Cardholder Agreement and Disclosure 

Defined Terms – The following terms have defined meanings in this agreement.  “Account” means the credit Account regulated by 
this agreement, “Card” means the plastic cards issued under this agreement, including the numbers printed on these plastic cards; 
“we”, “us”, and “our” mean the financial institution appearing on the face of a Card; “you” and “your” mean anyone who signs an 
application for this Account or is a guarantor of this Account, or who otherwise uses or authorizes use of the Card or the Account; 
and  “Approval  Letter”  means  our  letter  to  you  approving  your  application  and  describing  some  of  the  terms  of  the  Account  (the 
“Approval Letter” which is part of the agreement). 

By  signing,  using  or  activating  a  Card,  you  accept  the  terms  and  conditions  of  this  agreement  and  of  the  Approval  Letter.    If  any 
provision of this agreement is determined to be unlawful, the rest of the agreement  will stand and the  unlawful provision will be 
deemed amended to conform to applicable law.  All Cards are our property and must be returned to us immediately according to 
our instructions, and we may repossess a Card at any time in our sole discretion. 

Military  Lending  Act  Disclosures  Statement  –  Federal  law  provides  important  protections  to  Members  of  the  Armed  Forces  and 
their  dependents  relating  to  extensions  of  consumer  credit.    In  general,  the  cost  of  consumer  credit  to  a  Member  of  the  Armed 
Forces  and  his  or  her  dependent  may  not  exceed  an  annual  percentage  rate  of  36  percent  (36%).    This  rate  must  include,  as 
applicable to the credit transaction or account:  The costs associated with credit insurance premiums; fees for ancillary products sold 
in  connection  with  the  credit  transaction;  any  application  fee  charged  (other  than  certain  application  fees  for  specified  credit 
transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account). 

Please call us at (800) 221-3311 to receive disclosures orally. 

ARBITRATION AND WAIVER OF CLASS ACTION – You and the Credit Union agree that we shall attempt to informally settle any and 
all  disputes  arising  out  of,  affecting,  or  relating  to  your  Account,  or  the  products  or  services  the  Credit  Union  has  provided,  will 
provide or has offered to provide to you, and/or any aspect of your Account relationship with the Credit Union (hereafter referred to 
as the “Claims”). If that cannot be done, then you agree that any and all Claims that are threatened, made, filed or initiated after the 
Effective Date (defined below) of this Arbitration and Waiver of Class Action provision (“Arbitration Agreement”), even if the Claims 
arise out of, affect or relate to conduct that occurred prior to the Effective Date, shall, at the election of either you or us, be resolved 
by  binding  arbitration  administered  by  the  American  Arbitration  Association  (“AAA”)  in  accordance  with  its  applicable  rules  and 
procedures  for  consumer  disputes  (“Rules”),  whether  such  Claims  are  in  contract,  tort,  statute,  or  otherwise.    The  Rules  can  be 
obtained on the AAA website free of charge at www.adr.org; or, a  copy of the Rules can be obtained at any Credit Union branch 
upon request.  Either you or we may elect to resolve a particular Claim through arbitration, even if one of us has already initiated 
litigation in court related to the Claim, by: (a) making written demand for arbitration upon the other party, (b) initiating arbitration 
against the other party, or (c) filing a motion to compel arbitration in court.  AS A RESULT, IF EITHER YOU OR WE ELECT TO RESOLVE 
A  PARTICULAR  CLAIM  THROUGH  ARBITRATION,  YOU  WILL  GIVE  UP  YOUR  RIGHT  TO  GO  TO  COURT  TO  ASSERT  OR  DEFEND  YOUR 
RIGHTS UNDER THIS AGREEMENT (EXCEPT FOR CLAIMS BROUGHT INDIVIDUALLY WITHIN SMALL CLAIMS COURT JURISDICTION, SO 
LONG  AS  THE  CLAIM  REMAINS  IN  SMALL  CLAIMS  COURT).    This  Arbitration  Agreement  shall  be  interpreted  and  enforced  in 
accordance with the Federal Arbitration Act set forth in Title 9 of the U.S. Code to the fullest extent possible, notwithstanding any 
state law to the contrary, regardless of the origin or nature of the Claims at issue.  This Arbitration Agreement does not prevent you 
from submitting any issue relating to your accounts for review or consideration by a federal, state, or local governmental agency or 
entity, nor does it prevent such agency or entity from seeking relief on your behalf.   

