CREDIT CARD 
AGREEMENT AND
TRUTH IN LENDING 
DISCLOSURE

Effective March 1, 2012

FEDERALLY INSURED BY

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PATELCO CREDIT UNION
CREDIT CARD AGREEMENT AND
TRUTH IN LENDING DISCLOSURE
Effective: March 1, 2012

This Credit Card Agreement and Truth in Lending Disclosure (“Credit 
Agreement”)  governs    Patelco  Credit  Union  credit  card  accounts  for 
VISA Gold, VISA Platinum, and VISA Classic card holders. Please keep 
this Credit Agreement for your records.

Parts in boldface meet Truth in Lending disclosure requirements.  If  you  apply 
for or use a Credit Card with Patelco Credit Union, you agree that your 
Credit Card will be subject to the following terms.  If any provision of 
this Credit Agreement is invalid, the other parts will remain in effect. 
Applicable federal and California law will govern interpretation of this 
Credit Agreement.

Using Your Credit Card Account: If the Credit Union approves your application 
for  a  credit  card  account,    the  Credit  Union  will  open  a  VISA  credit 
card  account  (“Credit  Card”)  for  you  and  issue  one  or  more  plastic 
credit cards (“Card(s)”) as instructed on the application. Each person 
to whom a Card is issued, and any authorized user, may use the Credit 
Card for purchases and cash advances. You consent to the terms of this 
Credit Agreement by applying for, keeping, signing or using a Patelco 
Credit Union Credit Card or Card or permitting others to do so.

To make a purchase or get a cash advance on your Credit Card, you 
must  present  your  Card  or  give  the  Card  number  to  a  participating 
VISA plan merchant, to the credit union, or to another financial insti-
tution.  If  you  make  your  transaction  in  person,  you  will  sign  a  sales 
or  cash  advance  draft  imprinted  with  your  Card  number.  You  agree 
to keep copies of the drafts to verify your monthly statement. If you 
use your Card for telephone, on-line, or other transactions not made 
in person, the only documentation you receive may be your monthly 
statement.

You  can  also  request  Credit  Card  cash  advances  by  writing  special 
checks, at ATMs, or through the CALL-24 or Online Banking systems. 
A Credit Card cash advance that you request by CALL-24, or by Online 
Banking  can  be  disbursed  into  your  Patelco  Checking  or  Tiered 
Savings Account or by check payable to you and mailed to you at your 
address in our records.

You can make Credit Card purchases at merchant Point of Sale (POS) 
terminals. The terminal you use will give you the option to indicate a 
credit or a debit transaction. If you select “credit,” the transaction will 
be counted as a purchase rather than as a cash advance on your Credit 
Card. You can also use Patelco Credit Cards to access your credit union 
Checking and Savings Accounts at ATMs. Please see the ELECTRONIC 
FUNDS  TRANSFER  AGREEMENT  AND  DISCLOSURE  in  your  Member 
Handbook for information on use of your Credit Cards for direct access 
to your Checking and Savings Accounts at ATMs, including informa-
tion on your liability for unauthorized use of your Credit Cards for this 
type of access.

Please refer to the “Stopping Payment on Checks” part of the “General 
Checking  Account  Terms”  section  of  your  Member  Handbook  for 
information  about  stopping  payment  on  Credit  Card  checks.  Please 
note, special checks provided to you on your Credit Card Account are 
not subject to merchant dispute rights that apply if you use a plastic 
Credit Card. There are no check printing fees or other charges associ-
ated with normal use of Credit Card Checks. However, special handling 
of Credit Card Checks, such as stop payment requests, will be subject 
to fees. Please refer to the Fee Schedule.

Your Credit Card will be open end/ revolving. This means you can bor-
row the full amount of your credit limit, repay the principal in full or in 
part, and borrow again up to your maximum credit limit, as long as you 
remain creditworthy and a Member of the Credit Union in good stand-
ing. (See “Meeting Your Obligations” in your Member Handbook.)

