(586) 263-8800

CREDIT CARD AGREEMENT AND TRUTH-IN-LENDING DISCLOSURES
In this Agreement the words “you” and “your” mean each and all of those who agree to be 
bound by this Agreement; “card” means a VISA Classic credit card and any duplicates, re-
newals, or substitutions the Credit Union issues to you; “Account” means your VISA Classic  
credit card line of credit account with the Michigan Schools and Government Credit Union 
and “Credit Union” means the Michigan Schools and Government Credit Union or anyone 
to whom the Credit Union transfers this agreement.

1.  Using Your Account.  If you are approved for an Account, the Credit Union will establish 
a line of credit for you and notify you of your credit limit.  You agree that your credit limit 
is  the  maximum  amount  (purchases,  cash  advances,  FINANCE  CHARGES,  plus  “other 
charges”) that you have outstanding on your Account at any time.  Each payment you make 
to your Account will restore your credit limit by the amount of the principal payment, unless 
you are over your limit.  If you are over your credit limit, you must pay the amount you are 
over before payment will begin to restore your credit limit.  You may request an increase in 
your credit limit only by a method acceptable to the Credit Union.  The Credit Union has the 
right to reduce your credit limit, refuse to make an advance and/or terminate your Account 
at any time for any reason not prohibited by law.

2.  Using the VISA Card.  You may use your Card or account number to make purchases 
from merchants and others who accept VISA Cards.  In addition, you may obtain cash ad-
vances from the Credit Union and from other financial institutions that accept VISA cards, 
and from automated tellers machines (ATMs), such as the VISA Network, that accept VISA 
Cards.  (Not all ATMs accept VISA Cards.)  To obtain cash advances from an ATM, you must 
use the Personal Identification Number (PIN) that is issued to you to use with your Card.

You  agree  not  to  make  or  permit  to  be  made  any  illegal  transactions  on  your  account 
through  use  of  a  Card,  a  check,  or  in  any  other  manner.    We  may  deny  authorizations 
for any Internet gambling transactions.  We will, upon request, furnish you with a copy of 
a draft at a charge of $5.00 per copy unless such a request is made in connection with a 
billing error.

3.  Promise to Pay.  You promise to pay all charges (purchases and cash advances) to 
your Account that are made by you or anyone whom you authorize to use your Account.  
You agree not to authorize anyone to use your Account without prior written consent of the 
Credit Union.  You also promise to pay all FINANCE CHARGES and other charges added 
to your Account under the terms of this Agreement or another agreement you made with 
the Credit Union.  Your liability will extend throughout the term of this Agreement and until 
all issued and outstanding Cards  are returned to the Credit  Union and all Preauthorized 
Charges are cancelled by you.  If you lend your Card to another person, you will have given 
that person actual, implied or apparent authority to use your Card and you will be liable for 
all Credit Purchases and Cash Advances made by that person on your Account until the 
Card is returned to you or the Credit Union.  If more than one person is obligated under 
the Agreement, the Credit Union may accept directions and written notices from any one of 
those persons without requesting the consent of any other persons.

4.  Default and Remedy.  You will be in default and the Credit Union may, for the extent 
permitted  by  law,  terminate  your Account  and  declare  the  entire  unpaid  balance  of  your 
Account immediately due and payable if:

a.  You do not make any payment or perform any obligation under this
     Agreement or any other agreement that you have with the Credit Union; or

b.  You have made a false or misleading statement on your Application
     and/or in your representations to the Credit Union while you owe money
     on your Account; or

c.  You should die, or be involved in any bankruptcy, insolvency,
     receivership or custodial proceedings brought by or against you; or

d.  A judgment or tax lien should be filed against you or any attachment or
     garnishment should be issued against any of your property or rights,
     specifically including anyone starting an action or proceeding to seize
     any of your funds on deposit with the Credit Union; and/or

e.  The Credit Union should, in good faith, believe your ability to repay any
     indebtedness due under your Account is or soon will  be impaired, time
     being of the very essence.

If more than one person is obligated under this Agreement, the Credit Union may proceed 
with collection action against any one of the persons obligated under this Agreement with-
out first proceeding against or collecting from any other person.  To the extent permitted by 
law, the Credit Union shall be reimbursed by you for all of its costs and expenses, including 
reasonable  attorney  fees,  incurred  in  the  course  of  collecting  any  amount  owed  on  your 
Account.

