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TABLE OF CONTENTS
Executive Summary
Section I: Introduction
Background................................................................................................................................. 1
Overview of the Project .............................................................................................................. 1
Structure of this Report............................................................................................................... 3
Section II: Research on Current Disclosure Forms
Focus Groups (May and June, 2006) .......................................................................................... 4
Preliminary Cognitive Interviews in Baltimore, Maryland (August 2006) ................................ 8
Key Implications for Development of Revised Forms ............................................................. 14
Section III: Development and Testing of Revised Disclosure Forms
Objectives and Methodology .................................................................................................... 17
Guiding Principles for Disclosure Design ................................................................................ 18
Structure of Section III ............................................................................................................. 20
Interviews in Kansas City, Missouri (November 2006) ........................................................... 21
Interviews in Denver, Colorado (January 2007)....................................................................... 29
Interviews in Boston, Massachusetts (February 2007)............................................................. 37
Interviews in Dallas, Texas (March 2007)................................................................................ 45
Section IV: Conclusion and Discussion of Need for Consumer Education
Proposed Revisions to Regulation Z......................................................................................... 52
Note on Need for Consumer Education.................................................................................... 52
Appendices
Appendix A: Demographic and Background Information about Focus Group and Interview
Participants
Appendix B: Disclosure Forms Used in Testing
EXECUTIVE SUMMARY
BACKGROUND AND DESCRIPTION OF PROJECT
The Truth in Lending Act (TILA) was enacted by Congress in 1968. The primary purpose of
this act was to protect consumers by requiring that lenders disclose key pieces of information to
consumers at various points in time. The Federal Reserve Board (the “Board”) was assigned by
Congress the responsibility of implementing TILA, and currently does so through its Regulation
Z.
In 2004 the Board began the process of revisiting some portions of Regulation Z to determine
whether revisions were necessary. The rules being reviewed relate to open-end credit, of which
the primary example is general-purpose credit cards. The goal of the review is to ensure that the
regulations lead to disclosures that consumers would most likely to pay attention to, understand
and comprehend, and be able to use in their decisionmaking.
In April 2006, the Board contracted with Macro International Inc. (“Macro”) to assist the Board
in this effort. Macro is a research and evaluation company headquartered in Calverton, MD, that
has 40 years of experience working with government and non-profit clients. Their role in the
project is to work with the Board to conduct consumer testing and design improved credit card
disclosures based on the results of that research.
This project thus far has consisted of two phases. In the first phase, Macro conducted four focus
groups1 (two at Macro’s headquarters in Calverton, MD and two in Birmingham, AL) and one
round of cognitive interviews2 in Baltimore, MD that focused on how consumers use credit card
disclosures that they currently receive. The focus groups gathered information about the types of
information that consumers currently use for financial decisionmaking, while the one-on-one
cognitive interviews studied how they read and use specific credit card disclosure forms.
The second phase of the project, which took place between September 2006 and March 2007,
was devoted to the development and testing of revised forms. This phase consisted of four
additional rounds of one-on-one cognitive interviews with a total of 33 participants in Kansas
City, MO; Denver, CO; Boston, MA; and Dallas, TX. A set of revised model forms was
developed for each round. In the interviews, participants were asked to read and use these mock
forms just as they normally would, and data was collected on which aspects of each form were
most successful in providing information clearly and effectively. The findings from each round
of interviews led to revisions to the models for the next round.
This consumer testing informed the Board’s proposed revisions to Regulation Z, which the
Board will be releasing for public comment in May 2007. The revised disclosure forms that
were developed through the testing will be included as model forms with the proposal.
1
Each focus group consisted of between eight and thirteen people that discussed issues identified by the Board staff
and raised by a moderator from Macro.
2
The cognitive interviews consisted of one-on-one discussions with consumers.
i
SUMMARY OF FINDINGS
The testing conducted by Macro focused on six different types of disclosures related to credit
card accounts:
•
Solicitation and Application Disclosures: These disclosures (often referred to as the
“Schumer Box” disclosures) are provided on or with direct-mail solicitations and
applications for credit cards to help consumers compare and shop for credit cards. Of the
disclosures addressed in this study, this is the only one for which a specific tabular layout
is required by the Board.
•
Initial or Account-Opening Disclosures: These disclosures are provided when the
credit card account is opened to inform consumers about the terms of the account. These
disclosures are mostly provided in cardholder agreements, along with other legal and
contractual information that issuers opt to include.
•
Periodic Statements: These disclosures are usually provided to consumers on a monthly
basis to inform them about transactions, fees, and interest charges incurred in the
previous billing cycle. These statements inform consumers of when they must make a
payment in order to avoid additional charges, as well as how large their payment must be.
Periodic statements also include the interest rates that apply to the account.
•
Change-in-Terms Notices: These disclosures are given to consumers whenever a
change is made to the terms of the account. They are either included as an insert with
periodic statements or sent in a separate mailing.
•
“Convenience Checks”: These checks (sometimes called “balance transfer checks”) are
given to consumers as additional devices to access their credit card accounts. They are
usually included with periodic statements or sent to cardholders in a separate mailing.
•
Solicitation Letters: Credit card offers that are sent in the mail usually include a
solicitation letter, along with a required Schumer Box. This letter is primarily for
marketing the offer to consumers, but it usually includes a description of some of the
account terms. Although these letters are not required disclosures, the Bankruptcy Act,
which was passed in 2005, requires the solicitation letter to contain certain disclosures if
the letter discloses a discounted introductory rate.
The following is a summary of key findings from consumer testing that informed the Board’s
proposed revisions to the disclosures listed above.
Findings Related to the Schumer Box
Annual Percentage Rates
Separation of “Other APRs” into Different Lines
The current Schumer Box model form lists APRs in two rows—one for the APR for Purchases,
and another for “Other APRs” (i.e., rates for other types of transactions and the Default APR).
However, the first round of testing in Baltimore demonstrated that participants had difficulty
ii
finding and distinguishing the rates in the Other APRs row. Subsequent interviews showed that
disclosing these rates in separate rows helped participants distinguish between them. It also
increased the likelihood that readers would notice and understand the significance of the Default
APR. Therefore, this design was used in the proposed Schumer Box model.
Format of Annual Percentage Rates
A variety of different formats was tested for how APRs could best be displayed in separate rows.
The format that made it easiest for consumers to quickly identify and compare APRs for
different transactions was to present the rates first in each line in bolded text, and then to indent
each subsequent line. This enabled quick scanning down the page, which is how most
participants seemed to read the Schumer Box. A similar format was used in the fees section of
the Schumer Box.
Selection of Initial APR Based on Creditworthiness
When shown a credit card offer that displayed a range of possible APRs for purchases, many
participants in the focus groups were unaware that the rate they would be offered within that
range would be determined by their credit history. To clarify this point, a notice was added
indicating that the initial rate would be selected “based on your creditworthiness.” Testing
showed that while participants did not see this disclosure when it was provided in a footnote,
they both noticed and understood it when it was located immediately following the range of
rates. Therefore, the proposed model form displays the information in this location.
Font Size of APR for Purchases
Current regulations require that the APR for purchases be printed in size 18 point font to ensure
that it is conspicuous. In our models, we varied the size of this rate to test whether or not this
larger type size is necessary. Findings showed that participants tended to identify the APR for
purchases more quickly and accurately when it was in a larger font size than other rates on the
form. However, a font size of 16 seemed to make this information sufficiently conspicuous;
there was no evidence that this APR necessarily needed to be printed in size 18 point font.
Fixed and Variable Rates
Labeling of Fixed Rates
In the first three rounds of interviews, participants were asked to indicate what the phrase “fixed
rate” meant to them. While some responded that a “fixed rate” could still change, a significant
number indicated that these rates could not change regardless of what happened (similar to a
“fixed-rate mortgage”). Because of this misconception, the word “fixed” was removed from
Schumer Box models in relation to interest rates.
Labeling of Variable Rates
Currently, if a rate disclosed in the Schumer Box is a variable rate, issuers must indicate that the
rate may vary, and disclose the index and margin used to calculate the rate. Participants in the
first three rounds of testing interpreted the meaning of “variable rate” in different ways. Some
interpreted it correctly as a rate that would vary based on changes to an index, such as a Prime
Rate. Others, however, incorrectly assumed that a variable rate would primarily change based on
cardholder behavior or creditworthiness. Other participants understood that the rate could
iii
change, but did not know why or how. For this reason, following the Denver interviews the label
“variable” in the Schumer Box was replaced with the phrase: “This rate will vary with the market
based on the Prime Rate.” Testing showed that following this change, participants more clearly
understood the principal reason that variable rates change over time.
Removal of Detailed Variable Rate Information from the Schumer Box
Focus groups and early rounds of interviews demonstrated that most participants do not find
valuable the details about how variable rates are calculated, including the margins that are used
in these calculations. In addition, interviews in Kansas City and Denver showed that this
information was distracting for a significant percentage of participants, since they confused the
margins with actual APRs. Therefore, detailed information about how variable rates are
calculated was removed from subsequent models of the Schumer Box.
Penalty APR and Penalty Triggers
Label of Default/Penalty APR
Some participants in early rounds of interviews believed that the Default APR would only apply
in extreme circumstances, such as when an account was closed due to delinquency. Some
assumed, incorrectly, that this APR could not be triggered by one late payment. In the Denver
interviews, the labels “Highest Possible APR” and “Penalty APR” were tested as alternatives to
“Default APR.” Of the three possibilities, the label “Penalty APR” was best understood by
participants as applying to events such as paying late or exceeding a credit limit, so in all future
models this term was used.
Location of Penalty Triggers in the Schumer Box
Participants who looked at current credit card offers had a great deal of difficulty identifying the
specific instances in which the Penalty APR would be applied. (Currently, the triggers for the
Penalty APR must be included outside the Schumer Box.) As a result, models were tested that
included these triggers in the Schumer Box. Testing in Kansas City and Denver showed that the
significance of these triggers was best understood if they were located in close proximity to the
Penalty APR itself so that readers could connect the two. The proposed model form includes the
Penalty APR and triggers together in the same row of the Schumer Box.
Information About the Balances to Which the Penalty APR Would Apply and How Long the
Penalty APR Would Apply
Some participants in later rounds of testing indicated that they thought that the Penalty APR
would only be charged on the amount by which they went over their credit limit, rather than on
their whole balance. Others thought that this rate would only apply during the month of their
transgression (e.g., the month they paid late or went over the credit limit), and their rates would
immediately return to the normal rate after that month. In actuality, however, some credit card
issuers apply the Penalty APR to all existing and future balances, and reserve the right to apply
this Penalty APR indefinitely. To correct these misconceptions, the proposed regulations would
require in the Schumer Box information about the balances to which the Penalty APR will apply
and how long the Penalty APR will apply.
iv
References to the Penalty APR
A significant percentage of participants in early rounds of interviews knew that penalty fees
could be charged, but did not notice in the forms tested that their APRs could also be raised in
penalty situations. As a result, models for the Boston and Dallas interviews included a
parenthetical reference next to information about penalty fees that alerted readers to the fact that
the “Penalty APR may also apply.” (A cross-reference to the Penalty APR also was added to the
models tested in the Dallas interviews.) The addition of this information increased the number of
readers who noticed the Penalty APR.
Fees
Inclusion of Fees in the Schumer Box
Participants in the focus groups indicated that annual fees, transaction fees, and penalty fees are
key factors that they consider when evaluating credit card offers. Interviews in Kansas City
confirmed that consumers can find information about fees much more easily when it is provided
inside the Schumer Box, rather than underneath the box. (Currently, card issuers are allowed to
disclose transaction fees and penalty fees inside or outside the Schumer box.) Therefore, all
subsequent models that were developed included annual fees, balance transfer fees, cash advance
fees, and penalty fees in the Schumer Box. Participants in the interviews indicated that fees for
foreign transactions were less important to them when shopping for a credit card, so these fees
are not included in the proposed Schumer Box model.
Separate Section for Fees
In Kansas City and Denver, models were tested that integrated transaction fees with APRs (e.g.,
displaying the APR and fee for balance transfers in a single row). However, participants found it
easier to find transaction fees when all fees were displayed together in a separate labeled section.
References to Transaction Fees
There were a number of participants in early rounds of testing who did not notice that fees could
be charged for balance transfers and cash advances, even when these fees were included in the
Schumer Box in the fees section. To address this problem, references were added to the “APR
for Balance Transfers” and “APR for Cash Advances” lines of the Schumer Box that alerted
consumers to these fees. Interviews in Boston and Dallas showed that these references were
effective at increasing consumer awareness of these potential charges, so they were included in
the proposed models.