A.  Selection of Arbitrator.  The Claims shall be resolved by a single arbitrator.  The arbitrator shall be selected in accordance with 
the Rules, and must have experience in the types of financial transactions at issue in the Claims.  In the event of a conflict between 
the Rules and this Arbitration Agreement, this Arbitration Agreement shall supersede the conflicting Rules only to the extent of the 
inconsistency.  If AAA is unavailable to resolve the Claims, and if you and we do not agree on a substitute forum, then you can select 
the forum for the resolution of the Claims.    

B.  Effective Date.  This Arbitration Agreement is effective upon the 61st day after we provide it to you (“Effective Date”), unless 
you opt-out in accordance with the requirements of the RIGHT TO OPT-OUT provision below. 

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C.  Claims Arising Prior to Effective Date. THIS BINDING ARBITRATION AGREEMENT APPLIES TO ALL CLAIMS THAT ARE FILED OR 
INITIATED AFTER THE EFFECTIVE DATE, EVEN IF THE CLAIM ARISES OUT OF, AFFECTS, OR RELATES TO CONDUCT THAT OCCURRED 
PRIOR TO THE EFFECTIVE DATE. If a Claim is filed or initiated prior to the Effective Date, this Arbitration Agreement will not apply to 
such Claim.  
D.  Arbitration  Proceedings.    The  arbitration  shall  be  conducted  within  50  miles  of  your  residence  at  the  time  the  arbitration  is 
commenced.   Any claims and defenses that can be asserted in court  can be asserted through arbitration.  The arbitrator shall  be 
entitled  to  award  the  same  remedies  that  a  court  can  award,  including  public  injunctive  relief  to  the  extent  available  under  the 
California Unfair Competition Law and Consumer Legal Remedies Act.  Discovery shall be available for non-privileged information to 
the fullest extent permitted under the Rules. The arbitrator’s award can be entered as a judgment in court.  Except as provided in 
applicable statutes, the arbitrator’s award is not subject to review by the court and it cannot be appealed.  The Credit Union shall 
pay for any filing, administration, and arbitrator fees imposed on you by the AAA.  However, you will be responsible for your own 
attorneys’ fees, unless you prevail on your Claim in the arbitration, in which case, we will pay your attorneys’ fees. However, if the 
Credit Union prevails, then you will not be required to pay its attorneys’ fees and cost.   
Any determination as to whether this Arbitration Agreement is valid or enforceable in part or in its entirety will be made solely by 
the arbitrator, including without limitation any issues relating to whether a Claim is subject to arbitration; provided, however, the 
enforceability of the Class Action Waiver set forth below shall be determined by the Court.   

E.  Class Action Waiver.  ANY ARBITRATION OF A CLAIM WILL BE ON AN INDIVIDUAL BASIS.  YOU UNDERSTAND AND AGREE THAT 
YOU ARE WAIVING THE RIGHT TO PARTICIPATE AS A CLASS REPRESENTATIVE OR CLASS MEMBER IN A CLASS ACTION LAWSUIT.    

F.  Severability.  In the event the Class Action Waiver in this Arbitration Agreement is found to be unenforceable for any reason, 
the remainder of this Arbitration Agreement shall also be unenforceable.  If any provision in this Arbitration Agreement, other than 
the Class Action Waiver, is found to be unenforceable, the remaining provisions shall remain fully enforceable.   

G.  Survival. This Arbitration Agreement will survive termination of the Account and/or this Agreement.  

H.  Right  to Opt-Out.  You have the right  to opt-out of this Arbitration Agreement, provided you notify the Credit Union of your 
intent to do so within 60 days after it is provided to you.  Your opt-out is only effective if you notify the Credit Union in writing at 
Kern  Schools  Federal  Credit  Union,  Attn:  Central  Operations  Visa,  P.O.  Box  9506,  Bakersfield,  CA  93389-9506,  within  such  60  day 
time period.  If you fail to opt-out within this 60 day time, you will be deemed to have consented to the resolution of your Claims 
through  binding  arbitration.    In  the  event  you  opt-out,  it  shall  not  affect  other  terms  and  conditions  of  your  Agreement  or  your 
relationship with the Credit Union.   

