Truth in Lending Disclosure and Cardholder Agreement
VISA® Credit Card
Effective July 2013

This document contains the terms which govern your Credit Union Visa credit card Account. Please review this document and keep  
it for your records. In this document the words “you” and “your” mean the individual(s) who requested the Account or to whom we  
issued an account. “Card” means the Visa Credit Card and any duplicates and renewals the Credit Union issues. “We,” “us,” “our,” 
and “Credit Union” mean Local Government Federal Credit Union, the issuer of the Card. “Our Mailing Address” is Cardholder  
Services, P.O. Box 28540, Raleigh, NC 27611-8540. Our business days are Monday through Friday, 8:30 am to 5:30 pm. Our Contact  
Center is available 24 hours a day, 7 days a week at 1-888-732-8562. Calls made to the Credit Union Contact Center may be recorded  
for quality assurance. 

These rules and regulations apply to any Card issued, or to be issued, by the Credit Union. Any Credit Union member who applies  
for, signs, accepts, uses, or authorizes the use of the Card (“Cardholder”) agrees to be bound by these Rules and Regulations;  
and agrees that they shall constitute the agreement between the Credit Union and the Cardholder governing the use of the Card.  
Furthermore, by signing the Card as specified herein the Cardholder expressly agrees to be bound by the provisions of these Rules  
and Regulations as to the rates and charges applicable to use of the Card.

Notifications and Changes: Any notice required to be given by these Rules and Regulations, by law, or desired to be given by  
the Credit Union will be considered given if and when posted in the United States mail, postage prepaid, and addressed to the Card-
holder at the last known address as shown on the Credit Union’s records. The Credit Union may modify or amend this Agreement,  
from time to time. Any changes in terms affecting an increase in interest rates and/or applicable charges will apply to both new Cash 
Advances and Purchases made on and after the effective date, upon a 45 day advanced written notice to the cardholder. The new 
terms, including any increase or decrease in the charges, will apply to both new Cash Advances and Purchases made on and after the 
effective date. The Cardholder can contact the Credit Union at any time to determine if changes have been made to this agreement 
since the date this document was printed. Call the Contact Center at 1-888-732-8562 or write to us at Our Mailing Address. Calls made 
to the Credit Union Contact Center may be recorded for quality assurance.

Ownership, Termination and Expiration: The Credit Union may, at any time, suspend your Card and your ability to use your  
Card, for any reason allowed by law, such as if we suspect possible fraud or suspicious activity, or for security reasons. The Card 
remains the property of the Credit Union at all times. We may, at any time and for any reason, terminate a Card and your use of the  
Card and may request the Card to be surrendered. Your Card will expire on the expiration date on the Card. Upon termination or  
expiration, we may stop accepting transactions from the Card and we may decline to authorize a transaction with the Card. You  
remain responsible for any use of your Card even after the Card is terminated or expires. You agree not to use or attempt to use any 
expired or revoked Card to obtain credit. You or anyone jointly liable for the Card account may voluntarily terminate the Card account  
at any time by notifying us orally or in writing However, this will not relieve you or any of the other joint owners from liability for the 
repayment of any obligations arising from the use of the Card Account.

Use of Card: You may only buy goods or services from businesses displaying the Visa sign (“Merchant”), or borrow cash from the 
Credit Union or other institutions displaying such signs. You must follow any reasonable and proper procedures by those honoring the 
Card. In order for the Card to be valid, it must be signed by the Cardholder or Authorized User. The Cardholder must be a Credit Union 
member. By signing, activating, using, or allowing another person to use the Card, you agree to this Agreement and are responsible  
for all authorized transactions and cash advances made by the use of this Card.

Credit Limit: Your credit limit is set by the Credit Union and may be changed from time to time with notice to the Cardholder. The 
Credit Union may, at its option, recognize transactions (and extend credit) which will cause the Cardholder’s outstanding balance  
to exceed the maximum credit limit.

Activating Your Card: You must activate your Card by calling 1-800-527-7728. The Card is not valid until it has been activated.

Authorized Users: You may request a Card for an authorized user in the name of a person identified by you at any time. We may  
request information about the person to whom you want us to issue the Card and reserve the right to deny your request for an  
Authorized User Card. You are responsible for all transactions made by an Authorized User. You have the right to revoke an Authorized 
User at any time either by notifying your local branch or by calling the Contact Center at 1-888-732-8562. Calls made to the Credit Union 
Contact Center may be recorded for quality assurance.

Your Responsibilities: You are responsible for the following:
  • You agree not to use the Card if such use would cause your Account to exceed the credit limit.
  • You agree to pay immediately upon demand any amount in excess of the maximum credit limit.
  • You are responsible for all transactions and cash advances made through the use of your Card by yourself, or any Authorized User.
  •  You will not authorize anyone else to use your personal Card (non-authorized users) and you will not transfer your Card to anyone.  
If you do transfer your Card to another individual you will be responsible for all transactions and cash advances made through the 
use of your Card. 

