(800) 743-7228 
www.arrowheadcu.org 

® 

CREDIT CARD AGREEMENT AND DISCLOSURE 

MILITARY LENDING ACT- COVERED BORROWERS 
NOTICE: See pages 5 and 6 for important information regarding your rights to dispute billing errors.  

SEE THE ACCOUNT OPENING DISCLOSURE WHICH ACCOMPANIES THIS AGREEMENT 

MILITARY LENDING ACT NOTICE 
Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions 
of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent 
may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or 
account:  The  costs  associated  with  credit  insurance  premiums,  fees  for  ancillary  products  sold  in  connection  with  the 
credit  transaction;  any  application  fee  charged  (other  than  certain  application  fees  for  specified  credit  transactions  or 
accounts); and any participation fee charged (other than certain participation fees for a credit card account). 
Call (888) 644-2183 to hear the above disclosures and a description of your payment obligations. 

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 an Arrowhead Credit Union VISA® Credit Card. (“Card”) means the Arrowhead Credit Union 
VISA® Credit Card and any duplicates and renewals the Credit Union issues to you. (“Account”) means your VISA® Credit 
Card line of credit account with the Credit Union. (“Credit Union”) means Arrowhead Credit Union.  If you do not agree 
with the terms and conditions of this Agreement, please destroy the Card at once by cutting it in half and mail it 
back to the Credit Union with your written instructions to close the Account. 

Using the Account. If your application for a VISA® Credit Card Account is approved, the Credit Union will establish a 

1. 
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 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 cash advances from the Credit Union, 
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.  

Illegal Use of VISA® Credit Card. You agree that your VISA® Credit Card Account will not be used to make or 
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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. 

Responsibility. You agree to pay all charges (purchases and cash advances) to your account made by you or 

4. 
anyone who you authorize to use your account. You also agree to pay all other charges added to your account, pursuant 
to Paragraph 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. This means the Credit Union can enforce this Agreement against 
any of you individually or all of you collectively. 

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5. 
Authorized Users. An Authorized User is a person to whom we have issued a card on your Account at your 
request. An Authorized User may charge transactions on your Account in the same manner as you.  You will remain 
responsible for all charges on your Account, including those incurred by an Authorized User.  You may add or remove an 
Authorized User from your Account by notifying the Credit Union in writing and allowing the Credit Union a reasonable 
opportunity to act on your request. The Credit Union may limit the number of Authorized Users on your Account. 

Certain information about your Account will be accessible to an Authorized User, including their transactions, your credit 
limit, and the amount of credit available to them. A card limit is the maximum amount that can be charged to an 
Authorized User card each month. 

By using or activating a card on your Account, an Authorized User agrees to be bound to the terms of this VISA® Credit 
Card Agreement, and further agrees that: a) the card issued to him or her is for his or her use exclusively and will not be 
used by any other person; b) the card issued to him or her will not be used for any illegal, improper or unlawful purpose; c) 
all security requirements, including those designed to protect PINs or other security codes, will be complied with; d) any 
suspected loss of theft of the card will be reported promptly; and e) he or she consents to the collection, use and 
disclosure of personal information. 

Change in Terms; Changing or Terminating Your Account. The Credit Union may change the terms of this 
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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. 

FICO® Score; Your Monthly Periodic Statement.  You acknowledge that, by your acceptance of the Arrowhead 
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Credit Union Terms of Service, you are providing Arrowhead Credit Union with “written instructions” under the Federal 
Fair Credit Reporting Act, and authorization under the California Consumer Credit Reporting Act, allowing Arrowhead 
Credit Union to provide your FICO® Score to you, from your personal credit profile from Experian for your own use and 
educational review purposes.  In particular, you understand that your FICO® Score will be displayed on your monthly 
periodic statement and updated on a monthly basis. Further, to the extent that any co-obligor or other party has access to 
your periodic statements, they are deemed permitted by you to view your FICO® Score. 

Finance Charges. A FINANCE CHARGE will be imposed on purchases, balance transfers and cash advances only 
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if you elect not to pay the entire New Balance shown on your monthly statement for the previous billing cycle by the Payment 
Due Date shown from the closing date of that statement. If you elect not to pay the entire New Balance shown on your 
previous monthly statement by the Payment Due Date shown, a FINANCE CHARGE will be imposed on the unpaid average 
daily balance of such purchases, balance transfers and cash advances from the previous statement closing date and on the 
new purchases, balance transfers and cash advances from the date of posting to your account during the current billing 
cycle, and will continue to accrue until the closing date of the billing cycle preceding the date on which the entire New 
Balance is paid in full or until the date of payment if more than the Payment Due Date shown from the closing date. 