5.  Liability for Unauthorized Use-Lost/Stolen Card Notification.  You may be liable for 
the unauthorized use of your Card.  You will not be liable for unauthorized use that occurs 
after you notify the Credit Union, orally or in writing, of the loss. theft, or possible unauthor-
ized use.  In any case, liability will not exceed $50.  You can notify the Credit Union by call-
ing (586) 263-8800 during business hours, (800) 991-4961 after hours or on weekends, and 
writing to Visa Department, 40400 Garfield Road, Clinton Township, MI 48038.

6.  Security Interest.  The granting of a security interest in your shares and deposits with us 
is a condition for your credit card account.  By signing your card, you grant us a consensual 
security interest in all individual and joint accounts you have with us now and in the future to 
secure all advances made under your credit card agreement.  We may, but do not have to, 
allow you to withdraw a portion of your shares or deposits without affecting that security

VISA Classic

interest.  Shares in an Individual Retirement Account and any other account that would lose 
special tax treatment under state and federal law if given as security are not subject to the 
security interest you have given in your shares.  Collateral securing other loans with us also 
secure your account under this agreement.  You understand and agree that the personal 
property security for each loan you have with us (and any and all proceeds thereof) if any, 
shall secure this credit card account and any and all other loans, line of credit accounts 
and credit card accounts you now have with us or obtain in the future with us.  In addition, 
any personal property (and any and all proceeds thereof and all insurance proceeds and 
insurance premium refunds) securing other loans, line of credit accounts, and credit card 
accounts you now have with us or obtain in the future will also secure all funds advanced by 
you under this credit card account.  This shall not apply to any loan, line of credit agreement 
or credit card agreement secure by real property or where otherwise prohibited by federal 
or state law or regulation.

7.  Finance Charges.  The FINANCE CHARGES shown on your Monthly Billing statement 
are figured by multiplying a Daily Periodic Rate times the Average Daily Balance of both 
Credit  Purchases  and  Cash Advances.   The  Daily  Periodic  Rate  for  the  Classic  VISA  is 
.034931% and an ANNUAL PERCENTAGE RATE of 12.75% and the Daily Periodic Rate 
for the Titanium VISA is .026712% and an ANNUAL PERCENTAGE RATE of 9.75%.  The 
FINANCE CHARGE is achieved as follows:

a.  Cash Advances.  A FINANCE CHARGE will be imposed on Cash Advances from the 
date  made  and  will  continue  to  accrue  until  the  date  of  payment  in  full.    The  FINANCE 
CHARGE  for  a  Billing  Cycle  is  computed  by  applying  the  Monthly  Periodic  Rate  to  the 
average daily balance of Cash Advances, which is determined by dividing the sum of the 
daily balances by the number of days in each Billing Cycle.  Each daily balance of Cash 
Advances is determined by adding the outstanding unpaid balance of Cash Advances at 
the beginning of each day of the Billing Cycle and new Cash Advances posted to your Ac-
count and subtracting any payments as received or credits as posted to your Account, but 
excluding any unpaid FINANCE CHARGES.

b.  Credit Purchases.  A FINANCE CHARGE will be imposed on Credit Purchases only if 
you elect not to pay the entire New Balance shown on your Monthly Billing Statement for 
the previous Billing Cycle within 25 days from the Closing Date of the Statement.  If you 
elect not to pay the entire New Balance shown on your previous Monthly Billing Statement 
within that 25 day GRACE PERIOD, a FINANCE CHARGE will be imposed on the unpaid 
average daily balance of such Credit Purchases from the previous statement Closing Date 
and on New Credit Purchases 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 preced-
ing the date on which the entire New Balance is paid in full or until the date of payment 
if more than 25 days from the Closing Date.  The FINANCE CHARGE for a Billing Cycle 
is computed by applying the Monthly Periodic Rate to the average daily balance of Credit 
Purchases, which is determined by dividing the sum of the daily balances during the Billing 
Cycle by the number of days in the cycle.  Each daily balance of Credit Purchases is deter-
mined by adding to the outstanding unpaid balance of Credit Purchases at the beginning 
of each Billing Cycle and New Credit Purchases posted to your Account and subtracting 
any payments as received and credits as posted to your Account, but excluding any unpaid 
FINANCE CHARGES.

8.  Payments.  Each month you must pay at least the minimum payment shown on your 
statement by the date specified on the statement or 25 days from the statement closing 
date, whichever is later.  If your statement says the payment is “Now Due,” your payment is 
due no later than 25 days from the statement closing date.  You may 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 (other than a credit balance).  The minimum pay-
ment is 2.5% of your total New Balance, but not less than $15 plus the amount of any prior 
minimum payments that you have not made, and any amount you are over your credit limit.  
The Credit Union also has the right to demand immediate payment on any amount by which 
you are over your credit limit.

