whether this disclosure was on the front or back of the document 

that contained the checks did not seem to impact participants’ ability to locate this 

information. 

Subsequent Design Decisions 

Schumer Box 

Annual Percentage Rates 

• The disclosure that applicants’ initial rates would be based on their creditworthiness was 

much more conspicuous in the APR for Purchases row than it had been in a footnote in 

earlier models. Because some participants had difficulty distinguishing how their initial rate 

was selected from how it would vary thereafter, the wording of this disclosure was revised 

slightly for the next round of testing. 

• Because the format of the models for this round appeared to increase participants’ ability to 

quickly identify interest rates for different transactions, all subsequent models tested included 

the rates and fees in bold type and generally listed them first in their respective rows. 

Fixed and Variable Rates 

• The more explicit explanation of variable rates that was used in this round did improve 

participants’ understanding of why these rates would change. Therefore, this wording was 

used in subsequent models. 

Penalty APR and Penalty Triggers 

• The addition of a reference to the penalty APR in the penalty fees section improved 

participants’ understanding that their rates might increase. Because some had difficulty 

finding the penalty APR in the Schumer Box, the wording “see above” was added to this 

reference. 

• Because some participants expressed misconceptions about how the penalty APR would be 

applied, following this round, the wording of the Penalty APR row was revised to make it 

clearer that this rate would be applied to the entire balance on the account, rather than just the 

amount of any transgression. In addition, an explanation was added describing how long the 

penalty APR would apply. 

42 
Fees 

• Because references to transaction fees in the APR rows (e.g., “Balance transfer fees will also 

apply”) improved participants’ awareness of these fees, this reference was retained in future 

models. In subsequent models that were developed, the words “(see below)” were added to 

the reference to make it easier for consumers to find the applicable fees in the Schumer Box. 

• The phrase “Required Payment Suspension Plan” was not meaningful to participants, and 

there was no alternative label that seemed to effectively describe this type of account 

protection plans. Therefore, subsequent models used the names of specific plans in the 

Schumer Box. 

• Because participants consistently indicated through multiple rounds of interviews that they 

did not consider foreign transaction fees to be an important factor when shopping for a card, 

these fees were removed from all subsequent models. 

Other Disclosure Notices 

• The notice about payment allocation was retained in the APR for Balance Transfers row, 

because it was much more noticeable in that location than it had been at the bottom of the 

Schumer Box. The wording was revised slightly for the next round to emphasize the fact that 

the introductory APR applied only to balance transfers—a fact that several participants in 

this round did not understand. 

• The wording of the grace period disclosure that was used in this round tended to confuse 

participants. Therefore, a simpler version of this disclosure was used in the next round. 

Since the term “interest-free period” did not seem to be any more effective than “grace 

period,” all future models retained the original term because of its familiarity to some 

consumers. 

• Because testing in Boston showed that participants tended to notice and understand the notice 

about the impact of fees on available credit, the notice was retained in future models. 

• The explanatory text that was added to the “minimum interest charge” row was effective; all 

participants in this round correctly understood the circumstances under which they would be 

charged this amount. Therefore, this text was included in all subsequent models. 

Periodic Statement 

Interest and Fees 

• Participants reacted positively towards the year-to-date totals of interest and fees that were 

included on models for this round, so these totals were retained in the final round. Because 

some confused the year-to-date totals with monthly totals, the format for this information was 

revised in future models. 

43 
Transaction Lists 

• Interviews in Denver and Boston showed that participants who were given transaction lists 

that were broken down by transaction type were able to identify information more quickly 

and accurately. For this reason, transaction lists in all subsequent models were broken down 

in this way. 

Effective APR 

• As in previous rounds, the text used to describe the effective APR was not effective at 

communicating to participants that the effective APR includes both interest and transaction 

fees. Again, some believed that the effective APR was the annual interest rate. The effective 

APR was included on models for the final round to see whether any final revisions could 

make it clearer and more understandable. 

Late Payment and Minimum Payment Disclosures 

• Results from the Boston interviews showed that disclosures that are located near the top of 

the statement are much more likely to be noticed than those on the payment coupon. 

Therefore, for the final round warnings relating to late payment and minimum payment were 

placed at the top of the first page, just under the information about payments. 

Charges to Account Terms 

• Because participants that were shown change-in-terms notices without a summary table were 

less likely to understand what was changing about their account, all subsequent models 

included a summary table describing changes to key terms on the front page of the periodic 

statement. 

Convenience Checks 

• This round of testing confirmed that information about how payments will be allocated is 

very difficult for consumers to understand in the context of convenience checks—just as it is 

in the context of the Schumer Box. Therefore, the next round of testing did not address 

disclosures for payment allocation and focused instead on fees, APRs, and grace period. 

Because some participants were unable to find these disclosures in this round, the models 

used in the next round provided them in different formats—one used a clearly labeled 

bulleted list, while the other used a tabular format similar to the Schumer Box. 

44 
INTERVIEWS IN DALLAS, TEXAS (MARCH 2007) 

Objectives and Methodology 

The last round of nine interviews was conducted in Dallas on March 12 and 13, 2007. Variation 

between models in this round was fairly minimal; for example, the two periodic statement forms 

that were used in the testing only differed in the wording of several notices and the placement of 

year-to-date totals of interest and fees. 

As in Boston, participants in Dallas were asked to compare two Schumer Boxes, identify the 

most important differences in terms, and choose which card they would prefer. Again, the goal 

of this portion of the interview was to study how easily the revised format allowed consumers to 

compare and shop for credit cards. Two pairs of models were used: 

• Pair F: Model F1 noted that the purchase APR of 14.99% would “vary with the market 

based on the Prime Rate.” Model F2 offered the same APR, but did not indicate that this 

rate would vary. 

• Pair G: Model G1 displayed a larger number of penalty triggers than model G2. In 

addition, model G2 stated that if rates were increased to the penalty APR, the issuer 

reserved the right to keep them at that level “indefinitely.” Model G1, on the other hand, 

indicated that if the cardholder made six minimum payments when due and did not 

exceed his or her credit limit for six consecutive months, the rates would return to 

normal. 

Two different Schumer Box models were used in Dallas. SB-11 reflected all revisions that had 

been made over the course of the testing. SB-12, on the other hand, was designed to simulate 

current Schumer Box disclosures. Each participant was shown a version of both of these models 

so that the researchers could gather information on which format—current or revised—they 

found easier to understand. Just as in Boston, two different versions of both SB-11 and SB-12 

were created—one that included set-up and maintenance fees (SB-11SP/SB-12SP) and one that 

listed a “required account protector plan” in the fees section (SB-11P/SB-12P). 

The most noticeable difference between the Schumer Box and periodic statement models used in 

Dallas and those used in previous rounds was their general appearance. Up to this point, the 

layout of forms had been kept very generic, with minimal use of graphic elements like 

highlighting and shading. The reason for this was that these types of graphic features are largely 

not regulated by the Board, so by keeping the models generic the researchers were able to focus 

more specifically on aspects of the forms that are covered in Regulation Z (such as the tabular 

format of the Schumer Box). 

However, since these documents were going to be released as model forms there was a desire to 

have them reflect best design practices, which the generic versions used in prior testing did not. 

Therefore, before the Dallas tests Macro’s design team revised the forms from a graphic 

45 
perspective and added features such as shaded bars and the use of reverse (i.e., white-on-black) 

text in the headings of disclosures. These “best practice” forms were used in the Dallas testing to 

determine if these graphic elements negatively impacted the usability of the forms. 

The following model forms were shown to participants in this round and can be found in 

Appendix B: 

• Solicitation Letter6

6

 Participants were shown either SL-6 or SL-7 based on whether they were given SB-11 or SB-12, so that the terms 

matched between the solicitation letter and the Schumer Box.

: SL-6, SL-7 

• Schumer Box: SB-11P, SB-11SP, SB-12P, SB-12SP, SB-10F (pair), SB-10G (pair) 

• Periodic Statement: PS-11, PS-12 

• Convenience Checks: CC-3, CC-4, CC-5 

Key Interview Findings 

Schumer Box 

General Comments 

• Several participants commented that the revised Schumer Box was “clearer,” “easier to 

understand,” or “more spaced out” than the current version. 

Annual Percentage Rates 

• Participants were more likely to be able to identify the APRs they would be charged on 

balance transfers and cash advances when looking at revised Schumer Box models, 

compared to current models. They also found it easier to identify the fees that they would be 

charged for these transactions. 

• Participants were more likely to be able to identify the interest rate on purchases on a 

Schumer Box using the revised format, compared to the current format. They were also 

more likely to understand how the initial rate was determined, as well as how it would then 

vary. 

Penalty APR and Penalty Triggers 

• While looking at a current Schumer Box model, none of the participants could find any 

indication that their APRs could increase to the penalty APR. When looking at the revised 

model, however, all found and understood this information. 

• When asked to compare two Schumer Boxes representing different offers that differed in 

penalty triggers and how long the penalty APR would apply, participants did not notice these 

differences. After being prompted to re-read that section of the Schumer Box, most did see 

the difference in how long the rate would apply—but still very few noticed the difference in 

triggers. 

46 
Fees 

• Participants were able to identify the fee that they would be charged if they went over their 

credit limit when looking at either model. However, they were able to find this fee more 

quickly when using the revised model. 

Other Disclosure Notices 

• Participants were significantly more likely to be able to find information about payment 

allocation when looking at a revised model. However, about half had difficulty 

understanding what this disclosure was saying, as well as why payment allocation would 

impact their interest charges. 

• Almost all participants noticed the reference on the revised Schumer Box about a website to 

go to “for additional information.” However, several misunderstood the type of information 

that they would find there—they indicated that the website would likely provide a 

comparison of terms for specific cards. A few also assumed that the website would be run by 

the credit card issuer itself, and that therefore the information it contained would not be 

neutral. Participants were divided on whether they would be likely to use this website; about 

two thirds said that they might, while the remainder said that they would not. 

Periodic Statement 

Interest and Fees 

• When asked whether the interest rates on their account were shown on the statement, all but 

one were able to find them in the Interest Charge Calculation section. 

• All but one of the participants were able to locate year-to-date totals of interest and fees 

charged. Whether these totals were displayed at the end of the transaction list or in the 

Summary of Account Activity box did not seem to impact the ease with which participants 

found this information. Most indicated that this information would be useful to them, and 

that they would like to have it on their statement. 

Annual and Periodic Interest Rates 

• While nearly all participants understood what the Daily Periodic Rates that were displayed 

represented, a majority indicated that they would not find these rates valuable. 

Effective APR 

• In the models for this round the effective APRs were renamed the “Fee-Inclusive APRs,” to 

see whether this label might be more descriptive to consumers. There was some evidence 

that this label might be more effective—after reading the statement about half of the 

participants understood that the effective APR included both interest and fees. Half of those 

who understood this term (or about a quarter of all participants) thought that this was 

important information that should be included on periodic statements. 

• As in previous rounds, there were a few participants that misidentified the effective APR as 

the annual interest rate on their account. 

47 
Late Payment and Minimum Payment Disclosures 

• Nearly all of the participants were able to find information on the statement about what 

would happen if they paid late on the statement, and most noticed the late payment warning 

before being prompted. 

• All but one of the participants were able to identify information on the statement about the 

potential consequences of paying only the minimum amount each month. About half noticed 

this warning on their first reading of the statement—significantly more than in previous 

rounds. 

Changes to Account Terms 

• Participants had no difficulty finding information on the statement about changes to their 

account terms, and all understood these changes after reading the text provided. 

• Models for this round included additional text in the change-in-terms notices indicating that 

if consumers were already being charged the penalty APR, the changes to their transaction 

APRs would not immediately impact their account. When asked to read this text, 

participants understood it. 

Convenience Checks 

• All of the participants indicated that they had received convenience checks previously from 

their credit card issuer, but only a third said that they had used them. 

• Regardless of which model they were shown, all participants were able to identify the fee 

that they would be charged for using the checks. However, those who were given models 

with this disclosure on the back only saw the fee after being prompted to look for it, while 

about half whose form had it on the front noticed it during their initial reading. 

• Two models used for this round had a disclosure on the front indicating that there was no 

grace period for purchases made with convenience checks; the third model had this 

information on the back. Participants who were shown models with the disclosure on the 

front were more likely to understand that there was no grace period; in fact, no one noticed 

this information when it was on the back. 

• Only a third of participants were able to find the disclosure text that indicated that after the 

introductory rate expired they would be charged the APR on cash advances. No one was 

able to find this information when it was provided on the back of the form. As in Boston, the 

primary reason was that participants were looking for a numeric percentage for the go-to rate, 

when in fact this rate was only stated in the form of text (i.e., “your regular APR for cash 

advances.”) 

• There was no evidence in these tests that the specific format of the disclosures (i.e., text vs. 

tabular) had an impact on participants’ ability to locate the information. 

48 
Subsequent Design Decisions 

Schumer Box 

Annual Percentage Rates 

• The text used in this round for the “APR for Purchases” row was more succinct and seemed 

to be clearer regarding how an initial rate would be determined and how it would then vary. 

As a result, this wording was retained in the proposed model form. 

• In order to help consumers distinguish between transaction fees and APRs, references were 

added in this round in the transaction fees section that directed readers’ attention back up to 

the APRs. However, there was no evidence that this reference improved consumer 

understanding, so these references were not included in the proposed form. 

Penalty APR and Penalty Triggers 

• This set of models included a reference in the “Penalty APR” row telling consumers that they 

might also be charged a fee, and directing their attention to the penalty fees section. 

However, this reference did not seem to impact consumer understanding—most participants 

already understood that penalty fees could be charged. In addition, the reference distracted 

them away from the penalty APR row, which was less familiar to them. Therefore, this text 

was removed from the proposed form. 

• Because several participants did not initially notice information in the penalty APR row 

indicating how long the rate would apply, the proposed form was revised to include the 

heading, “How Long Will the Penalty APR Apply?” 

Other Disclosure Notices 

• In order to make it more noticeable to consumers, in the proposed form the heading for the 

payment allocation disclosure was put in bold text and changed from “NOTICE” to “Notice 

Regarding Interest Charges.” 

• Because some participants misunderstood the type of information that would be found at the 

website referenced in the Schumer Box, the wording for this disclosure was revised. The text 

used in the proposed form also explicitly notes that this website is run by the Federal Reserve 

Board, to reassure readers that the information they find will be unbiased. 

Periodic Statement 

General Formatting 

• The new appearance of the periodic statements used in this round (i.e., black bars with white 

text identifying each section; increased use of shading, etc.) seemed to make the statement 

clearer and more navigable to participants. 

49 
Interest and Fees 

• Providing the year-to-date totals of interest and fees at the end of the transaction list proved 

effective, since this list is one of the few pieces of the statement that participants consistently 

read carefully. Therefore, the proposed periodic statement model provides year-to-date totals 

in that location. 

Annual and Periodic Interest Rates 

• Because participants in Dallas and in previous rounds consistently indicated that they do not 

find the periodic rate that is provided on statements to be useful, and because displaying 

fewer percentages would likely make it easier for consumers to identify the interest rates on 

their account, the proposed statement model does not include periodic rates. 

Effective APR 

• There was some indication in this round that re-labeling the effective APR as the “FeeInclusive APR” increased consumer comprehension of this term. However, previous rounds 

had provided a great deal of evidence that this rate is not useful to consumers and might even 

be counter-productive to include, given their potential confusion between the effective APR 

and annual interest rates. Further testing may be needed to determine whether this change in 

terminology has in fact made this term understandable and useful. 

Late Payment and Minimum Payment Disclosures 

• The models for this round included the notices about late payment and minimum payment 

immediately following information about payment. Results from Dallas showed that 

participants were much more likely to notice these disclosures in that location. Therefore, 

the proposed model forms include these two disclosures in close proximity to payment 

information. 

Changes to Account Terms 

• The text that was added to the change-in-terms summary regarding how to interpret the 

changes if the cardholder was already being charged the penalty APR was clearly understood 

by participants. Therefore, this text was included in proposed forms. 

Convenience Checks 

• Because participants found information regarding fees, the go-to rate, and the absence of a 

grace period more easily when it was on the front of the checks, the Board’s proposal would 

require that issuers include these disclosures on the front of the page of checks. The two 

formats used in this round—a clearly labeled bulleted list and a tabular format similar to the 

Schumer Box—both seemed to be effective in making these disclosures clear and 

conspicuous. 

• When looking for the interest rate that would be charged after the introductory period ended 

participants consistently scanned the text for a numeric percentage, and when they did not 

see a percentage assumed that the information was not there. Therefore, the Board’s 

proposed regulations would require that issuers provide a numeric percentage on the front of 

50 
the page of checks, rather than simply stating that the percentage will be, for example, the 

APR on cash advances. 

51 
SECTION IV: CONCLUSION AND DISCUSSION OF 

NEED FOR CONSUMER EDUCATION

PROPOSED REVISIONS TO REGULATION Z 

Following each round of interviews, the Board reviewed findings from the consumer testing. 

These results were a key source of information as the Board developed proposed revisions to the 

rules affecting open-end credit in Regulation Z. As noted above, this proposal is scheduled to be 

released for public comment in May 2007; the revised disclosure forms that were developed 

through the testing will be included as model forms. 

NOTE ON NEED FOR CONSUMER EDUCATION 

The proposed models that have been developed through this project were designed to explain 

credit card terms as simply and clearly as possible so that a wide range of consumers could 

understand them. However, one important finding has been that there are a number of 

consumers who lack fundamental understanding of how credit card accounts work. These 

participants tended to be those with lower educational levels, and were likely subprime 

consumers (i.e., those with low credit scores). Unfortunately, this population is generally 

charged higher fees and interest rates than other consumers, and thus has the most at stake in 

understanding how these charges are calculated and how they can be avoided. 

Some of the specific concepts that were misunderstood by a large number of participants 

included the following: 

• Calculation of Interest Charges: Most participants understood that the Annual Percentage 

Rate was associated with the calculation of their interest charges, and that a lower APR 

generally corresponded to lower charges. However, very few participants could accurately 

describe how interest charges were actually calculated. Many did not understand the balance 

that would be used in the calculation each period; some thought it was the new balance on 

the card, while others thought it was the sum of new purchases. Others thought that the APR 

itself was used in the monthly calculation of interest, rather than a periodic rate. Most 

participants who could not describe how interest was calculated were not concerned by their 

lack of understanding. They indicated that they trusted that their issuers would perform the 

calculations correctly, and that they would call them if the amount looked incorrect. 