Inapplicability  to  Covered  Borrowers.    This  Arbitration  Agreement  will  not  apply  to  the  extent  prohibited  under  the  federal 

I. 
Military Lending Act, such as if you are a “covered borrower” under the Military Lending Act.   
FOR MORE DETAILS or if you have questions, you may call us or visit a branch.  If you have questions about AAA procedures, you 
should check AAA’s website, www.adr.org, OR call AAA at (800) 778-7879. 

1.  Promise to Pay – You agree to pay us the total amount of purchases, cash advances, finance charges or other fees or charges 
which arise from use of a Card by you or any other person, unless the other person does not have actual, implied, or apparent 
authority  for  such  use  and  you  receive  no  personal  benefit  from  the  use.    You  agree  to  be  jointly  and  severally  liable  with 
anyone else who has made the same promise. 

2.  Credit Limit – Your credit limit is stated on the credit card carrier, as well as on your monthly statement.  You promise to make 
purchases  and  cash  advances  only  up  to  your  credit  limit.    Your  promise  to  pay  continues  to  apply  even  if  the  amount  due 
exceeds your credit limit.  Obtaining credit in excess of your credit limit does not increase your credit limit.  We can change your 
credit limit at any time to any amount (including zero).  We will state the new credit limit on your next monthly statement. 

3.  Purchases and Cash Advances  –  You may use your card, up to your credit limit, to buy or lease  goods,  services or insurance 
wherever  the  Card  is  honored.    You  may  also  use  your  Card  to  get  a  cash  advance  from  participating  financial  institutions.  
However, you agree not to use your Card for any transaction that is illegal under applicable federal, state or local law, and you 
understand that any such use will constitute an event of default under this agreement.  We are not responsible for the refusal of 
anyone to honor your Card. 

4.  Monthly Statements – We will send you a statement at the end of each billing cycle in which the Account has a balance.  The 

due date for your payment will be twenty-five (25) days after the last day covered by the statement. 

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5.  Payments  –  You  agree  to  make  the  minimum  monthly  payments  that  are  described  in  the  Approval  Letter,  and  to  make  all 
payments  on  this  Account  at  the  address  specified  on  your  monthly  statement.    We  may  accept  late  payments,  partial 
payments,  post-dated  checks,  or  any  form  of  payment  containing  a  restrictive  endorsement,  without  losing  any  of  our  rights 
under this agreement.  Our acceptance of  checks or money orders labeled “payment  in full” or words to that effect, will not 
constitute an accord and satisfaction nor a  waiver of any rights we have to receive full payment.  Payments on your Account 
that exceed the minimum payment  due will be allocated first to the Account balance with the highest APR, and then to each 
consecutive Account balance bearing the next highest APR, at the time payment is posted to your Account. Payments on your 
Account  that  do  not  exceed  the  minimum  payment  due  will  be  applied  in  the  following  order:  finance  charges,  fees,  any 
applicable installment balance minimum amount due that is calculated separately from the minimum payment due, the Account 
balance with the lowest  APR, then to each consecutive  Account  balance bearing the next lowest  APR at the time payment  is 
posted to your Account. 

6.  Balance Computation Method – We figure the interest charge on your Account by applying the periodic rate, as stated in the 
Approval  Letter,  to  the  “average  daily  balance”  of  your  account.    To  get  the  “average  daily  balance”  we  take  the  beginning 
balance  of  your  account  each  day,  add  any  new  purchases/advances/fees,  and  subtract  any  unpaid  interest  or  other  finance 
charges and any payments or credits.  This gives us the daily balance.  Then, we add up all the daily balances for the billing cycle 
and divide the total by the number of days in the billing cycle.  This gives us the “average daily balance”. 

7.  Grace Period:  You will not pay any interest on purchases and balance transfers if you pay the entire Account balance, including 
any cash advances, in full by the payment due date shown on your monthly statement each and every billing cycle.  We call this 
a grace period on purchases and balance transfers.  Generally, you will have at least a 25 day grace period from the close of 
each billing cycle to pay the entire Account balance without incurring additional interest on purchases and balance transfers.  
The payment due date disclosed on each monthly statement provided to you is the last day of your grace period for that 
statement’s billing cycle.  If you do not pay the entire Account balance, including any cash advances, in full by the payment due 
date in a billing cycle, you will pay interest on your purchases and balance transfers from the date they are posted to your 
Account.  You also will not have a grace period on purchases and balance transfers again until you pay the entire Account 
balance in full by the payment due date 2 billing cycles in a row.    
Cash advances do not have a grace period, as they are subject to interest charges from the date the transaction posts to your 
Account. 

