VISA CREDIT CARD 
DISCLOSURE
AND AGREEMENT

EFFECTIVE DATE
July 1, 2012

This Disclosure Supersedes All
Disclosures Prior to the Effective
Date Shown Here

Important Document
Please Read and Retain For Your Records

CREDIT CARD AGREEMENT

NOTICE: See reverse side for important information regarding your rights to dispute billing errors.
SEE ACCOUNT OPENING DISCLOSURE WHICH ACCOMPANIES THIS AGREEMENT

In this Agreement, the words (“you”) and (“your”) mean: (a) the person or persons who use or authorize the use of, or (b) who sign an application for a LBS Financial Credit Union Visa 
Classic or Visa Gold Credit Card. (“Card”) means the LBS Financial Credit Union Visa Classic or Visa Gold  Credit Card and any duplicates and renewals the Credit Union issues to 
you. (“Account”) means your Visa Classic or Visa Gold Credit Card line of credit account with the Credit Union. (“Credit Union”) means LBS Financial Credit Union.

1.  Using  the Account. If your application for a Visa Credit Card Account is approved, 
the Credit Union will establish a line of credit for you and notify you of its amount when 
the card is sent to you. You agree not to let your account balance exceed your approved 
credit limit. Each payment you make on the account will restore your credit limit by the 
amount of the payment which is applied to the principal amount of purchases and cash 
advances. You may request an increase in your credit limit only by written application 
submitted to the Credit Union. The Credit Union has the right to reduce or terminate your 
credit limit at any time.

2.  Using the Card. You may use your card to purchase goods and services in person, 
online, and by mail or telephone from merchants and others who accept Visa credit cards. 
In addition, you may obtain overdraft and cash advances from the Credit Union and cash 
advances from other financial institutions or select merchants participating in the Visa 
program and from automated teller machines (ATMs), such as Visa ATM Network, that 
provide access to the Visa system. (Not all merchants or ATMs provide such access.) 
You will need to use your Personal Identification Number (PIN) to obtain a cash advance 
from an ATM. VISANET ATM transactions are limited to five (5) per day with a maximum 
cash withdrawal of $500 per day or your available credit limit, whichever is less. 

3.   Personal Identification Number. We will issue a Personal Identification Number 
(PIN) to you.  This PIN will allow you to make cash withdrawals at VISANET ATMs.  Your 
PIN is your secret code.  You agree not to disclose your PIN to anyone.  If you forget your 
PIN, contact the Credit Union and we will issue you a new one.

Illegal Use of Visa Credit Card. You agree that your Visa Credit Card Account 
4. 
will not be used to make or facilitate any transaction(s) that are or might be construed 
to be illegal pursuant to applicable law, rule or ordinance, including but not limited to 
gambling. Said use, including any such authorized use, will constitute an event of default 
under this Agreement. You agree that the Credit Union has no liability, responsibility or 
culpability whatsoever for any such use by you or any authorized user(s). You agree that 
you are responsible for repayment of any and all debts incurred for these transactions. 
You  further  agree  to  indemnify  and  hold  the  Credit  Union  harmless  from  any  suits, 
liability, damages or adverse action of any kind that results directly or indirectly from 
such illegal use.

5.  Responsibility.  You  agree  to  pay  all  charges  (purchases,  cash  advances,  and 
overdraft advances) to your account made by you or anyone who you authorize to use 
your account. You also agree to pay all other charges added to your account, pursuant 
to Paragraph 6 and 8. Your obligation to pay the amount owed on your account continues 
until paid in full even though an agreement, divorce decree or other court judgment to 
which the Credit Union is not a party may direct someone else to pay the account balance. 
Each of you who signs the application for a card, or who use the account is individually 
and jointly responsible for all amounts owed on the account even if the transaction results 
in exceeding your available credit limit. This means the Credit Union can enforce this 
Agreement against any of you individually or all of you collectively. You are responsible 
for all transactions conducted by any person you authorize to use your Visa Credit Card 
or PIN, even if the transaction amounts exceed what you authorized.  