However, in many cases it was unclear that these participants would be able to identify a 

mistake if it appeared on their statement. 

• Fees Versus Interest Rates: When shown a credit card offer and asked to consider the 

potential costs of the account, there were some participants who had difficulty distinguishing 

between fees and interest rates (for example, a 5% APR on balance transfers versus a 5% fee 

on balance transfers). In some cases, there was a lack of understanding that fees were tied 

into a specific action or occurrence, while interest rates would be applied to a balance each 

52 
period. Internal references were added to the Schumer Box to try to direct consumers’ 

attention to both fees and APRs to help them distinguish between the two. However, testing 

showed that while these references helped some consumers, there were others who were still 

unaware of the difference between the two. 

• Balances from Different Types of Transactions: Most participants understood that they 

could be charged different interest rates on purchases, balance transfers, and cash advances. 

However, testing showed that while they were aware of this at a conceptual level, many were 

unable to apply this knowledge when making decisions. For example, while looking at 

Schumer Boxes interview participants were asked to imagine a scenario in which they 

transferred a balance to their card at a 0% introductory rate, then made purchases on the same 

card at a higher rate, and then made a payment. They were asked whether they thought this 

issuer would use their payment to pay off their balance transfer or their purchases. Although 

the Schumer Box indicated that lower-APR balances would be paid off first, less than half of 

participants were able to answer correctly—some, for example, thought the issuer would pay 

off transactions in the order that they occurred. In order to alleviate these misunderstandings, 

the proposed model includes text in the Schumer Box describing how payments will be 

allocated. 

This particular interview question was complex, and it is unsurprising that many consumers 

were unable to answer it correctly. However, a surprising number of participants indicated 

that the bank’s decision regarding payment allocation would have no impact on the amount 

of interest they were charged. Others did not understand what was being asked, because they 

did not realize that balances were calculated separately for purchases and balance transfers— 

they assumed that all transactions were aggregated into a single balance. For participants 

with these fundamental misunderstandings, even the disclosure included in the proposed 

model is unlikely to be helpful. 

Other misunderstandings were also revealed through the interviews, many of which led to 

revisions to the formatting and language used in the disclosures. However, fundamental gaps in 

consumer knowledge, such as those listed above, are difficult to address through disclosures. 

Effectively explaining the difference between a 5% fee on balance transfers and a 5% APR on 

balance transfers, for example, would require a great deal of text—so much, in fact, that the 

consumers for whom it was intended would be unlikely to read it. In addition, adding this text 

would make the disclosure much less useful to other consumers who did not need this 

explanation. 

To address these misunderstandings, therefore, more basic consumer education is necessary 

about how credit cards work. The Board has proposed using its website to conduct some of this 

work. This is a promising strategy, because a website would allow more targeted education— 

users could focus on specific areas of interest, while skipping topics that they already understand. 

However, a website is likely to be only part of the solution, because its effectiveness depends on 

the extent to which people proactively decide to use it—and many of the participants who were 

interviewed for this project were unaware of their own misconceptions. A more effective longterm strategy might be to expand coverage of these topics in K–12 school curricula, so that 

people would have a more thorough understanding of how credit cards work by the time that 

53 
they became consumers. Obviously, addressing the problem of consumer understanding at this 

level is far outside the scope of this particular project. However, the need for such a solution was 

very apparent during the course of this work. 

54 
APPENDIX A: 

DEMOGRAPHIC AND 

BACKGROUND INFORMATION ON 

FOCUS GROUP AND INTERVIEW 

PARTICIPANTS 
APPENDIX A: DEMOGRAPHIC AND BACKGROUND 

INFORMATION ABOUT PARTICIPANTS

As noted in Sections II and III of this report, participants in focus groups and cognitive 

interviews were recruited by telephone using a structured screening instrument. This instrument 

was designed to ensure the selection of a range of participants in terms of gender, age, ethnicity, 

and level of education. Prospective participants were also asked questions about their credit card 

history and credit card behavior, such as how often they paid the full balance on their card or 

whether they had opened a new account in the last 12 months. These questions made it possible 

to ensure that the study encompassed a variety of credit card user populations (for example, new 

versus experienced credit card users). 

Other screening criteria that were used included: 

- Consumers were only invited to participate in focus groups or interviews if they had one 

or more general-purpose credit cards. 

- Consumers were only invited to participate if they were the person in their household 

who was responsible for making credit card decisions, such as choosing a new credit card 

or deciding how much to pay each month.7 

7

 Consumers were also invited to participate if they made these decisions in cooperation with a spouse or other 

partner.

- To avoid potential conflicts of interest, consumers who worked for a bank or credit card 

company were excluded from participation. 

While minor changes were made to the screening instrument between locations, the majority of 

questions remained unchanged for all phases of the study. 

On the following page, Table 1 provides some of the information collected about participants in 

each location during the screening process. 
Table 1: Demographic and Background Data for Focus Group and Interview Participants 

NOTE: The numbers at the top of each column refer to the number of participants. Because some data were collsurvey, and some participants did not respond to all questions, the sum of numbers in the table does not always eparticipants. 

Focus Groups Preliminary Interviews Cognitive Interviews for Testing of Revis

Calverton 

(n-21) 

Birmingham 

(n=23) 

Baltimore 

(n=9) 

Kansas 

City (n=9) 

Denver 

(n=7) 

Boston 

(n=8) 

Gender

Male 9 12 5 3 2 5 

Female 12 11 4 6 5 3 

Age 

18 to 25 3 1 2 2 0 1 

26 to 35 2 7 1 2 2 3 36 to 45 5 12 3 4 4 2 46 to 60 9 3 3 1 1 2 61+ 2 0 0 0 0 0 

Race/Ethnicity 

White 11 4 5 4 4 4 

African-American 10 19 3 3 2 4 Hispanic/Latino 0 0 0 2 1 0 Asian-American 0 0 1 0 0 0 

Education Level 

Some high school 1 0 0 0 0 0 

Graduated from high school 6 8 3 4 3 4 Some college 8 13 2 4 2 1 Graduated from college 5 2 4 1 2 3 

How long ago did you get your first credit card?9 

Less than 5 years - - 1 2 0 2 5 to 10 years - - 2 3 1 3 More than 10 years - - 6 4 6 3 

8 When calculating the percentages in this column, the denominator that was used was the number of respondents to each question, not 

participants. These percentages may not total 100 percent due to rounding.

9 This question was not asked of prospective participants for the focus groups.
Focus Groups Preliminary Interviews Cognitive Interviews for Testing of Revis

Calverton 

(n-21) 

Birmingham 

(n=23) 

Baltimore 

(n=9) 

Kansas 

City (n=9) 

Denver 

(n=7) 

Boston 

(n=8) 

Have you opened a new generalpurpose credit card account in the past 12 months? 

Yes 6 9 4 3 3 4 

No 14 14 5 6 4 4 

How often do you pay the full balance on your primary credit card? 

Always or almost always 6 1 0 2 2 1 

Sometimes 12 8 6 4 3 4 Hardly ever 2 13 3 3 2 3 
APPENDIX B: 

DISCLOSURE FORMS USED IN 

TESTING 
Focus Groups: 


Calverton, MD (May 2006) 

Birmingham, AL (June 2006) 


Contents:


x Sample Credit Card Solicitation (front and back) 


x Sample Cardholder Agreement (4 pages) 


x Sample Periodic Statement (front and back) 


x Sample Change-in-Terms Notice (front and back) 











Preliminary Cognitive Interviews: 


Baltimore, MD (August 2006) 

Solicitation Letters and Solicitation and Application 


Disclosures (“Schumer Boxes”) Used in


Baltimore Interviews 


Contents: 

x Solicitation Letter Sample A (front and back) 

x Schumer Box Sample A (front and back) 

x Solicitation Letter Sample B (front and back) 

Note: Each interview participant was either given Letter Sample A and 

Schumer Box Sample A together, or Letter Sample B (which includes a 

Schumer Box on the back).






Account-Opening Disclosures 

Used in 

Baltimore Interviews 

Contents: 

• Card Carrier Sample A (4 pages) 

• Summary of Terms Sample A (1 page) 

• Cardholder Agreement Sample A (4 pages) 

• Card Carrier Sample B (4 pages) 

• Cardholder Agreement Sample B (4 pages) 

Note: Each interview participant was either the set of samples labeled A, 

or those labeled B. Cardholder Agreement Sample A included a onepage summary of terms. 

Both of the cardholder agreements were folded into brochure form.

















Periodic Statements 


Used in


Baltimore Interviews


Contents: 


x Periodic Statement Sample A (front and back) 


x Periodic Statement Sample B (front and back) 





Change-in-Terms Notices 


Used in


Baltimore Interviews 


Contents: 


x Sample Notice A (one page) 


x Sample Notice B (front and back) 


Note: Sample Notice B was folded into a six-page tri-fold brochure.



Cognitive Interviews: 


Kansas City, MO (November 2006) 

Solicitation Letters 


Used in


Kansas City Interviews


Contents: 


x Model SL-1 (front) 


x Model SL-2 (front) 


x Model SL-3 (front) 


x Back of solicitation letter models 

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Kansas City Interviews 


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Periodic Statements 


Used in


Kansas City Interviews 


Contents: 


x Model PS-1 (front) 


x Model PS-2 (front) 


x Model PS-3 (front) 


x Model PS-4 (front) 


x Back of periodic statements 

 

 

 

 

 

 

 

 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank 

ACCOUNT ACTIVITY 

Statement Closing Date 01/19/07 

Days in Billing Cycle 30 

Previous Balance $1,092.61 

Payments $100.00 

Credits $0.00 

Purchases & Other Charges $76.09 

Debits $0.00 

Cash Advances $43.00 

Total FINANCE CHARGE $18.25 

New Balance $1,129.95 

For prompt credit, mail payments to: 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

TRANSACTIONS 

Page 1 of 1 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $1,500.00 

Available Credit as of 01/19/07 $370.05 

New Balance $1,129.95 

Payment Due Date 02/13/07 

Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00* 

*If the minimum required payment is not paid by the due date listed on this 

statement, you may be subject to a $35 late fee. 

QUESTIONS? 

Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/06 01/06 CASH ADVANCE FEE *FINANCE CHARGE* $2.00 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 CASH ADVANCE FEE *FINANCE CHARGE* $2.00 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

FINANCE CHARGES 

Type of Balance % Periodic Rate 

Corresponding 

Annual 

Percentage Rate 

Balance Subject 

to Finance Charge 

Finance Charges 

due to APR 

ANNUAL 

PERCENTAGE 

RATE* 

Purchases 

Cash Advances 

1.249% 

1.833% 

14.99% 

21.99% 

$1,034.69 

$72.46 

$12.92 

$1.33 

14.99% 

88.27% 

* The Annual Percentage Rate includes the cost of both interest and certain types of fees (such as balance transfer and cash 

advance fees). If your Annual Percentage Rate is higher than your Corresponding Annual Percentage Rate, it is because you 

were charged some of their fees. 

BANK NEWS 

IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card 

Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information 

carefully and retain it for your records. 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 	 Page 1 of 1 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance	 $1,129.95 

PAYMENT INFORMATION 

Payment Due Date 02/13/07 

Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Please indicate address change and additional 	 Total Minimum Amount Due = $34.00 cardholder requests on the reverse side. 

Artesian Bank	 AMOUNT ENCLOSED: 

P.O. Box 5147 

$ 

Sioux Falls, SD 	57117-5147 WARNING: Making only the minimum payment will increase the 

interest you pay and the time it takes to repay your balance. For 35806 

example, if you had a balance of $1,000 at an interest rate of 17% 

and always paid only the minimum required, it would take over 

7 years to repay the balance in full. For an estimate of the time it 

would take to repay your actual balance making only minimum 

payments, call this toll-free telephone number: 1-800-555-5555. 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-1 
 

 

 

 

 

 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank 

ACCOUNT ACTIVITY 

Statement Closing Date 01/19/07 

Previous Balance $1,092.61 

Payments $100.00 

Credits $0.00 

Purchases $41.09 

Debits $0.00 

Cash Advances $43.00 

Total INTEREST CHARGE $14.25 

Total FEES $39.00 

New Balance $1,129.95 

For prompt credit, mail payments to: 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

TRANSACTIONS 

Page 1 of 1 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $1,500.00 

Available Credit as of 01/19/07 $370.05 

New Balance $1,129.95 

Payment Due Date 02/13/07 (before 12:00 noon) 

Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00* 

*If the minimum required payment is not paid by the due date listed on this 

statement, you may be subject to a $35 late fee and your APRs may be 

increased up to the default rate below. 

QUESTIONS? 

Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/06 01/06 CASH ADVANCE FEE $2.00 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 CASH ADVANCE FEE $2.00 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

INTEREST CHARGES 

Type of Balance APR 

Balance Subject to 

Interest Charge Interest Charged 

Purchases 14.99% $1,034.69 $12.92 

Cash Advances 21.99% $72.46 $1.33 

Default Rate = Up to 34.99% 

BANK NEWS 

IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card 

Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information 

carefully and retain it for your records. 

As of 2/1/07, all of your account APRs will increase to the default rate of 34.99%. 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 1 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,129.95 

PAYMENT INFORMATION 

Payment Due Date 02/13/07 

Amount Due This Period + $34.00


cardholder requests on the reverse side. Past Due Amount + $0.00


Please indicate address change and additional 

Artesian Bank Total Minimum Amount Due = $34.00* 

P.O. Box 5147


Sioux Falls, SD 57117-5147 AMOUNT ENCLOSED: 
$ 

*WARNING: Making only the minimum payment will increase the 35806 interest you pay and the time it takes to repay your balance. For 

example, if you had a balance of $1,000 at an interest rate of 17% and 

always paid only the minimum required, it would take over 7 years to 

repay the balance in full. For an estimate of the time it would take to 

repay your actual balance making only minimum payments, call this 

toll-free telephone number: 1-800-555-5555. 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-2 
 

 

 

 

 

 

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian

Bank

Artesian Bank Page 1 of 1

ACCOUNT ACTIVITY 

Statement Closing Date 01/19/07 

Days in Billing Cycle 30 

Previous Balance $1,092.61 

Payments $100.00 

Credits $0.00 

Purchases & Other Charges $41.09 

Debits $0.00 

Cash Advances $43.00 

Total INTEREST AND FEES $53.25 

New Balance $1,129.95 

For prompt credit, mail payments to: 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

TRANSACTIONS 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $1,500.00 

Available Credit as of 01/19/07 $370.05 

New Balance $1,129.95 

Payment Due Date 02/13/07 

Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00 

QUESTIONS? 

Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

PAYMENTS AND OTHER CREDITS 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

PURCHASES 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

CASH ADVANCES 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

FEES AND OTHER CHARGES 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/06 01/06 CASH ADVANCE FEE $2.00 

01/08 01/08 CASH ADVANCE FEE $2.00 

FINANCE CHARGES 

Type of Balance 

Monthly 

Interest Rate APR 

Balance Subject to 

Interest Charge Interest Charge 

Purchases 

Cash Advances 

1.249% 

1.833% 

14.99% 

21.99% 

$1,034.69 

$72.46 

$12.92 

$1.33 

Default Rate = Up to 34.99% 

BANK NEWS 

WARNING: Making only the minimum payment will increase the interest you pay and the time it takes to 

repay your balance. For example, if you had a balance of $1,000 at an interest rate of 17% and always paid 

only the minimum required, it would take over 7 years to repay the balance in full. For an estimate of the 

time it would take to repay your actual balance making only minimum payments, call this toll-free telephone 

number: 1-800-555-5555. 

If the minimum required payment is not paid by the due date listed on this statement, you may be subject to a 

$35 late fee and your APRs may be increased up to the default rate above. 

IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card 

Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information 

carefully and retain it for your records. 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 1 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,129.95 

PAYMENT INFORMATION 


Payment Due Date 02/13/07 (before 12:00 noon)


Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Please indicate address change and additional Total Minimum Amount Due = $34.00 cardholder requests on the reverse side. 

Artesian Bank AMOUNT ENCLOSED: 

P.O. Box 5147 

Sioux Falls, SD 57117-5147 

$ 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-3 

35806 
 

 

 

 

 

 

 

 

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian

Bank

Artesian Bank Page 1 of 1

ACCOUNT ACTIVITY 

Statement Closing Date 01/19/07 

Days in Billing Cycle 30 

Previous Balance $1,092.61 

Payments $100.00 

Credits $0.00 

Purchases & Other Charges $76.09 

Debits $0.00 

Cash Advances $43.00 

Total FINANCE CHARGE $18.25 

New Balance $1,129.95 

For prompt credit, mail payments to: 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

TRANSACTIONS 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $1,500.00 

Available Credit as of 01/19/07 $370.05 

New Balance $1,129.95 

Payment Due Date 02/13/07 

Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00 

WARNING: Making only the minimum payment will increase the interest 

you pay and the time it takes to repay your balance. For example, if you 

had a balance of $1,000 at an interest rate of 17% and always paid only 

the minimum required, it would take over 7 years to repay the balance 

in full. For an estimate of the time it would take to repay your actual 

balance making only minimum payments, call this toll-free telephone 

number: 1-800-555-5555. 

QUESTIONS? 

Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/06 01/06 CASH ADVANCE FEE *FINANCE CHARGE* $2.00 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 CASH ADVANCE FEE *FINANCE CHARGE* $2.00 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

FINANCE CHARGES 

Type of Balance 

Annual Percentage 

Rate (APR) 

Balance Subject 

to APR Finance Charges 

Other Finance 

Charges Effective APR* 

Purchases 

Cash Advances 

14.99% 

21.99% 

$1,034.69 

$72.46 

$12.92 

$1.33 

$0.00 

$4.00 

14.99% 

88.27% 

Default Rate = Up to 34.99% 

* The Effective APR includes the cost of both interest and certain types of fees (such as balance transfer and cash advance fees). 

If your Effective APR is higher than your APR, it is because you were charged some of these fees. 

BANK NEWS 

IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card 

Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information 

carefully and retain it for your records. 

According to our records, your payment for the last statement period was submitted late. For this reason, as of 

2/1/07 all of your account APRs will increase to the default rate of 34.99%. 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 	 Page 1 of 1 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance	 $1,129.95 

PAYMENT INFORMATION 

Payment Due Date 02/13/07 

Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Please indicate address change and additional 	 Total Minimum Amount Due = $34.00* cardholder requests on the reverse side. 