Overdraft Protection Advances: You can request a cash advance on your Credit 
Card by writing a check on your credit union Checking Account at any 
time there are insufficient funds in your Checking Account. Any person 
who is authorized to sign on the Checking Account can obtain over-
draft protection advances even though they are not a borrower, joint 

borrower  or  co-signer  under  this  Credit  Agreement.  Any  such  over-
draft in your Checking Account, up to your unused credit limit, will be 
added to your Credit Card balance under this Agreement if and when 
the credit union pays the check. We have the right to refuse overdraft 
advances just as we can refuse other credit advances but will promptly 
notify you in writing of the reason for refusal. All overdraft advances 
will be in $100 multiples or up to the available credit limit, whichever is 
less. Overdraft protection advances will occur on your Credit Card only 
if (1) you have designated the Credit Card as an overdraft protection 
source in writing on your membership authorization card or a written 
overdraft authorization, (2) you have applied and been approved for 
the Credit Card, and (3) you have available credit when the overdraft is 
presented for payment. Overdraft protection advances are treated as 
cash advances in calculating Finance Charges.  Cash advances from a 
Credit Card /credit card line of credit are subject to a cash advance fee 
(see the Fee Schedule). 

We  have  the  right  to  terminate  your  Credit  Card  or  refuse  an  ad-
vance. We will notify you in writing of the reason for any such denial 
of credit. Among the reasons we can refuse to advance credit are (1) 
your already having borrowed up to your credit limit, (2) an adverse 
change in your credit standing, (3) your failure to meet obligations to 
the Credit Union, (4) an adverse change in your employment, (5) your 
insolvency, (6) your bankruptcy, (7) your death, or (8) unavailability of 
funds to make the loan. We will not allow access to Credit Cards if any 
loan you have with us is delinquent by 10 days or more.

You  agree  that  you  will  not  use  or  permit  others  to  use  Credit  Union 
share or loan account access devices (such as debit cards or credit cards) 
or  other  Credit  Union  services  to  conduct  illegal  transactions  such 
as  illegal  online  gambling.  We  have  the  right  to  refuse  to  authorize  a 
transaction if we reasonably believe that it is illegal. We may also block 
or  freeze  accounts  or  decline  transactions  consistent  with  require-
ments imposed by laws, regulations or government agency directives. 
However, ultimate responsibility for determining whether a transaction 
is legal rests with you, not with the Credit Union. You agree that the ac-
tual or alleged illegality of a transaction for which authorized use of your 
Credit Union services was made will not be a defense to your obligation 
to pay it. We can revoke any Credit Union services or access devices if 
you use them for illegal transactions such as illegal on-line gambling.

Credit Card fraud is always a risk. To protect the Credit Union and our 
member-owners from losses associated with Credit Card fraud claims, 
we  reserve  the  right  to  block  the  purchase  ability  of  Credit  Cards  we 
issue. We participate in a fraud protection system that may detect and 
block  purchases  that  reflect  unusual  spending  patterns  (although  we 
do not warrant that we will block unauthorized transactions before they 
occur). If you are planning a major purchase for which you have available 
credit, or will be traveling to a foreign country, you can minimize the risk 
that the fraud detection system will block the purchase by notifying the 
Credit Union in advance at (800)358-8228. By using a Credit Card, you 
warrant that your financial circumstances are sound and you know of no 
reason why creditors should make claims against you or why you would 
become a debtor in bankruptcy now or in the future.

Obligation to Pay:  Each person who signs the application, whether as a pri-
mary borrower, joint borrower, or co-signer, agrees to pay all charges 
incurred on the Credit Card according to the applicable terms of this 
Agreement. Co-signers, who do not have access to the Credit Card, but 
are still responsible for payment, acknowledge receipt of a copy of this 
Credit Agreement as well as a separate “Notice to Co-Signer.”

Each  applicant  and  co-signer  continues  to  be  bound  for  all  transac-
tions resulting from the use of the Credit Card until a borrower, joint 
borrower or co-signer gives us written notice to terminate the Credit 
Card. In addition, any issued Cards or Credit Card Checks must be cut 
in  half  and  returned  to  us.  Even  after  a  Credit  Card  is  closed  by  you 
or by the Credit Union, the borrower, joint borrow and any co-signer 
remain obligated to repay the obligation, including finance charges, 
according to the terms of this Agreement.

An authorized user is a person who receives permission to use a Credit 
Card from an individual to whom a Card was issued as requested in 
the application. Each borrower, joint borrower and co-signer is obli-
gated to repay any charges resulting from the use of the Credit Card 
by an authorized user. Even if an authorized user exceeds your permis-
sion to use the Credit Card (for example, if they use it on days or for 
1

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transactions that exceed the permission you gave them), you are still 
responsible for their transactions. We are not subject to agreements 
between you and authorized users that limit their use of your Credit 
Card. Authorized users remain authorized until you notify us to close 
the Credit Card to further transactions.

