SCOTIABANK CREDIT CARD CARDHOLDER AGREEMENT

The use of the Visa® and MasterCard® credit Cards 
issued by Scotiabank de Puerto Rico (the Bank) to the 
Applicant or Applicants (referred to individually and/or 
collectively as the Cardholder) shall be governed by 
the following terms and conditions: 

I. USE OF THE CARD 
The Cardholder and its company shall use the Card for 
the purchase or lease of merchandise and services in 
establishments where the Card is accepted and to 
obtain Cash Advances from the Bank or from any 
other bank that may accept the Card, subject to such 
limits as the Bank or the issuing bank may establish 
from time to time. 

The Cardholder authorizes the Bank to pay and 
charge his/her Account for all Purchases or 
merchandise, service and Cash Advances made with 
the Card and the Cardholder agrees to pay the Bank 
for all such Purchases and Cash Advances plus the 
FINANCE CHARGES that are assessed on the 
Cardholder’s Account, and any other charges that the 
Cardholder may owe according to the terms of this 
Agreement, which sums shall be payable in full or in 
monthly installments in legal tender of the United 
States of America. 

II. CREDIT LIMIT 
The initial credit limit granted by the Bank for the 
Cardholder’s Account shall appear in a notice to be 
sent with the Card. Also, the Credit Limit effective at 
the date of each monthly billing statement shall appear 
on the statement. If the Cardholder exceeds the Credit 
Limit approved by the Bank, the Bank shall be entitled 
to close the Account, cancel the Card, demand its 
surrender or take possession of the Card. The 
Cardholder upon demand shall pay any amount in 
excess of the Credit Limit approved by the Bank. No 
over-the-limit fee will be charged by the Bank. The 
initial Credit Limit granted by the Bank for the 
Cardholder’s Account can be reduced for not 
complying with the Bank’s established credit 
parameters and if any of the following conditions 
occurs:  

A. Inadequate Account management that is not in 
accordance with Bank credit policies that may include: 
one late payment, a returned check, over limit of the 
established credit line. 
B. Not using the credit Card for a period longer than 12 
months. 
C. Not activating the Card. 

III. CANCELLATION OF THE CARD 
You may cancel your Account at any time by notifying 
us in writing. You may also cancel your Card if you do 
not agree with changes to be made to this Agreement. 
Refer to Section XIV. 
The Card is the property of the Bank and the latter 
may cancel the Card at any time without previous 

notice to the Cardholder, who agrees to return, at the 
Bank’s request, any issued Card. 

IV. MONTHLY BILLING STATEMENT 
The Bank will provide the Cardholder with a monthly 
billing statement, containing all information required by 
law. 

V. FINANCE CHARGES 
The FINANCE CHARGES of the Cards are computed 
only on the principal balance for purchase of 
merchandise, services, Cash Advances and Balance 
Transfers. 
The monthly and annual rates are the following: 

Card Type 

APR for 
Purchases 

MasterCard/ 
Visa† 

18.95% 
19.99% 
24.99% 

Monthly 
(Periodic 
Rate) 
Purchases 

1.5792% 
1.6658% 
2.0825% 

APR 
for Cash 
Advances 

Monthly 
(Periodic 
Rate) Cash 
Advances 

22.99% 
22.99% 
24.99% 

1.9158% 
1.9158% 
2.0825% 

Gold 
MasterCard 

Visa Gold  

17.90% 

1.4917% 

22.99% 

1.9158% 

14.99% 
16.99% 
19.99% 
24.99% 

1.2492% 
1.4158% 
1.6658% 
2.0825% 

14.99% 
16.99% 
19.99% 
24.99% 

1.2492% 
1.4158% 
1.6658% 
2.0825% 

APR (Annual Percentage Rate) 