Artesian Bank	 AMOUNT ENCLOSED: 

P.O. Box 5147 

$ 

Sioux Falls, SD 	57117-5147 * If the minimum required payment is not paid by the due date 

listed on this statement, you may be subject to a $35 late fee 

and your APRs may be increased up to the default rate above. 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-4 

35806 
________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________

IMPORTANT INFORMATION ABOUT YOUR ACCOUNT 

FINANCE CHARGE 

Annual percentage rate (APR) 

Refer to the Finance Charge Summary section of your statement 

for your current rates. A “V” next to a Periodic Rate means the rate 

may vary. 

Grace Period on New Purchases (at least 25-days) 

You can avoid Finance Charges on new Purchases that posted to 

this statement if your Previous Balance is zero (or a credit balance) 

and we receive full payment of the New Balance by the Payment 

Due Date. If so, you have from the date you made your purchases 

until the payment Due Date on the front to avoid any finance 

charge on that purchase. If your Previous Balance is greater than 

zero, there is no time period to pay the New Balance and avoid 

additional finance charges. There is no grace period for Cash 

Advances and Balance Transfers. 

Periodic Finance Charge Calculation Method-Average Daily 

Balance (Including New Transactions) 

For each day in the Billing Cycle, we take your beginning balance, 

add any new transactions or other debits (including other fees and 

charges) and subtract any payments or other credits. This gives 

us that day’s Daily Balance. We multiply this Daily Balance by 

the Daily Periodic Rate to get your Periodic Finance Charge for 

that day. We add these Periodic Finance Charges to your Daily 

Balance to get the beginning balance for the next day. 

To get your total Periodic Finance Charge for this Billing Cycle, 

we add all of the Daily Periodic Finance Charges and round the 

sum to the next highest cent. This amount is also equal to the 

Average Daily Balance multiplied by the Daily periodic rate times 

the number of days in the Billing Cycle rounded to the next highest 

cent. To determine an Average Daily Balance, we add your Daily 

Balance and divide by the number of days in the Billing Cycle. 

We do this calculation separately for each feature such as 

Purchases, Cash Advances, Balance Transfers or Promotional 

Balances. Periodic Finance Charges begin to accrue from the later 

of the transaction date or the first of the Billing Cycle in which the 

transaction appears. 

Account Renewal Information for Open Accounts 

If your account has an Annual Fee and it is billed on this 

Statement, we will reverse the fee if you cancel your account 

and pay off any existing Balance within 30 days of receipt of this 

Statement otherwise, the Annual Fee is non-refundable. You may 

continue to use your account during the 30-day period before you 

cancel. To cancel, write us at the Billing Inquiries address or call us 

at the phone number on the front. 

Your Liability 

Our records show that you are liable for any outstanding balance 

on this account if your name appears on the front of this statement 

or you otherwise agreed. 

Report a Lost or Stolen Card Immediately 

Call the 24-hour toll free number 1.800.555.6666. Do not use your 

account after you report a lost or stolen card. 

Cardholder Security PlanTM/Payment Protection Plan 

If you have questions about your enrollment or need to file 

for benefits, please call the applicable toll free number below 

(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time): 

Cardholder Security Plan-1.888.668.6938; Payment Protection 

Plan-1.888.838.0056. 

Service for International Calling 

Dial the AT&T Direct access code for the country you are in 

and dial 1.888.801.3723. For a list of access codes visit 

www.artesian.com and select Credit Cards. You may also call 

us collect at 1.757.677.4701. 

Service for Hearing-Impaired (TTY/TDD) 

Contact our service for the hearing-impaired at 1.800.222.7365. 

Pay on-line at www.artesian.com or mail your payment to: 

Artesian Bank, PO BOX 60069, CITY OF INDUSTRY, CA 

91716-0069 

BILLING RIGHTS SUMMARY 

STATEMENT DISCLOSURE: 

In Case of Error or Billing Inquiries 

If you think your bill is wrong, or if you need more information about 

a transaction on your bill, you must write to us (on a separate 

sheet) at PO BOX 1390, Norfolk, VA 23501-1390 as soon as 

possible to preserve your rights. We must hear from you no later 

than 60 days after we sent you the first bill on which the error or 

problem appeared. In your letter, give us the following information: 

- Your name and account number 

- The dollar amount of the suspected error 

-	 Describe the error and explain, if you can, why you believe there 

is an error 

You do not have to pay any amount in question while we are 

investigating, but you are still obligated to pay the parts of your bill 

that are not in question. While we investigate your questions, we 

cannot report you as delinquent or take any action to collect the 

amount you question. 

Special Rate for Credit Card Purchases 

If you have a problem with the quality of goods 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 not have to pay 

the remaining amount due on the goods or services. You have this 

protection only when the purchase price was more than $50 and 

the purchase was made in your home state or within 100 miles 

of your mailing address (if we own or operate the merchant, or if 

we mailed you the advertisement for the property or service, all 

purchases are covered regardless of the amount or location of 

purchase). 

IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY


FEDERAL LAW TO BE DISCLOSED TO YOU


WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED 

PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT. 

For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below. 

If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate 

processing. 

Address 

City 	 State Zip 

Home Phone 	 Work Phone 

 E-mail Address 

By providing us with your e-mail address, you agree that we may communicate with you by electronic mail. 

Prompt Crediting of Payments 

We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later 

than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All 

payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post 

Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only. 
Change-in-Terms Notices 

Used in 

Kansas City Interviews

Contents: 

• Model CT-1 (front and back) 

• Model CT-2 (front and back) 

• Model CT-3 (front and back) 

• Model CT-4 (front and back) 

Note: These documents were each folded into a six-page tri-fold 

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Cognitive Interviews: 

Denver, CO (January 2007) 
Solicitation Letter 

Used in 

Denver Interviews 

Contents: 

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Solicitation and Application Disclosures 


(“Schumer Boxes”) 


Used in


Denver Interviews 


Contents: 


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x Model SB-6 (front) 


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Account-Opening Disclosures 

Used in 

Denver Interviews 

Contents: 

• Card Carrier (1 page) 

• Cardmember Agreement (4 pages) 

• Model AO-5 

• Model AO-6 

• Model AO-7 

• Model AO-8
ARTESIAN BANK 

P.O. BOX 1234 

THORNVILLE, FL 56789 

801345Z1 0075 00725 

PAT SMITH 

135 WILDELAKE DRIVE 

DENVER, CO 80010 

Please call 1-800-555-6727 to activate your card. You will not be able to use your card until it is 

activated. 

Your card number: 1234567890123456 

Number of cards: 1 

Credit Line: $2,000 

Loss/Theft Notification 

Business Hours: 1-800-555-2578 

After Hours: 1-800-555-4526 
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 Your APR on cash advances will be calculated each month by taking the Prime Rate and adding 14.99%. 

If the Prime Rate changes, your APRs on purchases and cash advances will change as well. 

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$2
Summary of Key Account Terms


TRANSACTION RATES AND FEES 

Purchases APR: A variable rate1

, currently 14.99%. 

Balance Transfers 

APR: 0.0% introductory rate until your statement closing date in December 

2007; thereafter 15.99% (see “Notice Regarding Balance Transfers” 

below) 

Fee: Either $5 or 3% of the amount of each transfer, whichever is greater 

Cash Advances APR: A variable rate1

, currently 21.99%

Fee: Either $5 or 3% of the amount of each advance, whichever is greater 

Other Transaction Fees Foreign Transaction Fee: 2% of transaction in U.S. dollars 

Minimum finance charge $0.50 

PENALTY RATES AND FEES 

Penalty APR 

Your interest rates may increase up to the Penalty APR of 34.99% if: 

� You make a late payment; 

� You exceed your credit limit; 

� You make a payment that is returned due to insufficient funds; or 

� You do any of the above on another account you have with us. 

If your APRs are increased for any of these reasons, they will

automatically revert back to the standard interest rates disclosed above if 

you make six consecutive minimum payments when due and you do not 

exceed your credit limit within that same time period. 

Late Payment Fee $29 if balance is less than or equal to $1,000; $35 if balance is greater than 

$1,000 

Over-the-Credit Limit Fee $29 

Returned Payment Fee $35 

OTHER ACCOUNT TERMS THAT MAY AFFECT THE INTEREST YOU PAY 

Grace Period 

If you pay your balance in full each month, you will not be charged interest 

on purchases for at least 25 days after the close of each statement period. 

This 25-day period is called your “grace period.” If you do not pay your 

balance in full each month you lose this interest-free period, and will begin 

paying interest as soon as you make a purchase. No grace period exists for 

cash advances or balance transfers; when you make these transactions you 

begin paying interest immediately. 

How We Will Calculate Your 

Balance 

To calculate your balance we use a method called “two-cycle average daily

balance (including new purchases)”. If you sometimes pay your balance in 

full and sometimes do not, this method may lead to higher interest charges 

than other methods. 

Notice Regarding Balance Transfers 

If you transfer balances at our low introductory APR and then make 

purchases using this card, we will apply your payments first to your 

transferred balances during your promotional period. We will only apply

payments to your purchases after your transferred balances have been paid 

off completely. 

Your APR on purchases will be calculated each month by taking the Prime Rate (currently 7.00%) and adding 7.99%. Your APR on 

cash advances will be calculated each month by taking the Prime Rate and adding 14.99%. If the Prime Rate changes, your APRs on 

purchases and cash advances will change as well.

 AO-8 

1 
Periodic Statements 


Used in


Denver Interviews 


Contents: 


x Model PS-5 (pages 1 and 2) 


x Model PS-6 (pages 1 and 2) 


x Model PS-7 (pages 1 and 2) 


x Model PS-8 (pages 1 and 2) 


x Back of periodic statement pages 

 

 

 

 

 

 

 

 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank 

ACCOUNT ACTIVITY 

Statement Closing Date 1/19/07 

Days in Billing Cycle 30 

Previous Balance $1,092.61 

Payments $100.00 

Credits $0.00 

Purchases $41.09 

Debits $0.00 

Cash Advances $43.00 

Total INTEREST CHARGE $14.25 

Total FEES $39.00 

New Balance $1,129.95 

For prompt credit, mail payments to: 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

TRANSACTIONS 

Page 1 of 2 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $1,500.00 

Available Credit as of 1/19/07 $370.05 

New Balance $1,129.95 

Payment Due Date 2/13/07 (before 12:00 noon) 

Amount Due This Period = $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00* 

*Making only the minimum payment will increase the interest you pay and 

the time it takes to repay your balance. For example, if you had a balance 

of $1,000 at an interest rate of 17% and always paid only the minimum 

required, it would take over 7 years to repay the balance in full. For an 

estimate of the time it would take to repay your actual balance making only 

minimum payments, call this toll-free telephone number: 1-800-555-5555. 

QUESTIONS? 

Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/06 01/06 CASH ADVANCE FEE *TRANSACTION FEE* $2.00 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 CASH ADVANCE FEE *TRANSACTION FEE* $2.00 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

CALCULATION OF INTEREST CHARGES 

Type of Balance 

Annual Percentage 

Rate (APR) 

Monthly 

Interest Rate 

Balance Subject to 

Interest Rate Interest Charge 

Purchases 

Cash Advances 

14.99% (v) 

21.99% (v) 

1.249% 

1.833% 

$1,034.69 

$72.46 

$12.92 

$1.33 

(v) = Variable Rate 

EFFECTIVE APR 

Type of Balance Interest Charges Transaction Fees Effective APR 

Purchases $12.92 $0.00 14.99% 

Cash Advances $1.33 $4.00 88.27% 

Your Annual Percentage Rate (APR) is the annual interest rate on your account.


Your Effective APR is the rate that includes both interest and transaction fees that you paid this month.


The Default APR for your account is 34.99%. All your APRs may be increased to this rate 


if you pay late or for other reasons; see your Cardholder Agreement for more details.


NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,129.95 

PAYMENT INFORMATION 


Payment Due Date 2/13/07 (before 12:00 noon)


Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Please indicate address change and additional Total Minimum Amount Due = $34.00 (see warning below)

cardholder requests on the reverse side. 

Artesian Bank 

P.O. Box 5147


Sioux Falls, SD 57117-5147


WARNING: If the minimum required payment is not paid by the due date listed 

on this statement, you may be subject to a $35 late fee and your APRs may be 

increased up to the Default APR listed above. 

AMOUNT ENCLOSED: $ 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-5 

35806 
 

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank Page 2 of 2 

Artesian

Bank

***NOTICE OF CHANGES TO ACCOUNT TERMS***


The following is a summary of changes that are being made to your account terms. You have the right 


to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this 


statement. The effective date of these changes is 3/1/07. 


Revised Terms, as of 3/1/07 

APR on Purchases 16.99% 

Late Payment Fee $32 if your balance is less than or equal to $1,000; 

$39 if your balance is more than $1,000 

Want to receive your billing statement in Spanish? 

Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de 

preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta. 

Fast Online Card Payments with Click-to-Pay 

Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that 

same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu. 

Save Time. Save Paper. Sign up for All Electronic. 

You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when 

your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account. 

Need to add an authorized user to your account? 

Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu 

and select Add Authorized User. Complete the form and submit. It’s that simple! 

5825 TRD 2 100 7 Page 2 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 

New Balance 

PAYMENT INFORMATION 

Payment Due Date 

Amount Due This Period 

Past Due Amount 

Please indicate address change and additional Total Minimum Amount Due
 cardholder requests on the reverse side.


AMOUNT ENCLOSED: $

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-5 

35806 
 

 

 

 

 

 

 

 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank 

ACCOUNT ACTIVITY 

Statement Closing Date 1/19/07 

Days in Billing Cycle 30 

Previous Balance $1,092.61 

Payments $100.00 

Credits $0.00 

Purchases $41.09 

Debits $0.00 

Cash Advances $43.00 

Total INTEREST AND FEES $53.25 

New Balance $1,129.95 

For prompt credit, mail payments to: 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

TRANSACTIONS 

Page 1 of 2 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $1,500.00 

Available Credit as of 1/19/07 $370.05 

New Balance $1,129.95 

Payment Due Date 2/13/07 (before 12:00 noon) 

Amount Due This Period = $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00 (see warning below) 

WARNING: Making only the minimum payment will increase the interest 

you pay and the time it takes to repay your balance. For example, if you 

had a balance of $1,000 at an interest rate of 17% and always paid only 

the minimum required, it would take over 7 years to repay the balance in 

full. For an estimate of the time it would take to repay your actual balance 

making only minimum payments, call this toll-free telephone number: 

1-800-555-5555. 

QUESTIONS? 

Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

PAYMENTS AND OTHER CREDITS 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

PURCHASES 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

CASH ADVANCES 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

FEES 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/06 01/06 CASH ADVANCE FEE *TRANSACTION FEE* $2.00 

01/08 01/08 CASH ADVANCE FEE *TRANSACTION FEE* $2.00 

INTEREST CHARGES 

1/19 1/19 INTEREST ON PURCHASES $12.92 

1/19 1/19 INTEREST ON CASH ADVANCES $1.33 

APRs AND CALCULATION OF INTEREST CHARGES 

Type of Balance 

Annual Percentage 

Rate (APR) 

Balance Subject 

to Interest Rate Interest Charges Transaction Fees Effective APR 

Purchases 

Cash Advances 

14.99% (v) 

21.99% (v) 

$1,034.69 

$72.46 

$12.92 

$1.33 

$0.00 

$4.00 

14.99% 

88.27% 

(v) = Variable Rate 

Your Annual Percentage Rate (APR) is the annual interest rate on your account.


Your Effective APR is the rate that includes both interest and transaction fees that you paid this month.


The Default APR for your account is 34.99%. All your APRs may be increased to this rate 


if you pay late or for other reasons; see your Cardholder Agreement for more details.


NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,129.95 

PAYMENT INFORMATION 


Payment Due Date 2/13/07 (before 12:00 noon)


Amount Due This Period + $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00* (see below) Please indicate address change and additional 

cardholder requests on the reverse side. *NOTICE: If the minimum required payment is not paid by the due date listed 

Artesian Bank on this statement, you may be subject to a $35 late fee and your APRs may be 

increased up to the Penalty APR listed above. P.O. Box 5147


Sioux Falls, SD 57117-5147
 AMOUNT ENCLOSED: $ 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-6 

35806 
 

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank Page 2 of 2 

Artesian

Bank

Want to receive your billing statement in Spanish? 

Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de 

preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta. 

Fast Online Card Payments with Click-to-Pay 

Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that 

same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu. 

Save Time. Save Paper. Sign up for All Electronic. 

You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when 

your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account. 

Need to add an authorized user to your account? 

Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu 

and select Add Authorized User. Complete the form and submit. It’s that simple! 

***NOTICE OF CHANGES TO ACCOUNT TERMS*** 

The following is a summary of changes that are being made to your account terms. You have the right 

to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this 

statement. The effective date of these changes is 3/1/07. 

Revised Terms, as of 3/1/07 

APR on Purchases 16.99% 

Late Payment Fee $32 if your balance is less than or equal to $1,000; 

$39 if your balance is more than $1,000 

5825 TRD 2 100 7 Page 2 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 

New Balance 

PAYMENT INFORMATION 

Payment Due Date 

Amount Due This Period 

Past Due Amount 

Please indicate address change and additional Total Minimum Amount Due
 cardholder requests on the reverse side.


AMOUNT ENCLOSED: $

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-6 

35806 
 

 

 

 

 

 

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian

Bank

Artesian Bank Page 1 of 2

ACCOUNT ACTIVITY ACCOUNT SUMMARY 

Statement Closing Date 1/19/07 Account Number 1234567890123456 

Days in Billing Cycle 30 Credit Limit $1,500.00 

Previous Balance $1,092.61 Available Credit as of 1/19/07 $370.05 

Payments $100.00 New Balance $1,129.95 

Credits $0.00 Payment Due Date 2/13/07 (before 12:00 noon) 

Purchases $41.09 Amount Due This Period = $34.00 

Debits $0.00 Past Due Amount + $0.00 

Cash Advances $43.00 Total Minimum Amount Due = $34.00 (see warning below) 

Total INTEREST CHARGE $14.25 LATE PAYMENT WARNING: If the minimum required Total FEES $39.00 payment is not paid by the due date listed on this 

New Balance $1,129.95 statement, you may be subject to a $35 late fee and your 

For prompt credit, mail payments to: APRs may be increased up to the Default APR of 34.99%. 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 QUESTIONS? Payment sent to any other address may delay crediting your Call Customer Service 1-800-987-5521 account up to 5 days. Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

***NOTICE OF CHANGES TO ACCOUNT TERMS*** 

The following is a summary of changes that are being made to your account terms. You have the right 


to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this 


statement. The effective date of these changes is 3/1/07. 