All persons who use the Credit Card are also obligated to repay the 
Credit  Union  for  all  charges  incurred  because  of  their  use  of  the 
Credit Card.

Each borrower, joint borrower and co-signer remains bound to pay for 
charges under this Agreement, even though another person has been 
directed to pay the debt by an agreement or court order to which the 
credit union is not a party, such as a divorce decree. No release from the 
obligation to pay charges under this Credit Agreement is valid unless in 
writing and signed by an authorized agent of the Credit Union or pursu-
ant to a court order in an action to which the credit union is a party.

Credit Limit and Account Review:   The  Credit  Union  has  sole  discretion  to  set 
your credit limit, applying our credit policies to our evaluation of your 
creditworthiness,  ability  to  pay,  and  value  of  the  property  securing 
the credit (if any). We can review your Credit Cards from time to time. 
Our review may include checking your credit with third parties such 
as credit reporting agencies. You agree to provide any current infor-
mation we request. You can request an increase to your line of credit 
limit at any time by submitting an application, but the Credit Union 
has sole discretion as to whether to grant your request. Excessive ap-
plications  may  result  in  fees.  We  do  not  automatically  reissue  Credit 
Cards if there has been no Credit Card activity for over six months. We 
can increase or decrease your credit limit, adjust your interest rate, or 
terminate  your  Credit  Card  based  on  our  review,  including  a  review 
of your transactions and experiences with us and account inactivity.

Repayment  Terms:    You  promise  to  pay  us,  in  legal  tender  if  we  request 
it,  at  the  address  designated  on  your  periodic  statement,  all  sums 
advanced to you under this Credit Agreement plus a Finance Charge 
determined  by  the  credit  union.  “Legal  tender”  means  cash,  money 
order, certified funds and/or cashier’s checks. You agree that all pay-
ments on your Credit Cards will be in U.S. Dollars and drawn on U.S. 
financial institutions.

The Finance Charge is the amount of money that you pay for the money you bor-
row and may include an interest component, which is calculated using an Annual 
Percentage Rate, and fees associated with certain Credit Card activity.

Credit Card Finance Charge Calculation:  Finance Charges on Credit Cards are calculated 
by multiplying the applicable Monthly Periodic Rate by the Average Daily Balance 
of Purchases and Cash Advances. To calculate the Average Daily Balance, we deter-
mine each day’s outstanding balance by adding any new purchases, cash advances 
or other charges to, and subtracting any payments or other credits from, the day’s 
beginning balance. Then we add the balances for each day together and divide the 
total by the number of days in the billing.

There is a grace period for purchases. If you paid your previous billing cycle’s entire 
balance in full on or before the due date (or if you had no outstanding balance as of 
the previous billing cycle’s due date) and you pay your current billing cycle’s entire 
balance in full on or before the due date, we will waive Finance Charges on pur-
chases for the current billing cycle. If, however, you had any balance outstanding 
as of the due date for your previous billing cycle, Finance Charges will accrue during 
the current cycle on the entire outstanding balance, including new transactions. 
There is no grace period for Credit Card Cash Advances. Finance Charges accrue on 
Cash Advances from the day they post to your Credit Card.

Credit Card Interest Rates:  All VISA Credit Card Accounts have variable interest rates. 
As of February 16, 2012, the variable ANNUAL PERCENTAGE RATES for purchases and 
balance transfers ranged from 8.15% to 16.15% while variable ANNUAL PERCENTAGE 
RATES for cash advances ranged from 15.15% to 17.15% based on the January 1, 2012 
index of 3.25%. On VISA Accounts, we divide the Annual Percentage Rate by 12 to 
determine the Monthly Periodic Rate. Your variable rate is determined at the be-
ginning of each billing cycle by adding the Margin assigned to your account to the 
Index. The Margin for cash advances is usually higher than the Margin for purchases 
and balance transfers. The Index is the Prime Rate reported in the Federal Reserve 
Bulletin on the first day of the month preceding the month in which the rate will 
take effect. For example, the Index published on the first day of January will deter-
mine the ANNUAL PERCENTAGE RATE that will apply during a billing cycle that begins 
in  February.  You  can  also  visit  our  website,  www.patelco.org,  to  obtain  current 
Credit Card rates.
2