1 The applicable annual percentage rate for 
MasterCard and Visa on Purchases, Cash Advances 
and Balance Transfers can be 18.95%, 19.99% or 
24.99%. This rate is established according to your 
experience upon approval of your application, on the 
free market and on the regulation in effect. 
2 The applicable annual percentage rate for Visa Gold 
on Purchases, Cash Advances and Balance Transfers 
can be 14.99%, 16.99%, 19.99% or 24.99%. This rate is 
established according to your experience upon 
approval of your application, on the free market and on 
the regulation in effect. 
A. The Bank determines the FINANCE CHARGES you 
will pay for the purchase of merchandise and services 
as follows: 
1. The Average Daily Balance for Purchases is 
calculated by adding the outstanding balance at the 
end of each day during the preceding billing cycle and 
dividing that sum by the number of days in that billing 
cycle. The outstanding balance at the end of each day 
is determined by (a) adding to the previous day’s 
outstanding balance any Purchase posted on that day, 
and (b) subtracting from the previous day’s 
outstanding balance any payment received or credit 
posted in relation to Purchases during that day. 
2. Then it multiplies the Average Daily Balance by the 
actual monthly periodic rate. 

 
 
 
 
 
 
 
 
 
 
 
B. The Bank determines the FINANCE CHARGES you 
will pay for Cash Advances as follows: 
1. The Average Daily Balance for Cash Advances is 
calculated as prior stipulated for merchandise and 
services using a monthly periodic rate. 
2. Then it multiplies the Average Daily Balance by the 
actual monthly periodic rate. 
3. There is no grace period to avoid paying FINANCE 
CHARGES for Cash Advances obtained by the 
customer. 
C. No FINANCE CHARGES will be assessed on 
Purchases of merchandise and service during a 
monthly billing cycle if the Cardholder pays the 
balance in full on or before the due date shown on the 
billing statement. FINANCE CHARGES will be 
assessed on Cash Advances or if you use a 
Convenience Check from the date the Cash Advance 
is posted to the Cardholder’s Account until it is repaid 
in full. BALANCE TRANSFERS and CONVENIENCE 
CHECKS are handled as Cash Advances. 

VI. MINIMUM PAYMENT 
The Cardholder may pay the full amount or a portion of 
the New Balance shown on his/her monthly billing 
statement but must pay at least the minimum monthly 
payment, calculated as follows: 
If the New Balance is: 
• Lower than or equal to $5,000: 1/30 of the New 
Balance or $20.00, whichever is higher. 
• Greater than $5,000 but lower than or equal to 
$10,000: 1/36 of the New Balance. 
• Greater than $10,000 but lower than or equal to 
$15,000: 1/42 of the New Balance. 
• Greater than $15,000 but lower than or equal to 
$25,000: 1/60 of the New Balance. 

VII. APPLICATION OF PAYMENTS 
If the Cardholder pays an amount in excess of the 
required Minimum Payment, the excess shall be 
applied against the principal amount with the highest 
interest rate. 

VIII. ANNUAL MEMBERSHIP FEE 
The Cardholder is subject to pay an annual fee, as 
well as a fee for each additional Card. The fees apply 
even if the Cardholder and/or the authorized persons 
do not use the Card(s). The fees may change over 
time, at the Bank’s discretion. You may cancel your 
Card if you do not agree with an annual fee increase. 
Refer to Section XIV of this Agreement. 
The following fees apply: 

Card Type 
MasterCard 
Gold MasterCard 
Visa 
Gold Visa 

Annual Fee 
$29 
$49 
$29 
$45 

Additional Card Fee 
$9 
$9 
$9 
$9 

IX. OTHER CHARGES 
For all cards there is a $25.00 late payment charge if 
the Minimum Payment is not received by the payment 

due date. Any subsequent violations that occur after 
the first late payment, over the next 6 months, may be 
subject to a $35 late payment fee. After the 6-month 
period has elapsed, the next late payment violation will 
be subject to a $25 fee and another 6-month period 
will commence where late payment violations may be 
subject to a $35 fee, and so on. In any case, the 
amount of the fee will not exceed the minimum 
monthly payment amount for the billing statement in 
which your monthly payment was late. 
For all Cards, a 2% fee for Cash Advance or Balance 
Transfer amounts will be charged to your Account with 
a maximum fee of $10.00 and minimum of $2.00 for 
each Cash Advance obtained, be it made by ATM, 
branch, Cash Advance or from Convenience Checks. 
Foreign Transaction Fee: A fee of 1% of the transaction 
in USD will apply to each transaction made in a foreign 
currency, and is additional to any other applicable 
fees.  
If you pay by check and the check payment is returned 
unpaid, an administrative fee of $10.00 will be assessed 
every time the check is returned unpaid. These charges 
will be added to your balance account for purchase of 
merchandise and services. These fees may vary from 
time to time at the Bank’s discretion with prior 
notification. 
One  Fee  for  Violations  Resulting  From  Single  Event  or 
Transaction: We will not impose more than one of the 
above-described  fees  for  violating  the  terms  of  your 
account  based  on  a  single  event  or  transaction.  For 
example,  if  your  payment  is  returned  after  the  date  it 
was due as shown on your billing statement as a result 
of non-sufficient funds or other reason, we will impose 
a late payment fee, a returned payment fee or a non-
sufficient funds fee but not all of them because the late 
payment and the returned payment have resulted from 
the same event or transaction.  