8.  Cash  Advance  Fee  –  Cash  advances  are  subject  to  the  cash  advance  fee  stated  in  the  enclosed  disclosure  table.    The  cash 
advance fee is a finance charge and is imposed on the date of the cash advance.  Interest does not accumulate on this fee.  The 
following transactions will be treated as cash advances: 

A.  Using your Card to obtain cash from a participating Automated Teller Machine (“ATM”); 
B.  Using your Card to obtain cash from a participating financial institution; 
C.  Using a convenience check drawn on the Account; 
D.  Obtaining money orders, travelers checks, foreign currency, lottery tickets, casino chips, vouchers redeemable for cash 

or similar items; 

E.  Balance transfers, if identified as cash advances on your Approval Letter 

9.  Annual Fee – The annual fee, if there is one on the Account, is stated in the Approval Letter.  The annual fee is payable whether 

or not you use the Card. 

10.  Liability  for  Unauthorized  Use  –  If  you  notice  the  loss  or  theft  of  your  Card  or  a  possible  unauthorized  use  of  your  Card  or 
Account, you should write to us immediately at: Kern Schools Federal Credit Union, P.O. Box 9506, Bakersfield, CA 93389-9506, 
or call us at 1-800-221-3311. You will not be liable for any unauthorized use that occurs after you notify us.  You may, however, 
be liable for unauthorized use that occurs before your notice to us. However, if you exercise reasonable care in safeguarding 
your card from risk of loss or theft and, upon discovering the loss or theft promptly report the loss or theft to us, you will not be 
liable for any unauthorized transactions. In any case, your liability will not exceed $50. 

11.  Default – You will be in default if you fail to make any minimum payment or other required payment by the date that it is due. 
You also will be in default if you violate any other provision of this agreement and such violation materially impairs the prospect 
of you paying the amount due on the Account. Upon default, we may demand immediate payment of the entire amount due on 
the Account and we may enforce our right to this payment as permitted by law. 

12.  International Transactions – When you use your Card for a transaction denominated in a currency other than U.S. dollars, the 
transaction  amount  will  be  converted  into  U.S.  dollars  by  applying  an  exchange  rate  selected  by  the  Card  Association  from 
among  the  range  of  rates  available  in  wholesale  currency  markets  or  the  government-mandated  rate  on  the  date  the 
transaction is processed.  The rate chosen may vary from the rate the Card Association itself receives.  When you use your Card 
in a transaction outside of the United States to make a purchase, obtain a cash advance, obtain a credit voucher, or reverse any 
of  these  transactions,  a  finance  charge  equal  to  one  percent  (1%)  of  the  amount  of  the  transaction  (expressed  as  a  positive 

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number) will be assessed against your Account.  The foreign transaction fee is imposed on the date of the transaction.  Interest 
does not accrue on the foreign transaction fee.  “Card Association” means either VISA International or MasterCard International.    

13.  Credit Reporting – You authorize us to obtain credit reports on you when opening, renewing or reviewing your  Account, and 
you authorize us to disclose information regarding your Account to credit bureaus and other creditors who may inquire of us 
about your credit standing. If you think we reported erroneous information to a credit reporting agency, write us at the service 
address  on  your  billing  statement.    We  will  promptly  investigate  the  matter  and,  if  we  agree  with  you,  we  will  contact  each 
credit reporting agency to which we reported and request a correction. If, after our investigation, we disagree with you, we will 
tell you in writing or by telephone how to submit a statement to those agencies for inclusion in your credit report. 

14.  Other Fees – The following charges will be charged to your Account as appropriate: 

A.  Late and Returned Payment Fees.  The following charges may be imposed, if applicable: 

  Late Payment Fee.  A late payment fee, in the amount indicated in the enclosed disclosure table, may be imposed if 

the required minimum payment due is not received by the due date listed on the monthly periodic statement. 

  Returned Payment Fee.  A returned payment fee, in the amount indicated in the enclosed disclosure table, may be 

imposed if your payment is returned for any reason. 