If  your  Credit  Card  application  is  approved,  we  will  disclose  to  you  in  writing 
the  ANNUAL  PERCENTAGE  RATE  for  purchases  and  balance  transfers,  the  ANNUAL 
PERCENTAGE RATE for cash advances, the corresponding Monthly Periodic Rates, the 
current index value and the Margin(s) assigned to your Credit Card . If we offer you 
an initial discounted rate, the discounted rate and the time through which it will 
be effective will also be disclosed to you in writing before you become obligated. 
Rates applicable to your Credit Card will also be disclosed to you on periodic state-
ments we will send you. Changes to your variable rate that occur due to application 
of the variable rate formula will apply to the entire balance outstanding as of the 
date of the change as well as to new transactions. We have the right to change any 
variable rate formula applicable to your Credit Card based on our review of your 
Credit Card . (See Section titled Credit Limit and Account Review above.)

Additional Rate Information:  If for any reason the  Index  assigned to a variable  rate 
Credit Card is discontinued or we, at our sole discretion, decide to assign a different 
Index, we will give you the legally required notice before the new Index takes ef-
fect. If the new Index amount differs from the old Index amount at the time of the 
change, we will adjust your Margin so that your ANNUAL PERCENTAGE RATE will not 
be different as of the first adjustment. However, we cannot predict how different 
indices will change after they take effect. We can also change the interest rate on 
Credit Cards for any lawful reason, including but not limited to our review of your 
account, by giving you the legally required notice. Variable rate changes will be 
shown on periodic statements  we will send you.

In  no  event  will  the  ANNUAL  PERCENTAGE  RATE  or  corresponding  Daily  Periodic 
Rate exceed any maximum amount the Credit Union is permitted to charge by law. 
Otherwise, there are no limits on the amount by which a variable rate can change at 
any rate adjustment. We can decline to make an increase in the interest rates that 
would be justified by an increase in the Index on one or more occasions without 
waiving our right to make future increases consistent with increases in the Index. 

If  you  receive  discounted  interest  rates  because  you  meet  specified  conditions, 
your ceasing to meet that condition will terminate the discounted rate during the 
month in which the conditions are not met. In some circumstances you may have to 
reapply for a refinanced obligation. The written disclosure you receive when you 
establish a Credit Card will tell you whether you have met the conditions to qualify 
for any rate discounts and how the terms of your Credit Card will be affected if you 
cease to satisfy the conditions.

We may change the terms of this Credit Agreement, including the variable rate for-
mula, by giving you notice required by law prior to the effective date of the change.

Credit Card Payment Terms:  You will make payments every month on or before the day 
specified as your due date. If you do not make a payment to the Credit Union within 
fifteen days after the due date, a late charge will be added to your account. See 
the Fee Schedule.

If  you  agree  to  make  automatic  payments  on  your  Credit  Card,  it  is 
your  responsibility  to  have  funds  available  to  make  the  scheduled 
payments.

We  will  not  honor  Credit  Card  payments  drawn  on  Patelco  Credit 
Union if doing so will cause you to overdraw the applicable account. 
Overdraft  protection  advances  are  not  available  to  pay  Patelco  loan 
obligations.

The minimum monthly Credit Card payment depends on the Card type you have. 
For VISA Classic, it is the higher of 2% of the unpaid principal balance or $24.00. 
For VISA Gold, it is the higher of 2% of the unpaid principal balance or $24.00. For 
VISA  Platinum,  it  is  the  higher  of  2%  of  the  unpaid  principal  balance  or  $24.00. 
Minimum monthly payments increase with increases in the variable interest rate 
(if applicable) and with increases in the outstanding balance. Merchant credits will 
not affect the amount of your minimum Credit Card payment.

Credit Card payments are applied in the following order: (a) to Finance Charges, 
(b) to Fees, (c) Cash Advances, and (d) to Purchases. We reserve the right to apply 
payments on your Credit Card in any manner consistent with applicable law.

Although  we  will  credit  payments  we  receive  promptly  consistent 
with regulatory requirements, we reserve the right to delay increasing 
your available credit or refunding a credit balance to you until final col-
lection of non-cash items presented for payment on your Credit Card. 
The delay may be up to seven days, or longer in rare cases.