X. DEFAULT APR 
Default Rate: The APR that will apply to the Account 
balance, including new Purchases, Cash Advances 
and Balance Transfers, can increase to 24.99% or 
28.99% APR, subject to your credit behavior score if 
any of the following conditions occurs: 
A. The Minimum Payment is not received in two 
consecutive billing cycles. 
B. Inadequate account management that is not in 
accordance with Bank credit policies that may include: 
one late payment, a returned check, over limit of the 
established credit line, and non-compliance with the 
credit parameters established by the Bank. The Bank 
will provide previous notices as required by law before 
the implementation of default rates. The default rate 
will revert to the regular APR when six (6) consecutive 
Minimum Payments are received by the due date. 

XI. LOSS OR THEFT OF THE CARD 
In the event of loss or theft of the Card, the Cardholder 
shall promptly notify the Bank by telephone 787-766-
4999 (toll free: 1-877-766-4999) 24 hours, 7 days a 
week, or at 1-800-847-2911 (United States); or by 

 
 
 
 
 
 
 
sending a fax to 787-704-6510. The Cardholder will 
complete and submit such forms or reports as the 
Bank may require. The Cardholder’s liability for 
unauthorized use of the Card will not exceed the 
lesser of $50.00 or the amount of money, property, 
labor or services obtained by the unauthorized use of 
the Card if the customer notified the Bank within two 
days of discovering the loss. 

XII. BALANCE INSURANCE 
The Cardholder can apply for credit plan insurance, in 
which you will insure the Account balance up to a 
maximum of $10,000. This is optional; the credit plan 
insurance is not a requirement to obtain the Card. 

XIII. ACCELERATION OF THE DEBT 
The Bank may accelerate the maturity of any part or al 
l of the amount owed under this Agreement under the 
occurrence of any of those circumstances prescribed 
by law. 

XIV. AMENDMENTS 
The Bank shall have the right to amend the terms and 
conditions at any time by giving written notice to the 
Cardholder prior to the effective date of the 
amendment as required by applicable regulation. If the 
Cardholder does not accept the amended terms and 
conditions stated in the written notice, the Cardholder 
may cancel the Agreement in accordance with the law 
by following the cancellation procedure described in 
the written notice. If you do not agree with the 
amendments and want to cancel the Agreement, you 
must notify us in writing before the date the changes 
become effective and continue to pay the balances 
owed according to the terms and conditions previously 
in effect. 

XV. MISCELLANEOUS PROVISIONS 
A. The Bank is hereby authorized by the Cardholder to 
investigate the Cardholder’s credit references. 
B. The Cardholder may apply for additional Cards 
under the Cardholder’s current Account number for 
use by other persons designated by the Cardholder, in 
which case the Cardholder shall be severally liable for 
the payment of all Purchases and Cash Advances 
made through the use of the additional Cards, and of 
the FINANCE CHARGES pertaining thereto. If the 
Cardholder wants to revoke the authorization given 
by him/her to other people to use the Cards, the 
Cardholder must notify those persons of the revocation 
and obtain and surrender to the Bank the Cards issued 
to such people. 
C. The Bank’s failure to exercise any of its rights under 
the contract shall not be deemed to be a waiver of 
such rights. 
D. Joint accounts: You shall be jointly and severally 
liable for the total payment of the Purchases and Cash 
Advances made with your Cards. The Bank can 
require the appearance and signature of all the 
purchasers to process certain instructions or requests, 
which include, but are not limited to, (1) a request for 