9.  Monthly Billing Statements.  The Credit Union will mail you a Monthly Billing Statement 
each  month  in  which  there  is  a  debit  or  credit  balance  over  $1.00,  or  when  a  FINANCE 
CHARGE is imposed.  The Credit Union need not send you a monthly statement if the Cred-
it Union feels your Account is uncollectible or has started collection proceedings against you 
because you defaulted.  Except where federal law requires otherwise, the Monthly Billing 
Statement will be final as to the amount owed unless you object in writing within 60 days 
after the Credit Union has mailed the Monthly Billing Statement to you.  Your right under 
federal law to the correction of billing errors is explained in the notice of Your Billing Rights 
which appears at the end of this Agreement.

10.  Payment Allocation.  Subject to applicable law, your payments may be applied to what 
you owe the Credit Union in any matter the Credit Union chooses.

11.  Changing or Terminating Your Account.  The Credit Union may change the terms 
of  this Agreement  from  time  to  time.    Notice  of  any  change  will  be  given  in  accordance 
with applicable law.  Use of your Card after receiving notice of a change will indicate your 
agreement to the change.

If permitted by law and specified in the notice to you, the change will apply to your existing 
Account Balance as well as to future transactions.

Either you or the Credit Union may terminate this agreement at any time but termination 
by you or the Credit Union will not effect your obligation to pay the Account balance plus 
any  finance  or  other  charges  you  owe  under  this Agreement.    You  are  also  responsible 
for all transactions made to your Account after termination, unless the transactions were 
unauthorized.

750 (6/10/10)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Card or 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 Agree-
ment whether by you or the Credit Union.  The Credit Union has the right to require you to pay 
your full Account balance at any time after your Account is terminated, whether it is terminated 
by you or the Credit Union.  If this is a joint Account, Section 19 of this Agreement also applies 
to termination of the Account.

12.  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 infor-
mation regarding your Account to credit bureaus and creditors who inquire about your credit 
standing.

13.  Returns and Adjustments.  Merchants and other who honor your Card may give credit 
for returns or adjustments, and they will do so by sending the Credit Union a credit 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 credit 
balance amount is $1 or more, it will be refunded upon your written request or automatically 
after six months.

14.  Additional Benefits/Card Enhancements.  The Credit Union may from time to time offer 
additional  services  to  your Account  such  as  travel  accident  insurance,  at  no  additional  cost 
to you.  You understand that the Credit Union is not obligated to offer such services and may 
withdraw or change them at any time.

15.   Foreign Transactions.  Purchases and cash advances  made in  foreign countries and 
currencies  will  be  billed  to  you  in  U.S.  dollars.   A  1%  International  Transaction  Fee  will  be 
assessed on all transactions where the merchant country differs from the country of the card 
issuer.    The  converted  transaction  amount  will  be  shown  separately  from  the  International 
Transaction Fee on your billing statement.  This fee will be assessed on all international pur-
chases, credit vouchers, and cash disbursements.

The exchange rate for transactions in a foreign currency will be a rate selected by VISA from 
the range of rates available in wholesale currency markets for the applicable central process-
ing date, which rate may vary from the rate VISA itself receives, or the government mandated 
rate in effect for the applicable central processing date plus the 1% International Transaction 
Fee.

16.  Disputes.  You agree to make a good faith effort to settle all disputes concerning Credit 
Purchases made through the use of your Card with the merchant or other person honoring the 
Card.  Except as provided in the notice of Your Billing Rights, you agree to pay the Credit Union 
all amounts charged to your Account despite any such disputes.

17.  Waiver of Claims.  You waive and release the Credit Union from all defenses, rights and 
claims you may have against any person or company honoring a Card or other access device 
or  not  permitting  a  Credit  Purchase  or  Cash Advance,  except  where  such  rights  cannot  be 
waived under the Fair Credit Billing Act (see Your Billing Rights).  If your Account is available to 
provide overdraft protection to a deposit account under a separate overdraft protection agree-
ment, you hold the Credit Union harmless from any and all claims which might otherwise arise 
if an advance is not processed to cover an overdraft regardless of whether or not credit was 
available under your Account.

18.    Joint Accounts.    If  this  is  a  joint Account,  each  person  on  the Account  must  sign  the 
Agreement.    Each  of  you  will  be  individually  and  jointly  responsible  for  paying  all  amounts 
owed under this Agreement.  This means that the Credit Union can require any one of you 
individually to repay the entire amount owed under this Agreement.  Each of you authorizes 
the other(s) to make purchases or cash advances individually.  Any one of you may terminate 
the Account and the termination will be effective to all of you.