You will make payments every month on or before the day and period specified 
as your due date. If you do not make a payment to the Credit Union within fifteen 
days after the due date, a late charge will be added to your account. See the Fee 
Schedule.   

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Monthly Statements:  The credit union will send you monthly statements of 
your Credit Card unless the account is restricted, which will advise you 
of their status and provide any other information required by law.

Exceeding Your Credit Limit:  If your outstanding balance exceeds your autho-
rized  credit  limit  at  any  time,  you  must,  upon  our  written  demand, 
make an immediate lump sum payment to reduce your balance to an 
amount within your credit limit. In addition, you must still make your 
minimum monthly payment.

Prepayment:  The balance you owe, including accrued finance charges on the unpaid 
balance, may be repaid in full at any time without prepayment penalty.

Foreign Credit Card Transactions:  If you incur a Credit Card charge in a foreign 
currency or foreign country, VISA International will convert the charge 
into  the  U.S.  dollar  equivalent  at  a  conversion  rate  that  is  either  a 
wholesale  market  rate  or  a  government  mandated  rate.  VISA  uses 
the rate in effect for the applicable central processing date. We assess 
a Foreign Transaction Fee of 2.00% of the U.S. dollar amount for any transaction 
made in a foreign currency and any transaction made in U.S. dollars that is pro-
cessed outside the United States (this fee will be in addition to any other applicable 
fee.) (See the Fee Schedule.)

Other  Credit  Card  Charges:    For  other  Credit  Card  charges  and  fees,  please 
refer to the Fee Schedule.

Debt  Protection:    Death,  Disability  and  Involuntary  Unemployment  protection  are 
available on both Loan Accounts and Credit Cards. Debt Protection is optional and 
is  not  required  to  obtain  a  Credit  Card.  Debt  Protection  is  subject  to  a  separate 
agreement.

Payment Skips/Extensions:  Patelco offers skip payments on open-end credit programs. 
The loan must exist for at least 120 days from funding date to be eligible, regard-
less of how many payments have been made. On a joint loan, either borrower act-
ing alone may request the skip payment. A skip payment can be performed up to 
twice per calendar year on a given loan, but they must be at least 90 days apart. In 
the event you need to skip more than one month’s payment, you must apply for an 
Extension. Finance charges will continue to accrue on the full principal balance on a 
daily basis and skipping a payment extends the term of the loan. The next payment 
due date on the loan must be at least 5 days and no more than 45 days in the future. 
The Member must be in good standing on all Patelco obligations to participate in 
any voluntary skip payment program. There is a fee per loan suffix for this service 
(See Fee Schedule). The fee may be paid out of shares or added to the loan(s) and is 
considered a finance charge and will be reflected in the Annual Percentage Rate 
disclosed on the periodic loan statement for the month in which it is collected. This 
fee will not be waived, and there is no Commitment Household discount.

Security Interest in Credit Union Share Accounts: In consideration for and as a condition 
of Patelco Credit Union issuing a Credit Card to you, you agree that if you default, 
we can take any Patelco shares in which you have an interest to recover all or part 
of what you owe us without advance notice to you.   ”Shares”  includes  share 
(savings),  money  market,  share  draft  (checking),  and  certificate  ac-
counts. IRAs and other accounts subject to preferential tax treatment 
are not included. This consent is in addition to our right to impress a 
lien  on shares under California Financial Code § 14856. If we exercise 
our rights under this consent, you agree that we have not waived any 
other rights we have to collect what you owe us. This consent by you 
is  not  a  pledge  by  you  of  any  account  and  will  not  affect  your  right 
to withdraw funds prior to your default and our exercise of our rights 
under this consent. 

Specific Account Pledge:  You may be allowed or required to pledge specific 
Patelco Credit Union shares as security for the repayment of all credit 
extended to you under this Credit Agreement. If so, the dollar amount 
pledged and the share account(s) will be shown on a separate secu-
rity agreement. You will not be able to withdraw funds as long as the 
pledge is in effect. If you default in your payment obligations under 
this Credit Agreement, we can apply the shares specifically pledged to 
pay off this Credit Card in full or in part.  Our right to take Credit Union 
shares in which you have an interest to recover your delinquent loan 
obligations  applies  even  if  the  credit  we  extend  to  you  is  otherwise 
designated “signature” or “unsecured.”