Other Disclosure Notices
Disclosure of Balance Calculation Method
In the focus groups and first two rounds of interviews, participants indicated that the balance
calculation method was the piece of information in current Schumer Boxes that they found least
useful. In Denver, several models included language that attempted to explain the significance
of balance calculation methods, including one that stated that, compared to other methods, “twocycle” billing could lead to higher interest charges if a consumer pays his or her balance in full
some months but does not in other months. Most participants did not understand this disclosure;
they appeared to need more information about how balances are calculated. However, Macro
v
and Board staff had concerns that adding sufficient detail to explain the balance calculation
methods would likely add too much text to the disclosures and detract from other information in
the Schumer Box. In addition, respondents continued to indicate that balance calculation
information was not important to them and that they would be unlikely to use it when making
credit card decisions. Therefore, information on the balance calculation method was moved
from inside the Schumer Box to directly underneath the Box.
Disclosure of Payment Allocation Method
In the first round of interviews in Baltimore, a significant portion of participants did not
understand that credit card issuers usually allocate payments to lower-APR balances first, and
that this practice leads to larger interest charges for cardholders who also carry balances at
higher-APR rates. As a result, a disclosure was added to the Schumer Box explaining this
practice. Further testing showed that this disclosure was most conspicuous when it was placed in
the APR section of the Schumer Box, since payment allocation was based on rates for different
balances. Testing in later rounds showed that after reading this disclosure, a significant
percentage of participants still did not fully understand how payment allocation could affect their
interest charges. Further testing may be needed to determine whether the payment allocation
concept can be clearly and concisely explained to consumers in the Schumer Box.
Grace Period
Credit card issuers currently must disclose in the Schumer Box any “grace period” for purchases
– which is the time period a consumer is given to pay off the entire balance each month to avoid
paying interest on purchases. Some participants in early rounds misinterpreted the phrase “grace
period” to mean the period of time after the payment due date that cardholders could make
payments without being charged a penalty fee. To counter this misconception, various models
were tested that attempted to define the grace period more clearly, with some models containing
detailed descriptions. However, these longer descriptions tended to confuse participants. As a
result, the proposed Schumer Box model uses a more concise description.
Minimum Interest Charge
Currently, credit card issuers must disclose in the Schumer Box the amount of any minimum or
fixed finance charge that could be imposed during a billing cycle. Some participants in early
rounds interpreted a “minimum finance charge” of $0.50 to mean they would pay this charge
every month. (In actuality, consumers would pay this charge only in those months where a
consumer would otherwise incur an interest charge that is less than the minimum charge.) To
address this misconception, the proposed model forms include a brief statement explaining the
minimum interest charge. In addition, the proposed model forms refer to this charge as the
“minimum interest charge” instead of the “minimum finance charge” because participants did
not appear to understand the term “finance charge” in this context.
Reduction of Available Credit Due to Fees
Subprime consumers (i.e., those with low credit scores) are often charged “account set-up” fees
at account opening that decrease the amount of credit that is available to them. When
cardholders are unaware of these set-up fees they can unknowingly go over their credit limit,
bringing about additional penalty fees. To address this concern, models tested in Boston and
Dallas included a disclosure in the fees section that alerts consumers to the impact of set-up fees
vi
on available credit. Nearly all participants noticed this disclosure, understood it and found it
useful, so it was included in the proposed models.
Website for Additional Information
Models that were tested in later rounds included a reference to a Board website where consumers
could get more information about what to consider when choosing a credit card. Based on initial
testing, the wording of this reference was revised to clarify what kind of information would be
available on the website and to emphasize that it was administered by the Board, not an
individual credit card issuer. Although some participants indicated they were likely not to use
the website, other participants indicated they might find the website helpful, so it was included in
the proposed model forms.
Findings Related to Periodic Statements
Interest and Fees
Use of the Term “Finance Charge”
Findings from the first two rounds of interviews showed that consumers do not have a consistent
understanding of the phrase “finance charge”—some equated it with interest, while others
believed that transaction and/or penalty fees were also included. The more specific terms
“interest” and “fees,” on the other hand, were generally understood by participants. As a result,
subsequent models that were developed did not use the term “finance charge” on periodic
statements, and instead referred specifically to “interest” and “fees.”
Inclusion of Interest in Transaction List
When shown a sample statement and asked to identify the charges to the account in the past
month, most participants in the first two rounds of interviews did not mention interest charges.
While many were aware that interest was being charged, the fact that it was not “top-of-mind” to
cardholders indicated a need to make it more conspicuous on the statement. Because the
transaction list was a portion of the statement that most participants reviewed carefully, models
were developed for interviews in Denver that included interest charges in this list. Testing
showed that this change increased respondents’ awareness of interest charges, so all subsequent
models included interest charges in the transaction list.
Year-to-Date Totals for Interest and Fees
Early rounds of interviews led to concerns that some consumers may not appreciate the
cumulative effect of paying a small amount of interest and fees each month. With this in mind,
year-to-date totals for interest and fees were added to models tested in Boston. Participants
reacted very positively to these year-to-date totals, and indicated that this information would help
them review their spending habits and make financial decisions. Therefore, year-to-date totals
were retained in the proposed model forms.
vii
Annual and Periodic Interest Rates
Labeling of Annual Interest Rates
Because annual interest rates are typically called “Annual Percentage Rates” on credit card
offers, participants in the first two rounds of interviews were confused when alternative labels
(such as “corresponding annual percentage rate”) were used on periodic statements. Therefore,
all forms in subsequent rounds of testing used the term “Annual Percentage Rate” to describe
annual interest rates.
Removal of Periodic Rate from the Statement
All rounds of interviews tested statement models that displayed a periodic rate (i.e., a daily or
monthly rate) in addition to the Annual Percentage Rate. However, findings consistently showed
that some participants did not understand what periodic rates were. In addition, most of those
who did understand them indicated that they did not find these rates useful. Therefore, the
proposed model forms do not include a periodic rate.
Effective APR
Relabeling/Removal of Effective APR
The effective APR, a figure that issuers are currently required to disclose on periodic statements,
is the rate that consumers paid in the previous month when certain fees, such as transaction fees,
are included along with interest charges. However, participants in the testing had a great deal of
difficulty interpreting this term. Regardless of the explanatory text that was provided, most
participants did not understand that the effective APRs shown on the mock periodic statements
included both interest and transaction fees, and many of those who did understand the rates
indicated that they did not provide useful information. In addition, the presence of the effective
APRs was often confusing to participants; in each round there were some who mistook these
rates for the annual interest rate. In the final round of testing in Dallas, the effective APR was
relabeled the “Fee-Inclusive APR.” There was some indication that this new label increased
participants’ understanding that the term included both interest and transaction fees. Further
testing is needed to determine whether the presentation of the “Fee-Inclusive APR” in the
proposed model is successful in explaining the term to consumers, as well as whether they find
this information useful.
Transaction List
Grouping of Transaction List by Transaction Type
Currently, most periodic statements display transactions in a single list chronologically. One of
the early models that was tested, however, categorized the transaction list by type. Evidence
from the Denver and Boston rounds of interviews showed that participants preferred this type of
list, and that respondents who saw “grouped” transaction lists more easily identified fees that
they had been charged. Therefore, this format was used in the proposed model forms.
viii
Other Disclosures and Notices
Minimum Payment and Late Payment Disclosures
The Bankruptcy Act requires banks to include two disclosures on their periodic statements: a) a
notice that indicates the consequences of only making minimum payments each month; and b) a
warning that explicitly spells out what could happen if a consumer makes a late payment. In the
early rounds of interviews, participants appeared to understand the wording of these two
disclosures, so focus then shifted to their placement on the statement. Models were developed
that had these notices in a variety of locations, including on the payment coupon and in a
separate “Bank News” section. Testing eventually showed that the disclosures were most
noticeable when located in close proximity to payment information such as the due date and
minimum payment.
Inclusion of Summary of Key Changes to Account
Many participants in the focus groups indicated that they usually throw away any inserts that are
included with their periodic statements without reading them, including any that describe
changes to their account terms. Therefore, a summary of key changes was tested on the
statement itself. Models were developed and tested that contained this summary in a variety of
locations, but results from interviews showed that it was most noticeable when it was on the
front page and appeared before the transaction list. Later rounds of interviews also showed that
this disclosure was more noticeable when it contained a tabular summary of changes to key
terms, such as a table showing the new rate for purchases and the new amount of the late fees. A
general reference to the types of changes that were being made, such as a statement that some of
the changes affect APRs on purchases and late fees with a reference to the insert for more details,
was not as noticeable or useful to participants.
Time Payment Is Due
Testing in Baltimore found that many consumers assume that payment is due either at midnight
or by the close of business on the payment due date. Most were not able to find information on
the back of the statement that indicated that payment was due earlier in the day. Therefore, all
models that were subsequently developed included a reference on the front of the statement to
the time that payment was due. Participants who saw these models found this information
extremely helpful, so this information is in the proposed forms.
Findings Related to Solicitation Letters
Placement of Go-To Rate and Expiration Date of Introductory Offer
When participants in the interviews were given a Schumer Box to review, they were also given a
marketing solicitation letter that offered a 0% introductory rate on balance transfers. On these
letters, the zero percent APR was first mentioned in a heading at the top of the page in large type.
When the go-to rate (i.e., the APR after the introductory offer ends) and expiration date were
located in the text of the letter or in a footnote, a large percentage of readers did not notice them
in their first reading and had difficulty finding this information when asked. When this
information was displayed in the heading along with the introductory rate, however, participants
were much more likely to see it. This finding is consistent with the requirements in the
ix
Bankruptcy Act that require the go-to rate and the expiration date to be in a “prominent location
closely proximate” to the introductory rate.
Findings Related to Account-Opening Disclosures
Inclusion of Summary Insert with Account-Opening Disclosures
Most participants in the focus groups indicated they do not read the cardholder agreements that
they receive when they open a new credit card account because these documents are often
written with small print and dense prose. At the same time, they expressed a desire for some
way to: a) check when they receive their card to make sure that the terms of their account are
what they expected; and b) have a clear and easily readable summary of account terms to which
they could refer at a later date. Participants in the Baltimore interviews responded very
positively when shown a cardholder agreement that included a separate insert that summarized
key terms such as APRs and fees. They indicated that they would be much more likely to read
this insert than the agreement itself, and would also be more likely to save it for future reference.
In Denver, a summary of key terms in a format very similar to the Schumer Box was tested as
part of the account-opening disclosures. Participants in that round of interviews indicated that
they found this summary to be clear and understandable, and that they would be much more
likely to review it than their cardholder agreement when they received their card. For this
reason, the proposed regulations would require that issuers provide a tabular summary of key
terms at account opening similar to the Schumer Box.
Findings Related to Change-in-Terms Notices
Inclusion of Summary of Changes to Key Terms
Participants indicated in focus groups and interviews that they often do not carefully read
change-in-terms notices that they receive from their bank in the mail. Many indicated that they
are frustrated by the small type size in these notices, and that because the text is technical and
complicated they have difficulty identifying the information in the document that they consider
important. Testing showed that when a tabular summary of key changes is provided, either at the
beginning of the notice or on a separate piece of paper, consumers are more likely to read the
notice and to understand what terms are being changed. Proposed regulations, therefore, would
require that such a summary be provided by issuers in most situations.
Findings Related to Convenience Checks
Inclusion of Key Disclosures on Front of Checks
In the last two rounds of interviews, participants were shown a set of convenience checks and
asked a series of questions about the terms. Testing in Dallas showed that participants were
more aware of applicable fees and the lack of a grace period when this information was on the
front of the page containing the checks, rather than the back. The interviews also showed that
participants often did not notice disclosure text stating that the interest rate on convenience
checks would be “the current rate on cash advances” because they were looking for an APR
written in numerical form. Therefore, proposed regulations would require that issuers disclose
on the front of the page containing the check any transaction fees applicable to the checks, the
type of rate that will apply to the checks (such as the cash advance rate) and the APR that will
apply, and whether a grace period applies to use of the checks.
x
SECTION I: INTRODUCTION
BACKGROUND
In 1968, the Truth in Lending Act (TILA) was enacted by Congress to protect consumers by
requiring that certain information be disclosed to them by lenders at various points in time. The
Federal Reserve Board (the “Board”) was assigned by Congress the responsibility of
implementing TILA, and currently does so through its Regulation Z.
In 2004, the Board began the process of revisiting some portions of Regulation Z to determine
whether revisions were necessary. The rules being reviewed relate to open-end credit, of which
the primary example is general-purpose credit cards. The goal of the review is to ensure that the
regulations lead to disclosures that consumers would most likely pay attention to, understand and
comprehend, and be able to use in their decisionmaking.