Revised Terms, as of 3/1/07 

APR on Purchases 16.99% 

Late Payment Fee $32 if your balance is less than or equal to $1,000; 

$39 if your balance is more than $1,000 

TRANSACTIONS 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

PAYMENTS AND OTHER CREDITS 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

PURCHASES 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

CASH ADVANCES 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

FEES AND OTHER CHARGES 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/06 01/06 CASH ADVANCE FEE $2.00 

01/08 01/08 CASH ADVANCE FEE $2.00 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,129.95 

PAYMENT INFORMATION 


Payment Due Date 2/13/07 (before 12:00 noon)


Amount Due This Period = $34.00 

Past Due Amount + $0.00 

Please indicate address change and additional Total Minimum Amount Due = $34.00* (see below)

cardholder requests on the reverse side. 

*NOTICE: Making only the minimum payment will increase the interest you pay 

Artesian Bank and the time it takes to repay your balance. For example, if you had a balance 

of $1,000 at an interest rate of 17% and always paid only the minimum required, P.O. Box 5147 it would take over 7 years to repay the balance in full. For an estimate of the Sioux Falls, SD 57117-5147 time it would take to repay your actual balance making only minimum payments, 

call this toll-free telephone number: 1-800-555-5555. 

AMOUNT ENCLOSED: 

35806 

$ 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-7 
 

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian

Bank

Artesian Bank Page 2 of 2

CALCULATION OF INTEREST CHARGES 

Type of Balance 

Annual Percentage 

Rate (APR) 

Monthly 

Interest Rate 

Balance Subject to 

Interest Rate Interest Charge 

Purchases 

Cash Advances 

14.99% (v) 

21.99% (v) 

1.249% 

1.833% 

$1,034.69 

$72.46 

$12.92 

$1.33 

(v) = Variable Rate 

Want to receive your billing statement in Spanish? 

Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de 

preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta. 

Fast Online Card Payments with Click-to-Pay 

Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that 

same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu. 

Save Time. Save Paper. Sign up for All Electronic. 

You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when 

your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account. 

Need to add an authorized user to your account? 

Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu 

and select Add Authorized User. Complete the form and submit. It’s that simple! 

5825 TRD 2 100 7 Page 2 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 

New Balance 

PAYMENT INFORMATION 

Payment Due Date 

Amount Due This Period 

Past Due Amount 

Please indicate address change and additional Total Minimum Amount Due
 cardholder requests on the reverse side.


AMOUNT ENCLOSED: $

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-7 

35806 
 

 

 

 

 

 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank 

ACCOUNT ACTIVITY 

Statement Closing Date 1/19/07 

Previous Balance $1,092.61 

Payments $100.00 

Credits $0.00 

Purchases $41.09 

Debits $0.00 

Cash Advances $43.00 

Total INTEREST AND FEES $53.25 

New Balance $1,129.95 

For prompt credit, mail payments to: 

PO BOX 5147 

SIOUX FALLS, SD 57117-5147 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

TRANSACTIONS 

Page 1 of 2 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $1,500.00 

Available Credit as of 1/19/07 $370.05 

New Balance $1,129.95 

Payment Due Date 2/13/07 (before 12:00 noon) 

Amount Due This Period = $34.00 

Past Due Amount + $0.00 

Total Minimum Amount Due = $34.00* 

*If the minimum required payment is not paid by the due 

date listed on this statement, you may be subject to a 

$35 late fee and your APRs may be increased up to the 

Penalty APR listed below. 

QUESTIONS? 

Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

Please send billing inquiries and correspondence to: 

PO BOX 5524, SIOUX FALLS, SD 57117-8824 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

12/26 12/28 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

12/29 12/29 9525156489SFD4545Q LATE FEE $35.00 

01/03 01/03 854338203FS8OO0Z5 PYMT THANK YOU 5147 E SIOUX FALLS SD $100.00­

01/05 01/05 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

01/05 01/05 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

01/06 01/06 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/06 01/06 CASH ADVANCE FEE $2.00 

01/06 01/06 554328608008W90M0 EASY SAVER 877-844-9564 PA $14.95 

01/08 01/08 1542202083J78OPXW BESTBANK/ACCESS CASH ATLANTA GA $21.50 

01/08 01/08 CASH ADVANCE FEE $2.00 

01/09 01/09 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

01/19 01/19 TOTAL INTEREST CHARGE $14.25 

***NOTICE OF CHANGES TO ACCOUNT TERMS***


The following is a summary of changes that are being made to your account terms. You have the right 


to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this 


statement. The effective date of these changes is 3/1/07. 


Revised Terms, as of 3/1/07 

APR on Purchases 16.99% 

Late Payment Fee $32 if your balance is less than or equal to $1,000; 

$39 if your balance is more than $1,000 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,129.95 

PAYMENT INFORMATION 


Payment Due Date 2/13/07 (before 12:00 noon)


Amount Due This Period + $34.00


cardholder requests on the reverse side. Past Due Amount + $0.00


Please indicate address change and additional 

Artesian Bank Total Minimum Amount Due = $34.00 

P.O. Box 5147


Sioux Falls, SD 57117-5147 AMOUNT ENCLOSED: 
$ 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

WARNING: Making only the minimum payment will increase the 

interest you pay and the time it takes to repay your balance. For 

example, if you had a balance of $1,000 at an interest rate of 17% and 

always paid only the minimum required, it would take over 7 years to 

repay the balance in full. For an estimate of the time it would take to 

repay your actual balance making only minimum payments, call this 

toll-free telephone number: 1-800-555-5555. 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-8 

35806 
 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank Page 2 of 2

Want to receive your billing statement in Spanish? 

Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de 

preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta. 

Fast Online Card Payments with Click-to-Pay 

Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that 

same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu. 

Save Time. Save Paper. Sign up for All Electronic. 

You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when 

your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account. 

Need to add an authorized user to your account? 

Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu 

and select Add Authorized User. Complete the form and submit. It’s that simple! 

CALCULATION OF INTEREST CHARGES 

Type of Balance APR 

Balance Subject to 

Interest Charge Interest Charge 

Purchases 14.99% (v) $1,034.69 $12.92 

Cash Advances 21.99% (v) $72.46 $1.33 

(v) = Variable Rate


Your Annual Percentage Rate (APR) is the annual interest rate on your account.


Your Effective APR is the rate that includes both interest and transaction fees that you paid this month.


5825 TRD 2 100 7 Page 2 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 

New Balance 

PAYMENT INFORMATION 

Payment Due Date 

Amount Due This Period 

Past Due Amount 

Please indicate address change and additional Total Minimum Amount Due
 cardholder requests on the reverse side.


AMOUNT ENCLOSED: $

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-8 

35806 
________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________

IMPORTANT INFORMATION ABOUT YOUR ACCOUNT 

Grace Period on New Purchases (at least 25 days) 

You can avoid Interest Charges on new Purchases that posted to this 

statement if your Previous Balance is zero (or a credit balance) and we 

receive full payment of the New Balance by the Payment Due Date. If so, 

you have from the date you made your purchases until the payment Due 

Date on the front to avoid any interest charge on that purchase. If your 

Previous Balance is greater than zero, there is no time period to pay the 

New Balance and avoid additional interest charges. There is no grace 

period for Cash Advances and Balance Transfers. 

Explanation of Interest Charges and Transaction Fees 

We calculate periodic interest charges using the applicable monthly 

periodic rates separately for each feature (e.g., purchases, balance 

transfers, cash advances, promotional balances, or overdraft advances). 

We calculate the monthly periodic rate for each feature by dividing the 

APR for each feature by 12. There is a minimum charge in any billing 

cycle in which you owe any periodic interest charges, and a transaction 

charge for each balance transfer, cash advance, or check transaction, in 

the amounts stated in your Cardmember Agreement, as amended. 

To get the daily balance for each day of the current billing cycle, we 

take the beginning balance for each feature, add any new transactions 

or other debits (including fees, unpaid interest charges and other 

charges), subtract any payments or credits, and make other adjustments. 

Transactions are added as of the transaction date, the beginning of the 

billing cycle in which they are posted to your account, or a later date 

of our choice (except that check transactions are added as of the date 

deposited by the payee or a later date of our choice). Fees are added 

either on the date of a related transaction, the date they are posted to 

your account, or the last day of the billing cycle. This gives us that day’s 

daily balance. A credit balance is treated as a balance of zero. If a daily 

periodic rate applies to any feature we multiply the daily balance by the 

daily periodic rate to get your periodic interest charges for that day. We 

then add these periodic interest charges to your daily balance to get the 

beginning balance for the next day. (If more than one daily periodic rate 

could apply based on the average daily balance, we will use the daily 

periodic rate that applies for the average daily balance amount at the end 

of the billing cycle to calculate the daily periodic interest charges each 

day.) If this statement shows a previous cycle average daily balance for 

purchases, we do the same thing for each day of the previous cycle to 

get the daily balance of purchases for the previous billing cycle. However, 

the daily balance for previous billing cycle purchases is considered to be 

zero for each day of the previous billing cycle if a periodic interest charge 

was already billed on purchases itemized on your previous statement or 

we receive payment of your New Balance on your previous statement in 

full by the date and time your payment was due. 

To get your total periodic interest charge for a billing cycle when a daily 

periodic rate(s) applies, we add all of the daily periodic interest charges 

for all features. To determine an average daily balance, we add your 

daily balances and divide by the number of the days in the applicable 

billing cycle(s). If you multiply the average daily balance for each feature 

by the applicable daily periodic rate, and then multiply each of these 

results by the number of days in the applicable billing cycle(s), and 

then add all of the results together, the total will also equal the periodic 

interest charges for the billing cycles except for minor variations due to 

rounding. To get your total periodic interest charge for a billing cycle when 

a monthly periodic rate(s) applies, multiply the average daily balance for 

each feature by the applicable monthly periodic rate and add the results 

together. The total will equal the periodic interest charges for the billing 

cycle, except for minor variations due to rounding. 

Account Renewal Information for Open Accounts 

If your account has an Annual Fee and it is billed on this Statement, we 

will reverse the fee if you cancel your account and pay off any existing 

Balance within 30 days of receipt of this Statement. Otherwise, the 

Annual Fee is non-refundable. You may continue to use your account 

during the 30-day period before you cancel. To cancel, write us at the 

Billing Inquiries address or call us at the phone number on the front. 

Your Liability 

Our records show that you are liable for any outstanding balance on 

this account if your name appears on the front of this statement or you 

otherwise agreed. 

Report a Lost or Stolen Card Immediately 

Call the 24-hour toll free number 1.800.555.6666. Do not use your 

account after you report a lost or stolen card. 

Cardholder Security PlanTM/Payment Protection Plan 

If you have questions about your enrollment or need to file for 

benefits, please call the applicable toll free number below 

(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time): 

Cardholder Security Plan-1.888.668.6938; Payment Protection 

Plan-1.888.838.0056. 

Service for International Calling 

Dial the AT&T Direct access code for the country you are in 

and dial 1.888.801.3723. For a list of access codes visit 

www.artesian.com and select Credit Cards. You may also call 

us collect at 1.757.677.4701. 

Service for Hearing-Impaired (TTY/TDD) 

Contact our service for the hearing-impaired at 1.800.222.7365. 

Pay on-line at www.artesian.com or mail your payment to: 

Artesian Bank, PO BOX 5147, SIOUX FALLS, SD 57117-5147. 

BILLING RIGHTS SUMMARY 

STATEMENT DISCLOSURE: 

In Case of Error or Billing Inquiries 

If you think your bill is wrong, or if you need more information about a 

transaction on your bill, you must write to us (on a separate sheet) at PO 

BOX 1390, Norfolk, VA 23501-1390 as soon as possible to preserve your 

rights. We must hear from you no later than 60 days after we sent you the 

first bill on which the error or problem appeared. In your letter, give us the 

following information: 

- Your name and account number 

- The dollar amount of the suspected error 

-	 Describe the error and explain, if you can, why you believe there 

is an error 

You do not have to pay any amount in question while we are investigating, 

but you are still obligated to pay the parts of your bill that are not in question. 

While we investigate your questions, we cannot report you as delinquent or 

take any action to collect the amount you question. 

Special Rate for Credit Card Purchases 

If you have a problem with the quality of goods 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 not have to pay the remaining 

amount due on the goods or services. You have this protection only when 

the purchase price was more than $50 and the purchase was made in 

your home state or within 100 miles of your mailing address (if we own 

or operate the merchant, or if we mailed you the advertisement for the 

property or service, all purchases are covered regardless of the amount 

or location of purchase). 

IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY


FEDERAL LAW TO BE DISCLOSED TO YOU


WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED 

PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT. 

For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below. 

If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate 

processing. 

Address 

City 	 State Zip 

Home Phone 	 Work Phone 

 E-mail Address 

By providing us with your e-mail address, you agree that we may communicate with you by electronic mail. 

Prompt Crediting of Payments 

We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later 

than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All 

payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post 

Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only. 
Change-in-Terms Notices 


Used in


Denver Interviews 


Contents: 


x Model CT-5 (front and back) 


x Model CT-6 (front and back) 


x Model CT-7


x Model CT-8 


Note: Model CT-7 and Model CT-8 are summary inserts that were 

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&7
PAT SMITH Regarding your 

135 WILDELAKE DRIVE account ending 

DENVER, CO 80010 in 3456 

Summary of Changes to your


Artesian Bank Credit Card Account


The notice enclosed in this envelope informs you of changes that are being made to the 

terms of your Artesian Bank credit card account. These changes will be effective for 

billing periods ending after April 1, 2007. 

This sheet contains a summary of changes to key terms of your Account. You have the 

right to reject these changes as described in the enclosed notice. For a more detailed 

description of these changes, or for a list of any additional account changes that are not 

included on this sheet, please refer to the notice enclosed with this summary. 
Cognitive Interviews: 


Boston, MA (February 2007) 

Solicitation Letter 


Used in


Boston Interviews 


Contents: 


x Model SL-5 (front and back) 

0% Introductory APR 

for Balance Transfers 

(until December 2007, then 15.99%1

) 

You’re Invited to Apply! 

Dear Potential Customer: 

,I\RXU37R'R ́OLVWLVRXWRIFRQWUROPD\EHLW¶VWLPHWRVLPSOLI\\RXU¿QDQFHV<RX¶YHEHHQDYDOXHGFXVWRPHUDQGZH¶G

OLNHWRVD\WKDQNVE\RIIHULQJ\RXDQ$UWHVLDQ%DQN9LVD3ODWLQXP&DUGZLWKDLQWURGXFWRU\$35IRUEDODQFHWUDQVIHUV

Just go to ZZZP\QHZFDUGFRPRUFDOOXVDW2\RX¶UHLQYLWHGWRDSSO\3OXV\RXUQHZFDUGLQFOXGHV

9 0% introductory APR for balance transfers 9 Total Security Protection® package2

QRWSXUFKDVHVRUFDVKDGYDQFHV =HUROLDELOLW\IRUXQDXWKRUL]HGFDUGWUDQVDFWLRQVWKDW

9 Credit LineXSWR DUHUHSRUWHGSURPSWO\ 3IUDXGPRQLWRULQJDQG

9 Overdraft Protection228VH\RXUFDUGDV2'3 SULYDF\IHDWXUHV

on your Artesian Bank checking account 

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WRGD\<RXUQHZ3ODWLQXP&DUGLVZDLWLQJIRU<RX

Sincerely, 

.HUU\(+\YDULQHQ

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Acceptance Certificate 








$872

6&+',*,7 Initial Credit:8SWR

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Phone: Artesian Bank 

32%R[ Web:ZZZP\QHZFDUGFRP

7KRUQYLOOH)/

Step 1 YES! I’d like to receive the Complimentary Companion Mini Card. 

GROSS YEARLY HOUSEHOLD INCOME† 

SOCIAL SECURITY NUMBER 

SELF-EMPLOYED $ , 

Please check here if you would like 

overdraft protection 

Complete with your checking account number below Overdraft protection is only available if you provide a valid 

Artesian Bank checking account. 

DATE OF BIRTH HOME TELEPHONE 

MOTHER’S MAIDEN NAME E-MAIL ADDRESS (OPTIONAL) 

WORK TELEPHONE 

By signing below, you agree to the authorizations, terms and conditions on the 

enclosed insert. 

APPLICANT SIGNATURE 

x SIGN HERE PRINT NAME OF AUTHORIZED USER (FIRST NAME, MIDDLE INTIAL, LAST NAME) 

PAYEE 

PAYEE 

EXACT AMOUNT TO BE TRANSFERRED 

EXACT AMOUNT TO BE TRANSFERRED 

$ , 

$ , 

ACCOUNT NUMBER 

ACCOUNT NUMBER 

Balance transfer requests will be processed in the order above. Each balance transfer request must be at least $100. Allow 3-4 weeks to process. Please see the enclosed insert for Fee and Rate Information. 

1

Income from alimony child support, or separate maintenance payment need not be revealed if you do not wish us to consider it as a basis for repayment. Minimun annual income of $9,000 ($14,000 in California) 

Step 2 

Step 3 

Step 4 

Save Today on Balance Transfers with a 0% Introductory APR 

    

REQUEST AN ADDITIONAL CARD (Print the name of the person who is authorized to 

use your account.) 

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6/
,331

Your Artesian Bank Visa® Platinum comes with 

everything you expect in a premium credit card: 

Platinum


Services


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To request your Artesian Bank Visa®3ODWLQXP&DUG

0DLO<RXU Visit Call 

$FFHSWDQFH&HUWLÀFDWH ZZZP\QHZFDUGFRP QXPEHUSULQWHGRQ

front of the letter 

Mini Card, U,S, Pat. 6,471,127B2 

Credit subject to approval.


Credit cards issued by Artesian Bank 86$

© 2006


5HF\FOHG3DSHU
Solicitation and Application Disclosures 


(“Schumer Boxes”) 


Used in


Boston Interviews 


Contents: 

x Model SB-10P (front and back) 

x Model SB-10SP (front and back) 

x Model SB-10A1 

x Model SB-10A2 

x Model SB-10B1 

x Model SB-10B2 

x Model SB-10C1 

x Model SB-10C2 

x Model SB-10D1 

x Model SB-10D2
Important Information About Your Artesian Bank Credit Card Account

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) 

for Purchases 8.99% to 19.99%, based on your creditworthiness. Your initial 

APR will be within this range based on current rates. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance Transfers 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and then 

make purchases using this card, we will apply your payment first to your 

transferred balances during the promotional period. You will be charged 

interest on the full amount of your purchases during this period until your 

transferred balances have been paid off completely. 