increase or reduction in the Credit Limit, (2) the 
issuance of additional Cards, and (3) change of 
address to which the Account Statement of your Card 
is mailed. You agree to release and indemnify the 
Bank of all responsibility due to damages, losses or 
expenses that arise as a result of any action executed 
by the Bank in compliance with the instructions given 
by any of you.  
E. The Bank is not responsible if a Purchase or Cash 
Advance on your Account is not approved either by the 
Bank or by a third party, even if you have sufficient 
credit available. The Bank may limit the number of 
Purchases or Cash Advances that may be approved in 
one day. If the Bank detects unusual activity in your 
Account, it may temporarily suspend your credit 
privileges until it can verify that the transaction is 
legitimate. The Bank may approve Purchases 
or Cash Advances that cause the balance to exceed 
your Credit Limit without waiving any of its rights under 
this Agreement.  
F. If any clause or part thereto of this Contract is 
annulled by Court or becomes ineffective by provisions 
of law or regulations, the remaining provisions of this 
Contract shall not be affected and shall continue in full 
force and effect. 
G. This Contract shall be interpreted under the laws of 
the Commonwealth of Puerto Rico and the currency let 
out herein shall be United States dollars. 
H. You have no obligation to accept this Card, nor will 
you be held responsible for any of the charges, unless 
you choose to accept it. Use of this Card shall 
constitute its acceptance with the terms and conditions 
of this Agreement. If you choose not to accept the 
Card, you should notify the Bank within 30 days after 
receiving this Agreement without having used it. To 
notify, please call 787-766-4999 or toll free 1-877-766-
4999 or write to: Scotiabank de Puerto Rico, PO Box 
362230, San Juan, PR 00936-2230. 

XVI. BILLING ERRORS 
What To Do If You Think You Find A Mistake On Your 
Statement 

If you think there is an error on your statement, write to 
us at: 

Scotiabank de Puerto Rico 
PO Box 362230 
San Juan, PR 00936-2230 

You may also contact us on the Web: 
scotiabankpr.com. 
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. 

You must notify us of any potential errors in writing (or 
electronically). 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. While we 
investigate whether or not there has been an error, the 
following are true: 
1. We cannot try to collect the amount in question, or 
report you as delinquent on that amount. 
2. 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. 
3. While you do not have to pay the amount in 
question, you are responsible for the remainder of your 
balance. 
4. We can apply any unpaid amount against your 
Credit Limit.  

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 Convenience Check do not qualify.   

If all of the criteria above are met and you are still 
dissatisfied with the Purchase, contact us in writing at: 
Scotiabank de Puerto Rico 
PO Box 362230 
San Juan, PR 00936-2230.  
You may also contact us on the Web: 
scotiabankpr.com. While we investigate, the same 
rules apply to the disputed amount as discussed 
above. If you owe an amount and you do not pay we 
may report you as delinquent. 

IMPORTANT INFORMATION ABOUT 
PROCEDURES TO OPEN A NEW ACCOUNT  

To help the government in their fight against terrorism 
and money laundering activities, federal laws require 
that all financial institutions obtain, verify and maintain 
the identification information of each person who 
opens a new account.  What does this signify to you: 
when you open an Account we will ask your name, 
address and date of birth and any other information 
that could help us to identify you. Also, we may ask for 
your license number and any other document that 
identifies you. 

NOTICE TO THE CARDHOLDER 
The Assignee receiving or acquiring this retail 
installment Contract or promissory note related there 
to shall be subject in equal conditions, to any claim or 
defense that the buyer may initiate against the seller. 
The assignee of the Contract shall have the right to file 
against the seller all the claims and defense that the 
buyer may raise against the seller of the goods or 
services. 

NOTICE TO THE ASSIGNEE 
DO NOT SIGN THIS CONTRACT BEFORE YOU 
READ IT OR IF IT CONTAINS BLANK SPACES. 
YOU ARE ENTITLED TO A COPY OF THIS 
CONTRACT. UNDER THE PRESENT LAW 
YOU HAVE THE RIGHT TO PAY IN ADVANCE THE 
FULL AMOUNT DUE. 