The Board contracted with Macro International Inc. (“Macro”) in April 2006 to assist the Board
in this effort. Macro is a research and evaluation company headquartered in Calverton, MD that
has 40 years of experience working with government and non-profit clients. For this project, the
firm has three primary roles. The first is to conduct consumer testing through focus groups and
one-on-one cognitive interviews to inform the development of the Board’s revisions to
Regulation Z. The second is to design revised model disclosure forms based on findings from
qualitative research. Macro’s third role will be to conduct quantitative testing of the revised
forms to determine whether they are more effective than the current versions. The work
conducted thus far has focused on the first two roles; the quantitative testing has not yet taken
place.
As of May 2007, Macro had conducted four focus groups and five rounds of cognitive interviews
in seven different locations in the United States. Representatives of the Board attended all of the
consumer tests, and Macro has provided interim findings multiple times since the project began.
The results of this research have had a strong influence on the proposed revisions to
Regulation Z that the Board will be releasing for public comment in May 2007, and many of the
revised disclosure forms that were developed through the testing will be included as model forms
with the proposal.
OVERVIEW OF THE PROJECT
The project thus far has consisted of two phases. In the first phase (which is covered in more
detail in Section II of this report), Macro conducted four focus groups and one preliminary set of
cognitive interviews that were focused on gaining knowledge about how consumers use the
credit card disclosures that they currently receive. The focus groups, which took place in
Calverton, MD, and Birmingham, AL, gathered information about the types of information that
consumers currently use for financial decisionmaking. The preliminary round of interviews
(carried out in Baltimore, MD) studied how consumers read and use specific credit card
disclosure forms.
1
The second phase of the project (described in Section III) was devoted to the development and
testing of revised forms. This phase consisted of four additional rounds of one-on-one cognitive
interviews in different locations: Kansas City, MO; Denver, CO; Boston, MA; and Dallas, TX.
A set of revised models was developed for each round. Participants in the interviews were then
asked to read and use these mock forms just as they normally would, and data were collected on
which aspects of each form were most successful in providing information clearly. The findings
of each round then informed revisions to the models for the next round. This iterative process
continued until the final round, after which the proposed models to be released for public
comment were finalized.
Six different types of disclosures related to credit card accounts were examined. The following
is a list of these disclosures, along with some of the key research questions associated with each:
•
Solicitation and Application Disclosures: These tabular disclosures (often referred to as
the “Schumer Box” disclosures) are provided on or with direct-mail solicitations and
applications for credit cards to help consumers compare and shop for credit cards. Of the
disclosures addressed in this study, this is the only one for which a specific layout is
currently required by the Board.
o Key Research Questions:
What credit terms are important to consumers as they shop for credit cards?
What format is most effective in presenting these key credit terms to consumers?
Is there information that should be included in the Schumer Box because
consumers would find it useful?
Is there information that should be removed from the current Schumer Box
because consumers do not understand or use it?
Is there information in the Schumer Box that needs to be more clearly explained
to consumers?
•
Initial or Account-Opening Disclosures: These disclosures are provided when the
credit card account is opened to inform consumers about the terms of the account. These
disclosures are typically provided in cardholder agreements, along with other legal and
contractual information that issuers opt to include.
o Key Research Questions:
How do consumers currently use their cardholder agreements?
What information do consumers want to have when they receive their card?
What format is the most effective way to highlight key terms to make them more
conspicuous for consumers?
•
Periodic Statements: These disclosures typically are given on a monthly basis to inform
the consumer about transactions, fees, and interest charges incurred in the previous
billing cycle. These statements inform consumers of when they must make a payment in
order to avoid additional charges, as well as how large their payment must be. Periodic
statements also include the interest rates that apply to the account.
o Key Research Questions:
What information on the periodic statement is most useful to consumers?
2
•
Are there pieces of information that are not currently required on statements that
consumers would find useful?
How can warnings and notices about late payments and minimum payments
required by the Bankruptcy Act3, passed in 2005, be made conspicuous?
Change-in-Terms Notices: These disclosures are provided to consumers when a change
is made to key terms of the account. They are either included with monthly statements or
sent in a separate mailing.
o Key Research Questions:
How carefully do consumers read change-in-terms notices that they currently
receive?
What format is most effective in presenting key changes to consumers so they
notice and understand this information?
•
“Convenience Checks”: These checks (sometimes called “balance transfer checks”) are
given to consumers as additional devices to access their credit card accounts. They are
usually included with monthly statements or sent to cardholders in a separate mailing.
o Key Research Questions:
What terms do consumers consider most important when deciding whether or not
to use convenience checks?
What format is most effective in presenting these terms to consumers so they
notice and understand this information?
•
Solicitation Letters: Credit card offers that are sent in the mail usually include a
solicitation letter, along with a required Schumer Box. This letter is primarily for
marketing the offer to consumers, but it usually includes a description of some of the
account terms. Although these letters are not required disclosures, the Bankruptcy Act
requires that the solicitation letter contain certain disclosures if the letter discloses a
discounted introductory rate.
o Key Research Questions:
How do consumers review solicitation letters that they get in the mail?
Where should information be placed to make it most conspicuous to consumers?
STRUCTURE OF THIS REPORT
This report provides a summary of the work that has been carried out this far, the methodologies
that have been used, and the key findings that had a strong influence on the development of the
proposed forms that are being released for public comment. Section II describes the initial
research on how consumers use current credit card disclosures. Section III details how revised
forms were developed and tested, and tracks their evolution through four rounds of cognitive
interviews. Finally, Section IV addresses some general findings related to the need for consumer
education, as well as next steps for this project.
3
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Public Law 109-8, 119 Stat. 23.
3
SECTION II: RESEARCH ON CURRENT
DISCLOSURE FORMS
FOCUS GROUPS (MAY AND JUNE, 2006)
Objectives and Methodology
Before any testing was done with specific disclosure forms, it was necessary to gather more
general information about a) what information credit card consumers use in making decisions
regarding their accounts; and b) how they currently find and process this information. Macro
gathered this information through a series of four focus groups in the spring of 2006. Two
groups were held in Calverton, MD, on May 31, and two more groups were held in Birmingham,
AL, on June 13.
Participants for the groups were recruited by telephone using a structured screening instrument
(see Appendix A for a summary of participants’ demographic information). In each location,
Macro attempted to ensure that one of the two groups was made up of consumers with prime
credit cards, and that the other was made up of consumers with low credit cards. For the
purposes of recruiting, consumers with subprime credit cards were identified as consumers who
either had a credit limit of less than $1,500 on their primary credit card or had paid a set-up fee
or security deposit to initiate that card. The groups were separated in this way because subprime
consumers are frequently less knowledgeable about credit cards, so the researchers were
concerned that they might participate less actively in a mixed group. In addition, the types of
credit cards offered to prime and subprime consumers are often different; for example, subprime
cards often charge additional account set-up fees. Therefore, some topics of discussion were
only relevant for subprime cardholders.
For the most part, the focus group discussions proceeded chronologically through the life of an
account. The questions focused on four points in time: solicitation, account opening, monthly
statements, and other communication during the life of the account. At each of these four points,
participants were first asked what credit card information they find most useful. Participants
were then shown a sample of a current credit card disclosure to see if it stimulated any additional
thoughts. The samples that were used are provided in Appendix B.
Although these focus groups represented the first phase in the redesign of disclosures for credit
card accounts, participants were not shown any revised models. The goal was to get baseline
information about how consumers use current forms so that new models could then be designed
to meet their informational needs.
4
Key Focus Group Findings
Communication with Credit Card Companies and General Account Management
•
Participants indicated that they communicate with their banks primarily by phone, rather than
by e-mail or mail. In most cases they call when there is a problem with their account, not for
routine account maintenance.
•
Most participants said that they do not save the original solicitations for the credit cards for
which they apply. However, most said that they do save other documentation (e.g.,
cardholder agreements), as well as their monthly statements.
•
When asked whether the interest rate on their account had ever increased, only a few
participants indicated that it had. Those that did say their rate had increased said that they
noticed the change when looking at their monthly statements. However, a significant number
of participants said that they do not track their interest rate carefully on their monthly
statements, so it was possible that their rate changed and they did not know.
Solicitation Disclosures
•
When asked to list the most important account terms that they considered when shopping for
a credit card, participants mentioned the following terms most frequently:
Interest rate on purchases
Interest rate on balance transfers
Credit limit
Fees (i.e., annual fees, late fees, cash advance fees, over-the-credit limit fees)
Incentives such as frequent flier miles or cash back
•
The sample solicitation disclosure that was shown to the groups displayed three different
APRs for purchases, labeled “elite,” “premium,” and “standard.” Most participants in the
group of prime consumers recognized that the issuer would select which rate an applicant
received based on his or her credit score. Participants in the subprime group, however, did
not understand how the issuer would choose a rate.
•
When asked whether there was any information in current Schumer Boxes that they did not
use and did not feel was important to include, most participants indicated that they did not
find it valuable to know the method that their bank used to calculate account balances.
•
When asked how they would compare the terms of their current account with those that were
offered in a solicitation, most said that they would find the terms of their current account on
their most recent monthly statement. Some said that they would call their credit card
company to get this information, but admitted that they would not be sure what questions to
ask.
5
•
A very small percentage of participants indicated that when deciding whether to apply for a
card they would call the credit card issuer or go online to get more information about the
offer. Most, however, said that they would make the decision based solely on the
information in the written solicitation.
Account-Opening Disclosures
•
Participants were asked what information they would like to have included in the envelope
when they first receive their cards. Most frequently, they indicated that they wanted to be
able to confirm that they were receiving the same terms and conditions that they had been
offered. Other pieces of information that were mentioned as important included:
Credit limit
Date first payment is due
What happens if the card is lost (i.e., what to do, and who is responsible for charges)
Whether or not a balance was successfully transferred
Contact information for the credit card issuer
•
When shown a sample cardholder agreement, few of the participants said they would read the
entire document if they received it. Others said that they would skim it and look for what
they felt were the most important headings. In each group about half of participants said that
they would not look at the cardholder agreement at all.
Periodic Statements
•
Participants were asked which pieces of information they considered most important on their
periodic statements. The most frequent responses were:
Minimum payment
Balance
Due date
Individual transactions
Finance charges
Available credit
Interest rate
•
Those participants who said that they look at finance charges were asked whether they
focused more on their interest rate or the dollar amount of interest that was being charged.
Most said that the dollar amount was more important, since that was what they would have to
pay.
•
Nearly all participants said that they never look at the back of their periodic statements. A
few said that they do look at the back when they have an issue with their card, because that is
where information about problem resolution is listed.
•
Participants indicated that they would be unlikely to read a change-in-terms insert that was
included with their periodic statement, and would probably throw it away with other
6
marketing material. One suggested that changes to terms be explained on the monthly
statement itself, since most cardholders read their statements relatively carefully.
Change-in-Terms Disclosures
•
Few of the participants remembered ever having received a change-in-terms disclosure in the
mail.
•
When shown a sample of a change-in-terms disclosure, most participants said that they
would be unlikely to read it at all because of its small font size and dense, complicated text.
About half said that they would keep the document for future reference, while the others said
they would throw it away.
•
The most common complaint about the sample that was shown was that the font was too
small. Participants also noted that the language was difficult to follow, and that there was no
summary to which they could refer.
Convenience Checks
•
Nearly all participants had received convenience checks from their banks in the past.
However, only a few said that they had ever used them.
•
Of those participants that had used convenience checks, some said that they had faced
unexpected charges because they used the checks without fully understanding the terms. The
most common misunderstanding was that participants did not realize that they would be
charged the interest rate on cash advances.
•
When asked what information they would want to know about convenience checks before
they used them, participants said that they would primarily want to know the interest rate that
they would be charged.
7
PRELIMINARY COGNITIVE INTERVIEWS IN BALTIMORE, MARYLAND
(AUGUST 2006)
Objectives and Methodology
Following the focus groups, Macro conducted nine cognitive interviews in Baltimore, MD, on
August 16 and 17, 2006. The goal of these interviews in Baltimore was to gather data on the
usability of current credit card disclosures. While the focus groups provided valuable
information about the kinds of information that consumers use when making credit card
decisions, the focus group format did not allow for an in-depth study of how people interacted
with specific documents. For this reason, one-on-one interviews were conducted to identify any
usability problems that could be addressed through revised models.
Participants for this set of interviews were recruited by telephone using a structured screening
instrument. The recruiting process was designed to ensure the selection of a range of participants
in terms of gender, age, and ethnicity. Cardholders’ credit limits were also included as a
recruiting criterion, as a rough proxy for credit score. For a summary of participants’
background information, see Appendix A.
Each interview session lasted 90 minutes, and was divided into four sections. In each section the
participant was given an envelope containing one of the following:
1. A credit card solicitation letter, including a Schumer Box
2. An account-opening packet made up of a card carrier (holding a mock credit card) and
cardholder agreement
3. A periodic statement, along with marketing materials that are often included with
cardholders’ statements
4. A change-in-terms notice.
The four documents were given to each participant in the same order that they would receive
them in the life of an account: first solicitation, then account-opening disclosures, then periodic
statement, then change-in-terms notice.