6.  Finance Charges. In order to avoid a FINANCE CHARGE on purchases made 
since your last statement date, you must pay the Total New Balance within twenty-five 
(25) days of the Statement Date shown on your statement.  Otherwise the FINANCE 
CHARGE on purchases is calculated from the beginning of the next statement period 
on  previously  billed  but  unpaid  purchases  and  on  new  purchases  from  the  date  they 
are  posted  to  your  account  until  they  have  been  paid.  Cash  advances  and  overdraft 
advances are always subject to a FINANCE CHARGE from the date they are posted to 
your account.  You can avoid paying additional FINANCE CHARGES on purchases as 
long as you pay your entire new balance by the twenty-fifth (25th) of each month.

We figure the FINANCE CHARGE on your account by applying the periodic rate 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, cash advances and 
overdraft advances, and any unpaid other finance charges 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 gives us 
the ‘‘average daily balance.” 

We multiply the average daily balance by the daily periodic interest rate to get the daily 
FINANCE CHARGE and then multiply that amount by the number of days in the billing 
cycle to determine the total interest due amount for the statement period.  The average 
daily balance is called the “Balance Subject to FINANCE CHARGE” on your statement.

Visa ClassiC aCCount
Your Visa Classic Account will be subject to a FINANCE CHARGE (interest) at the 
ANNUAL  PERCENTAGE  RATE  of  14.90%  for  purchases,  which  is  a  corresponding 
Daily Periodic Rate of 0.0408%. Your account will be subject to a FINANCE CHARGE 
(interest) at the ANNUAL PERCENTAGE RATE of 14.90% for cash advances and overdraft 
advances, which is a corresponding Daily Periodic Rate of 0.0408%. 

Visa Gold aCCount
Your Visa Gold Account will be subject to a FINANCE CHARGE (interest) at an ANNUAL 
PERCENTAGE RATE and a corresponding Daily Periodic Rate which will be a floating 
rate  based  upon  an  index  as  stated  below. The  ANNUAL  PERCENTAGE  RATE  and 
the corresponding Daily Periodic Rate will apply to both purchases, cash advances and 
overdraft advances.

Index 
The index is Prime Rate (“Index”). Information about this index is published in the “Money 
Rates Table” of the Wall Street Journal.  

Rate Changes
The ANNUAL PERCENTAGE RATE may change on the first day of each month. These 
are known as Rate Change Dates. The Index value used for a given billing cycle will be 
the value published on the first business day of the month before the Rate Change Date. 
If more than one rate is published, the Index will be the highest of the rates published. 
If the Index ceases to be published, the Credit Union will choose a new Index and give 
you notice of its choice.

Determination of Annual Percentage Rate
The Credit Union will add 6.90% points to the Index value to get the ANNUAL PERCENTAGE 
RATE applicable to your Account for the billing cycle.  ANNUAL PERCENTAGE RATE 
for the billing cycle will be divided by 365 to get the corresponding Daily Periodic Rate 
for  the  billing  cycle.  An  increase  or  decrease  in  the  Index  will  lead  to  an  increase  or 
decrease in your ANNUAL PERCENTAGE RATE and the corresponding Daily Periodic 
Rate applicable to your Account.  

Limitations on Changes 
There is no limit on the amount by which the rate may change in any one-year period. 
The maximum ANNUAL PERCENTAGE RATE that can apply is 14.90% 

Annual Percentage Example
Based  upon  an  Index  value  of  3.25%,  (which  was  the  value  of  the  Index  on  May  1, 
2011), your Account would be subject to a FINANCE CHARGE (interest) at an ANNUAL 
PERCENTAGE RATE of 10.15% which is a corresponding Daily Periodic Rate of 0.02780%. 