Changes in Terms:  We may change the terms of this Agreement, including 
the  variable  rate  formula,  by  giving  you  any  notice  required  by  law 
prior  to  the  effective  date  of  the  change.  A  “change”  can  amend  an 
existing term, add a new term, or a delete an old term. If we change 
the interest rate according to a previously disclosed variable rate for-

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mula, the new rate will apply to your payoff of the balance whether 
or  not  you  keep  the  Credit  Card  open.  For  other  changes,  including 
other changes to interest rates, you can avoid the changes either by 
notifying us according to any notice of rights to cancel that you are 
given, or by notifying us in writing to close the Credit Card and return-
ing all Cards and  Credit Card Checks, and paying off the Credit Card 
under the old terms. If you keep the Credit Card open after the change 
takes effect, you consent to application of the change to your existing 
balances  as  permitted  by  law,  as  well  as  to  new  loan  advances,  and 
the new terms will apply whether or not  you  use the credit  for new 
transactions. 

Honest Dealing:  You agree to promptly notify the Credit Union of any infor-
mation that affects your creditworthiness or ability to pay, including 
but not limited to a change in your name, address or employment. If 
you have reason to believe you will be unable to make the required 
payments, you agree not to request Loan Account advances and not 
to use your Credit Card for new transactions.

Additional Terms Applicable to Joint Borrowers and Co-Signers (Guarantors):  Whether you 
are a joint borrower who will use or benefit from credit extended, or 
a co-signer (guarantor) who agrees to repay credit but will not use or 
benefit from it, you agree that you are obligated to repay any amount 
borrowed  under  this  Agreement  up  to  the  credit  limit  that  we  es-
tablish. We can proceed against you if the payments are delinquent 
whether  or  not  we  have  proceeded  against  any  other  borrower  or 
co-signer. We will give you any notice required by law of any adverse 
action we take. Any extension of the payoff or partial settlement that 
we make with another borrower or co-signer will not waive any of our 
rights against you as a borrower or co-signer. You can stop being ob-
ligated for future credit extended only by writing to us to that effect, 
and, if we have issued a Credit Card, or Credit Card Checks to you, you 
must cut them in half and return them to us. No more credit will be ex-
tended unless we, in our sole discretion, determine that the remaining 
responsible borrowers and/or co-signers are able and willing to pay. 
However, you will remain responsible for all balances outstanding at 
the time you told us that you were no longer willing to be responsible 
for the account.

Default; Lien; Acceleration:  If you default on your payments when due, regard-
less of the amount of default, or if you are current on your payments 
but  file  for  bankruptcy  relief,  fail  to  provide  title  upon  demand,  die, 
or  otherwise  breach  this  Agreement,  you  agree  that  we  can  declare 
the entire outstanding balance due and payable in full immediately, 
without notice. Any one of the items set forth in the immediately pre-
ceding sentence, including death, shall constitute an event of material 
default.  Our  declaration  that  the  entire  balance  is  immediately  due 
and  payable  in  full  is  called  “acceleration.”  Upon  default,  the  Credit 
Union shall be entitled to immediately repossess / recover its collateral 
without notice. Even if we accept a late or partial payment, we are not 
waiving our right to accelerate the payment of the loan. The interest 
rates otherwise called for by this Agreement will apply until the debt 
to us is paid in full, even after your default and our acceleration of the 
obligation.

You expressly agree that if you default on one obligation to us, we can 
declare all of your obligations to us (including Credit Card obligations) 
to be in default and accelerate them. Loans secured by your primary 
residence are exempt from this provision. The acceleration of all loans 
by default of one loan obligation shall require all loans to become due 
and payable in full including all associated costs, interest, and attor-
ney’s fees.

Collection Costs: Please see “Collection Costs” under GENERAL AGREEMENTS 
OF MEMBERS in your Member Handbook.

Other Terms Applicable To Credit Cards

Unauthorized Use of Lost or Stolen Cards:  You will generally not be liable for the unau-
thorized use of any Credit Card issued to you after its loss or theft. You agree to 
notify us of the loss or theft promptly at our telephone number (800) 358-8228. 
You must use this number to block your lost or stolen card from ATM access. If the 
unauthorized use of your Card falls outside VISA “zero liability” rules, you could 
be liable for unauthorized transactions up to a maximum of $50.00. You agree to 
notify us at once of any loss or theft of your Credit Card and to cooperate in our 
determination of the circumstances.