  •  You agree to notify us AT ONCE if you believe your Card has been lost or stolen or if someone has used or may use your Card  

without your permission by contacting your local branch immediately or calling the Contact Center at 1-888-732-8562 or 919-857-2150 
locally in Raleigh. You may also write us at Our Mailing Address. Calls made to the Credit Union Contact Center may be recorded for 
quality assurance.

  • You agree to cooperate with us in our investigation of any possible unauthorized use of your Card.
  •  You agree to retain copies of all sales slips or cash advance slips or any other instrument acknowledging or recognizing a  

transaction, and to use such copies to identify transactions reported on your periodic statement.

  • You will not use your Card in an illegal transaction or in connection with an Internet gambling transaction.
  • You will take reasonable steps to protect the security and confidentiality of the PIN for your Card.

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Interest Rates and Interest Charges

Annual Percentage Rate 
(APR) for Purchases

9.75% 
This APR will vary based on the  
Index Rate.*

Fees

Annual Fee

Transaction Fees

None

Cash Advance

None

APRs for
Balance Transfers

APR for Cash Advances

Paying Interest

For Credit Card Tips from 
the Consumer Financial 
Protection Bureau

1.99% 
Promotional rate on transfers  
made between July 1, 2013  
and January 31, 2014.

Expiration of the promotional APR 
occurs 12 months after the balance 
transfer. After expiration, the “APR 
for purchases”, currently 9.75%, 
will apply to any remaining balance. 

9.75% 
This APR will vary based on the 
Index Rate.*

Your due date is at least 21 days 
after the close of each billing cycle. 
We will not charge you any interest 
on purchases if you pay your entire 
balance by the due date each 
month. We will begin charging 
interest on cash advances on the 
transaction posting date.

To learn more about factors to 
consider when applying for or using 
a credit card, visit the website of 
the Consumer Financial Protection 
Bureau at www.consumerfinance.
gov/learnmore.

Foreign Transaction 

1% for transactions conducted in 
two currencies and 0.8%  
for transactions conducted  
in one currency

ATM

$0.75 for each transaction

Penalty Fees

Late Payment
Returned Payment

$5
$5

How We Will Calculate Your Balance

We calculate the interest charge on your Account by applying 
the periodic rate to the “average daily balance” of your Account 
(including current transactions). To determine the “average 
daily balance” we take the beginning balance of your Account 
each day, add any new purchases, and subtract 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 result is the “average 
daily balance.”

You pay interest on cash advances or balance transfers from the 
date they are charged to your account. We apply payments to 
balances with the highest APRs first. We calculate interest using 
the average daily balance method, including new purchases.

* The APR equals 9.5% plus the Index Rate. The Index Rate is the 26 week Treasury Bill rate set at the first T-bill Auction held each  
quarter in January, April, July and October, and adjusted up to the nearest ¼%. Because the Index Rate is subject to change each 
quarter, the APR is as well.

Billing Rights information on your rights to dispute transactions and how to exercise those rights is provided in this Agreement.

Rates and Charges: You agree to the rates and charges and methods of computation set forth in this document which are made 
in accordance with the Truth-in-Lending Law. The Monthly Periodic Rate for the monthly billing cycle is equal to 1/12 of the Annual 
Percentage Rate (APR). The Monthly Periodic Rate will be computed to 1/100th of one percent. The method for calculating the APR is 
explained below. The APR is subject to change on the first day of the first billing cycle at the beginning of each quarter (January, April, 
July and October). If the APR should change, then the Monthly Periodic Rate will change and the new rate will take effect on the first 
day of the billing cycle of January, April, July and October. The APR will equal 9.5 percentage points plus the Index Rate. The Index 
Rate is the 26 week Treasury Bill rate set at the first Auction held in January, April, July and October and adjusted up to the nearest 
1/4%. Increases in the APR will result in a higher finance charge which may result in additional payments over a longer period in  
order to repay the purchases balance or your cash advance balance. The increased APR will apply to any balance outstanding on  
the effective date of the change as well as to future purchases and advances. There is no minimum APR. The APR will not exceed  
18% per year or the maximum permitted by applicable law, whichever is lower. The APR and the Monthly Periodic Rate used to  
compute your finance charge appears on your monthly statement.