On the first day of each calendar month and on each subsequent Rate Change Date, 
the ANNUAL PERCENTAGE RATE and the corresponding Daily Periodic Rate will be 
calculated according to the formula described above.

7.  Change in Terms; Changing or Terminating Your Account. The Credit Union may 
change the terms of this Agreement, including your ANNUAL PERCENTAGE RATE, 
from time to time for any reason not inconsistent with applicable law after giving you any 
advance notice required by law. Your failure to exercise any right you may have to reject 
the change in terms in a timely manner will indicate your agreement to the change. Except 
as restricted or prohibited by law, any change in terms will apply to your existing account 
balance as well as to future transactions. Either the Credit Union or any one of you may 
terminate this Agreement at any time, but termination by you or the Credit Union will not 
affect your obligation to pay the account balance plus any finance and other charges 
you owe under this Agreement. The cards you receive remain the property of the Credit 
Union and you must recover and surrender to the Credit Union all cards upon request 
or upon termination of this Agreement whether by you or the Credit Union.

8.  Other Charges. The following Other Charges will be added to your account, as 
applicable:

ANNUAL CARDHOLDER FEE:  There is no annual cardholder fee.

COPIES:  If you request a copy of transaction slip, we may charge your account $12.00 
per copy requested.  If your request is related to a billing error and an error is found, we 
will credit any copy charges back to your account.

LATE PAYMENT FEE:  We reserve the right to charge a late payment fee up to $10.00 
to your account each billing period that the minimum monthly payment is not received 
by 10 days after the due date. 

CARD  REPLACEMENT  FEE:  There  is  no  charge  for  the  first  time  you  request  a 
replacement card during the term of your account.  A fee of $5.00 may be assessed if 
your Visa card needs to be replaced due to damage or loss or theft for any subsequent 
requests to replace your card(s). 

RETURN FEE: Any payment instrument or method including check, ACH or other electronic 
transaction used to make a payment on your Visa Account which is retuned to us for any 
reason may result in a return fee up to $10.00 and will be assessed to your Account.

DUPLICATE  STATEMENTS:   We  may  charge  your  account  $2.00  for  each  duplicate 
monthly billing statement we furnish to you in response to your request.

RESEARCH CHARGES:  We may charge your Account $20 per hour for research we 
perform in response to an inquiry from you relative to your Account.

CARD RECOVERY CHARGE:  If we are required to pay a reward for the recovery of 
your  lost,  stolen  or  revoked Visa  Card,  we  may  apply  such  charges  to  your  account.  
The charge will not exceed the actual cost incurred, with a minimum charge of $55.00.

EXPEDITED  CARD  DELIVERY  CHARGES:    If  you  request  to  have  your  Visa  Card 
delivered by courier, we may pass on our cost of the delivery service and assess the 
charge to your Account.  (Contact us for current fees).

9.  Foreign Transactions. Foreign Transactions in Foreign Currency- Purchases 
and  cash  advances  made  in  foreign  currencies  will  be  billed  to  you  in  U.S.  dollars. 
Transactions processed outside of the United States or in a foreign currency may be 
charged a foreign transaction fee, regardless of whether there is a currency conversion 
associated with the transaction. The conversion rate in dollars will be a rate selected by 
Visa from a range of rates available in wholesale currency markets for the applicable 
Central Processing Date, which rate may vary from the rate Visa itself receives, or the 
government-mandated rate in effect for the applicable Central Processing Date in each 
instance, plus a one percentage point (1%) fee charged by the Credit Union.

Foreign Transactions in U.S. Currency- Purchases and cash advances made in foreign 
countries will be billed to you in U.S. dollars. Transactions processed outside of the United 
States, in U.S. dollars, may be charged a foreign transaction fee of point eight percent 
(0.8%), regardless of whether there is a currency conversion associated with the transaction. 