APR for Cash Advances 21.99% currently. 

This APR will vary with the market based on the Prime Rate, but will not 

go below 16.99% or above 25.99%. Cash advance fees will also apply. 

Penalty APR and When It Applies 34.99% 

All of your APRs (including introductory APRs) may increase up to this 

rate if: 

• You make a late payment; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do any of the above on another account that you have with us. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $0.50. 

Grace Period on Purchases If you pay your balance in full each month, you have at least 25 days after 

the close of each period to pay your balance on purchases with no interest 

charge. If you do not pay your balance in full each month, you will lose this 

interest-free period and will pay interest on purchases. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign Transaction 

Either $5 or 3% of the amount of each transfer, whichever is greater 

(maximum fee: $100) 

Either $5 or 3% of the amount of each cash advance, whichever is greater 

2% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit Limit 

x Returned Payment 

$29 if balance is less than or equal to $1,000; 

$35 if balance is more than $1,000 (Penalty APR may also apply) 

$29 (Penalty APR may also apply) 

$35 (Penalty APR may also apply) 

Other Fees 

x Required Payment Suspension 

Plan 

$0.79 per $100 of balance at the end of each statement period up to a 

balance of $10,000. See back for details. 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including 

new purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10P 
Overdraft Protection 

If you link your Artesian Bank checking account to your credit card for Overdraft 

Protection, we will automatically transfer funds in multiples of $100 ($25 if you 

opened your checking account in Washington or Idaho) from your credit card 

account to cover any overdraft on your checking account, as long as your credit 

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Cardholder Agreement. A fee of 3% of the amount transferred ($10 minimum) 

will apply and the cash advance will accrue interest at the APR stated in your 

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Linking Overdraft Protection from your Artesian Bank checking account to your 

credit card will end any Overdraft Protection connections to your Artesian Bank 

savings account. Please see your Cardholder Agreement for additional details. 

State Law Disclosures 

Notice to New York State Residents: &RQVXPHUUHSRUWV PD\ EHUHTXHVWHG LQ Commission administers compliance with this law. Notice to Married Wisconsin 

connection with the processing of your application and any resulting account. Upon Residents: No agreement, individual statement, or court order applying to marital 

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agencies which have provided us with such reports. Notice to Ohio Residents: time credit is extended, is furnished with a copy of the agreement, statement, or 

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Billing Rights Summary 

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amount. In either case, we will send you a statement of the amount you owe and 

the date that it is due. 

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within ten days telling us that you still refuse to pay, we must tell anyone we report 

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anyone we reported you to. We must tell anyone we report you to that the matter 

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merchant, you may not have to pay the remaining amount due on the property or 

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a. You must have made the purchase in your home state or, if not within your home 

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you the advertisement for the property or services. 

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transaction category to get the total Periodic Interest Charges for your Account. 

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statement, unless we already imposed Periodic Interest Charges on the purchases 

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made that day, fees charged that day and Periodic Interest Charges accrued on the 

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Balance Transfer 

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to your new Visa Platinum Card account, you may lose certain dispute rights. By ZLOOEHSURFHVVHGLQWKHRUGHUOLVWHGRQWKH%DODQFH7UDQVIHUIRUP:HZLOOPDNH

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promotional offers (which are normally at a lower interest rate). Prior to any existing WKDQRQHDFFRXQW,QWHUHVWFKDUJHVLIDQGZKHUHDSSOLFDEOHZLOOEHJLQRQWKHGDWH

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Payment Suspension Plan® Terms and Conditions 

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Bank credit card account. 

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Outstanding Balance on the Date of Loss or $10,000, whichever is less. 

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additional details. 

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on your statement, there is no charge for the Plan. 

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refer to the Addendum to the Cardholder Agreement for a full explanation of all 

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due on the Protected Account. 

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©2006 Artesian Bank Recycled Paper 
Important Information About Your Artesian Bank Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) 

for Purchases 

8.99% to 19.99%, based on your creditworthiness. Your initial 

APR will be within this range based on current rates. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance Transfers 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and then 

make purchases using this card, we will apply your payment first to your 

transferred balances during the promotional period. You will be charged 

interest on the full amount of your purchases during this period until your 

transferred balances have been paid off completely. 

APR for Cash Advances 21.99% currently. 

This APR will vary with the market based on the Prime Rate, but will not 

go below 16.99% or above 25.99%. Cash advance fees will also apply. 

Penalty APR and When It Applies 34.99% 

All of your APRs (including introductory APRs) may increase up to this 

rate if: 

• You make a late payment; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do any of the above on another account that you have with us. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $0.50. 

Interest-Free Period on 

Purchases 

If you pay your balance in full each month, you have at least 25 days after 

the close of each period to pay your balance on purchases with no interest 

charge. If you do not pay your balance in full each month, you will lose this 

interest-free period and will pay interest on purchases. 

Fees 

Set-up and Maintenance Fees 

NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will 

reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of 

$250, your initial available credit will be only $72 (or $52 if you choose to have an additional card). 

x Annual Fee $48 

x Account Set-up Fee $29 (one-time fee) 

x Program Fee $95 (one-time fee) 

x Participation Fee $72 annually ($6 per month) 

x Additional Card Fee $20 annually (if applicable) 

x Account Maintenance Fee $3 per month (on closed accounts with an outstanding balance of $20 or 

more) 

Transaction Fees 

x Balance Transfer Either $5 or 3% of the amount of each transfer, whichever is greater 

(maximum fee: $100) 

x Cash Advance Either $5 or 3% of the amount of each cash advance, whichever is greater 

x Foreign Transaction 2% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment $29 if balance is less than or equal to $1,000; 

$35 if balance is more than $1,000 (Penalty APR may also apply) 

x Over-the-Credit Limit $29 (Penalty APR may also apply) 

x Returned Payment $35 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including 

new purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10SP 
Overdraft Protection 

If you link your Artesian Bank checking account to your credit card for Overdraft 

Protection, we will automatically transfer funds in multiples of $100 ($25 if you 

opened your checking account in Washington or Idaho) from your credit card 

account to cover any overdraft on your checking account, as long as your credit 

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Cardholder Agreement. A fee of 3% of the amount transferred ($10 minimum) 

will apply and the cash advance will accrue interest at the APR stated in your 

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Linking Overdraft Protection from your Artesian Bank checking account to your 

credit card will end any Overdraft Protection connections to your Artesian Bank 

savings account. Please see your Cardholder Agreement for additional details. 

State Law Disclosures 

Notice to New York State Residents: &RQVXPHUUHSRUWV PD\ EHUHTXHVWHG LQ Commission administers compliance with this law. Notice to Married Wisconsin 

connection with the processing of your application and any resulting account. Upon Residents: No agreement, individual statement, or court order applying to marital 

UHTXHVWZHZLOOLQIRUP\RXRIWKHQDPHVDQGDGGUHVVHVRIDQ\FRQVXPHUUHSRUWLQJ property will adversely affect the creditor’s interest unless the creditor, prior to the 

agencies which have provided us with such reports. Notice to Ohio Residents: time credit is extended, is furnished with a copy of the agreement, statement, or 

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DYDLODEOHWRDOOFUHGLWZRUWK\FXVWRPHUVDQGWKDWFUHGLWUHSRUWLQJDJHQFLHVPDLQWDLQ creditor is incurred. Notice to California Residents: Regardless of your marital 

VHSDUDWHFUHGLWKLVWRULHVRQHDFKLQGLYLGXDOXSRQUHTXHVW7KH2KLR&LYLO5LJKWV status, you may apply for credit in your name alone. 

Billing Rights Summary 

Notify Us in Case of Errors or Questions About Your Bill 

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In your letter, give us the following information: 

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savings or checking account, you can stop the payment on any amount you think is 

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the automatic payment is scheduled to occur. 

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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 

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within ten days telling us that you still refuse to pay, we must tell anyone we report 

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anyone we reported you to. We must tell anyone we report you to that the matter 

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Special Rules for Credit Card Purchases 

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merchant, you may not have to pay the remaining amount due on the property or 

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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 

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you the advertisement for the property or services. 

Periodic Interest Calculation 

We compute Periodic Interest Charges each day for purchases, cash advances, 

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transaction category to get the total Periodic Interest Charges for your Account. 

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statement, unless we already imposed Periodic Interest Charges on the purchases 

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made that day, fees charged that day and Periodic Interest Charges accrued on the 

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Balance Transfer 

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©2006 Artesian Bank Recycled Paper 
Important Information About Your Artesian Bank Credit Card Account

Interest Rates And Interest Charges 

Annual Percentage 

Rate (APR) for 

Purchases 

8.99% to 19.99%, based on your creditworthiness. Your initial APR will 

be within this range based on current rates. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance 

Transfers 

0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and then make 

purchases using this card, we will apply your payment first to your transferred 

balances during the promotional period. You will be charged interest on the full 

amount of your purchases during this period until your transferred balances have 

been paid off completely. 

APR for Cash 

Advances 

20.99% currently. 

This APR will vary with the market based on the Prime Rate. Cash advance fees will 

also apply. 

Penalty APR and 

When It Applies 

36.99% 

All of your APRs (including introductory APRs) may increase up to this rate if: 

• You make a late payment; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do any of the above on another account that you have with us. 

Minimum Interest 

Charge 

If you are charged interest, this charge will be no less than $0.75. 

Grace Period on 

Purchases 

If you pay your balance in full each month, you have at least 28 days after the close of 

each period to pay your balance on purchases with no interest charge. If you do not pay 

your balance in full each month, you will lose this interest-free period and will pay 

interest on purchases. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign Transaction 

Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee: 

$80) 

Either $5 or 3% of the amount of each cash advance, whichever is greater 

1% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit Limit 

x Returned Payment 

$26 if balance is less than or equal to $1,000; 

$32 if balance is more than $1,000 (Penalty APR may also apply) 

$25 (Penalty APR may also apply) 

$25 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including 

new purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10A1 
Important Information About Your Artesian Bank Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) for 

Purchases 14.99% 

APR for Balance Transfers 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR 

and then make purchases using this card, we will apply your 

payment first to your transferred balances during the 

promotional period. You will be charged interest on the full 

amount of your purchases during this period until your 

transferred balances have been paid off completely. 

APR for Cash Advances 21.99% currently. 

This APR will vary with the market based on the Prime Rate, 

but will go not go below 14.99% or 34.99%. Cash advance 

fees will also apply. 

Penalty APR and When It Applies 36.99% 

All of your APRs (including introductory APRs) may increase 

up to this rate if: 

• You make a late payment; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do any of the above on another account that you have 

with us. 

Minimum Interest Charge If you are charged interest, this charge will be no less than 

$0.50. 

Grace Period on Purchases If you pay your balance in full each month, you have at least 26 

days after the close of each period to pay your balance on 

purchases with no interest charge. If you do not pay your 

balance in full each month, you will lose this interest-free period 

and will pay interest on purchases. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign Transaction 

Either $5 or 3% of the amount of each transfer, whichever is 

greater (maximum fee: $80) 

Either $5 or 3% of the amount of each cash advance, whichever 

is greater 

1% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit Limit 

x Returned Payment 

$27 if balance is less than or equal to $1,000; 

$33 if balance is more than $1,000 (Penalty APR may also 

apply) 

$27 (Penalty APR may also apply) 

$27 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including 

new purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10A2 
Important Information About Your Artesian Bank Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage 

Rate (APR) for 

Purchases 

12.99% currently. 

This APR will vary with the market based on the Prime Rate. 

APR for Balance 

Transfers

 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and then make 

purchases using this card, we will apply your payment first to your transferred 

balances during the promotional period. You will be charged interest on the full 

amount of your purchases during this period until your transferred balances have 

been paid off completely. 

APR for Cash 

Advances 

21.99% currently. 

This APR will vary with the market based on the Prime Rate. Cash advance fees 

will also apply. 

Penalty APR and 

When It Applies 

27.99% 

All of your APRs (including introductory APRs) may increase up to this rate if: 

• You exceed your credit limit; 

• You pay late; 

• You make a payment that is returned; or 

• You do any of the above on another account that you have with us. 

Minimum Interest 

Charge 

If you are charged interest, this charge will be no less than $0.50. 

Grace Period on 

Purchases 

If you pay your balance in full each month, you have at least 25 days after the 

close of each period to pay your balance on purchases with no interest charge. If 

you do not pay your balance in full each month, you will lose this interest-free 

period and will pay interest on purchases. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign 

Transaction 

Either $10 or 5% of the amount of each transfer, whichever is greater (maximum 

fee: $150) 

Either $10 or 5% of the amount of each cash advance, whichever is greater 

2% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit 

Limit 

x Returned Payment 

$21 (Penalty APR may also apply) 

$21 (Penalty APR may also apply) 

$21 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "average daily balance (including new 

purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10B1 
Important Information About Your Artesian Bank Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) for Purchases 12.99% currently. 

This APR will vary with the market based on the 

Prime Rate. 

APR for Balance Transfers 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low 

introductory APR and then make purchases using 

this card, we will apply your payment first to your 

transferred balances during the promotional period. 

You will be charged interest on the full amount of 

your purchases during this period until your 

transferred balances have been paid off 

completely. 

APR for Cash Advances 21.99% currently. 

This APR will vary with the market based on the 

Prime Rate. Cash advance fees will also apply. 

Penalty APR and When It Applies 34.99% 

All of your APRs (including introductory APRs) may 

increase up to this rate if: 

• You pay late; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do any of the above on another account that 

you have with us. 

Minimum Interest Charge If you are charged interest, this charge will be no less 

than $0.65. 

Grace Period on Purchases If you pay your balance in full each month, you have 

at least 26 days after the close of each period to pay 

your balance on purchases with no interest charge. If 

you do not pay your balance in full each month, you 

will lose this interest-free period and will pay interest 

on purchases. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign Transaction 

Either $10 or 5% of the amount of each transfer, 

whichever is greater (maximum fee: $150) 

Either $10 or 5% of the amount of each cash 

advance, whichever is greater 

2% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit Limit 

x Returned Payment 

$21 (Penalty APR may also apply) 

$19 (Penalty APR may also apply) 

$19 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "average daily balance (including new 

purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10B2 
Important Information About Your Artesian Bank Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) for 

Purchases 8.99% to 19.99%, based on your creditworthiness. Your initial APR will be within this range based on current rates. 

After that, your APR will vary with the market based on the Prime 

Rate. 

APR for Balance Transfers 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and 

then make purchases using this card, we will apply your payment 

first to your transferred balances during the promotional period. 

You will be charged interest on the full amount of your purchases 

during this period until your transferred balances have been paid 

off completely. 

APR for Cash Advances 20.99% currently. 

This APR will vary with the market based on the Prime Rate. Cash 

advance fees will also apply. 

Penalty APR and When It Applies 32.99% 

All of your APRs (including introductory APRs) may increase up to 

this rate if: 

• You make a late payment; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do any of the above on another account that you have with 

us. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $0.50. 

Grace Period on Purchases If you pay your balance in full each month, you have at least 26 days 

after the close of each period to pay your balance on purchases with 

no interest charge. If you do not pay your balance in full each month, 

you will lose this interest-free period and will pay interest on 

purchases. 

Fees 

Annual Fee $10 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign Transaction 

Either $5 or 3% of the amount of each transfer, whichever is greater 

(maximum fee: $100) 

Either $5 or 3% of the amount of each cash advance, whichever is 

greater 

2% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit Limit 

x Returned Payment 

$29 if balance is less than or equal to $1,000; 

$35 if balance is more than $1,000 (Penalty APR may also apply) 

$29 (Penalty APR may also apply) 

$35 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "average daily balance (including new 

purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10C1 
Important Information About Your Artesian Bank Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) 

for Purchases 7.99% to 18.99%, based on your creditworthiness. Your initial 

APR will be within this range based on current rates. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance Transfers 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and then 

make purchases using this card, we will apply your payment first to your 

transferred balances during the promotional period. You will be charged 

interest on the full amount of your purchases during this period until your 

transferred balances have been paid off completely. 

APR for Cash Advances 19.99% currently. 

This APR will vary with the market based on the Prime Rate. Cash 

advance fees will also apply. 

Penalty APR and When It Applies 30.99% 

All of your APRs (including introductory APRs) may increase up to this 

rate if: 

• You make a late payment; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do any of the above on another account that you have with us. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $0.50. 

Interest-Free Period on 

Purchases 

If you pay your balance in full each month, you have at least 25 days after 

the close of each period to pay your balance on purchases with no interest 

charge. If you do not pay your balance in full each month, you will lose this 

interest-free period and will pay interest on purchases. 

Fees 

Set-up and Maintenance Fees 

NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will 

reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of 

$250, your initial available credit will be only $72 (or $52 if you choose to have an additional card). 

x Annual Fee $29 

x Account Set-up Fee $29 (one-time fee) 

x Program Fee $89 (one-time fee) 

x Participation Fee $36 annually ($3 per month) 

x Additional Card Fee $20 annually (if applicable) 

x Account Maintenance Fee $4 per month (on closed accounts with an outstanding balance of $20 or 

more) 

Transaction Fees 

x Balance Transfer Either $5 or 3% of the amount of each transfer, whichever is greater 

(maximum fee: $100) 

x Cash Advance Either $5 or 3% of the amount of each cash advance, whichever is greater 

x Foreign Transaction 2% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment $29 if balance is less than or equal to $1,000; 

$35 if balance is more than $1,000 (Penalty APR may also apply) 

x Over-the-Credit Limit $29 (Penalty APR may also apply) 

x Returned Payment $35 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including 

new purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10C2 
Important Information About Your Artesian Bank Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) 

for Purchases 7.99% to 18.99%, based on your creditworthiness. Your initial 

APR will be within this range based on current rates. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance Transfers 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and then 

make purchases using this card, we will apply your payment first to your 

transferred balances during the promotional period. You will be charged 

interest on the full amount of your purchases during this period until your 

transferred balances have been paid off completely. 

APR for Cash Advances 21.99% currently. 

This APR will vary with the market based on the Prime Rate. Cash 

advance fees will also apply. 

Penalty APR and When It Applies 35.99% 

All of your APRs (including introductory APRs) may increase up to this 

rate if you do any of the following twice in a six-month period: 

• You make a late payment; 

• You make a payment that is returned; or 

• You do either of the above on another account that you have with us. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $1.00. 