Foreign Currency Transactions: Foreign currency transactions will be converted to U.S. Dollars by Visa. Under the currency con-
version procedure that Visa currently uses, the non-U.S. dollar transaction amount is converted into a U.S. dollar amount by multiplying 
the transaction amount in the non-U.S. dollar currency by a currency conversion rate. The conversion rate that Visa typically uses is 
either a government-mandated rate or a wholesale rate provided to Visa. The currency conversion rate that Visa uses for a particular 
transaction is the rate in effect for the applicable currency at the time the transaction is processed. This rate may differ from the rate 
in effect when the transaction occurred or when it was posted to your Account, and may be higher than the rate you could have gotten 
if you had converted U.S. dollars into cash. If a transaction initially in a foreign currency is converted to U.S. dollars before it is entered 
into the Visa network, the conversion rates and fees of the company that did the conversion will apply. Visa applies a 0.8% International 
Transaction fee to single currency transactions where the currency has already been pre-converted into U.S. dollars and a 1% fee for 
multi-currency transactions where both the country codes and currency codes are different. The fee is applied after converting the 
transaction currency into U.S. dollars. Two separate entries will appear on your statement, one for the foreign transaction and one for 
the International Transaction fee. The Local Government Federal Credit Union does not apply any additional conversion fee other than 
what Visa imposes.

Refusal to Honor Card: The Credit Union has no liability or responsibility if any Merchant refuses to honor the Card.

Notice of Negative Information: The Credit Union may report information about your Account to credit bureaus. Late payments, 
missed payments, or other defaults on your Account may be reflected on your credit report. If you are two (2) payments past due (30 
days delinquent), VISA requires us to report your Account to a credit bureau as delinquent. 

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Events of Default: At the Credit Union’s option, all amounts due from you to the Credit Union will become immediately due and  
payable if any of the following circumstances apply: (a) default by the Cardholder in making any payment when due and payable,  
(b) default by the Cardholder under any provision of these rules and regulations, (c) the Cardholder’s death or becoming insolvent or 
making an assignment for the benefit of creditors, (d) a petition being filed or any other proceeding being commenced under the  
Federal Bankruptcy Act or any state insolvency statute by or against the Cardholder, or (e) a receiver being appointed for, or a writ or 
order of attachment, levy or garnishment being issued against the Cardholder or any of the Cardholder’s property, assets or income. 
To the extent permitted by law, you agree to pay attorney’s fees and collection costs we incur in collecting amounts you owe us and 
enforcing our rights under this Agreement.

Obtaining Account Information/Receipts: You may obtain information about the balance of your Account by calling our automated 
Voice Response number at 1-800-328-4543, the Credit Union Contact Center at 1-888-732-8562, or locally in Raleigh at 919-839-5428.  
Calls made to the Credit Union Contact Center may be recorded for quality assurance. This information, along with a history of card 
transactions, is also available online through Member Connect at www.lgfcu.org. You can get a receipt at the time you make any  
transaction with your Card at an ATM or point of sale terminal. A receipt may not be required for a point-of-sale transaction if the 
amount of the transaction is $15 or less.

Periodic Statements: A statement will be mailed to you after the 20th of each month in which there was a balance or activity on 
your Account. Statements are also available through Member Connect at www.lgfcu.org. We reserve the right to stop periodic  
statements if your Account is inactive. Notify the Credit Union immediately of any charge or item which you believe to be incorrect  
or subject to dispute. Any charge or item on your monthly statement will be considered to be correct 60 days following the statement 
mail date if written notification from you is not received by that time.

Payments: If you choose to pay less than the total New Balance as shown on your monthly statement, a minimum payment is required 
to be made. The minimum payment is computed as 3% of your total New Balance or $25, whichever is greater. Generally, payments 
above the Minimum Payment due will be applied first to higher interest rate balances and then to lower interest rate balances. This 
may help you pay off your highest interest rate balances more quickly and reduce your interest charges. Payments received at a 
branch office by 5:30 pm Monday through Friday will be credited the same business day. Payments received electronically through an 
optional payment service, including online through Member Connect, or through Voice Response, will be credited based on the terms 
presented during use of the service.

Late Charges: A late charge of $5 will be added to your Account balance if you fail to make a payment equal to or greater than the 
Minimum Payment shown on your monthly statement on or before the 5th calendar day following the Payment Due Date shown on that 
monthly statement. You will only have to pay the late charge once on the same late payment. Any payment you make will be treated as 
being your oldest payment due.

Overdraft: You may request overdraft protection if you maintain a Credit Union checking account and a Credit Union issued Visa card. 
Overdraft cash advances will be made in $50 increments up to your credit limit less any outstanding balance. If the available amount 
is less than $50, all funds available will be transferred if these funds are sufficient to cover the item(s) in the checking account. You 
understand that the regular increment amount is subject to change by the Credit Union without notice. If your Visa credit card Account 
is thirty or more days past due, or over the approved credit limit, overdraft protection will not be available until the account is current. 
Rates and methods of computation are the same as other cash advances.