©2012 California Credit Union League, Law Offices of Thomas H. Wolfe, PC - All Rights Reserved    CU STORE  # 7018e    (CUSTOM) 

Rev. 7/05/12   PTD 7/12

10.  Monthly Payment. Each month you must pay at least the minimum payment shown 
on your statement within twenty-five (25) days of the statement closing date. You may, 
of course, pay more frequently, pay more than the minimum payment, or pay the Total 
New Balance in full. If you make extra payments or larger payments, you are still required 
to make at least the minimum payment each month your account has a balance. The 
minimum payment is 3.0% of your Total New Balance or $25.00 (whichever is greater), 
plus the amount of any prior minimum payments that you have not paid and any amount 
that exceeds your credit limit. Balances owing less than $25.00 are due in full.  
Payments made to your account will be applied in the following order: Fees, FINANCE 
CHARGES, purchases and advances.  

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 will be in default if you break any promise 
you make under this Agreement. You will be in default if you die, file for bankruptcy or 
become insolvent, that is, unable to pay your obligations when they become due. You will 
be in default if you make any false or misleading statements in any credit application or 
credit update. You will also be in default if something happens that the Credit Union believes 
may substantially reduce your ability to repay what you owe. When you are in default, the 
Credit Union has the right to immediately terminate this Agreement and require repayment 
of your outstanding account balance plus any finance and other charges you owe under 
this Agreement. To the extent permitted by law, you will also be required to pay the Credit 
Union’s collection expenses, including court costs and attorneys’ fees.

12.  Liability for Unauthorized Use. If you notice the loss or theft of your credit card 
or  a  possible  unauthorized  use  of  your  card,  you  should  write  to  us  immediately  at: 
P.O. Box 4860, Long Beach, CA 90804-0860; or call us at 800.527.3328 or after hours at 
800.543.5073; or e-mail us at Transactions@lbsfcu.org.
You will not be liable for any unauthorized use that occurs after you notify us. You agree 
to cooperate fully in any investigation the Credit Union may conduct in connection with 
the loss, theft, or possible unauthorized use of your card.  

13.  Limitations to Liability for Visa Transactions. If there is unauthorized use on your 
consumer Visa Credit Card your liability will be zero ($0.00). This provision limiting your 
liability does not apply to either Visa commercial cards, ATM cash disbursements or non-
Visa PIN-less debit transactions. Additionally, your liability with respect to unauthorized 
transactions may be greater than the above limit, to the extent allowed under applicable 
law, if the Credit Union reasonably determines, based on substantial evidence, that you 
were grossly negligent or fraudulent in the handling of your account or card.

14.  Returns and Adjustments. Merchants and others who honor the card may give 
credit for returns or adjustments, and they will do so by sending the Credit Union a credit 
slip which will be posted to your account. If your credits and payments exceed what you 
owe  the  Credit  Union,  the  amount  will  be  applied  against  future  purchases  and  cash 
advances. If the amount is $1 or more, it will be refunded upon your written request or 
automatically to your Credit Union Share Savings Account within six (6) months.

15.  Merchant  Disputes. The  Credit  Union  is  not  responsible  for  the  refusal  of  any 
merchant or financial institution to honor the card. The Credit Union is subject to claims 
and defenses (other than tort claims) arising out of goods or services you purchase 
with the card if you have made a good faith attempt but have been unable to obtain 
satisfaction from the merchant or service provider, and: (a) your purchase was made in 
response to an advertisement the Credit Union sent or participated in sending to you; 
or (b) your purchase cost more than $50 and was made in your state or within 100 miles 
of your home.

16. Merchant Return Policy. You are encouraged to obtain and review the merchant’s 
policy on the return of goods or services purchased and you may be bound by that policy.  
If the policy is not initially disclosed at the time of purchase, you should request a copy 
of the policy and review it prior to purchasing the good or service.

17. Reservations. When using your Account to make travel or lodging reservations and 
you cancel, you must follow the cancellation policy and retain the cancellation number. 
You will be liable for improperly cancelled reservations or if you are unable to provide a 
valid cancellation number and the merchant or service provider may charge your Account 
for the transaction.