19.  Effect of Agreement.  The 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.

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

21.  Statement and Notices.  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.

22.  Copy Received.  You acknowledge that you have received a copy of this Agreement.

23.  Signatures.  By signing in the Signature area of the application form, you agree to the 
terms of this Agreement.  You should retain the Agreement for your records.

24.  Delay in Enforcement.  The Credit Union does not lose any of its rights under this Agree-
ment if it delays enforcing them.

25.  Assignability.  You shall have no right to transfer your Account or to assign this Agree-
ment.  The Credit Union shall have the right to assign and transfer, at any time and in its 
sole discretion, this Agreement or any and all of its rights under this Agreement to any other 
person or entity.

26.    Governing  Law.    Except  to  the  extent  that  federal  law  controls,  this Agreement  is 
controlled by the laws of the State of Michigan.

YOUR BILLING RIGHTS - keep this for future use

This notice contains important information about your rights and our responsibilities under 
the Fair Credit Billing Act.

Notify us in Case of Errors or Questions About Your Bill

If you think your bill is wrong, or if you need more information about a transaction on your 
bill, write us on a separate sheet at the address listed on your bill.  Write to us as soon as 
possible.  We must hear from you not later than 60 days after we sent you the first bill on 
which the error or problem appeared.  You can telephone us, but doing so will not preserve 
your rights.

In your letter, please give us the following information:

ü Your name and account number.

ü The dollar amount of the suspected error.

ü Describe the error and explain, if you can, why you believe there is an error.  If you need 
   more information, describe the item you are not sure about.

If  you  have  authorized  us  to  pay  your  credit  card  bill  automatically  from  your  savings  or 
checking account, you can stop the payment on any amount you think is wrong.  To stop 
the payment your letter must reach us three business days before the automatic payment 
is scheduled to occur.

Your Rights and Our Responsibilities After We Receive Your Written Notice

We must acknowledge your letter within 30 days, unless we have corrected the error by 
then.  Within 90 days we must either correct the error or explain why we believe the bill 
was correct.

After we receive your letter, we cannot try to collect any amount you question, or report you 
as delinquent.  We can continue to bill you for the amount you question, including finance 
charges, and we can apply any unpaid amount against your credit limit.  You do not have to 
pay any questioned amount while we are investigating, but you are still obligated to pay the 
parts of your bill that are not in question.

If  you  find  that  we  made  a  mistake  on  your  bill,  you  will  not  have  to  pay  any  FINANCE 
CHARGES related to any questioned amount.  If we didn’t make a mistake you may have 
to pay FINANCE CHARGES, and you will have to make up any missed payments on the 
questioned amount.  In either case, we will send you a statement of the amount you owe 
and the date it is due.

If you fail to pay the amount that we think you owe, we may report you as delinquent.  How-
ever, if our explanation does not satisfy you and you write to us within ten days telling us 
that you still refuse to pay, we must tell anyone we report you to that you have a question 
about your bill.  And, we must tell you the name of anyone we reported you to.  We must tell 
anyone we report you to that the matter has been settled between us when it finally is.

If we don’t follow these rules, we can’t collect the first $50 of the questioned amount, even 
if your bill is correct.

Special Rules for Credit Card Purchases

If you have a problem with the quality of property or services that you have purchased with 
a 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 property or services.  There 
are two limitations on this right:

(a) You must have made the purchase in your home state, or if not within your home state 
within 100 miles of your current mailing address; and

(b) The purchase price must have been more than $50.

These limitations do not apply if we own or operate the merchant, or if we mailed you the 
advertisement for the property or services.

Interest Rates and Interest Charges
Annual Percentage Rate (APR) For Purchases
Annual Percentage Rate (APR) for Cash Advances
Annual Percentage Rate (APR) for Balance Transfers
How to avoid paying interest on purchases

VISA Classic

12.75%
12.75%
12.75%
You have 25 days to repay your blanace for purchases 
before a finance charge will be imposed
None

Minimum Finance Charge
Fees
Annual Fees
Transaction Fees:
Balance Transfer Fee
Cash Advance Fee
Foreign Transaction Fee with Currency Conversion
Foreign Transaction Fee with no Currency Conversion
Penalty Fees:
Late Payment Fee
Please visit the Federal Reserve Board’s website, www.federalreserve.gov/creditcard/, to learn more about shopping for 
and using credit card accounts.
Balance Computation Method:  Average Daily Balance (including new transactions).  An explanation of this method is detailed in the account opening disclosure.  
If a Replacement Card is needed, there will be a $5.00 charge.

None
None
1% of transaction amount
0.8% of transaction amount

None

$15