Grace Period on Purchases If you pay your balance in full each month, you have at least 26 days after 

the close of each period to pay your balance on purchases with no interest 

charge. If you do not pay your balance in full each month, you will lose this 

interest-free period and will pay interest on purchases. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign Transaction 

Either $10 or 5% of the amount of each transfer, whichever is greater 

(maximum fee: $200) 

Either $10 or 5% of the amount of each cash advance, whichever is greater 

2% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit Limit 

x Returned Payment 

$30 if balance is less than or equal to $1,000; 

$36 if balance is more than $1,000 (Penalty APR may also apply) 

$30 (Penalty APR may also apply) 

$30 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "average daily balance (including new 

purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10D1 
 And Interest Charges

Important Information About Your Artesian Bank Credit Card Account 

Interest Rates 

Annual Percentage Rate 

(APR) for Purchases 

7.99% to 18.99%, based on your creditworthiness. Your initial APR will be within this 

range based on current rates. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance 

Transfers

 0.00% (until December 2007) 

15.99% (after December 2007) 

Balance transfer fees will also apply. 

NOTICE: If you transfer balances at our low introductory APR and then make purchases using 

this card, we will apply your payment first to your transferred balances during the promotional 

period. You will be charged interest on the full amount of your purchases during this period until 

your transferred balances have been paid off completely. 

APR for Cash Advances 21.99% currently. 

This APR will vary with the market based on the Prime Rate. Cash advance fees will also apply. 

Penalty APR and When It 

Applies 

35.99% 

All of your APRs (including introductory APRs) may increase up to this rate if you do any of the 

following: 

• You make a late payment; 

• You exceed your credit limit; 

• You make a payment that is returned; or 

• You do either of the above on another account that you have with us. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $1.00. 

Grace Period on 

Purchases 

If you pay your balance in full each month, you have at least 26 days after the close of each period to 

pay your balance on purchases with no interest charge. If you do not pay your balance in full each 

month, you will lose this interest-free period and will pay interest on purchases. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer 

x Cash Advance 

x Foreign Transaction 

Either $10 or 5% of the amount of each transfer, whichever is greater (maximum fee: $200) 

Either $10 or 5% of the amount of each cash advance, whichever is greater 

1% of transaction in U.S. dollars 

Penalty Fees 

x Late Payment 

x Over-the-Credit Limit 

x Returned Payment 

$30 if balance is less than or equal to $1,000; 

$36 if balance is more than $1,000 (Penalty APR may also apply) 

$28 (Penalty APR may also apply) 

$28 (Penalty APR may also apply) 

How We Will Calculate Your Balance: We use a method called "average daily balance (including new 

purchases)." For more information about this method, go to http://www.federalreserve.gov/location. 

SB-10D2 
Periodic Statements 


Used in


Boston Interviews


Contents: 


x Model PS-9 (pages 1 and 2) 


x Model PS-10 (pages 1 and 2) 


x Back of periodic statement pages 

 

 

 

 

 

 

 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $2,000.00 

Available Credit as of 2/7/07 $215.47 

New Balance $1,784.53 

Payment Due Date 2/22/07 (before 12:00 noon) 

Minimum Amount Due = $48.00 (see warning below) 

WARNING ABOUT MINIMUM PAYMENTS: Given the 

current APRs and balances on this account, if you made 

only the minimum payment each month it would take you 

about 15 years to repay your balances in full. 

TRANSACTIONS 

Page 1 of 2 

QUESTIONS?

 Call Customer Service 1-800-987-5521

 Lost or Stolen Credit Card 1-800-987-5521

 Please send billing inquiries and correspondence to:

 PO BOX 5524, NEWARK, DE 19711 

For prompt credit, mail payments to: 

PO BOX 5147 

NEWARK, DE 19711 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

***NOTICE OF CHANGES TO INTEREST RATES*** 

You have triggered the Penalty APR of 34.99%. Beginning on the first day of your next billing period, we 

will apply the penalty rate to all balances on this account. Your APRs will automatically revert back to the 

standard APRs if you make 6 consecutive minimum payments when due and you do not exceed your 

credit limit during that time. For more information on penalty rate triggers, see your cardholder agreement 

and summary. 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

1/8 1/9 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

1/9 1/9 9525156489SFD4545Q LATE FEE $35.00 

1/9 1/10 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

1/9 1/10 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

1/11 1/11 854338203FS8OO0Z5 PYMT THANK YOU $450.00– 

1/11 1/12 554328608008W90M0 EASY SAVER 877-844-9564 PA $114.95 

1/12 1/12 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $121.50 

1/12 1/12 56415615647OJSNDS CASH ADVANCE FEE *TRANSACTION FEE* $5.00 

1/13 1/14 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

1/13 1/14 564891561545KOSHD ACME #1456 ATLANTA GA $14.35 

1/13 1/14 841517877845AKOJIO CITGO #1276 DECATUR GA $40.35 

1/13 1/15 4545754784KOHUIOS BALANCE TRANSFER $785.00 

1/13 1/15 84151564SADS8745H BALANCE TRANSFER FEE *TRANSACTION FEE* $23.55 

1/14 1/15 895848561561894KOH SAVE-A-LOT GROCERY #287 ATLANTA GA $27.68 

1/14 1/15 1871556189456SAMKL BEST BUY ATLANTA GA $124.76 

1/14 1/15 14547847586KDDL564 BESTBANK/ACCESS CASH DECATUR GA $196.50 

1/14 1/15 256489156189451516L CASH ADVANCE FEE *TRANSACTION FEE* $5.90 

1/15 1/16 2564894185189LKDFID SHELL OIL #8765 ATHENS GA $32.87 

1/17 1/18 2564561023184102315 ECKERD DRUGS #2708 ATLANTA GA $14.76 

1/18 1/19 55542818705RASD0X WALMART #2998 ATHENS GA $3.76 

1/18 1/19 289189194ASDS8744 MACYS #78 DECATUR GA $13.45 

1/18 1/19 178105417841045784 CITGO FOOD MART #74 ATLANTA GA $2.35 

1/19 1/20 8456152156181SDSA SHELL OIL #8765 ATHENS GA $25.00 

(transactions continued on next page) 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,784.53 

PAYMENT INFORMATION 

Minimum Amount Due = $48.00 

Payment Due Date 2/22/07 (before 12:00 noon) 

Please indicate address change and additional 


cardholder requests on the reverse side.


Artesian Bank 

P.O. Box 5147


Newark, DE 19711


WARNING ABOUT LATE PAYMENT: If the minimum 

required payment is not paid by the due date listed on this 

statement, you may be subject to a $35 late fee and your 

APRs may be increased up to the Penalty APR of 34.99%. 

AMOUNT ENCLOSED: $ 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-9

35806 
CREDIT CARD ACCOUNT # 1234567890123456 

Artesian

Bank

Artesian Bank Page 2 of 2

TRANSACTIONS 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

1/19 1/20 31289105205648AWD EASY SAVER 877-844-9564 PA $7.34 

1/20 1/21 045148714518979874 MACYS #78 DECATUR GA $13.45– 

1/23 1/24 04518478415615ASD SAVE-A-LOT GROCERY #287 ATLANTA GA $10.56 

1/24 1/25 0547810544898718AF SHELL OIL #8765 ATHENS GA $24.50 

1/25 1/26 056489413216848OP WALMART #2998 ATHENS GA $8.76 

1/25 1/26 054894561564ASDW ACME #1456 ATLANTA GA $14.23 

1/27 1/28 5648974891AD98156 MACYS #78 DECATUR GA $23.76 

INTEREST CHARGE ON PURCHASES $6.31 

INTEREST CHARGE ON CASH ADVANCES $4.58 

TOTAL FEES FOR THIS PERIOD: $69.45 

INTEREST CHARGE FOR THIS PERIOD: $10.89 

2007 TOTALS YEAR-TO-DATE

 FEES CHARGED $74.40 

INTEREST CHARGED $13.12 

INTEREST CHARGE CALCULATION


Your Annual Percentage Rate (APR) is the annual interest rate on your account.


Type of Balance 

Annual Percentage 

Rate (APR) 

Daily 

Interest Rate 

Balance Subject to 

Interest Rate Interest Charge 

Purchases 

Cash Advances 

Balance Transfers 

14.99% (v) 

21.99% (v) 

0.00% 

0.0411% 

0.0602% 

0.0000% 

$512.14 

$253.50 

$637.50 

$6.31 

$4.58 

$0.00 

(v) = Variable Rate 

EFFECTIVE APR


Your Effective APR is the rate that includes both interest and transaction fees that you were charged this month.


Type of Balance Interest Charges Transaction Fees Effective APR 

Purchases $6.31 $0.00 14.99% 

Cash Advances $4.58 $10.90 58.42% 

Balance Transfers $0.00 $23.55 36.00% 

SUMMARY OF ACCOUNT ACTIVITY 

Statement Closing Date: 2/7/07 

Days in Billing Cycle: 30 

Previous 

Balance 

Payments and 

Other Credits 

Purchases 

and Advances 

Balance 

Transfers 

Total Fees 

and Interest 

New 

Balance 

$535.07 $463.45 $847.57 $785.00 $80.34 $1,784.53 

Want to receive your billing statement in Spanish? 

Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de 

preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta. 

Fast Online Card Payments with Click-to-Pay 

Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that 

same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu. 

Save Time. Save Paper. Sign up for All Electronic. 

You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when 

your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account. 

Need to add an authorized user to your account? 

Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu 

and select Add Authorized User. Complete the form and submit. It’s that simple! 

PS-9 
 

 

 

 

 

 

 

Artesian

Bank

CREDIT CARD ACCOUNT # 1234567890123456 

Artesian Bank 

ACCOUNT SUMMARY 

Account Number 1234567890123456 

Credit Limit $2,000.00 

Available Credit as of 2/7/07 $215.47 

New Balance $1,784.53 

Payment Due Date 2/22/07 (before 12:00 noon) 

Minimum Amount Due = $48.00 (see warning below)

WARNING ABOUT MINIMUM PAYMENTS: Given the 

current APRs and balances on this account, if you made 

only the minimum payment each month it would take you 

about 15 years to repay your balances in full. 

Page 1 of 2 

QUESTIONS?

 Call Customer Service 1-800-987-5521

 Lost or Stolen Credit Card 1-800-987-5521

 Please send billing inquiries and correspondence to:

 PO BOX 5524, NEWARK, DE 19711 

For prompt credit, mail payments to: 

PO BOX 5147 

NEWARK, DE 19711 

Payment sent to any other address may delay crediting your 

account up to 5 days. 

***NOTICE OF CHANGES TO ACCOUNT TERMS*** 

We will be making changes to your account terms. Some of these changes will affect your APR on 

Purchases and your Late Fee. These changes will be effective April 1, 2007. You have the right to 

opt out of these changes; for more information please refer to the notice enclosed with this statement. 

TRANSACTIONS 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

PAYMENTS AND OTHER CREDITS 

1/11 1/11 854338203FS8OO0Z5 PYMT THANK YOU $450.00– 

1/20 1/21 045148714518979874 MACYS #78 DECATUR GA $13.45– 

PURCHASES 

1/8 1/9 5884186PS0388W6YM CITGO FOOD MART #74 ATLANTA GA $2.05 

1/9 1/10 0544400060ZLV72VL CVS PHARMACY #7338 003 ATLANTA GA $12.11 

1/9 1/10 55541860705RDYD0X ECKERD DRUGS #2708 ATLANTA GA $4.63 

1/11 1/12 554328608008W90M0 EASY SAVER 877-844-9564 PA $114.95 

1/13 1/14 054830709LYMRPT4L WAYFIELD FOODS #1 S9B ATLANTA GA $7.35 

1/13 1/14 564891561545KOSHD ACME #1456 ATLANTA GA $14.35 

1/13 1/14 841517877845AKOJIO CITGO #1276 DECATUR GA $40.35 

1/14 1/15 895848561561894KOH SAVE-A-LOT GROCERY #287 ATLANTA GA $27.68 

1/14 1/15 1871556189456SAMKL BEST BUY ATLANTA GA $124.76 

1/15 1/16 2564894185189LKDFID SHELL OIL #8765 ATHENS GA $32.87 

1/17 1/18 2564561023184102315 ECKERD DRUGS #2708 ATLANTA GA $14.76 

1/18 1/19 55542818705RASD0X WALMART #2998 ATHENS GA $3.76 

1/18 1/19 289189194ASDS8744 MACYS #78 DECATUR GA $13.45 

1/18 1/19 178105417841045784 CITGO FOOD MART #74 ATLANTA GA $2.35 

1/19 1/20 8456152156181SDSA SHELL OIL #8765 ATHENS GA $25.00 

1/19 1/20 31289105205648AWD EASY SAVER 877-844-9564 PA $7.34 

1/23 1/24 04518478415615ASD SAVE-A-LOT GROCERY #287 ATLANTA GA $10.56 

1/24 1/25 0547810544898718AF SHELL OIL #8765 ATHENS GA $24.50 

1/25 1/26 056489413216848OP WALMART #2998 ATHENS GA $8.76 

1/25 1/26 054894561564ASDW ACME #1456 ATLANTA GA $14.23 

1/27 1/28 5648974891AD98156 MACYS #78 DECATUR GA $23.76 

(transactions continued on next page) 

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234567890123456 

New Balance $1,784.53 

PAYMENT INFORMATION 

Minimum Amount Due


Payment Due Date 2/22/07 (before 12:00 noon)


= $48.00 

Please indicate address change and additional 


cardholder requests on the reverse side.


Artesian Bank 

P.O. Box 5147


Newark, DE 19711


WARNING ABOUT LATE PAYMENT: If the minimum 

required payment is not paid by the due date listed on this 

statement, you may be subject to a $35 late fee and your 

APRs may be increased up to the Penalty APR of 34.99%. 

AMOUNT ENCLOSED: $ 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-10 

35806 
CREDIT CARD ACCOUNT # 1234567890123456 

Artesian

Bank

Artesian Bank Page 2 of 2

TRANSACTIONS 

Trans Date Post Date Reference Number Description of Transaction or Credit Amount 

CASH ADVANCES 

1/12 1/12 1542202074TWWZV48 BESTBANK/ACCESS CASH ATLANTA GA $121.50 

1/14 1/15 14547847586KDDL564 BESTBANK/ACCESS CASH DECATUR GA $196.50 

BALANCE TRANSFERS 

1/13 1/15 4545754784KOHUIOS BALANCE TRANSFER $785.00 

FEES 

1/9 1/9 9525156489SFD4545Q LATE FEE $35.00 

1/12 1/12 56415615647OJSNDS CASH ADVANCE FEE *TRANSACTION FEE* $5.00 

1/13 1/15 84151564SADS8745H BALANCE TRANSFER FEE *TRANSACTION FEE* $23.55 

1/14 1/15 256489156189451516L CASH ADVANCE FEE *TRANSACTION FEE* $5.90 

TOTAL FEES: $69.45 

INTEREST CHARGES 

INTEREST CHARGE ON PURCHASES $6.31 

INTEREST CHARGE ON CASH ADVANCES $4.58 

TOTAL INTEREST: $10.89 

2007 TOTALS YEAR-TO-DATE

 FEES CHARGED $74.40 

INTEREST CHARGED $13.12 

INTEREST CHARGE CALCULATION


Your Annual Percentage Rate (APR) is the annual interest rate on your account.


Annual Percentage Balance Subject to 

Type of Balance Rate (APR) Interest Rate Interest Charge 

Purchases 14.99% (v) $512.14 $6.31 

Cash Advances 21.99% (v) $253.50 $4.58 

Balance Transfers 0.00% $637.50 $0.00 

(v) = Variable Rate 

EFFECTIVE APR


Your Effective APR is the rate that includes both interest and transaction fees that you were charged this month.


Type of Balance Interest Charges Transaction Fees Effective APR 

Purchases $6.31 $0.00 14.99% 

Cash Advances $4.58 $10.90 58.42% 

Balance Transfers $0.00 $23.55 36.00% 

SUMMARY OF ACCOUNT ACTIVITY 

Statement Closing Date: 2/7/07 

Days in Billing Cycle: 30 

Previous 

Balance 

Payments and 

Other Credits 

Purchases 

and Advances 

Balance 

Transfers 

Total Fees 

and Interest 

New 

Balance 

$535.07 $463.45 $847.57 $785.00 $80.34 $1,784.53 

Want to receive your billing statement in Spanish? 

Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de 

preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta. 

Fast Online Card Payments with Click-to-Pay 

Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that 

same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu. 

Save Time. Save Paper. Sign up for All Electronic. 

You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when 

your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account. 

Need to add an authorized user to your account? 

Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu 

and select Add Authorized User. Complete the form and submit. It’s that simple! 

PS-10 
________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________

IMPORTANT INFORMATION ABOUT YOUR ACCOUNT 

Grace Period on New Purchases (at least 25 days) 

You can avoid Interest Charges on new Purchases that posted to this 

statement if your Previous Balance is zero (or a credit balance) and we 

receive full payment of the New Balance by the Payment Due Date. If so, 

you have from the date you made your purchases until the payment Due 

Date on the front to avoid any interest charge on that purchase. If your 

Previous Balance is greater than zero, there is no time period to pay the 

New Balance and avoid additional interest charges. There is no grace 

period for Cash Advances and Balance Transfers. 

Explanation of Interest Charges and Transaction Fees 

We calculate periodic interest charges using the applicable monthly 

periodic rates separately for each feature (e.g., purchases, balance 

transfers, cash advances, promotional balances, or overdraft advances). 

We calculate the monthly periodic rate for each feature by dividing the 

APR for each feature by 12. There is a minimum charge in any billing 

cycle in which you owe any periodic interest charges, and a transaction 

charge for each balance transfer, cash advance, or check transaction, in 

the amounts stated in your Cardmember Agreement, as amended. 

To get the daily balance for each day of the current billing cycle, we 

take the beginning balance for each feature, add any new transactions 

or other debits (including fees, unpaid interest charges and other 

charges), subtract any payments or credits, and make other adjustments. 

Transactions are added as of the transaction date, the beginning of the 

billing cycle in which they are posted to your account, or a later date 

of our choice (except that check transactions are added as of the date 

deposited by the payee or a later date of our choice). Fees are added 

either on the date of a related transaction, the date they are posted to 

your account, or the last day of the billing cycle. This gives us that day’s 

daily balance. A credit balance is treated as a balance of zero. If a daily 

periodic rate applies to any feature we multiply the daily balance by the 

daily periodic rate to get your periodic interest charges for that day. We 

then add these periodic interest charges to your daily balance to get the 

beginning balance for the next day. (If more than one daily periodic rate 

could apply based on the average daily balance, we will use the daily 

periodic rate that applies for the average daily balance amount at the end 

of the billing cycle to calculate the daily periodic interest charges each 

day.) If this statement shows a previous cycle average daily balance for 

purchases, we do the same thing for each day of the previous cycle to 

get the daily balance of purchases for the previous billing cycle. However, 

the daily balance for previous billing cycle purchases is considered to be 

zero for each day of the previous billing cycle if a periodic interest charge 

was already billed on purchases itemized on your previous statement or 

we receive payment of your New Balance on your previous statement in 

full by the date and time your payment was due. 