In each section of the interview, participants were first asked to open the envelope and read the
contents just as they normally would. Participants were asked to “think aloud” as they did so—
that is, to say aloud what they were thinking and doing as they looked at the documents. The
interviewer did not ask any questions or provide any prompts during this section of the interview,
so that participants’ behavior was as much as possible an authentic reflection of what they do in
the “real world.”
8
After the participants had completed their initial review of what was in the envelope, the
interviewer then asked a series of more targeted questions about that particular disclosure. In
some cases, the interviewer asked about specific terms, to see whether the participants could find
that information in the disclosures. In other cases, participants were asked to explain what a
word or phrase meant to them.
After this series of questions was completed, the interviewer handed participants the next
envelope and the interview proceeded.
Two different versions of each disclosure were used in the Baltimore interviews; each participant
was shown one version of each disclosure type. The models that were used were actual
disclosures, with information about the credit card issuer redacted. These models are provided in
Appendix B.
Key Interview Findings
Solicitation Letters and Schumer Boxes
General Reading Patterns
• When opening a credit card offer, nearly all participants first reviewed the solicitation letter
that was included in the envelope. Most looked first at the pieces of information that were
most prominent on the letter (i.e., those in headings, graphics, and bullet points), and then
went on to read the text of the letter itself. The pieces of information that they considered
most closely were the zero percent introductory APR that was offered for balance transfers,
the credit limit, the annual fee, and the length of the introductory period for any discounted
rate.
•
When reading credit card solicitations, a majority of participants specifically looked for the
Schumer Box. Although they did not call it by this name, these participants understood that a
summary box of account terms would be included with the solicitation. Several commented
that they considered this box to be the most important part of a credit card offer.
•
When reading Schumer Boxes, most participants focused primarily on the rate for purchases,
and then skimmed down to the bottom of the box to read the information on fees. Other than
information on fees, most did not read any smaller text that appeared underneath the box. In
several cases participants had difficulty understanding information that was located in
footnotes, either because they did not follow the footnote to the bottom of the page, or
because they read the footnote first and did not understand to which part of the box it related.
Annual Percentage Rates
• Most participants understood that when a range of possible APRs was offered in the Schumer
Box, the actual rate that an applicant received would be based on his or her creditworthiness.
However, there were some who did not understand how their rate would be selected. These
9
participants did not notice that this information was provided in the solicitation (although not
in the Schumer Box itself).
•
Most of the participants were able to identify the APR on purchases by looking at the
Schumer Box. However, less than half were able to identify the rate that would apply to
balance transfers after the introductory rate expired (the so-called “go-to rate”). Several
assumed that the APR would be the same for purchases and balance transfers.
Fixed and Variable Rates
• When asked to define what a “fixed” rate was, most participants said that it was a rate that
would not change. While some indicated correctly that credit card issuers could still change
these rates, others believed that this was not the case.
•
Nearly all participants said that the word “variable” meant that a rate could change. A vast
majority of participants said that variable rates could change based on changes in “prime” or
“general interest rates.” A few participants said that banks could also change these rates for
other reasons if they wished.
Default APR and Triggers
• While most participants understood that their APR would change if they “messed up”
somehow (i.e., make a late payment, etc.), few were able to locate any information on the
solicitation about the specific actions that could trigger this change. Most were also unable
to identify what the new rate would be.
Fees
• Most participants were able to find information about transaction and penalty fees underneath
the Schumer Box. In some cases, however, it took several minutes for them to do so.
•
Participants indicated that they considered penalty fees to be an important factor when
shopping for a card. Those that transfer balances and take out cash advances said the same of
fees for those transactions. None, however, said that fees for foreign transactions would be
important to them.
•
When asked whether credit card issuers could charge additional fees that were not disclosed
in the Schumer Box, almost all participants indicated that they could.
Other Disclosure Notices
• When asked about the balance calculation method that was described in the Schumer Box, all
participants indicated that they did not understand what the “average daily balance”
calculation method was. Reviewing additional information on the solicitation that described
this method did not improve understanding because participants found both the text and
mathematics involved to be too complex. In any case, nearly all said that this was not a piece
of information that would be important to them when considering a credit card offer.
10
•
Participants were asked whether the issuers represented in the offers would first allocate
payments towards low-introductory APR balance transfers or higher-APR purchases. About
half of participants understood that the banks would allocate any payments to balance
transfers first, either because of prior knowledge or because they found the information in the
disclosure that indicated as such. The other half either thought that banks would allocate
payments to purchases or did not understand why payment allocation would make a
difference in how much interest they paid.
•
Several participants incorrectly thought that the “grace period” referred to the amount of time
after the due date during which they could make a payment without being charged a late fee.
•
A few participants believed that the presence of a “minimum finance charge” in the Schumer
Box meant that they would have to pay that amount every month. (In actuality, this figure
refers to the amount they would be charged in those months where they would otherwise
incur a finance charge that is less than the minimum charge.)
Account-Opening Disclosures
•
The second envelope that each participant was given contained a cardholder agreement and a
“card carrier” that contained marketing and account information. After opening the envelope
most participants skimmed the text on the card carrier quickly, but many did not notice key
pieces of information (e.g., their APRs).
•
Participants paid very little attention to the cardholder agreement; only a few participants
looked at it at all, and these only skimmed it briefly. When asked, a vast majority of
participants indicated that they generally do not look at their cardholder agreements. Most
participants indicated that the reasons they do not read their agreements are that the type size
is very small and they find them difficult to understand.
•
When prompted, less than half of participants were able to find information in the account
agreement that described what actions might trigger the default rate.
•
One of the two models that were used in this round included an insert that summarized APRs
and fees, while the other model only provided this information on the card carrier and in the
cardholder agreement. When asked specific questions about their account APRs and fees,
participants who received the insert responded much more quickly and accurately than those
who did not. Those who were given a summary insert were also more likely to notice and
review APRs and fees on their own, whereas those who did not receive an insert usually only
did so after being prompted.
Periodic Statement
General Reading Patterns
• None of the participants looked at the back of the statement unless they were prompted to by
the interviewer.
11
•
Most of the participants did not read inserts that were included with the monthly statement,
but instead set them aside.
Interest and Fees
• Participants had various interpretations of the phrase “finance charge.” Some thought it
referred specifically to fees, some thought it was synonymous with interest charges, and
some thought it included both. (In the mock periodic statements, the amount of the “finance
charge” included interest and transaction fees.)
•
Most participants understood that their interest charges were calculated through the
multiplication of a percentage and an account balance. However, most could not correctly
identify the percentage and balance that were multiplied. For example, several thought that
the APR itself was multiplied against the balance, rather than the periodic rate.
•
Participants who were asked to read the more detailed description provided on the back of
the statement describing how interest was calculated found it very confusing, and said that
they would not be able to do these calculations themselves. None indicated that they had
ever attempted to calculate their own interest (e.g., to check the bank’s calculations), or that
they would be likely to do so in the future. Most said that if the figures on their periodic
statement looked incorrect, they would call their credit card issuer.
•
Only half of participants were able to correctly identify all of the fees that were listed on the
model statements; others missed at least one fee.
Annual and Periodic Interest Rates
• While most participants were able to identify the annual interest rate being charged on
purchases, others misidentified one of the other rates on the form (e.g., “effective APR,”
“periodic APR,” etc.) as the interest rate.
•
Several participants were confused because what had been called the “APR” on solicitation
and account-opening disclosures was called the “corresponding APR” on one of the
statement models.
Effective APR
• The two models used in Baltimore provided the effective APR in two different ways; Model
A listed it as a column labeled “Annual Percentage Rate” in the “Finance Charge” box, while
Model B labeled it “Effective Annual Percentage Rate” and placed it underneath the box. In
both cases, most participants indicated that these rates seemed high but did not understand
what they signified. After reading the descriptive information provided on the forms, only
one participant understood that the effective APR was higher than the corresponding APR
because it included transaction fees in addition to interest.
12
Time Payment is Due
• When asked what time on the due date a payment was due, almost all participants assumed
that it was due either at midnight or at 5:00 P.M. Only one participant was able to find a
notice on the back of the statement that payment was due earlier on that day.
Change-in-Terms Notice
•
All participants said that if they got an envelope from their credit card issuer that was labeled
“Important Information about Your Account,” they would open it.
•
Participants were shown two different change-in-terms notices—one which was printed in
the form of a letter on one side of an 8 ½” x 11” paper, and another that was in the form of a
folded booklet with smaller font. All indicated that they would be more likely to read the
larger sheet, primarily because it had larger print.
•
Most participants did not understand the changes described in the notices. Both notices were
informing cardholders of an increase in the amount of penalty fees (e.g., late fees). However,
some participants thought that the notices indicated that they were being charged those fees.
Others thought the notice was simply a reminder that penalty fees existed on the account.
13
KEY IMPLICATIONS FOR DEVELOPMENT OF REVISED FORMS
As noted above, the purpose of the focus groups and preliminary interviews was to learn more
about the types of information that consumers use when making credit card decisions, as well as
how they review and use current credit card disclosures. This section describes some of the
ways in which findings from this round of research were used to guide the development of
revised disclosure forms in the next phase of the study.
Schumer Box
Annual Percentage Rates
• Because many participants (particularly those who have subprime credit cards) did not
understand how a bank would select an initial APR from a range of possible rates, models
were developed and tested that explained more explicitly that the applicant’s initial APR
would be based on his or her creditworthiness.
•
Since participants had some difficulty distinguishing APRs for different transactions, models
were developed for testing that separated the rates in the “Other APRs” row into separate
rows.
Default APR and Triggers
• Participants were unable to find information about default triggers when it was provided in
text outside of the Schumer Box. Therefore, models were developed for testing the
disclosure of these triggers within the box itself.
Fees
• Because fees are one of the primary factors that participants consider when shopping for
credit cards, future rounds of testing investigated the possibility of including fees in the
Schumer Box itself.
Other Disclosure Notices
• Because participants in the focus groups and Baltimore interviews indicated that the balance
calculation method is not important to them, some models were tested in later rounds that did
not include this information in the Schumer Box.
•
A significant percentage of participants did not seem to understand that banks would allocate
their payments to lower-APR balances first—and in fact were not even aware that this
practice could impact their interest payments. Therefore, models tested the inclusion of a
disclosure on this topic in the Schumer Box.
•
In subsequent models a description was added to the grace period disclosure in order to more
clearly define this term.
14
Account-Opening Disclosures
•
Both the focus groups and Baltimore interviews suggested that a summary page of key
account terms and conditions would be very helpful to consumers, because most do not find
other materials that are provided at account opening (e.g., the cardholder agreement) to be
easily readable or useful. A summary table of this type was tested in subsequent rounds.
This table was formatted much like the Schumer Box, since this box is familiar to consumers.
Periodic Statement
General Format of Statement
• Findings from the focus groups and Baltimore interviews suggest that most consumers do not
look at the back of their periodic statements. Therefore, on subsequent models that were
developed all essential account information (i.e., information that consumers need or find
important to effectively manage their accounts) was located on the front of the statement.
Interest and Fees
• Because the phrase “finance charge” was unclear to participants and was interpreted in
different ways, models were developed for the next round of interviews that used the terms
“interest charges” and “fees” in place of “finance charges.”
•
Because only half of participants were able to correctly identify all fees that were charged, in
future rounds the researchers experimented with different ways of highlighting these fees
(e.g., by providing a separate fees total, or by grouping fees together in the transaction list).
Changes to Account Terms
• The Baltimore testing confirmed what participants had said during the focus groups; most did
not look at the inserts that were included with the sample periodic statements they were
shown. Therefore, model forms were developed that included a summary of key changes on
the statement itself.
Time Payment is Due
• Because participants were unable to find information easily on the back of statements
indicating the time at which payment was due on the due date, model forms were developed
that included this time on the front of the statement. Subsequent rounds tested whether this
was effective in increasing cardholders’ awareness that payment was not due at the close of
business on that day.
Change-in-Terms Notice
•
Because participants’ understanding of the purpose of change-in-terms notices was poor,
model forms were developed that included a summary of key changes at the beginning of
these disclosures.
15
•
The Baltimore testing provided evidence that consumers find change-in-terms notices more
useful when they are printed on a single sheet of paper in larger font, rather than in a folded
booklet. However, because of the potential challenges of requiring banks to use a particular
size of paper for their disclosures, future testing focused on the development of an effective
summary of key changes that could be used with any style of notice.
Convenience Checks
•
Because some participants in the focus groups said that they had used convenience checks
without fully understanding the terms, in later rounds of interviews models were tested that
listed key terms (such as applicable rates and fees) on the front of a page of checks.