B.  Replacement Cards, Copies, and Special Services.  We may charge you a reasonable fee for issuing replacement cards, 
expediting delivery of your card, an expedited payment method using a service representative, providing photocopies 
and reprints that you request, and other special services as allowed by law. 

15.  Amendments – We may amend or cancel this agreement at any time by getting your consent as provided by law or by giving 

you a notice of the amendments.  Cards are property of the Financial Institution and must be returned at our request. 

YOUR BILLING RIGHTS: 
KEEP THIS DOCUMENT FOR FUTURE USE 

This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act. 

What To Do If You Find A Mistake On Your Statement 

If you think there is an error on your statement, write to us at: 

Kern Schools Federal Credit Union 
Central Operations VISA 
P.O. Box 9506 
Bakersfield, CA 93389-9506 

In your letter, give us the following information: 
  Account information:  Your name and account number. 
  Dollar amount:  The dollar amount of the suspected error. 
  Description of problem:  If you think there is an error on your bill, describe what you believe is wrong and why you believe it is a 

mistake. 

You must contact us: 
  Within 60 days after the error appeared on your statement. 
  At least 3 business days before an automated payment is  scheduled, if you want to stop payment on the amount you think is 

wrong. 

You must notify us of any potential errors in writing.  You may call us, but if you do we are not required to investigate any potential 
errors and you may have to pay the amount in question. 

What Will Happen After We Receive Your Letter 

When we receive your letter, we must do two things: 
1.  Within 30 days of receiving your letter, we must tell you that we received your  letter.  We will also tell you if we have already 

corrected the error. 

2.  Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct. 

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The charge in question may remain on your statement, and we may continue to charge you interest on that amount. 

While we investigate whether or not there has been an error: 
  We cannot try to collect the amount in question, or report you as delinquent on that amount. 
 
  While you do not have to pay the amount in question, you are responsible for the remainder of your balance. 
  We can apply any unpaid amount against your credit limit. 
After we finish our investigation, one of two things will happen: 
 
 

If we made a mistake:  You will not have to pay the amount in question or any interest or other fees related to that amount. 
If we do not believe there was a mistake:  You will have to pay the amount in question, along with applicable interest and fees.  
We will send you a statement of the amount you owe and the date payment is due.  We may then report you as delinquent if 
you do not pay the amount we think you owe. 

If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling us that you still refuse to 
pay.  If you do so, we cannot report you as delinquent without also reporting that you are questioning your bill.  We must tell you 
the name of anyone to whom we reported you as delinquent, and we must let those organizations know when the matter has been 
settled between us. 

If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question even if your bill is correct. 

Your Rights If You Are Dissatisfied With Your Credit Card Purchases 

If you are dissatisfied with the goods or services that you have purchased with your credit  card and you have tried in good faith to 
correct the problem with the merchant, you may have the right not to pay the remaining amount due on the purchase. 

To use this right, all of the following must be true: 
1.  The purchase must have been made in your home state or within 100 miles of your current mailing address, and the purchase 
price must have been more than $50.  (Note:  Neither of these are necessary if your purchase was based on an advertisement 
we mailed to you, or if we own the company that sold you the goods or services.) 

2.  You must have used your credit card for the purchase.  Purchases made with cash advances from an ATM or with a check that 

accesses your credit card account do not qualify. 

3.  You must not yet have fully paid for the purchase. 

If all of the criteria above are met and you are still dissatisfied with the purchase, contact us in writing at: 

Kern Schools Federal Credit Union 
Central Operations VISA 
P.O. Box 9506 
Bakersfield, CA 93389-9506 

While we investigate, the same rules apply to the disputed amount as discussed above.  After we finish our investigation, we will tell 
you our decision.  At that point, if we think you owe an amount and you do not pay, we may report you as delinquent. 

Visa Credit Card Fee Schedule 

Service 

Card Replacement 
Rush 2-Day Card Replacement 
International Card Replacement  
Foreign Transaction Conversion 
Late Charge 
Over-Limit  
Cash Advance (ATM or Financial Institution)  
Return Payment 
Balance Transfer Stop Payment 
Account Research  
Statement Copy (per cycle) 

Fee 

$7.00 
$35.00 
$70.00 
1% of transaction amount  
$15.00 
$0.00 
Greater of $10 or 2% of the cash advance amount  
$15.00 
$30.00 
$25.00 per hour 
$2.00 

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