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, and cash advances, and subtract any unpaid other finance charges and any payments or credits. This gives 
us the daily balance. Then, we add up all the daily balances for the billing cycle and divide the total by the number of days 
in the billing cycle. This gives us the ‘‘average daily balance.” 

VISA® CREDIT CARDS 
Your VISA® Account will be subject to a FINANCE CHARGE (interest) at an ANNUAL PERCENTAGE RATE and a 
corresponding Monthly Periodic Rate which will be a standard variable (floating) rate based upon an index plus a Margin. 
The ANNUAL PERCENTAGE RATE and the corresponding Monthly Periodic Rate will apply to purchases, balance 
transfers and cash advances. 

Index 
The Index is Prime Index (“Index”). Information about this Index is published in the “Money Rates Table” of the Wall Street 
Journal.  If the Index ceases to be published, the Credit Union will choose a new Index and give you notice of its choice. 

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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 Rate Change Date or the most 
recently published value published before the Rate Change Date. If more than one rate is published, the Index will be the 
highest of the rates published. 

Determination of Annual Percentage Rate 
The Credit Union will add a Margin based on your credit score to the Index to get the ANNUAL PERCENTAGE RATE 
applicable to your Account for the billing cycle.   

Notification of the margin for which you have been approved will be provided on the Account Opening 
Disclosure sent to you upon completion of the credit review and approval.   

ANNUAL PERCENTAGE RATE for the billing cycle will be divided by twelve (12) to get the corresponding Monthly 
Periodic Rate for the billing cycle. An increase or decrease in the Index value will lead to an increase or decrease in your 
ANNUAL PERCENTAGE RATE and the corresponding Monthly 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. There is no maximum ANNUAL 
PERCENTAGE RATE that can apply.  

PENALTY ANNUAL PERCENTAGE RATE FOR VISA® CREDIT CARDS 
Whenever the minimum monthly payment shown on your statement is sixty (60) days past due or whenever a payment 
has been returned and causes your account to be sixty (60) days past due, the entire balance on your account will be 
subject to a FINANCE CHARGE (interest) at the PENALTY ANNUAL PERCENTAGE RATE and a corresponding 
Monthly Periodic Rate which will be a standard variable (floating) rate based upon the Prime Index (“Index”) plus a 
Margin as determined by your credit score. Information about this Index is published in the “Money Rates Table” of the 
Wall Street Journal.  If the Index ceases to be published, the Credit Union will choose a new Index and give you notice of 
its choice. The interest rate adjustment will take effect on the effective date shown in the notice sent to you informing you 
of the rate increase. The PENALTY ANNUAL PERCENTAGE RATE will apply until you make six (6) consecutive 
minimum payments on or before the payment due date. If you do not make six (6) consecutive minimum payments on or 
before the payment due date, we may keep the PENALTY ANNUAL PERCENTAGE RATE on your account indefinitely.  

Notification of the Margin will be provided on the Account Opening Disclosure sent to you upon completion of 
the credit review and approval.   

9. 

Other Charges. The following Other Charges will be added to your account, as applicable: 

•   ANNUAL CARDHOLDER FEE: None 

•   OVER LIMIT FEE: None 

•   LATE PAYMENT FEE: We reserve the right to charge a late payment fee of $15 to  your account each billing period 

that the minimum monthly payment is not paid within fifteen (15) days after the date the payment is due. 

•   RETURNED PAYMENT FEE: None 

•   CASH ADVANCE FEE (FINANCE CHARGE): None 

•   BALANCE TRANSFER FEE (FINANCE CHARGE): None 

•   FOREIGN TRANSACTION FEE:  1% of each transaction in U.S. dollars (transactions made in foreign currency) and 
0.8% of each transaction in U.S. dollars (transactions made in foreign currency, billed in U.S. dollars).  See Paragraph 
17 for further details.   

10.  Monthly Payment. Each month you must pay at least the minimum payment shown on your statement by the 
Payment Due Date shown. 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 3.00% of your Total New Balance 
but not less than $25.00, plus the amount of any prior minimum payments that you have not paid.  

In addition, if at any time your Total New Balance exceeds your credit limit, you must immediately pay the excess upon 
demand. Subject to applicable law, your payments will be applied to what you owe the Credit Union in any manner the 
Credit Union chooses. 

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Default. You will be in default if you fail to make any minimum payment or other required payment by the date 

11. 
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. 