16
SECTION III: DEVELOPMENT AND TESTING OF REVISED
DISCLOSURE FORMS
OBJECTIVES AND METHODOLOGY
After the interviews in Baltimore, the project entered its second phase—the development and
testing of revised disclosure forms. Testing of these forms was carried out through a series of
interviews in four locations: Kansas City, MO; Denver, CO; Boston, MA; and Dallas, TX.
Before each round of interviews, Macro developed model disclosures for testing. In most cases,
multiple versions of each type of disclosure were developed so that the impact of varying
language or format could be studied. After each round, the findings from that round of
interviews were then used to develop new model forms to use at the next location. This process
continued through the final set of interviews in Dallas, which produced the proposed models that
are being released for public comment.
Participants in each of the four locations were recruited by telephone using a structured screening
instrument in order to ensure the selection of a range of participants in terms of gender, age, and
ethnicity. The screening criteria that were used were very similar, although there were small
variations between locations. A summary of participants’ background and demographic
information can be found in Appendix A.
Interviews for each participant in each location were 90 minutes long. The structure of these
interviews was very similar to that used in Baltimore. Participants were given envelopes
containing mock credit card disclosures (e.g., a solicitation letter and Schumer Box). They were
first asked to read the information in the envelope just as they normally would, and to “think
aloud” while doing so. When they indicated that they were finished, the interviewer asked
follow-up questions to test their understanding of the document. Each envelope contained one of
the following:
1. A solicitation letter and Schumer Box
2. An account-opening packet, including a card carrier, cardholder agreement, and summary
insert page
3. A monthly statement, along with marketing materials, a page of convenience checks, and
an insert notifying the cardholder of change in terms
4. A change-in-terms notice.
Interviews in different locations focused on different disclosure forms; all four envelopes were
not used in all cases.
17
GUIDING PRINCIPLES FOR DISCLOSURE DESIGN
As noted above, the primary goal of this phase of the study was to develop revised disclosure
models that presented information to consumers in a more understandable and useful format than
current forms. Many of the revisions that were eventually made to the proposed forms were in
reaction to specific findings from consumer testing. However, the following is a list of general
principles that guided the development and revision of these forms throughout the project.
1) In cases where consumers expressed familiarity with current disclosures, significant
revisions to structure or format were only made when absolutely necessary. Because
experienced credit card consumers have received disclosures in their current form for a long
period of time, many have grown accustomed to finding information in a particular location
or configuration. For example, findings from the focus group and first round of interviews in
Baltimore indicated that many consumers recognize the Schumer Box and specifically look
for it when evaluating a credit card offer. For these consumers, dramatically changing the
appearance of this document would likely have a negative effect on comprehension.
Therefore, most of the models that were tested preserved the basic two-column structure of
the Schumer Box.
Early rounds of testing also showed that there are some types of credit card disclosures, such
as those that are presented at account opening, that many consumers do not read carefully. In
these cases, more latitude was taken in developing revised forms because consumers had less
attachment to current versions.
2) Information was provided as efficiently, and in as few words, as possible. In the focus
groups, most participants indicated that they do not spend very much time reading credit card
disclosures. Many said that they never read their cardholder agreements or change-in-terms
notices they receive in the mail, and one of the primary reasons was that they were so long.
In cognitive interviews, even when notices were only two or three sentences long,
participants often did not read to the last sentence. Therefore, unless adding text clearly
increased comprehension of a particular term, form designers used as few words as possible
to describe a particular concept.
3) Whenever possible, consistency was preserved between disclosures. In most cases, the
content and purpose of the disclosures are directly related to each other. For any given card,
for example, the Schumer Box displays the terms that are offered to consumers, the accountopening disclosure shows the actual terms on the account, and change-in-terms notices alert
cardholders when these terms are changed. When information is provided in different
formats for these disclosures (e.g., a tabular format in the Schumer Box vs. text in a
cardholder agreement at account opening), consumers may find it difficult to track their
account terms over time. As a result, the focus groups showed, many do not track their terms
at all. For this reason, the structure of revised forms was made consistent so that consumers
would find it easier to compare the information shown on different types of disclosures.
18
4) In most cases, the information that was emphasized on disclosures was that which
consumers indicated that they find most useful. Because the purpose of disclosures is to
provide consumers with information that they need for financial decisionmaking, the terms
that are displayed most conspicuously and clearly should be those that are most important to
consumers. For example, because participants in the focus groups indicated that fees were
one of the most important considerations to them when shopping for a card, the proposed
Schumer Box model includes fees in a separately-labeled section. On the other hand,
participants indicated that they do not review or consider margins that are used to calculate
variable interest rates, which are now required in the Schumer Box. As a result, in the
proposed form these margins have been removed from the Schumer Box.
Not all of these decisions were based solely on consumer preference in early focus groups,
however. For example, in the focus groups none of the participants indicated that the default
APR (i.e., the interest rate to which APRs can be increased if the cardholder breaks account
rules) was important to them. However, through interviews it became clear that the reason
many consumers were uninterested in the default APR was that they did not know what it
was. Once they became familiar with the term, they indicated that it was an important piece
of information that they would consider when shopping for a card. As a result it was not
only retained in the Schumer Box, but also made more conspicuous.
5) Plain “everyday” language was used whenever possible. When shown current
disclosures, one of the most common complaints from participants was about the complexity
of the language and vocabulary that was used. Cognitive interviews showed when many
participants encountered words or phrases that they did not understand, they simply ignored
those sections of text, rather than trying to determine their meaning. For this reason, every
attempt was made to use everyday vocabulary to explain information in the disclosures,
rather than resorting to terms that consumers were less familiar with. For example, it became
clear early in testing that many consumers did not understand the term “finance charge.” For
this reason, subsequent models used in testing did not use this phrase, but instead referred to
“fees” and “interest charges”—two terms with which consumers were more familiar.
6) Decisions related to the placement of information on disclosures were driven by how
consumers read the forms. Early interviews showed that there were consistent patterns in
how consumers interacted with different types of disclosures. When this was the case, these
patterns were taken into consideration when revised models were developed. For example,
cognitive interviews showed that participants did not usually follow footnotes when reading
Schumer Boxes. Therefore, footnotes were removed and all subsequent forms displayed key
information within the box itself. Interviews also showed that when reading periodic
statements, participants tended to focus on only a few pieces of information—usually
information about payments, a summary of account activity over the past period, and the list
of specific transactions. This finding drove subsequent revisions—for example, the proposed
model includes totals of fees and interest within the transaction list, and several disclosure
notices are located in close proximity to information about payments in order to increase
their conspicuousness.
19
STRUCTURE OF SECTION III
The remainder of this section of the report describes each of the four individual rounds of
interviews. For each location, three different kinds of information are provided. The
“Objectives and Methodology” section describes the specific goals for that set of interviews, as
well as the specific types of forms that were tested. It also identifies the models that were used
in testing, which can be found in Appendix B. The “Key Interview Findings” section
summarizes the most important results of the cognitive interviews. The last section, labeled
“Subsequent Design Decisions,” details the specific decisions that were made following that
round of interviews regarding the development of forms for the next round. These three sections
should allow the reader to follow the logic of form development over the course of the four
rounds.
20
INTERVIEWS IN KANSAS CITY, MISSOURI (NOVEMBER 2006)
Objectives and Methodology
Nine cognitive interviews were conducted in Kansas City on November 28 and 29, 2006. These
interviews represented the first opportunity to develop revised disclosure forms and test the
extent to which they were clearer and more helpful to consumers. This round of testing focused
on four types of forms: solicitation letters, Schumer Boxes, periodic statements, and change-interms notices. Because this was the first round of interviews, the variation between different
versions of the forms was fairly wide; for example, on different forms the Schumer Box
contained one, two, or three separate sections. With each subsequent round of interviews, the
variation between forms decreased as it became clearer what types of language and formats
worked best for consumers.
The following model forms were shown to participants in this round and can be found in
Appendix B:
•
•
•
•
Solicitation Letter: SL-1, SL-2, SL-3
Schumer Box: SB-1, SB-2, SB-3, SB-4
Periodic Statement: PS-1, PS-2, PS-3, PS-4
Change-in-Terms Notice: CT-1, CT-2, CT-3, CT-4
Key Interview Findings
Credit Card Solicitation Letters and Schumer Boxes
Solicitation Letters
• As in Baltimore, most participants read the solicitation letter fairly carefully. Again, they
focused first on information that was printed most prominently (e.g., in color and in the
largest font size), and then often went back to read the text of the letter itself.
•
Putting the go-to rate and introductory period for the balance transfer rate at the top of the
letter next to the introductory balance transfer rate made it much more likely that participants
would be able to find this information. When these terms were provided in the body of the
solicitation letter, or in a footnote, participants were much less likely to notice them.
Schumer Boxes: Consumer Reading Patterns
• This round of interviews confirmed the finding in Baltimore that the Schumer Box does have
recognition among consumers, and is seen by them as containing important information.
•
Participants consistently read from the top of the Schumer Box to the bottom, but then
stopped and did not continue to the text underneath.
21
•
As in Baltimore, most participants did not read footnotes when they encountered them. In at
least three cases, participants did not understand that a footnote meant they should look
below for more information.
Annual Percentage Rates
• Almost all participants understood that their “APR” related to how much interest they would
be charged. However, very few were able to correctly describe the calculation that would be
used to determine their interest charges.
•
Participants found it easier to identify the balance transfer and cash advance APRs when
these percentages were provided on separate rows, rather than combined in a single “Other
APRs” row. Creating a separate row for the default APR also made it more likely that
participants would notice it when they initially reviewed the Schumer Box.
•
When the purchase APR was displayed in the same font size as other APRs, participants had
more difficulty correctly identifying this rate. This was particularly true when balance
transfer, cash advance, and default APRs were provided on different rows.
Fixed and Variable Rates
• Most participants said that since the zero percent introductory rate was labeled “fixed,” the
bank could not change it during the introductory period. Three of the nine correctly indicated
that this rate could increase if the cardholder went into default, while the other six said that it
could not change under any circumstances.
•
While they understood that variable rates could change, most participants could not find
information in the Schumer Boxes that indicated how or why these rates would change. This
was true even for those who were shown a form that provided detailed variable rate
information within the box (as is currently required by Regulation Z).
•
Of the three participants who did find information in the Schumer Box about the margins that
were used to determine variable APRs, two incorrectly thought that the margins themselves
were the interest rates.
Understanding of Default Rates and Triggers
• The term “default rate” was misunderstood by some participants. A few said that the word
“default” implied that either the account was being closed due to delinquency, or that the
cardholder was no longer able to make payments. Others indicated that the word “default”
sounded like the “normal” rate, not something that would be applied when the cardholder did
something wrong.
•
The Schumer Boxes that participants were shown in Kansas City all contained information
about default triggers. Two contained this information in a separate section in the box
labeled “How Your Actions May Affect Your Rates,” while two others provided the triggers
underneath the box. Regardless of which form participants were shown, however, most were
unable to find this information when asked.
22
Fees
• When fees were listed within the Schumer Box (as opposed to underneath it) participants
were more likely to notice fees when they initially reviewed the document, and were able to
find them more quickly and easily when asked.
•
One of the Schumer Box models that was tested in Kansas City (SB-4) grouped account
terms by transaction type, combining APRs and fees for a particular transaction in a single
row. While a few participants seemed to prefer this format, more were confused by it
because they assumed that all fees for the card would be listed together.
•
As in Baltimore, participants indicated that penalty fees and fees for balance transfers and
cash advances were important to them when shopping for a card, but that fees on foreign
transactions were not.
Other Disclosure Notices
• As in the Baltimore round, participants did not consider the method that a bank used to
calculate their balance to be an important piece of information in credit card offers. This was
in part because they did not understand the “average daily balance” method, and also because
they considered this term less significant than others in the Schumer Box when shopping for
a card.
•
Unlike in Baltimore, most participants in this round of testing were able to find a disclosure
about the way in which their payments would be allocated to different balances—particularly
when viewing models in which this disclosure was clearly labeled. However, the majority
did not fully understand what this disclosure meant. For example, several indicated that their
interest charges would not be affected by how their payment was allocated, and two did not
realize that their balances for different transaction types were tracked separately.
•
Some of the Schumer Box models that were used in this round of testing displayed the
minimum and maximum credit limits that would be offered to consumers initially. The
impact of this row on participants’ understanding was minimal; most learned the maximum
credit limit from the solicitation letter, and did not feel that the minimum credit limit was a
factor they would consider when shopping for a card.
•
As in Baltimore, there were a few participants that incorrectly thought the term “grace
period” referred to the period of time after the due date during which they would be allowed
to pay without being charged a late fee.