To get your total periodic interest charge for a billing cycle when a daily 

periodic rate(s) applies, we add all of the daily periodic interest charges 

for all features. To determine an average daily balance, we add your 

daily balances and divide by the number of the days in the applicable 

billing cycle(s). If you multiply the average daily balance for each feature 

by the applicable daily periodic rate, and then multiply each of these 

results by the number of days in the applicable billing cycle(s), and 

then add all of the results together, the total will also equal the periodic 

interest charges for the billing cycles except for minor variations due to 

rounding. To get your total periodic interest charge for a billing cycle when 

a monthly periodic rate(s) applies, multiply the average daily balance for 

each feature by the applicable monthly periodic rate and add the results 

together. The total will equal the periodic interest charges for the billing 

cycle, except for minor variations due to rounding. 

Account Renewal Information for Open Accounts 

If your account has an Annual Fee and it is billed on this Statement, we 

will reverse the fee if you cancel your account and pay off any existing 

Balance within 30 days of receipt of this Statement. Otherwise, the 

Annual Fee is non-refundable. You may continue to use your account 

during the 30-day period before you cancel. To cancel, write us at the 

Billing Inquiries address or call us at the phone number on the front. 

Your Liability 

Our records show that you are liable for any outstanding balance on 

this account if your name appears on the front of this statement or you 

otherwise agreed. 

Report a Lost or Stolen Card Immediately 

Call the 24-hour toll free number 1.800.555.6666. Do not use your 

account after you report a lost or stolen card. 

Cardholder Security PlanTM/Payment Protection Plan 

If you have questions about your enrollment or need to file for 

benefits, please call the applicable toll free number below 

(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time): 

Cardholder Security Plan-1.888.668.6938; Payment Protection 

Plan-1.888.838.0056. 

Service for International Calling 

Dial the AT&T Direct access code for the country you are in 

and dial 1.888.801.3723. For a list of access codes visit 

www.artesian.com and select Credit Cards. You may also call 

us collect at 1.757.677.4701. 

Service for Hearing-Impaired (TTY/TDD) 

Contact our service for the hearing-impaired at 1.800.222.7365. 

Pay on-line at www.artesian.com or mail your payment to: 

Artesian Bank, PO BOX 5147, SIOUX FALLS, SD 57117-5147. 

BILLING RIGHTS SUMMARY 

STATEMENT DISCLOSURE: 

In Case of Error or Billing Inquiries 

If you think your bill is wrong, or if you need more information about a 

transaction on your bill, you must write to us (on a separate sheet) at PO 

BOX 1390, Norfolk, VA 23501-1390 as soon as possible to preserve your 

rights. We must hear from you no later than 60 days after we sent you the 

first bill on which the error or problem appeared. In your letter, give us the 

following information: 

- Your name and account number 

- The dollar amount of the suspected error 

-	 Describe the error and explain, if you can, why you believe there 

is an error 

You do not have to pay any amount in question while we are investigating, 

but you are still obligated to pay the parts of your bill that are not in question. 

While we investigate your questions, we cannot report you as delinquent or 

take any action to collect the amount you question. 

Special Rate for Credit Card Purchases 

If you have a problem with the quality of goods 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 not have to pay the remaining 

amount due on the goods or services. You have this protection only when 

the purchase price was more than $50 and the purchase was made in 

your home state or within 100 miles of your mailing address (if we own 

or operate the merchant, or if we mailed you the advertisement for the 

property or service, all purchases are covered regardless of the amount 

or location of purchase). 

IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY


FEDERAL LAW TO BE DISCLOSED TO YOU


WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED 

PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT. 

For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below. 

If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate 

processing. 

Address 

City 	 State Zip 

Home Phone 	 Work Phone 

 E-mail Address 

By providing us with your e-mail address, you agree that we may communicate with you by electronic mail. 

Prompt Crediting of Payments 

We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later 

than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All 

payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post 

Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only. 
Convenience Checks 


Used in


Boston Interviews 


Contents: 


x Model CC-1 (front and back) 


x Model CC-2 (front and back) 

Let summergo out with a splash 

Make things happen with extra cash! 

This time of year offers 

countless opportunities, so now 

is the time to act! Use these 

checks to take advance of your 

low, promotional 1.7% Annual 

Percentage Rate (APR) through 

your November 2007 statement 

closing date!* 

Use these checks before the 

season fades away! Or contact 

us at www.artesianbank.com or 

1-888-555-2890. 

481 

PAY TO THE 

ORDER OF 

DATE 20 

$ 

62 –16 

311 

DOLLARS 

Wilmington, Delaware 

FOR 

482 

PAY TO THE 

ORDER OF 

DATE 20 

$ 

62 –16 

311 

DOLLARS 

Wilmington, Delaware 

FOR 

483 

DATE 20 62 –16 

311 

PAY TO THE


ORDER OF $


DOLLARS 

Wilmington, Delaware 

FOR 

*See Disclosures on Reverse Side CC-1 
Share your account — not your card! 

Give trusted family members and friends 

charging privileges on your account simply 

by adding them as users. You can add up to 

six people at no extra cost. Each will receive 

a personalized credit card with the same 

H[FHSWLRQDOEHQH¿WVDVWKHFDUG\RXFDUU\$QG

they will have access to the same line of credit. 

All charges are conveniently itemized on one 

monthly statement, so there is just one bill to 

pay. 

Call the toll-free number on the lower right corner of your billing statement to request 


additional cards today! 

§ As the primary cardholder, you are responsible for all acount activity incurred by additional cardholders. X


b

DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE 

 RESERVED FOR FINANCIAL INSTITUTION USE 

b

* Check Cash Advances (i.e., credit card 

access checks) and Balance Transfers are 

processed as Cash Advances according to 

the terms of your Credit Card Agreement 

and are subject to credit availability. For 

your current APR on Cash Advances, 

please refer to your current billing 

statement. The transaction date for 

each Check Cash Advance and Balance 

Transfer made by check is the date you 

or the person to whom the check is 

PDGHSD\DEOH¿UVWGHSRVLWVRUFDVKHV

the check. There is no grace period 

for Cash Advance transactions; interest 

charges accrue from the transaction date. 

The Two-Cycle Average Daily Balance 

method (including new purchases) as 

described in your Credit Card Agreement 

(and on your periodic statement) is used 

to compute your Cash Advance Balance. 

Check Cash Advances and Balance 

Transfers may not be used for repayment 

of any Artesian Bank-issued accounts; use 

of these checks as repayment will result in 

a Returned Payment Fee as described in 

your Credit Card Agreement. 

We will allocate your payment to balances 

(including new transactions) with lower 

APRs before balances with higher APRs. 

If you would like to opt out of receiving 

checks like these in the future, call 1-800­

555-5245. 

This account is issued and administered 

by Artesian Bank. MasterCard and World 

Mastercard are federally registered service 

marks of MasterCard International, Inc., 

and are used pursuant to license. Visa 

is a federally registered service mark of 

Visa U.S.A., Inc., and is used pursuant to 

license. 

b

DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE 

 RESERVED FOR FINANCIAL INSTITUTION USE 

b

X
 X


b

DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE 

 RESERVED FOR FINANCIAL INSTITUTION USE 

b

CC-1 
Let summergo out with a splash 

Make things happen with extra cash! 

This time of year offers countless 

opportunities, so now is the time to act! 481 

Use these checks to take advance of your 

low, promotional 1.7% Annual Percentage 

Rate (APR) through your November 2007 

statement closing date! Use these checks DATE 20 62 –16 

before the season fades away! Or contact 311 

us at www.artesianbank.com or 1-888­ PAY TO THE 

555-2890. ORDER OF $ 

DOLLARS Important Information About These 

Checks: 

•	 You will be charged a fee for using 

these checks. This fee will be equal 

to either $5 or 3% of the amount of 

each check, whichever is greater. 

•	 After November 2007, you will 

be charged interest for the use 

of these checks at your regular 

APR for cash advances. You can 

¿QGWKLV$35LQWKH,QWHUHVW5DWH

Calculation section of your most 

recent credit card statement. 

•	 If you use these checks at our low 

introductory APR and then make 

purchases using this card, we will 

Wilmington, Delaware 

FOR 

482 

DATE 20 62 –16 

311 

PAY TO THE


ORDER OF $


DOLLARS 

DSSO\\RXUSD\PHQWV¿UVWWRWKH

balance of these checks during 

the promotional period. You 

will be charged interest on the 

full amount of your credit card 

purchases until the balance of 

these checks has been paid off 

completely. 

•	 There is no grace period for 

payments you make with these 

checks; you will being accruing 

interest on the transaction date. 

•	 If you would like to opt out of 

receiving checks like these from 

Artesian Bank in the future, call 

1-800-555-5245. 

Wilmington, Delaware 

FOR 

483 

DATE 20 62 –16 

311 

PAY TO THE


ORDER OF $


DOLLARS 

Wilmington, Delaware 

FOR 

See Additional Disclosures on Reverse Side* 

CC-2 
Share your account — not your card! 

Give trusted family members and friends H[FHSWLRQDOEHQH¿WVDVWKHFDUG\RXFDUU\$QG

charging privileges on your account simply they will have access to the same line of credit. 

by adding them as users. You can add up to All charges are conveniently itemized on one 

six people at no extra cost. Each will receive monthly statement, so there is just one bill to 

a personalized credit card with the same pay. 

Call the toll-free number on the lower right corner of your billing statement to request 

additional cards today! 

§ As the primary cardholder, you are responsible for all acount activity incurred by additional cardholders. X


b

DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE 

 RESERVED FOR FINANCIAL INSTITUTION USE 

b

* The transaction date for each Check 

Cash Advance and Balance Transfer made 

by check is the date you or the person 

WRZKRPWKHFKHFNLVPDGHSD\DEOH¿UVW

deposits or cashes the check. The TwoCycle Average Daily Balance method 

(including new purchases) as described in 

your Credit Card Agreement (and on your 

periodic statement) is used to compute 

your Cash Advance Balance. Check Cash 

Advances and Balance Transfers may not 

be used for repayment of any Artesian 

Bank-issued accounts; use of these checks 

as repayment will result in a Returned 

Payment Fee as described in your Credit 

Card Agreement. 

X


This account is issued and administered 

b

DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE 

 RESERVED FOR FINANCIAL INSTITUTION USE 

b

by Artesian Bank. MasterCard and World 

Mastercard are federally registered service 

marks of MasterCard International, Inc., 

and are used pursuant to license. Visa 

is a federally registered service mark of 

Visa U.S.A., Inc., and is used pursuant to 

license. 

X


b

DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE 

 RESERVED FOR FINANCIAL INSTITUTION USE 

b

CC-2 
Cognitive Interviews: 

Dallas, TX (March 2007) 
Solicitation Letters 


Used in


Dallas Interviews 


Contents: 


x Model SL-6 (front and back) 


x Model SL-7 (front and back) 

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Important Information About Your Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) for 

Purchases 

14.99% 

This APR will vary with the market based on the Prime Rate. 

APR for Balance Transfers 14.99% 

Balance transfer fees will also apply (see below). 

APR for Cash Advances 23.99% 

This APR will vary with the market based on the Prime Rate. 

Cash advance fees will also apply (see below). 

Penalty APR and When It Applies 32.99% 

This APR may be applied to your entire balance (including introductory 

APR balances) if you: 

1) Exceed your credit limit; 

2) Make a late payment; 

3) Make a payment that is returned; or 

4) Do any of the above on another account that you have with us or 

another creditor. 

For some of these actions you may also be charged a fee; see Penalty 

Fees section below for more details. 

If your APRs are increased for any of these reasons, they will remain at 

that level until you make minimum payments when due and do not 

exceed your credit limit for six consecutive months. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $1.00. 

Grace Period on Purchases If you pay your entire balance in full each month, you have at least 26 days 

after the close of each period to pay your balance on purchases without 

being charged interest. 

Website for Additional 

Information 

For more information about how to compare credit cards or what to consider 

when applying for a card, go to http://www.frb.gov/location. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer Either $5 or 3% of the amount of each transfer, whichever is greater 

(maximum fee: $100). This fee is in addition to the interest you will be 

charged on this amount (see Balance Transfer APR above). 

x Cash Advance Either $5 or 3% of the amount of each cash advance, whichever is greater. 

This fee is in addition to the interest you will be charged on this amount (see 

Cash Advance APR above). 

Penalty Fees 

x Late Payment $31 if balance is less than or equal to $1,000; 

$35 if balance is more than $1,000 (Your APRs may also increase; see 

Penalty APR section above) 

x Over-the-Credit Limit $30 (Your APRs may also increase; see Penalty APR section above) 

x Returned Payment $30 (Your APRs may also increase; see Penalty APR section above) 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including 

new purchases)." 

SB-11F1 
Important Information About Your Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate 

(APR) for Purchases 

14.99% 

APR for Balance 

Transfers 

14.99% 

Balance transfer fees will also apply (see below). 

APR for Cash Advances 25.99% 

This APR will vary with the market based on the Prime Rate. 

Cash advance fees will also apply (see below). 

Penalty APR and When 

It Applies 

29.99% 

This APR may be applied to your entire balance (including introductory 

APR balances) if you: 

1) Do not make a required payment by the payment due date; 

2) Exceed your credit limit; 

3) Make a payment that is returned; or 

4) Do any of the above on another account that you have with us or 

another creditor. 

For some of these actions you may also be charged a fee; see Penalty 

Fees section below for more details. 

If your APRs are increased for any of these reasons, they will remain at 

that level until you make minimum payments when due and do not exceed 

your credit limit for six consecutive months. 

Minimum Interest 

Charge 

If you are charged interest, this charge will be no less than $0.50. 

Grace Period on 

Purchases 

If you pay your entire balance in full each month, you have at least 24 days 

after the close of each period to pay your balance on purchases without 

being charged interest. 

Website for Additional 

Information 

For more information about how to compare credit cards or what to consider 

when applying for a card, go to http://www.frb.gov/location. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer Either $5 or 3% of the amount of each transfer, whichever is greater (maximum 

fee: $150). This fee is in addition to the interest you will be charged on this 

amount (see Balance Transfer APR above). 

x Cash Advance Either $5 or 3% of the amount of each cash advance, whichever is greater. This 

fee is in addition to the interest you will be charged on this amount (see Cash 

Advance APR above). 

Penalty Fees 

x Late Payment $32 if balance is less than or equal to $1,000; 

$36 if balance is more than $1,000 (Your APRs may also increase; see Penalty 

APR section above) 

x Over-the-Credit $30 (Your APRs may also increase; see Penalty APR section above) 

Limit 

x Returned $29 (Your APRs may also increase; see Penalty APR section above) 

Payment 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance 

(including new purchases)." 

SB-11F2 
Important Information About Your Credit Card Account 

Interest Rates And Interest Charges 

Annual Percentage Rate (APR) 

for Purchases 

7.99% to 14.99% when you open your account, based on your 

creditworthiness. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance Transfers 14.99% 

Balance transfer fees will also apply (see below). 

APR for Cash Advances 22.99% 

This APR will vary with the market based on the Prime Rate. 

Cash advance fees will also apply (see below). 

Penalty APR and When It 

Applies 

29.99% 

This APR may be applied to your entire balance (including introductory APR 

balances) if you: 

1) Make a late payment; 

2) Exceed your credit limit; 

3) Make a payment that is returned; or 

4) Do any of the above on another account that you have with us or 

another creditor. 

For some of these actions you may also be charged a fee; see Penalty Fees 

section below for more details. 

If your APRs are increased for any of these reasons, they will remain at that 

level until you make minimum payments when due and do not exceed your 

credit limit for six consecutive months. 

Minimum Interest Charge If you are charged interest, this charge will be no less than $0.50. 

Grace Period on Purchases If you pay your entire balance in full each month, you have at least 26 days after 

the close of each period to pay your balance on purchases without being charged 

interest. 

Website for Additional 

Information 

For more information about how to compare credit cards or what to consider 

when applying for a card, go to http://www.frb.gov/location. 

Fees 

Annual Fee None 

Transaction Fees 

x Balance Transfer Either $10 or 5% of the amount of each transfer, whichever is greater (maximum 

fee: $150). This fee is in addition to the interest you will be charged on this 

amount (see Balance Transfer APR above). 

x Cash Advance Either $10 or 5% of the amount of each cash advance, whichever is greater. 

This fee is in addition to the interest you will be charged on this amount (see 

Cash Advance APR above). 

Penalty Fees 

x Late Payment $30 if balance is less than or equal to $1,000; 

$36 if balance is more than $1,000 (Your APRs may also increase; see Penalty 

APR section above) 

x Over-the-Credit Limit $30 (Your APRs may also increase; see Penalty APR section above) 

x Returned Payment $32 (Your APRs may also increase; see Penalty APR section above) 

How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including new 

purchases)." 

SB-11G1 
Important Information About Your Credit Card Account 

Interest Rates And Interest Charges 

Annual 

Percentage Rate 

(APR) for 

Purchases 

6.99% to 15.99% when you open your account, based on your 

creditworthiness. 

After that, your APR will vary with the market based on the Prime Rate. 

APR for Balance 

Transfers 

15.99% 

Balance transfer fees will also apply (see below). 

APR for Cash 

Advances 

19.99% 

This APR will vary with the market based on the Prime Rate. 

Cash advance fees will also apply (see below). 

Penalty APR and 

When It Applies 

29.99% 

This APR may be applied to your entire balance (including introductory APR 

balances) if you: 

1) Make a late payment; 

2) Exceed your credit limit; or 

3) Do any of the above on another account that you have with us or another 

creditor. 

For some of these actions you may also be charged a fee; see Penalty Fees 

section below for more details. 

If your APRs are increased for any of these reasons, we reserve the right to keep 

them at this higher level indefinitely. 

Minimum Interest 

Charge 

If you are charged interest, this charge will be no less than $0.75. 

Grace Period on 

Purchases 

If you pay your entire balance in full each month, you have at least 28 days after the 

close of each period to pay your balance on purchases without being charged 

interest. 