Liability for Unauthorized Use. If you notice the loss or theft of your credit card or a possible unauthorized use 

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of your card, you should write to us immediately at P.O. Box 735, San Bernardino, CA 92402-0735; or by calling us at 
800.743.7228; or by emailing us at info@arrowheadcu.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. 

Limitations to Liability for VISA® Transactions. If there is an unauthorized use of your VISA® Credit Card or a Plus 

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network or Interlink transaction, and the transaction takes place on the VISA® network, then your liability will be zero 
($0.00). This provision limiting your liability does not apply to VISA® Corporate Card or VISA® Purchasing Card 
Transactions, ATM cash disbursements processed on non-VISA® or non-Plus networks, or non-VISA® PIN-less debit 
transactions. Additionally, your liability with respect to unauthorized transactions may be greater than the above zero 
($0.00) liability limit, to the extent allowed under applicable law, if the credit union reasonably determines, based on 
substantial evidence, that you were negligent or fraudulent in the handling of your account or card.   

Overdraft Privilege. You agree that if, pursuant to any overdraft privilege on a Credit Union Checking Account, 
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there is an overdraft of your Checking Account, the amount of overdraft will be added to the outstanding balance of your 
VISA® Classic Account subject to the FINANCE CHARGE set forth in Paragraph 8.  Further, you will be subject to all 
terms and conditions of this Agreement. The VISA® Classic Credit Account must be current and not over the credit limit for 
funds to transfer to the Checking 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. The Checking 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. 

Credit Information. You authorize the Credit Union to investigate your credit standing when opening or reviewing 

15. 
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. 

Returns and Adjustments. Merchants and others who honor the card may give credit for returns or adjustments, 

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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 after six (6) months. 

17. 
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 Issuer. 

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. 

18. 
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. 

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Effect  of  Agreement.  This  Agreement  is  the  contract  which  applies  to  all  transactions  on  your  account  even 

19. 
though the sales, cash advances, credit or other slips you sign or receive may contain different terms. 

20. 

No Waiver. The Credit Union can delay enforcing any of its rights any number of times without losing them. 

21. 
Statements  and  Notices.  You  will  receive  a  statement  each  month  showing  transactions  on  your  account. 
Statements and notices will be mailed to you at the most recent address you have given the Credit Union. 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. 

22. 

Transfer of Account. You cannot transfer or assign your account to any other person. 

Governing Law. This Agreement and your account shall be governed by California law without regard to any conflict 

23. 
of law rules. 

Military  Lending  Act;  Severability.  Notwithstanding  anything  to  the  contrary  herein  or  any  other  agreement 
24. 
between the Credit Union and you, nothing shall require a “covered borrower” under the Military Lending Act to submit any 
claim arising out of the Agreement to arbitration or impose on such borrower additional notice requirements beyond those 
imposed by, or result in the waiver of legal recourse existing under, applicable law. 

Additional Disclosures Applicable to Convenience Checks 
Convenience Checks. We may send you Convenience Checks which can be used to obtain cash or pay for goods or services 
up to the amount of your available credit limit unless the amount will cause you to exceed your credit limit. In such cases these 
Convenience  Checks  will  be  charged  against  your  credit  limit,  processed  as  cash  advances  and  accumulate  FINANCE 
CHARGES only if you elect not to pay the entire New Balance shown on your monthly statement for the previous billing cycle 
by the Payment Due Date shown from the closing date of that statement, pursuant to paragraph 8. Convenience Checks may 
only be used by the person whose name is printed on them. You may not use Convenience Checks to pay any amount which 
you owe us under this Agreement. We will not return any paid credit checks to you. 

Using the Convenience Check. To make a purchase, present your Convenience Check to any participating merchant. To 
request a Cash advance, present your Convenience Check to us or any participating financial institution. 

Reasons Not to Honor a Convenience Check.  We may decline to honor  your Convenience  Check if  you are over  your 
credit limit, you are in default, your Account privileges have been canceled, or your card has expired.  

Stop Payment of Convenience Checks. You may stop payment on a Convenience Check by notifying us in writing at the 
address shown on your monthly statement or by calling us at 800.743.7228. If you call, you must confirm the request in 
writing within fourteen (14) days. A written stop payment order will remain in effect for six (6) months and then it will lapse 
unless renewed in writing. 

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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: Arrowhead Credit Union, P.O. Box 735, San Bernardino, CA 92402-0735.  

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. 

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. 
•  
• 
•   We can apply any unpaid amount against your credit limit. 

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. 

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: Arrowhead Credit 
Union,  P.O.  Box  735,  San  Bernardino,  CA  92402-0735.  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. 

©2014-2017 Simply Legal.  All Rights Reserved-    

  YOUR CU STORE 7018E                       

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