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.

Mail: P.O. Box 4860 • Long Beach, CA 90804-0860
5505 Garden Grove Blvd.• Westminister, CA 93683
565.598.9007 • 714.893.5111 • 800.527.3328 
www.lbsfcu.org

©2010 California Credit Union League, Law Offices of Thomas H. Wolfe, PC - All Rights Reserved
 ORIG. 3/03/10  PTD 7/10
CU STORE  # 7018    (5M) (CUSTOM) 

VISA
CREDIT CARD DISCLOSURE 
AND AGREEMENT

EFFECTIVE DATE

July 1, 2010

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 
4. 
Card Account 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 July 1, 2010), 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. 

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