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Merchant  Credits:    If  a  merchant  who  honors  your  Credit  Card  gives  you  credit  for 
returns or adjustments, he will do so by sending us a credit slip, which we will post 
to  your  account.  If  your  credits  and  payments  exceed  what  you  owe  us,  we  will 
hold and apply this credit balance against future purchases and cash advances, or 
refund it on your written request if it is $1.00 or more. We may refund any credit 
balance to you at any time at our option, but after six months, any credit balance 
over $1.00 will be automatically refunded to you.

Merchant Problems:  We are not responsible for the failure or refusal of any 
merchant to honor your Credit Card.

Platinum  VISA  Rebates:    Patelco  members  who  have  a  Platinum  VISA  may 
earn a cash rebate in U.S. dollars when they use their Platinum VISA for 
Purchases. Rebate terms are subject to change at any time without notice.

Rebate  Period:    The  rebate  period  runs  annually  from  November  16 
to  November  15.  The  rebate  to  be  paid  is  calculated  each  year  on 
November  15.  A  rebate  is  paid  only  if  the  Platinum  VISA  holder  has 
earned $1.00 or more in rebates. The rebate will be paid shortly after 
the end of the rebate period in the form of a deposit to the Platinum 
VISA holder’s Tiered Savings account. If the account has more than one 
borrower, the rebate will be paid to the cardholder who is listed first 
on the billing statement. It is the Platinum VISA holder’s responsibility 
to notify us if an expected rebate has not been paid.

Rebate Earnings:  Platinum VISA holders begin earning rebate credit with 
their first Purchase during a rebate period. Rebates are not earned for 
Cash Advances.

The  rebate  amount  for  each  Purchase  equals  the  purchase  amount 
multiplied  by  1.0%  (0.01).  The  monthly  statement  will  show  the 
amount of purchases eligible for the rebate. We can make adjustments 
to rebate amounts due to Account activity. For example, if we include 
a  purchase  in  your  Purchases  eligible  for  a  rebate,  and  a  merchant 
later advises us that you have returned the merchandise and received 
a  credit  to  your  Platinum  VISA  Account,  we  can  reduce  the  rebate 
amount accordingly.

Forfeit of Rebates Earned Before End of Rebate Period:  If the Platinum VISA Account is 
closed before the end of a rebate period, earned but unpaid rebates 
will  be  forfeited.  If  your  Platinum  VISA  Account  is  delinquent  at  the 
time a rebate is scheduled to be paid, we may, at our sole option, apply 
the rebate to reduce the balance you owe instead of depositing it to 
your Tiered Savings Account. 

Rebates on Lost or Stolen Cards:  If your Platinum VISA is lost or stolen, earned 
rebates will be credited to your new account number.

Visa  Gold  Credit  Card:  UChoose  Reward  Points  Program  is  an  optional  re-
wards program billed at $25 annually.

Tax Consequences of Rebates and UChoose Reward Points Redemptions:    VISA  Gold  Card  
holders  have  sole  responsibility  for  determining  their  tax  liability,  if 
any, resulting from participation in the UChoose Reward Points pro-
gram.  We  make  no  representations  or  warranties  regarding  the  tax 
treatment  of  rebates  received  or  UChoose  Reward  Points  redeemed 
under these programs.

Termination:    Without  prior  notice,  we  can  terminate  your  Credit  Card, 
reduce  or  cancel  all  credit  available  on  the  account,  refuse  to  make 
further advances, and revoke all issued Cards or Credit Card Checks for 
any breach of this Agreement or other agreements between you and 
the credit union to the extent permitted by law. If you do not meet the 
requirements for active membership in Patelco Credit Union, we have 
the right to terminate your Credit Card. In some circumstances, we will 
be required to give you 30 days’ advance written notice that we are 
terminating your credit. Any joint borrower may close a Credit Card at 
any time. If your Credit Card is closed by you or us, you will surrender 
any issued Cards or Credit Card Checks to us. Termination of a Credit 
Card does not relieve you of the obligation to repay the full balance 
you owe consistent with the terms in this Credit Agreement. 

Your Billing Rights:  The following summary of your rights under federal law 
does  not  cover  all  rights  you  may  have  under  state  and  local  law.  If, 
under state or local law, you have a longer period of time in which to 
send an inquiry to the credit union concerning your statement, reli-
ance on any such longer time period may result in your losing impor-
tant rights which could be preserved by acting more promptly under 

4

federal law and State or local provisions, if any, only become operative 
upon the expiration of the time period provided by Federal Reserve 
Regulation Z for submitting a proper written notification of an error.  