Refunds and Merchant Disputes: If you are entitled to a refund or credit for any reason, you agree to accept a credit to your Card 
instead of a cash refund, if the merchant does not provide cash refunds. You will settle all disputes about purchases you make using 
your Card with the merchant who honored the Card. We are not responsible for the delivery, quality, safety, legality, or other aspect of 
goods or services that you purchase from others with the Card.

Liability for Unauthorized Use: If you notice the loss or theft of your Card or a possible unauthorized use of your Card, you should 
notify us immediately at the address listed on your bill or Cardholder Services, PO Box 28540, Raleigh, NC 27611-8540, or call us at 
1-888-732-8562. Calls made to the Credit Union Contact Center may be recorded for quality assurance. You may also contact us through 
Member Connect at www.lgfcu.org. 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. If you provide us notification about the loss or theft of your Card within 
two (2) business days of learning of the loss or theft, your liability cannot exceed $50. However, if you notify us after two (2)  
business days of learning of the loss or theft, your liability can reach up to $500. 

What To Do if You Discover a Mistake on Your Statement: If you believe there is an error on your statement, notify us in  
writing at the address on your bill or Cardholder Services, PO Box 28540, Raleigh, NC 27611-8540. You may also contact us through Member 
Connect at www.lgfcu.org or the Credit Union Contact Center at 1-888-732-8562. In your letter, please provide the following information:
  • Account Information: Your name and account number.
  • Dollar Amount: The dollar amount of the suspected error.
  • Description of Problem: If you believe there is an error on your bill, describe the error and why you believe it is a mistake.

You must contact us within 60 days after the error appeared on your statement. You must notify us of any potential errors in  
writing (or electronically). You may call us, but if you do, you must follow-up that oral notice with a written notification within  
ten (10) business days.

While we investigate whether or not there has been an error, the following are true:
  • We cannot try to collect the amount in question, or report you as delinquent for that amount.
  •  The charge in question may remain on your statement, and we may continue to charge you interest on that amount. But, if we determine 

that we made a mistake, you will not have to pay the amount in question or any interest or other fees related to 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.

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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 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:
  •  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.)

  •  You must have used your 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.

  • 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 (or electronically) at Our  
Mailing Address or through Member Connect at www.lgfcu.org or the Credit Union Contact Center at 1-888-732-8562. Calls made to  
the Credit Union Contact Center may be recorded for quality assurance.. While we investigate, the same rules apply to the disputed 
amount as discussed above. After completion of our investigation, we will notify you of our decision. At that point, if we believe you 
owe an amount and you do not pay, we may report you as delinquent.

Promotional Annual Percentage Rate: At our option a special promotional rate may be offered from time to time. The specific 
terms will be provided at the time of the offer. Generally, the promotional APR will only apply to select transactions (i.e. purchases or 
balance transfers) during the promotional period. The APR rates for all other transactions, not outlined in the promotion as eligible for 
the promotional APR, will remain unchanged.

Balance Transfers: Transactions are subject to credit approval. All rates and offers subject to change. The interest rates applicable  
to purchases or cash advances and for prior promotional balances remain unchanged. Balance transfers are treated as cash advanc-
es so interest accrues from the date the transfer is posted to your account. Balance transfers of other LGFCU loans are not eligible for  
this promotion. LGFCU may stop offering this promotional rate for new balance transfers at any time and without prior notice after 
January 31, 2014.

You agree to allow 30 days to process your request, pay the amount(s) authorized and transfer the balance(s) to LGFCU credit card 
account. You may transfer up to your available credit, not to exceed your credit limit authorized by LGFCU. Please continue to make 
minimum payments on your other credit card(s) until the balance(s) have been transferred. All over payments must be refunded by 
the other institution. Payment of the amount(s) authorized by you may or may not satisfy any outstanding balance(s) on the designated 
account(s). LGFCU is not responsible for any remaining balance or additional charges with regard to such accounts, or for any charges 
resulting in any delay in the payment and transfer of balances. LGFCU reserves the right to refuse multiple transfers from the same 
credit card.

Other Agreements: All the terms and conditions of any other agreement between us and you and/or any other institution that is 
part of a network of automated teller machines (ATMs) in which we participate, and any applicable rules and regulations, also apply to 
use of the Card. There may be minimum and/or maximum limits on the amount of a cash advance dispensed from electronic terminals 
which accept the Card. All of the transactions made by electronic means are subject to verification by us, and any checks or other 
items deposited for collection may be deemed to be received and any other transaction may be deemed to occur on our next business 
day. You understand that transactions may be limited in some areas. You agree that we do not waive our rights under this Agreement 
if we fail to assert them. The Agreement binds and benefits us and our successors and assigns and binds you, your estate and your 
personal representatives.

Applicable Law: This agreement and your Card and additional Cards, and all questions regarding their legality, enforceability and 
interpretation, are governed by the laws of the State of North Carolina, USA.

M-107877

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