23
Periodic Statements
General Reading Patterns
• After opening the statement, nearly all participants looked first at information in the Account
Activity and Account Summary sections (i.e., payment due date, new balance, etc.), and then
at the transaction list. Participants were less likely to look carefully at other portions of the
statement, including the “Finance Charges” box that described how interest charges were
calculated. Very few participants looked at the payment coupon portion of the statement.
•
Only one of the nine participants noticed the change-in-terms insert that was included with
the statement. The other participants indicated that they would throw that insert away along
with the marketing material in the envelope.
Interest and Fees
• Some of the statement forms that were tested used the phrase “finance charges,” while others
referred to “interest” and “fees.” As in the Baltimore interviews, participants often
misunderstood the term “finance charge” (which most participants in this round assumed
would always be synonymous with “interest.”)
•
When asked to identify the “charges” shown on the statement, participants usually identified
transactions and fees but not interest. This is an indication that while most consumers
understand that they are charged interest, this cost is not “top-of-mind” when they are
reviewing their statement.
Annual and Periodic Interest Rates
• Participants did not understand the term “% Periodic Rate,” which was used as a label for
monthly interest rates in the Finance Charges section of one of the models. The term
“Monthly Interest Rates” was clearer to most, although some participants still did not
understand what this percentage represented. Most of the participants indicated that they
would not find these rates valuable on their own statements.
•
As in Baltimore, participants were confused when they were shown a model that identified
the interest rate as the “corresponding APR.” Most assumed that the interest rate would be
labeled the “Annual Percentage Rate,” as it is on credit card offers.
Effective APR
• Two of the statements used in Kansas City included the effective APR. Only two
participants who read these statements were able to explain that the effective APR included
both interest and transaction fees; others noticed that it was higher than the annual interest
rate but did not understand why. Both participants who understood that the effective APR
included both interest and transaction fees and was higher than the annual interest rate as a
result indicated that they would not find this term useful; both thought it should not be
included on the form because it could be misleading to consumers.
24
•
Several participants thought the effective APR represented the annual interest rate on the
account, particularly those who were shown a model in which the effective APR was labeled
“Annual Percentage Rate.”
Transaction List
• When looking at the transaction list, most participants were able to correctly identify the fees
that were charged, the credit for payment, and the cash advances on the statement. However,
those who were given a form in which the list was grouped by transaction type were able to
find this information more quickly and easily. All participants who were shown both a list
grouped by transaction type and a chronological list found the former easier to read; one
participant, for example, said that it looked “bolder” and “better spaced.”
Late Payment and Minimum Payment Disclosures
• The models used in Kansas City included two notices on the front—one about the impact of
making only the minimum payment on the amount of time it would take to pay off a balance,
and one about the consequences of late payment. When prompted to read these disclosures,
nearly all participants understood them clearly. However, most did not notice the disclosures
when first reading the statement, regardless of whether they were located at the top of the
form, on the payment coupon, or in a section labeled “Bank News.”
Changes to Account Terms
• All four statement models included a notice that account terms were changing in a section of
the statement labeled “Bank News.” However, the majority of participants neither noticed
this section nor read the contents. When asked, some indicated that they rarely read similar
sections on their own statements because they contain primarily marketing content.
Time Payment is Due
• As in Baltimore, participants did not notice information about the time that a payment was
due when it was located on the back of the statement. When shown models that included the
“time due” immediately next to the due date, they did see this time and understood its
significance.
Change-in-Terms Notice
•
Two of the three change-in-terms notices that were tested in this round contained a summary
of key account changes—one in the form of a bulleted list, and the other in a tabular format
similar to that of the Schumer Box. Regardless of whether or not a summary was included,
however, few participants understood the changes that were being made to their account.
The primary reason seemed to be that the changes described in the models related to default
triggers and default rates, two topics with which they had little familiarity.
25
Subsequent Design Decisions
Solicitation Letter
Because participants were unlikely to notice the end date of the period for an introductory
rate and the go-to rate when they were provided in the text of a solicitation letter or in a
footnote, the letters that were used in subsequent rounds of testing included this information
at the top immediately following the introductory rate that was being offered.
Schumer Box
General Design
• Results from the Baltimore and Kansas City interviews showed that the Schumer Box is
familiar to credit card consumers, and that many already see it as the most important piece of
a credit card offer. As a result, subsequent forms that were tested retained the current
structure of the table. For example, all Schumer Box models that were developed for later
rounds used the same two-column format as current Boxes, in which headings are provided
in the first column and account terms are listed in the second column.
•
Interviews in the Baltimore and Kansas City rounds showed that most participants did not
read footnotes, and that in some cases the presence of footnotes had the effect of distracting
readers away from important information. Most participants also did not read text below the
Schumer Box, particularly when this text was in a smaller font. For these reasons,
subsequent models were designed such that the terms and conditions considered by
consumers to be most important were located within the Schumer Box itself, rather than in
footnotes or below the box.
Annual Percentage Rates
Based on the results of this round, all subsequent forms listed the default APR in its own row
so that consumers would be more likely to notice it.
Findings from Kansas City showed that listing APRs for balance transfers and cash advances
in separate rows helped participants distinguish between rates for different transactions.
However, it was determined that this change should be tested further to ensure that increasing
the number of rows containing APRs did not decrease the conspicuousness of the rate for
purchases.
Fixed and Variable Rates
Because variable rate margins were so frequently confused with interest rates, model forms
were developed in which detailed information about how variable rates are calculated
(including margins) was removed from the Schumer Box itself. Later rounds tested the
effectiveness of providing this information as a footnote or as text underneath the box.
26
Default APR and Default Triggers
Model forms were developed using the alternative label “penalty APR” instead of “default
APR” to see whether this term might be more intuitive and might facilitate consumer
understanding.
Because participants in this round had difficulty finding information about default triggers,
model forms were developed for the next round that displayed these triggers within the box
in one of two ways—either in the same row as the default APR, or in a separate box clearly
linked to the default APR.
Fees
Because the inclusion of fees in the Schumer Box improved participants’ ability to quickly
identify them, all subsequent models tested included fees within the box. Forms for the next
round tested two different ways of presenting fees: a) providing all fees in their own, labeled
section; and b) presenting transaction fees in the same row as their corresponding APRs.
Other Disclosure Notices
Because many participants did not seem to understand how their issuers’ balance calculation
method could affect the interest charges they might pay, some of the models for the next
round provided more detail on this topic.
Models were developed for the next round of interviews that explained more clearly how
payment allocation could impact cardholders’ interest charges, since participants in Kansas
City did not fully understand the language used in this round.
Because participants did not have difficulty finding the credit limit being offered in the
solicitation letter, and because all understood that if they were offered “up to” a certain
amount they were not guaranteed to receive that amount, minimum and maximum credit
limits were not included in the Schumer Box in subsequent rounds.
Because some participants in the Baltimore and Kansas City rounds did not understand the
phrase “grace period,” models were developed for the next set of interviews that explained
the term in greater detail.
Periodic Statement
Interest and Fees
Because interviews in Kansas City confirmed that consumers do not have a consistent
understanding of the phrase “finance charge,” all subsequent models used the words
“interest” and “fees” in place of “finance charge.”
Annual and Periodic Interest Rates
Because participants clearly expected annual interest rates to be labeled “Annual Percentage
Rates,” this term was used in all subsequent models.
27
Because participants appeared to understand periodic rates better when the label used to
describe them included the period to which they applied (e.g., “Monthly Interest Rates” or
“Daily Interest Rates,” rather than “% Periodic Rate”), subsequent models used these labels.
Effective APR
While labeling the rates that includes interest and transaction fees as the “effective APRs”
did not improve consumer understanding of what that rate meant, it did decrease the number
of participants that confused the effective APRs with the annual interest rates on the account.
Therefore, models for the next two rounds used this label.
Transaction List
Because interest charges did not appear to be “top-of-mind” to participants as they were
reviewing their statements, models for the next round included interest charges in the
transaction list to make them more conspicuous.
Late Payment and Minimum Payment Disclosures
Participants did not notice disclosures about the consequences of late payments and of
making only the minimum payment, regardless of where they were placed on the form. For
this reason, subsequent models continued to test a variety of locations and formats for these
notices to determine which made them most conspicuous.
Changes to Account Terms
As with the late payment and minimum payment disclosures, participants did not notice text
about changes to account terms that was located in “Bank News” section. Therefore, one of
the goals of future rounds was to find a more conspicuous location for this disclosure on the
statement.
Time Payment is Due
As in the Baltimore round, in the absence of information to the contrary participants in the
Kansas City rounds assumed that payment was due either at close of business or at midnight
on the due date. For this reason, all subsequent models provided the time that payment was
due in close proximity to every reference to the due date.
Change-in-Terms Notice
Attempts to test whether summaries of account changes were effective were hindered by the
fact that the changes impacted two account terms—default rates and default triggers—with
which participants in this round were unfamiliar. Because participants had difficulty
understanding default rates and triggers themselves, it was difficult to study whether they
correctly interpreted changes in these terms. Therefore, the change-in-terms notices that
were developed for the next round focused on terms that consumers were more likely to
understand—annual fees and transaction fees.
28
INTERVIEWS IN DENVER, COLORADO (JANUARY 2007)
Objectives and Methodology
Following the Kansas City interviews, new disclosure models were developed that reflected the
findings of that round. These models were then tested through 7 cognitive interviews in Denver
on January 9 and 10, 2007. This round of testing focused on four types of forms: Schumer
Boxes, summaries of key terms to be provided at account opening, periodic statements, and
change-in-terms notices. Because findings related to the placement of information on the
solicitation letter had been conclusive in Kansas City, this document was not a focus in this
round and the same model was used with all participants.
This was the only round that tested a summary page of key terms similar to the Schumer Box
that would be provided at account opening. Although multiple versions of the form were used in
testing, the goal was not to determine which would be most effective, but to study the extent to
which consumers would find a summary page helpful. The focus group and Baltimore
interviews had shown that consumers rarely read their cardholder agreements, and the hope was
that a summary would make it easier for them to review their terms when they first receive their
card. These summary pages were formatted exactly like the Schumer Boxes being tested, with
the thought that these two documents should mirror each other (see “Guiding Principles for
Disclosure Design”).
The following model forms were shown to participants in this round and can be found in
Appendix B:
•
•
•
•
•
Solicitation Letter: SL-4
Schumer Box: SB-5, SB-6, SB-7, SB-8
Account-Opening Summary Pages: AO-1, AO-2, AO-3, AO-4
Periodic Statement: PS-5, PS-6, PS-7, PS-8
Change-in-Terms Notice: CT-5, CT-6, CT-7
Key Interview Findings
Schumer Box
Annual Percentage Rates
• As in Kansas City, participants who were shown models that displayed cash advance and
balance transfer APRs in separate rows were better able to find and identify these rates.
•
The models used in this round provided a range of possible APRs for purchases and indicated
that the initial rate the applicant received would be selected from this range based on his or
her creditworthiness. The placement of information about how the initial rate would be
selected had a large impact on the conspicuousness of the disclosure; participants were much
29
more likely to notice it when it was provided in the APR for Purchases row, rather than in a
footnote. Participants had no difficulty understanding the word “creditworthiness”; they
associated it with the quality of their credit history or their credit score.
•
Participants were less likely to confuse rates for different transactions (e.g., assume that the
APRs for purchases and balance transfers were the same) when the rate for purchases was
printed in larger font than other text.
Fixed and Variable Rates
• When asked what it meant if a rate was labeled “fixed,” most participants responded that
these rates would not change for any reason.
•
About half of participants understood that rates labeled as “variable” would change based on
the Prime Rate; others assumed that these rates varied based on consumers’ creditworthiness,
or on their credit card behavior. Although the forms directed readers to more information
underneath the box about variable rates, few read the additional text. As in Kansas City,
several of those participants who did notice the detailed information about variable rates
initially confused the margins with actual APRs.
Default APR and Default Triggers
• As in previous rounds, several participants said that “default” sounded as if it would only
apply when the account was closed due to delinquent payments. Most thought, incorrectly,
that a “default APR” would not apply after a single late payment. Participants in this round
were also shown two alternative labels for the default APR. The term “highest possible
APR” was not effective; some participants misinterpreted it to mean the highest level to
which variable rates could increase. The term “penalty APR,” however, was correctly
understood by the majority of participants as applying to events such as paying late or
exceeding a credit limit.
•
Participants were much more likely to notice and understand the significance of the default
APR when this rate was provided in the same row as the default triggers. When the default
APR and triggers were listed in separate sections of the Schumer Box, participants were
more likely to overlook both of them.
Fees
• Participants were able to identify transaction fees more quickly and accurately if they were
listed in a separate section, rather than integrated with APRs (as was done in one of the
models for this round). Participants who were shown both formats indicated that they found
more useful having all the fees listed together in a single section.