Website for 

Additional 

Information 

For more information about how to compare credit cards or what to consider when 

applying for a card, go to http://www.frb.gov/location. 

Fees 

None 

Either $10 or 5% of the amount of each transfer, whichever is greater (maximum fee: 

$130). This fee is in addition to the interest you will be charged on this amount (see 

Balance Transfer APR above). 

Either $10 or 5% of the amount of each cash advance, whichever is greater. This 

fee is in addition to the interest you will be charged on this amount (see Cash 

Advance APR above). 

$32 (Your APRs may also increase; see Penalty APR section above) 

$28 (Your APRs may also increase; see Penalty APR section above) 

$34 (Your APRs may also increase; see Penalty APR section above) 

Annual Fee 

Transaction Fees 

x Balance 


Transfer


x Cash Advance 

Penalty Fees 

x Late Payment 

x Over-the-


Credit Limit


x Returned


Payment


How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance 

(including new purchases)." 

SB-11G2 
Periodic Statements 


Used in


Dallas Interviews 


Contents: 


x Model PS-11 (pages 1 and 2) 


x Model PS-12 (pages 1 and 2) 


x Back of periodic statement pages 

 

 

 

 

 

 

 

 

Artesian Bank Credit Card Account Statement Page 1 of 2 

Account Number 1234 5678 9012 3456 

February 21, 2007 to March 22, 2007 

Summary of Account Activity Payment Information 

Previous Balance 

Payments 

Other Credits 

Purchases 

Balance Transfers 

Cash Advances 

Past Due Amount 

Fees Charged 

Interest Charged 

New Balance 

Credit limit 

Available credit 

Statement closing date 

Days in billing cycle 

$535.07 

-$450.00 

-$13.45 

+$529.57 

+$785.00 

+$318.00 

+$0.00 

+$69.45 

+$10.89 

$1,784.53 

$2,000.00 

$215.47 

3/22/2007 

30 

2007 Totals Year-to-Date 

Total fees charged in 2007 

Total interest charged in 2007 

$90.14 

$18.27 

New Balance $1,784.53 

Minimum Payment Due $48.00 

Payment Due Date 4/20/07 (before 12:00 noon) 

Late Payment Warning: If we do not receive your 

minimum payment by the date and time listed above, you 

may have to pay a $35 late fee and your APRs may be 

increased up to the Penalty APR of 34.99%. 

Notice about Minimum Payments: If you make only the 

minimum payment each period, you will pay more in interest 

and it will take you longer to pay off your balance. For example, 

if you had a balance of $1,000 at an interest rate of 17% and 

always paid only the minimum required, it would take over 

7 years to repay the entire balance. For an estimate of the 

time it would take to repay your actual balance making only 

minimum payments, call 1-800-555-5555. 

QUESTIONS?

 Call Customer Service 1-800-987-5521


 Lost or Stolen Credit Card 1-800-987-5521


 Please send billing inquiries and correspondence to:


 PO Box 5524, Newark, DE 19711


For prompt credit, mail payments to:


PO Box 5147, Newark, DE 19711


Payment sent to any other address may delay crediting 


your account up to 5 days.


Important Changes to Your Account Terms 

The following is a summary of changes that are being made to your account terms. You have the right to opt out of these 

changes. For more detailed information, please refer to the booklet enclosed with this statement. The effective date of 

these changes is 5/1/07. 

Revised Terms, as of 5/1/07 

APR for Purchases 16.99%


$32 if your balance is less than or equal to $1,000;
 Late Payment Fee $39 if your balance is more than $1,000 

Transactions 

Reference Number Trans Date Post Date Description of Transaction or Credit Amount 

Payments and Other Credits 

854338203FS8OO0Z5 2/25 2/25 Pymt Thank You $450.00– 

045148714518979874 3/4 3/5 Macys #78 Decatur GA $13.45– 

Purchases 

5884186PS0388W6YM 2/22 2/23 Citgo Food Mart #74 Atlanta GA $2.05 

0544400060ZLV72VL 2/24 2/25 CVS Pharmacy #7338 003 Atlanta GA $12.11 

55541860705RDYD0X 2/25 2/26 Eckerd Drugs #2708 Atlanta GA $4.63 

554328608008W90M0 2/24 2/25 Easy Saver 877-844-9564 PA $114.95 

054830709LYMRPT4L 2/25 2/26 Wayfield Foods #1 S9B Atlanta GA $7.35 

564891561545KOSHD 2/25 2/26 Acme #1456 Atlanta GA $14.35 

841517877845AKOJIO 2/25 2/26 Citgo #1276 Decatur GA $40.35 

895848561561894KOH 2/26 2/27 Save-A-Lot Grocery #287 Atlanta GA $27.68 

1871556189456SAMKL 2/26 2/27 Best Buy Atlanta GA $124.76 

2564894185189LKDFID 2/27 2/28 Shell Oil #8765 Athens GA $32.87 

(transactions continued on next page)

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234 5678 9012 3456 

New Balance $1,784.53 

Minimum Payment Due $48.00 

Payment Due Date 4/20/07 (before 12:00 noon) 

Please indicate address change and additional 

cardholder requests on the reverse side. AMOUNT ENCLOSED: $ 

Artesian Bank 

P.O. Box 5147 

Newark, DE 19711 

35806 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

PS-11 
Artesian Bank Credit Card Account Statement Page 2 of 2 

Account Number 1234 5678 9012 3456 

February 21, 2007 to March 22, 2007 

Transactions (cont.) 

Reference Number Trans Date Post Date Description of Transaction or Credit Amount 

Purchases (cont.) 

2564561023184102315 2/28 3/1 Eckerd Drugs #2708 Atlanta GA $14.76 

55542818705RASD0X 3/1 3/2 Walmart #2998 Athens GA $3.76 

289189194ASDS8744 3/1 3/3 Macys #78 Decatur GA $13.45 

178105417841045784 3/2 3/6 Citgo Food Mart #74 Atlanta GA $2.35 

8456152156181SDSA 3/5 3/12 Shell Oil #8765 Athens GA $25.00 

31289105205648AWD 3/11 3/12 Easy Saver 877-844-9564 PA $7.34 

04518478415615ASD 3/11 3/16 Save-A-Lot Grocery #287 Atlanta GA $10.56 

0547810544898718AF 3/15 3/17 Shell Oil #8765 Athens GA $24.50 

056489413216848OP 3/16 3/17 Walmart #2998 Athens GA $8.76 

054894561564ASDW 3/17 3/18 Acme #1456 Atlanta GA $14.23 

5648974891AD98156 3/19 3/20 Macys #78 Decatur GA $23.76 

Cash Advances 

1542202074TWWZV48 2/26 2/26 Best Bank/Access Cash Atlanta GA $121.50 

14547847586KDDL564 2/28 2/26 Best Bank/Access Cash Decatur GA $196.50 

Balance Transfers 

4545754784KOHUIOS 2/27 3/1 Balance Transfer $785.00 

Fees 

9525156489SFD4545Q 2/23 2/23 Late Fee $35.00 

56415615647OJSNDS 2/26 2/26 Cash Advance Fee *Transaction Fee* $5.00 

84151564SADS8745H 2/27 2/27 Balance Transfer Fee *Transaction Fee* $23.55 

256489156189451516L 2/28 2/28 Cash Advance Fee *Transaction Fee* $5.90 

TOTAL FEES FOR THIS PERIOD $69.45 

Interest Charged 

Interest Charge on Purchases $6.31 

Interest Charge on Cash Advances $4.58 

TOTAL INTEREST FOR THIS PERIOD $10.89 

Interest Charge Calculation 

Your Annual Percentage Rate (APR) is the annual interest rate on your account. 

Type of Balance 

Annual Percentage 

Rate (APR) 

Daily 

Interest Rate 

Balance Subject to 

Interest Rate 

Purchases 14.99% (v) 0.0411% $512.14 

Cash Advances 21.99% (v) 0.0602% $253.50 

Balance Transfers 0.00% 0.0000% $637.50 

Interest Charge 

$6.31 

$4.58 

$0.00 

(v) = Variable Rate 

Fee-Inclusive APR 

The Fee-Inclusive APRs in this table represent the APRs that you paid this period when transaction fees are taken into 

account as well as interest. 

Type of Balance Interest Charges Transaction Fees Fee-Inclusive APR 

Purchases $6.31 $0.00 14.99% 

Cash Advances $4.58 $10.90 58.42% 

Balance Transfers $0.00 $23.55 36.00% 

Want to receive your billing statement in Spanish? 

Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de 

preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta. 

Fast Online Card Payments with Click-to-Pay 

Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that same 

business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu. 

Save Time. Save Paper. Sign up for All Electronic. 

You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when your 

statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account. 

Need to add an authorized user to your account? 

Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu and 

elect Add Authorized User. Complete the form and submit. It’s that simple! 

PS-11 
 

 

 

 

 

 

 

Artesian Bank Credit Card Account Statement Page 1 of 2 

Account Number 1234 5678 9012 3456 

February 21, 2007 to March 22, 2007 

Summary of Account Activity 

Previous Balance $535.07 

Payments -$450.00 

Other Credits -$13.45 

Purchases +$529.57 

Balance Transfers +$785.00 

Cash Advances +$318.00 

Past Due Amount +$0.00 

Fees Charged +$69.45 

Interest Charged +$10.89 

New Balance $1,784.53 

Credit limit $2,000.00 

$YDLODEOHFUHGLW $215.47 

Statement closing date 3/22/2007 

'D\VLQELOOLQJF\FOH 30 

Payment Information 

New Balance $1,784.53


Minimum Payment Due $48.00


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Late Payment Warning: If we do not receive your 

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increased up to the Penalty APR of 34.99%. 

Notice about Minimum Payments: If you make only the 

minimum payment each month on this account it will take you 

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in full. 

QUESTIONS?

 Call Customer Service 1-800-987-5521 

Lost or Stolen Credit Card 1-800-987-5521 

3OHDVHVHQGELOOLQJLQTXLULHVDQGFRUUHVSRQGHQFHWR

 PO Box 5524, Newark, DE 19711 

For prompt credit, mail payments to: 

PO Box 5147, Newark, DE 19711 

Payment sent to any other address may delay crediting 

your account up to 5 days. 

Notice of Changes to Your Interest Rates 

] 

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Transactions 

Reference Number Trans Date Post Date Description of Transaction or Credit Amount 

Payments and Other Credits 

854338203FS8OO0Z5 2/25 2/25 Pymt Thank You $450.00– 

045148714518979874 3/4 3/5 Macys #78 Decatur GA $13.45– 

Purchases 

36:<0 2/22 2/23 Citgo Food Mart #74 Atlanta GA $2.05 

0544400060ZLV72VL 2/24 2/25 CVS Pharmacy #7338 003 Atlanta GA $12.11 

55541860705RDYD0X 2/25 2/26 Eckerd Drugs #2708 Atlanta GA $4.63 

:0 2/24 2/25 Easy Saver 877-844-9564 PA $114.95 

054830709LYMRPT4L 2/25 2/26 :D\¿HOG)RRGV6%$WODQWD*$ $7.35 

564891561545KOSHD 2/25 2/26 Acme #1456 Atlanta GA $14.35 

841517877845AKOJIO 2/25 2/26 Citgo #1276 Decatur GA $40.35 

895848561561894KOH 2/26 2/27 Save-A-Lot Grocery #287 Atlanta GA $27.68 

1871556189456SAMKL 2/26 2/27 Best Buy Atlanta GA $124.76 

2564894185189LKDFID 2/27 2/28 Shell Oil #8765 Athens GA $32.87 

(transactions continued on next page)

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION 

5825 TRD 2 100 7 Page 1 of 2 8382 4000 USM2 0003 050118 O1AC5825 35ADM 

Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records. 

Account Number: 1234 5678 9012 3456 

New Balance $1,784.53 

Minimum Payment Due $48.00 

Payment Due Date 4/20/07 (before 12:00 noon) 

Please indicate address change and additional 

cardholder requests on the reverse side. AMOUNT ENCLOSED: $ 

Artesian Bank 

P.O. Box 5147 

Newark, DE 19711 

35806 

llllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

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________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________ 

________________________________________________________________________________________________________________

IMPORTANT INFORMATION ABOUT YOUR ACCOUNT 

Grace Period on New Purchases (at least 25 days) 

You can avoid Interest Charges on new Purchases that posted to this 

statement if your Previous Balance is zero (or a credit balance) and we 

receive full payment of the New Balance by the Payment Due Date. If so, 

you have from the date you made your purchases until the payment Due 

Date on the front to avoid any interest charge on that purchase. If your 

Previous Balance is greater than zero, there is no time period to pay the 

New Balance and avoid additional interest charges. There is no grace 

period for Cash Advances and Balance Transfers. 

Explanation of Interest Charges and Transaction Fees 

We calculate periodic interest charges using the applicable monthly 

periodic rates separately for each feature (e.g., purchases, balance 

transfers, cash advances, promotional balances, or overdraft advances). 

We calculate the monthly periodic rate for each feature by dividing the 

APR for each feature by 12. There is a minimum charge in any billing 

cycle in which you owe any periodic interest charges, and a transaction 

charge for each balance transfer, cash advance, or check transaction, in 

the amounts stated in your Cardmember Agreement, as amended. 

To get the daily balance for each day of the current billing cycle, we 

take the beginning balance for each feature, add any new transactions 

or other debits (including fees, unpaid interest charges and other 

charges), subtract any payments or credits, and make other adjustments. 

Transactions are added as of the transaction date, the beginning of the 

billing cycle in which they are posted to your account, or a later date 

of our choice (except that check transactions are added as of the date 

deposited by the payee or a later date of our choice). Fees are added 

either on the date of a related transaction, the date they are posted to 

your account, or the last day of the billing cycle. This gives us that day’s 

daily balance. A credit balance is treated as a balance of zero. If a daily 

periodic rate applies to any feature we multiply the daily balance by the 

daily periodic rate to get your periodic interest charges for that day. We 

then add these periodic interest charges to your daily balance to get the 

beginning balance for the next day. (If more than one daily periodic rate 

could apply based on the average daily balance, we will use the daily 

periodic rate that applies for the average daily balance amount at the end 

of the billing cycle to calculate the daily periodic interest charges each 

day.) If this statement shows a previous cycle average daily balance for 

purchases, we do the same thing for each day of the previous cycle to 

get the daily balance of purchases for the previous billing cycle. However, 

the daily balance for previous billing cycle purchases is considered to be 

zero for each day of the previous billing cycle if a periodic interest charge 

was already billed on purchases itemized on your previous statement or 

we receive payment of your New Balance on your previous statement in 

full by the date and time your payment was due. 

To get your total periodic interest charge for a billing cycle when a daily 

periodic rate(s) applies, we add all of the daily periodic interest charges 

for all features. To determine an average daily balance, we add your 

daily balances and divide by the number of the days in the applicable 

billing cycle(s). If you multiply the average daily balance for each feature 

by the applicable daily periodic rate, and then multiply each of these 

results by the number of days in the applicable billing cycle(s), and 

then add all of the results together, the total will also equal the periodic 

interest charges for the billing cycles except for minor variations due to 

rounding. To get your total periodic interest charge for a billing cycle when 

a monthly periodic rate(s) applies, multiply the average daily balance for 

each feature by the applicable monthly periodic rate and add the results 

together. The total will equal the periodic interest charges for the billing 

cycle, except for minor variations due to rounding. 

Account Renewal Information for Open Accounts 

If your account has an Annual Fee and it is billed on this Statement, we 

will reverse the fee if you cancel your account and pay off any existing 

Balance within 30 days of receipt of this Statement. Otherwise, the 

Annual Fee is non-refundable. You may continue to use your account 

during the 30-day period before you cancel. To cancel, write us at the 

Billing Inquiries address or call us at the phone number on the front. 

Your Liability 

Our records show that you are liable for any outstanding balance on 

this account if your name appears on the front of this statement or you 

otherwise agreed. 

Report a Lost or Stolen Card Immediately 

Call the 24-hour toll free number 1.800.555.6666. Do not use your 

account after you report a lost or stolen card. 

Cardholder Security PlanTM/Payment Protection Plan 

If you have questions about your enrollment or need to file for 

benefits, please call the applicable toll free number below 

(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time): 

Cardholder Security Plan-1.888.668.6938; Payment Protection 

Plan-1.888.838.0056. 

Service for International Calling 

Dial the AT&T Direct access code for the country you are in 

and dial 1.888.801.3723. For a list of access codes visit 

www.artesian.com and select Credit Cards. You may also call 

us collect at 1.757.677.4701. 

Service for Hearing-Impaired (TTY/TDD) 

Contact our service for the hearing-impaired at 1.800.222.7365. 

Pay on-line at www.artesian.com or mail your payment to: 

Artesian Bank, PO BOX 5147, SIOUX FALLS, SD 57117-5147. 

BILLING RIGHTS SUMMARY 

STATEMENT DISCLOSURE: 

In Case of Error or Billing Inquiries 

If you think your bill is wrong, or if you need more information about a 

transaction on your bill, you must write to us (on a separate sheet) at PO 

BOX 1390, Norfolk, VA 23501-1390 as soon as possible to preserve your 

rights. We must hear from you no later than 60 days after we sent you the 

first bill on which the error or problem appeared. In your letter, give us the 

following information: 

- Your name and account number 

- The dollar amount of the suspected error 

-	 Describe the error and explain, if you can, why you believe there 

is an error 

You do not have to pay any amount in question while we are investigating, 

but you are still obligated to pay the parts of your bill that are not in question. 

While we investigate your questions, we cannot report you as delinquent or 

take any action to collect the amount you question. 

Special Rate for Credit Card Purchases 

If you have a problem with the quality of goods 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 not have to pay the remaining 

amount due on the goods or services. You have this protection only when 

the purchase price was more than $50 and the purchase was made in 

your home state or within 100 miles of your mailing address (if we own 

or operate the merchant, or if we mailed you the advertisement for the 

property or service, all purchases are covered regardless of the amount 

or location of purchase). 

IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY


FEDERAL LAW TO BE DISCLOSED TO YOU


WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED 

PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT. 

For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below. 

If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate 

processing. 

Address 

City 	 State Zip 

Home Phone 	 Work Phone 

 E-mail Address 

By providing us with your e-mail address, you agree that we may communicate with you by electronic mail. 

Prompt Crediting of Payments 

We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later 

than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All 

payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post 

Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only. 
Convenience Checks 


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Contents: 


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