Cardholder (Applicant): 

Cardholder (Co-Applicant): 

Date: 

Date: 

FOR BANK USE ONLY 
Account Number 

By: _______________ 
Officer’s Signature 

SCOTIABANK DE PUERTO RICO 
PO BOX 362230 
SAN JUAN, PR 00936-2230 

3. You must not yet have fully paid for the Purchase. 
* Trademark of The Bank of Nova Scotia, used under license. Member FDIC. OCIF Lic. 22. 
3. You must not yet have fully paid for the Purchase. 
® Visa is a registered trademark of Visa International Service Association. 
® MasterCard is a registered trademark of MasterCard International Incorporated. 

MCVICA Puerto Rico 08/2010 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disclosure Statement 

Interest Rates and Charges 

Annual Percentage Rate (APR) for 
Purchases 

APR for Balance Transfers and Cash 
Advances 

Penalty APR and When it Applies 

Finance Charges 

Minimum Payment 

For Credit Card Tips from The Federal 
Reserve Board 
Fees 

Annual Fee 

o  For each additional Card 

Visa® and MasterCard® 

18.95%, 
19.99% or 
24.99% 

Visa Gold 
14.99%, 
16.99%, 
19.99% or 
24.99% 

Gold MasterCard  

17.90% 

This rate is established according to your experience upon approval 
of your application, on the free market and the regulation in effect. 

22.99% or 
24.99% 

14.99%, 
16.99%, 
 19.99% or 
 24.99% 

This rate is established according to your experience upon approval 
of your application, on the free market and the regulation in effect. 
24.99% or 28.99%, subject to your credit score. 

22.99% 

This APR may be applied to your account if: 

o  The Minimum Payment is not received during two (2) consecutive billing cycles. 
o  Inadequate account management that is not in accordance with Bank credit policies that 
may include:  one late payment, returned check, over limit of the established credit line, 
and non compliance with the credit parameters established by the Bank. 

For How Long Will the Penalty APR Apply? If your APR is increased for any of these reasons, 
the Penalty APR will apply until you make six (6) consecutive Minimum Payments when due and 
do not exceed your credit limit during that time period. 
Your due date is at least 25 days after the close of each billing cycle.  We will not charge you 
interest on Purchases if you pay your entire balance by the due date each month.  We will begin 
charging interest on Cash Advances and Balance Transfers on the transaction date until ithe 
amount is repaid in full.  Balance Transfers and Convenience Checks are handled as Cash 
Advances. 
If your new balance is: 

o  Lower than or equal to $5,000: 1/30 of the new balance, o $20, whichever is greater 
o  Greater than $5,000 but lower than or equal to $10,000: 1/36 of the new balance 
o  Greater than $10,000 and lower than or equal to $15,000: 1/42 of the new balance 
o  Greater than $15,000 and lower than or equal to $25,000: 1/60 of the new balance 
To learn more about factors to consider when applying for our using a credit card, visit the 
Federal Reserve Board website at: http://www.federalreserve.gov/creditcard 

Visa and MasterCard 

Visa Gold 

Gold MasterCard 

$29 
$9 

Cash Advances and Balance Transfers 

A 2% fee for Cash Advances and Balance Transfers will be charged to your Account, with a 
minimum fee of $2.00 and a maximum fee of $10.00. 

Foreign Transaction  
(Currency Exchange) 

Returned Payment 

Late Payment 

A 1% transaction fee of the amount in USD will apply to each transaction made in a foreign 
currency, and is additional to any other applicable fee. 

$10 

Up to $35 

How We Will Calculate Your Balance: We use a method called “average daily balance” (including new purchases and new transactions).   See your 
Cardholder Agreement for more details. 

Billing Rights: Information on your rights to dispute transactions and how to exercise those rights is provided in your Cardholder Agreement.  

For more information you may contact a TeleScotia Representative at (787) 766-4999 or 1-877-766-4999.  You may also contact us at PO Box 
362230, San Juan Puerto Rico 00936-2230. 

Signature (Applicant): ___________________________________________________________________   Date: ___________________ 

Signature (Co-Applicant): ________________________________________________________________   Date: ___________________ 

*Trademark of The Bank of Nova Scotia, under license.  Member FDIC.  OCIF Lic. 22.  
®Visa is a registered trademark of Visa International Service Association.  
®MasterCard is a registered trademark of MasterCard International Incorporated.   

08/2010