•
Because of concerns that consumers do not notice minimum transaction fees, two different
wordings were tested for cash advance fees in these models: “3% of the amount of each cash
advance, but not less than $5” versus “Either $5 or 3% of the amount of each cash advance,
whichever is greater.” Participants who read the second version were significantly more
likely to notice the $5 minimum fee.
30
Other Disclosure Notices
• The models contained several different versions of a disclosure about how balances are
calculated on the card, ranging from a very simple notice that simply named the method to a
more detailed disclosure that explained that “two-cycle” billing might be more expensive
than the “average daily balance” method under certain circumstances. Regardless of which
wording they were shown, however, most participants did not understand how or why “twocycle” billing would impact interest charges, and nearly all indicated that they did not find
this information important or useful.
•
The disclosure on payment allocation continued to be problematic for participants; when
prompted, just under half were able to correctly identify the bank’s policy towards payment
allocation. Less than half understood why interest charges would be higher if the issuer paid
off balance transfers made on the card before purchases.
•
Within the disclosure about grace periods, some of the models used in this round noted that
there is no grace period for cash advances or balance transfers. However, most participants
did not notice this information and could not find it when asked.
•
Three participants were shown a notice that relabeled the grace period an “interest-free
period”; they seemed to prefer the “interest-free” label by a small margin because they felt it
was more descriptive. However, there was no evidence that this new label increased
consumer comprehension.
•
As in Baltimore, there were a few participants that incorrectly indicated that they would have
to pay the “minimum finance charge” every month.
Account-Opening Disclosures
•
Participants in this round of testing were given an envelope containing a card carrier (with a
mock credit card), a cardholder agreement, and a summary insert of terms and conditions that
was nearly identical to the Schumer Box. While very few looked at the cardholder
agreement, all noticed and read the summary insert. Several participants specifically noted
that they found this summary useful, and said that in its absence they would probably have
activated the card without reviewing the terms.
Periodic Statement
Interest and Fees
• When asked how much interest they were charged, participants first looked to the
transactions list. If their model did not provide information about interest in the transaction
list, most then looked in the Account Summary box.
•
When asked to identify the total amount of fees that they had been charged, nearly all
participants calculated the total by adding up the fees in the transaction list—even when a
figure for total fees was included in the Account Summary box on the statement.
31
Annual and Periodic Interest Rates
• Most participants were able to find the annual interest rates they were being charged on
purchases and cash advances on the statement. Most participants also understood what the
“Monthly Interest Rate” shown on the statement signified. However, most also indicated that
this periodic rate would not be important to them.
Effective APR
• After reading the description provided on the statement, less than half of participants could
explain why the effective APR for balance transfers was higher than the annual interest rate
(i.e., because it included transaction fees). Of those that understood that the effective APR
included transaction fees, only one indicated that he would find this information useful.
•
As in Kansas City, some participants confused the effective APR with the annual interest
rate. However, this seemed to be less of a problem when the effective APR was provided in
its own separate table, rather than as a column in the table related to interest calculation.
Transaction List
• When shown two statements and asked whether they found it more useful to have the
transactions listed chronologically or grouped by transaction, just over half indicated that
they preferred the grouped list.
Late Payment and Minimum Payment Disclosures
• Just over half of participants noticed the disclosures about the impact of paying just the
minimum payment and the consequences of late payment. The different forms for this round
provided these disclosures in a variety of locations and in a variety of formats (e.g., with or
without a surrounding box). However, there did not appear to be any patterns as to which
locations or formats were most effective.
•
Most participants indicated that the minimum payment warning was important information to
have on the disclosure, and that including this statement on the form would increase the
percentage of consumers that pay more than the minimum amount. However, they felt that
the warning would be more effective if it listed information about the cardholder’s own
account, rather than a hypothetical example.
Changes to Account Terms
• None of the participants noticed the change-in-terms notice that was included with the
periodic statement; all immediately set this notice aside along with promotional inserts. This
behavior was consistent with findings from previous rounds of interviews.
•
Most participants noticed the change-in-terms summary on the statement, although only one
saw it in his first reading of the statement. Participants were significantly more likely to find
the notice when it was printed on the first page, rather than the second page.
32
Change-in-Terms Notice
•
Of those participants who were shown a change-in-terms notice that contained a summary of
key changes, all but one noticed the summary and read it carefully. The tabular format of the
summary appeared to make it more conspicuous, since the rest of the notice consisted
primarily of dense text.
•
Participants who were given notices with summaries were more likely to correctly identify
the changes being made to their account. When no summary was given participants
attempted to scan the notices to determine which changes in terms were most important to
them, but had great difficulty doing so.
•
There was no clear evidence that providing the summary on a separate page was more
effective than displaying it on the first page of the notice itself.
Subsequent Design Decisions
Schumer Box
Annual Percentage Rates
• Based on findings from the Kansas City and Denver interviews, models tested in future
rounds provided APRs for different types of transactions in different rows.
•
Because participants were much less likely to notice the disclosure of how initial APRs were
selected if it was in a footnote, all subsequent models provided this information in the “APR
for Purchases” row immediately following the range itself.
•
Because findings from Kansas City and Denver showed that consumers were less likely to
confuse the APR for purchases with rates for other transactions when it was displayed in a
larger font size, all subsequent models disclosed the purchase APR in larger font type than
the rest of the information in the Schumer Box.
Fixed and Variable Rates
• Because findings from the first three rounds of interviews showed that participants frequently
assume that a rate that is labeled “fixed” cannot be changed for any reason, this label was
removed from models in later rounds.
•
Like those in earlier rounds, participants in Denver confused variable rate margins with
APRs. Participants also indicated that detailed information about how variable rates are
calculated is not important to them. For these reasons, all subsequent models of the Schumer
Box did not include variable rate margins.
33
•
To improve consumer awareness of how variable rates change over time, models tested in the
next round replaced the term “variable rate” in the APR rows with the phrase “This rate will
vary with the market based on the Prime Rate.”
Default APR and Default Triggers
• Since most participants were more likely to read information about penalty fees than
information about the default APR, for the next round references were added next to each
penalty fee informing the reader that the default APR might also apply.
•
Results from this round led to the use of the phrase “penalty APR” rather than “default APR”
in later models, because the label appeared to be clearer and more descriptive to participants
as applying to events such as paying late or exceeding a credit limit. The remainder of the
report reflects this change, and refers to the “penalty APR” and “penalty triggers.”
•
Participants were most likely to find and understand both the penalty APR and the actions
that triggered this rate when they were located in the same row. Therefore, all subsequent
models displayed both pieces of information in a row labeled “Penalty APR and When It
Applies.”
Fees
• Because participants were able to identify fees much more easily when they were located in a
separate labeled section, rather than integrated into the APR rows, all subsequent models
included a separate section labeled “Fees.”
•
Because participants generally were better able to find the APRs for balance transfers and
cash advances than the fees for these transactions, models for the next round included a
reference to transaction fees in the transaction APR rows (e.g., “Balance transfer fees will
apply.”). The goal of these references was to increase consumers’ awareness of the existence
of these fees by directing their attention to this section of the Schumer Box.
•
Because participants were more likely to notice a minimum fee if it were listed first, all
subsequent models did so (e.g., the cash advance fee is “Either $5 or 3% of the amount of
each cash advance, whichever is greater.”)
Other Disclosure Notices
• When detailed information was provided in the Schumer Box about the potential impact of
the balance calculation method on interest charges, most participants neither understood
these disclosures nor indicated that they would use the information when deciding whether or
not to apply for the card. As a result, information on balance calculation was moved from
inside the Schumer Box to directly below the box.
•
Some participants continued to be confused by the concept of payment allocation, in part
because they didn’t understand that balances for different transactions are calculated
separately. Therefore, the models for the next round re-worded this disclosure to explain
payment allocation more clearly. The disclosure was also moved into the APR for Balance
34
Transfers row to improve its conspicuousness, since one of the contexts in which payment
allocation is most important is how it relates to low introductory rate balance transfers.
•
Including text in the grace period disclosure that no grace period exists for balance transfers
or cash advances did not appear to improve consumer understanding, primarily because few
participants noticed this information. Therefore, this text was removed for the next round.
•
Because some consumers in Baltimore and Denver incorrectly indicated that they would have
to pay the “minimum finance charge” every month (when in fact it would only apply in
months where they would otherwise incur a finance charge that was less than the minimum
charge), explanatory text was added to this row of the Schumer Box in models for the next
round.
Account-Opening Disclosures
•
Participants in the focus groups and Baltimore interviews indicated that they would be
unlikely to read their cardholder agreements. However, participants in this round who
received a summary insert in addition to their agreement did look at it and review the terms
of their card. These findings support the idea that the inclusion of a summary table along
with other account-opening disclosures would make it easier for consumers to understand the
terms of their new card.
•
Based on this round of interviews, the Schumer Box format appears to be appropriate for an
account-opening summary as well, particularly since consumers are already familiar with this
format.
Periodic Statement
Transaction List
• When asked about interest charges, the tendency of most participants was to look for these
charges in the transaction list. As a result, those who were given models that included these
charges in the list found it easier to find them when asked. Therefore, all subsequent models
included interest charges in the transaction list.
•
Although most participants in this round were able to identify the total amount they were
charged in fees by adding up the individual charges in the transaction list, there was a
concern that this would be difficult for consumers who were charged a larger number of fees.
In order to test whether this was true, model forms were developed for the next round that
included a larger number of fees. Some of these models also included a total of fees in the
transaction list.
Effective APR
• Because the separation of the effective APR into its own table decreased the likelihood that
participants would confuse it with other rates (such as the annual interest rates on the
account), all models for later rounds used this format.
35
•
The description of the effective APR used in this round of testing was not effective in
communicating to participants that the effective APR included both interest and transaction
fees. In addition, those that did understand the term indicated that they did not find it useful.
Subsequent rounds of interviews continued to test whether alternative descriptions of the
term might make it more understandable to consumers.
Changes to Account Terms
• Because participants in this round were more likely to notice a disclosure of changes to
account terms if it was on the first page of the statement, all subsequent forms located this
information on the first page.
Change-in-Terms Notice
•
Based on findings from the focus groups and the first three rounds of interviews, all
subsequent change-in-terms notices that were tested included a tabular summary of changes
to key terms. Key terms were defined as any that were required in the account-opening table.
36
INTERVIEWS IN BOSTON, MASSACHUSETTS (FEBRUARY 2007)
Objectives and Methodology
In early rounds of testing a wider range of possible formats for disclosures was considered. As a
result, in most cases three or four models of each type were developed for each round, and these
models differed substantially. As the project progressed, however, it became clearer what
formats and language were clearest to consumers. The objectives of later rounds, therefore, were
to a) gather data on a limited number of specific design questions that remained, and b) confirm
the effectiveness of changes that had been made based on findings from earlier rounds.
As a result, fewer model variations were needed for testing in Boston, where Macro conducted 8
interviews on February 7 and 8, 2007. For example, the two basic versions of the Schumer Box
that were used in this round (SB-10P and SB-10SP) differed only in content, not format. Model
SB-10SP included set-up and maintenance fees that are often charged to subprime cardholders,
as well as a notice that these fees might impact the amount of available credit at account opening.
Model SB-10P, on the other hand, included a charge for a “Required Payment Suspension Plan”
in the Fees section, which was intended to refer to a plan that would suspend the requirement for
minimum payments in certain situations. Other than this one difference, these two models were
identical.
All previous periodic statement models used up to this point had included an Account Activity
section in the top-left corner of the first page that provided the previous month’s and new
balances, payments received, and periodic totals for purchases, balance transfers, cash advances,
fees, and interest. Although the Board does not require that banks provide a separate section like
this on their statements, most issuers currently do. In the models used for this round, the
Account Activity section was moved from the top of the first page to the bottom of the second
page. This was not done because it was considered an improvement in formatting. The change
was made because this section was referred to most often by participants when they were asked
by the interviewer to find information on the form. By making this section more difficult to find
(and recognizing that some issuers do provide the account summary in this location), the
researchers were able to test the effectiveness of other pieces of the statement (e.g., the inclusion
of fee totals within the transaction list).
In addition to the typical procedure in which participants were handed an envelope and asked to
read it just as they would if they received it in the mail, this round also included some direct
comparisons between forms. In this portion of the interview, participants were handed a pair of
Schumer Boxes, both of which were in the same format but reflected different terms.4
Participants were asked to review the documents and identify what they considered the most
important differences. Finally, they were asked to decide which of the two sets of terms they
4
Within each pair there were small variations in the formatting of the Schumer Boxes; for example, they were
printed in different fonts, and column widths in the table were varied. Since Regulation Z does not require that all
Schumer Boxes be identical, this was done to simulate variation between disclosures from different issuers.