The following federal billing rights notice is part of the Truth in Lending Disclosure.

Your Billing Rights:  
Keep This Notice 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 Patelco Credit Union, PO Box 8020, Pleasanton, 
CA 94588.  

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, de-
scribe  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 sched-
uled,  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:

•	 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 cor-
rected the error.

•	 Within 90 days of receiving your letter we must either correct the 

error or explain to you why we believe the bill is correct.

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.

•	 The charge in question may remain on your statement, and we 

may continue to charge you interest 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 the pay-
ment is due. We may then report you as delinquent if you do not 
pay the amount we think you owe.

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If you receive our explanation but still believe our 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 organi-
zations 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 neces-
sary 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  ac-
cesses 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:  

Patelco Credit Union,  PO Box 8020,  Pleasanton, CA 94588

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.

Notice to California Residents Regarding Credit Cards:  Under California law, our right 
to recover outstanding credit extended to you for purchases is subject 
to any defenses that you have against the seller if:  

1.  The purchase price of the item in question exceeded $50.00;  

2.  The purchase was made in California;  

3.  You made a written demand on the retailer and made a good faith 

attempt to get satisfaction of your complaint;  

4.  You notify us, in writing, of the name of the seller, the date of pur-
chase, the price paid, the goods or services purchased, the nature 
of your defense, and the acts that you took to obtain satisfaction 
from the seller. 

The amount to which the defense applies is limited to the amount out-
standing on the purchase as well as late charges and Finance Charges 
at the time the written demand is received by us. This remedy is the 

only one you have against us. Your rights are limited to those circum-
stances outlined in California Civil Code § 1747.90. Purchases with cash 
or check are not included in this section, even though you used your 
Credit Card to validate your credit. We cannot penalize you by either 
giving  out  unfavorable  credit  information  about  you  or  refusing  to 
renew your Credit Card solely because you obtained relief under the 
remedies you have for collecting billing errors.

ATM  Disclosure:  Credit  Card  Access  to  Credit  Card  Accounts  Only:    This  part  of  the  dis-
closure  includes  special  provisions  applicable  to  the  use  of  a  Card 
to obtain cash advances at ATMs.  See the Electronic Funds Transfer 
Agreement  and  Disclosure  section  of  the  Member  Handbook  for 
information regarding use of Cards to access your credit union share 
accounts at ATMs.

Available  Services:    Obtain  up  to  $500.00  per  day  on  your  Credit  Card 
Account.  The  amount  of  cash  you  can  obtain  on  your  Credit  Card 
Account at designated ATMs may be limited by the ATM you are using, 
and may be less based on your Card’s daily limit.  ATM service is gener-
ally available 7 days a week, 24 hours a day.

Documentation of Transactions: Cash advances using a Card will be shown on a 
transaction receipt dispensed by the ATM (unless the machine advises 
you in advance that receipts are not available or you elect not to ob-
tain a receipt) and on your periodic statement.

Credit Union Liability:  If we do not properly complete a transaction accord-
ing to our agreement with you, we will be liable for your direct losses 
or damages. However, there are some exceptions. We will not be liable 
for failure to complete cash advance transactions at ATMs if: 

1.  Through no fault of ours, you don’t have sufficient available credit 

to make the transaction; 

2.  The ATM system was not working properly and you knew about the 

breakdown when you started the transaction; 

3.  The money in your account is subject to legal process or other claim; 

4.  Your  PIN  (personal  identification  number)  or  Card  has  been  re-

ported missing and we have blocked its use;  

5.  Circumstances beyond our control such as fire, flood, electrical fail-
ure, or malfunction of the central data processing facility prevent 
the completion of the transaction despite our reasonable precau-
tions; or 

6.  We establish other lawful exceptions and give you proper advance 

notice of them.

In no event will the credit union be liable for consequential, indirect, or 
punitive costs or damages.

ATM Security:  Do not use an ATM unless it appears safe to do so. Do 
not key in your PIN if someone is looking. Be sure you take your Credit 
Card  and  receipt  when  you  are  done.  Put  your  money  away  quickly 
and leave the site.

© 2012 Greene & Allison LLP. All rights reserved

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