18. Limitation of Our Responsibilities for Merchant Actions.  We will not be responsible 
for: 1) the refusal of any person to honor your Card; or 2) an ATM that does not properly 
accept your Card, disperse cash, or otherwise perform as you requested.

19. Refusal of the Card. We are not responsible if a transaction on your account is not 
approved either by us or a third party, even if you have sufficient credit available.  We may 
limit the number of transactions that may be approved in one day.  If we detect unusual or 
suspicious activity on your Account, we may temporarily suspend your credit privileges 
until we can verify the activity.  We may approve transactions that cause the balance to 
exceed your revolving credit limit without waiving any rights under this agreement.

20. Overdraft Privilege. You agree that if, pursuant to any overdraft privilege on a Credit 
Union  Checking  or  Money  Market  Account,  there  is  an  overdraft  of  your  Checking  or 
Money Market Account, the amount of overdraft will be added to the outstanding balance 
of your Visa Credit Account subject to the FINANCE CHARGE set forth in paragraph 6 and 
will be subject to all terms and conditions of this Agreement. The Visa Account must be 
current and not over the credit limit for funds to transfer to the Checking or Money Market 
Account. Overdrafts are not allowed for the purpose of making loan payments, including 
Visa payments, at the Credit Union, ATM or in-branch teller cash withdrawals. Overdraft 
Advances will be transferred to your Checking or Money Market Account in increments 
of at least $50 and each Overdraft Advance is considered to be a cash advance. The 
Checking  Account  and  Money  Market  Account  referred  to  herein  is  also  subject  to  a 
separate agreement between you and the Credit Union. Where the terms of any other 
agreement between you and the Credit Union conflict with the terms of this agreement, 
the terms of this agreement will control.

21. Recurring Transaction and Automatic Payments. If you authorize a merchant to 
charge your Account for repeat or recurring transactions, you must notify the merchant if: 
1) you want to discontinue the recurring transactions on your Account; 2) your Account is 
closed; or 3) your Account number or Card expiration date changes.

22.  Statements and Notices. You will receive a statement for any month in which you 
have any monetary activity or balance owed on your account. Statements and notices 
will be mailed to you at the most recent address you have given the Credit Union. If your 
Account is closed, you will continue to receive a monthly statement and billing notice until 
the Account is paid in full.  Notice sent to any one of you will be considered notice to all. 
You agree to promptly notify the Credit Union if you change your mailing address.

23.  Credit Information. You authorize the Credit Union to investigate your credit standing 
when  opening  or  reviewing  your  account. You  authorize  the  Credit  Union  to  disclose 
information  regarding  your  account  to  credit  bureaus  and  creditors  who  inquire  about 
your credit standing. Pursuant to state law, you are hereby notified that a negative credit 
report reflecting on your credit record may be submitted to a credit reporting agency if 
you fail to fulfill the terms of your credit obligations.

24.  Transfer of Account. You cannot transfer or assign your account to any other person.

25.  Effect of Agreement. This Agreement is the contract which applies to all transactions 
on your account even though the sales, cash advances, credit or other slips you sign or 
receive may contain different terms.

26.  No Waiver. The Credit Union can delay enforcing any of its rights any number of 
times without losing them.

27.  Governing Law. This Agreement and your account shall be governed by California 
law without regard to any conflict of law rules.

YOUR BILLING RIGHTS - KEEP THIS NOTICE FOR FUTURE USE

This notice contains important information 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: LBS Financial Credit Union, 
P.O. Box 4860, Long Beach, CA 90804-0860. 
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 error 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. We may require that you 
complete an affidavit of Unauthorized Use, or provide additional documentation to 
support your claim. 

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. 

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 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: LBS Financial Credit Union, P.O. Box 4860, Long Beach, CA 
90804-0860. 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.