37
would prefer if they were applying for a card. Five different pairs of Schumer Boxes were used
in this segment of the interview. The goal was to determine how easy it was for potential
cardholders to quickly and accurately compare cards using the revised Schumer Boxes, since one
of the primary purposes of this disclosure is to allow consumers to shop for cards more
efficiently and knowledgeably. The primary difference within each pair was as follows:
•
Pair A: Model A1 offered a Purchase APR of 8.99% to 19.99%, based on
creditworthiness, and indicated that the rate would “vary with the market.” Model A2
offered a flat purchase APR of 14.99% and did not indicate that this rate would vary.
•
Pair B: Model B1 had a substantially lower penalty APR than Model B2.
•
Pair C: Model C2 included a number of set-up and maintenance fees that did not appear
on Model C1.
•
Pair D: The two forms differed in the actions that would trigger the penalty APR. Model
D1 indicated that actions would trigger the penalty APR if they occurred “two times in
six months,” while in Model D2 a single action could trigger the penalty rate. Model D1
also did not include exceeding the credit line as a trigger, while Model D2 did.
This round of interviews was also the first round that addressed convenience checks. Two
versions of the checks were used in the testing; the primary difference between the two was that
one disclosed key terms such as APR and fees on the front, while the other displayed this
information on the back.
The following model forms were shown to participants in this round and can be found in
Appendix B:
•
•
•
•
Solicitation Letter: SL-5
Schumer Box: SB-10, SB-10SP, SB-10A (pair), SB-10B (pair), SB-10C (pair), SB-10D
(pair)
Periodic Statement: PS-9, PS-105
Convenience Checks: CC-1, CC-2
Key Interview Findings
Schumer Box
Annual Percentage Rates
• Most participants noticed the information in the “APR for Purchases” row that indicated that
their initial rate would be selected based on their creditworthiness, and understood what it
meant.
5
Several different versions of both PS-9 and PS-10 were used for testing in Boston. However, the only difference
between these versions was a reversal of the placement of the minimum payment and late payment disclosures.
38
•
In the models for this round, the Annual Percentage Rates section was re-formatted so that in
each row the APR or fee was bolded and appeared first. The intent was that this would make
it easier for readers to identify these rates quickly and accurately. This change appeared to
be effective; participants in this round tended to identify APRs more easily than in previous
rounds.
•
When asked to compare different credit card offers, participants were easily able to
distinguish differences in APRs for different types of transactions.
Fixed and Variable Rates
• The more explicit explanation of variable APRs that was used this round (i.e., “This rate will
vary with the market based on the Prime Rate”) was more effective in communicating that
the rate moved with an index than simply indicating that a rate was “variable” and requiring
that readers go elsewhere for more information. In the “APR for Purchases” row, however,
some participants had difficulty distinguishing between how the initial rate would be
determined (i.e., based on creditworthiness) and how it would subsequently vary (i.e., based
on the market).
Penalty APR and Penalty Triggers
• Unlike in previous rounds, most participants noticed that their interest rates would be
increased for paying late of going over the credit limit. Half were able to identify the highest
rate to which their APRs would increase, in some cases because they followed the references
to the penalty APR in the penalty fees section.
•
Among participants that were able to identify the penalty APR, some expressed
misconceptions about how this rate would be applied. Some thought that the penalty rate
would only be charged on the amount by which they went over their credit limit, rather than
on their whole balance. Others thought that this rate would only apply during the month of
their transgression, and would immediately thereafter return to normal.
•
When comparing credit card offers, participants easily identified differences in the penalty
APR. However, they did not notice differences in the penalty triggers—primarily because
this required a careful reading of text, rather than a simple numerical comparison.
Fees
• Most participants were able to correctly identify transaction fees for balance transfers and
cash advances. In several cases participants noticed the references to transaction fees that
had been added to the APR rows.
•
When asked to compare two credit card offers, participants did not have any difficulty
identifying differences between the two cards in amounts or types of fees.
Other Disclosure Notices
• In the models for this round, information about the balance calculation method was moved
below the box. Most participants were able to find this information without a problem, but
39
none knew what a “two-cycle average daily balance method” was. However, only one
person indicated that this information would be important to them when shopping for a card.
•
More participants in this round noticed the disclosure about payment allocation method,
primarily because it had been moved to the APR for Balance Transfers row. As in previous
rounds, however, about half of the participants had difficulty understanding what the notice
was saying; some continued to believe that payment allocation would not have an impact on
their interest charges.
•
While almost all participants understood the grace period disclosure used in this round, some
were confused by text that warned the grace period would be lost if the cardholder did not
pay the balance in full in each. Several participants incorrectly stated that this meant they
would lose their introductory APR if they did not make payments on time.
•
Some participants were shown a Schumer Box model that used the phrase “Interest-Free
Period” instead of “Grace Period.” As in the previous round, this difference did not have a
significant difference on consumer understanding or on the usability of the disclosure.
•
One of the models included a “Required Payment Suspension Plan” in the fees section. This
label was intended to refer to a plan that would suspend the requirement for minimum
payments if one of several qualifying events occurred (e.g., the cardholder lost his or her
job). However, none of the participants interpreted the label in this way. For example, one
thought that the plan would allow you to return things that you purchased, while another
thought you would be charged this amount if the bank closed your account.
•
One of the models included a notice that because of fees that would be charged, the amount
of available credit at account opening would be lower than the actual credit limit. Most
participants noticed this text in their initial reading of the Schumer Box, and all who read it
understood it and found it useful.
Periodic Statement
Interest and Fees
• The models used in this round included “year-to-date” interest and fee totals. Participants
reacted positively towards the inclusion of these totals, and indicated that they would be
helpful to have on their statements. However, there were some cases in which participants
confused the year-to-date totals with the monthly totals.
Annual and Periodic Interest Rates
• Most participants who were given models that included a “Daily Periodic Rate” indicated
that they would not find this information valuable. None indicated that they would use this
rate for checking interest calculations.
40
Transaction List
• Participants who were shown statements with transaction lists that were grouped by
transaction type found it easier to identify the number of fees that were charged, as well as
the total amount. Those who were given “ungrouped” transaction lists had much more
difficulty with these tasks. Participants who were shown both types of lists expressed a
strong preference for the “grouped” lists.
Effective APR
• Information about the effective APR was formatted differently in this round, and new text
was added that highlighted the difference between the APR and effective APR. However, as
in previous rounds of testing a large majority of participants (in this case, all but one) were
unable to effectively explain that the effective APR was higher than the annual interest rate
because the effective APR included interest and transaction fees.
Late Payment and Minimum Payment Warnings
• In the models for this round the notice about the consequences of paying only the minimum
payment was located near the top of the statement, under the Account Summary section.
Most participants noticed this text while reviewing the statement.
•
A warning about the consequences of paying late was included on the payment coupon. Less
than half of participants noticed this warning, primarily because people did not tend to look
at the payment coupon.
Changes to Account Terms
• Half of participants were shown a statement that had a notice on the first page indicating that
the terms of their account were being changed. Two different versions of this notice were
tested—one that included a table that summarized key account changes, and one that simply
stated that changes would be made and referred cardholders to an insert for more details.
Participants that were given the version that included the table were better able to understand
the changes that were being made to their account.
Convenience Check
•
Most participants reported having received checks from their bank similar to the ones shown
in the testing, but only one said that he had ever used these checks.
•
While almost all participants were able to identify the introductory APR that would be
applied, less than half were able to describe what would happen to the rate when the
introductory period ended (the “go-to” rate). The primary reason was that when answering
this question, participants scanned the text for a numeric percentage figure, but there was
none—the disclosures simply indicated that the go-to rate would be equal to “the APR on
cash advances.” Whether this disclosure was on the front or back of the document that
contained the checks did not seem to impact participants’ ability to locate this information.
41
•
About half of the participants were able to correctly indicate that there was no way to avoid
paying interest on payments they made with convenience checks (i.e., that there was no grace
period). Again, whether this disclosure was on the front or back of the document that
contained the checks did not seem to impact participants’ ability to locate this information.
•
Information that was provided on payment allocation was not useful to participants; most
were unable to find this information, and some of those that found it did not understand what
this disclosure was saying. Whether this disclosure was on the front or back of the document
that contained the checks did not seem to impact participants’ ability to locate this
information.
Subsequent Design Decisions
Schumer Box
Annual Percentage Rates
• The disclosure that applicants’ initial rates would be based on their creditworthiness was
much more conspicuous in the APR for Purchases row than it had been in a footnote in
earlier models. Because some participants had difficulty distinguishing how their initial rate
was selected from how it would vary thereafter, the wording of this disclosure was revised
slightly for the next round of testing.
•
Because the format of the models for this round appeared to increase participants’ ability to
quickly identify interest rates for different transactions, all subsequent models tested included
the rates and fees in bold type and generally listed them first in their respective rows.
Fixed and Variable Rates
• The more explicit explanation of variable rates that was used in this round did improve
participants’ understanding of why these rates would change. Therefore, this wording was
used in subsequent models.
Penalty APR and Penalty Triggers
• The addition of a reference to the penalty APR in the penalty fees section improved
participants’ understanding that their rates might increase. Because some had difficulty
finding the penalty APR in the Schumer Box, the wording “see above” was added to this
reference.
•
Because some participants expressed misconceptions about how the penalty APR would be
applied, following this round, the wording of the Penalty APR row was revised to make it
clearer that this rate would be applied to the entire balance on the account, rather than just the
amount of any transgression. In addition, an explanation was added describing how long the
penalty APR would apply.
42
Fees
• Because references to transaction fees in the APR rows (e.g., “Balance transfer fees will also
apply”) improved participants’ awareness of these fees, this reference was retained in future
models. In subsequent models that were developed, the words “(see below)” were added to
the reference to make it easier for consumers to find the applicable fees in the Schumer Box.
•
The phrase “Required Payment Suspension Plan” was not meaningful to participants, and
there was no alternative label that seemed to effectively describe this type of account
protection plans. Therefore, subsequent models used the names of specific plans in the
Schumer Box.
•
Because participants consistently indicated through multiple rounds of interviews that they
did not consider foreign transaction fees to be an important factor when shopping for a card,
these fees were removed from all subsequent models.
Other Disclosure Notices
• The notice about payment allocation was retained in the APR for Balance Transfers row,
because it was much more noticeable in that location than it had been at the bottom of the
Schumer Box. The wording was revised slightly for the next round to emphasize the fact that
the introductory APR applied only to balance transfers—a fact that several participants in
this round did not understand.
•
The wording of the grace period disclosure that was used in this round tended to confuse
participants. Therefore, a simpler version of this disclosure was used in the next round.
Since the term “interest-free period” did not seem to be any more effective than “grace
period,” all future models retained the original term because of its familiarity to some
consumers.
•
Because testing in Boston showed that participants tended to notice and understand the notice
about the impact of fees on available credit, the notice was retained in future models.
•
The explanatory text that was added to the “minimum interest charge” row was effective; all
participants in this round correctly understood the circumstances under which they would be
charged this amount. Therefore, this text was included in all subsequent models.
Periodic Statement
Interest and Fees
• Participants reacted positively towards the year-to-date totals of interest and fees that were
included on models for this round, so these totals were retained in the final round. Because
some confused the year-to-date totals with monthly totals, the format for this information was
revised in future models.
43
Transaction Lists
• Interviews in Denver and Boston showed that participants who were given transaction lists
that were broken down by transaction type were able to identify information more quickly
and accurately. For this reason, transaction lists in all subsequent models were broken down
in this way.
Effective APR
• As in previous rounds, the text used to describe the effective APR was not effective at
communicating to participants that the effective APR includes both interest and transaction
fees. Again, some believed that the effective APR was the annual interest rate. The effective
APR was included on models for the final round to see whether any final revisions could
make it clearer and more understandable.
Late Payment and Minimum Payment Disclosures
• Results from the Boston interviews showed that disclosures that are located near the top of
the statement are much more likely to be noticed than those on the payment coupon.
Therefore, for the final round warnings relating to late payment and minimum payment were
placed at the top of the first page, just under the information about payments.
Charges to Account Terms
• Because participants that were shown change-in-terms notices without a summary table were
less likely to understand what was changing about their account, all subsequent models
included a summary table describing changes to key terms on the front page of the periodic
statement.
Convenience Checks
•
This round of testing confirmed that information about how payments will be allocated is
very difficult for consumers to understand in the context of convenience checks—just as it is
in the context of the Schumer Box. Therefore, the next round of testing did not address
disclosures for payment allocation and focused instead on fees, APRs, and grace period.
Because some participants were unable to find these disclosures in this round, the models
used in the next round provided them in different formats—one used a clearly labeled
bulleted list, while the other used a tabular format similar to the Schumer Box.
44
INTERVIEWS IN DALLAS, TEXAS (MARCH 2007)
Objectives and Methodology
The last round of nine interviews was conducted in Dallas on March 12 and 13, 2007. Variation
between models in this round was fairly minimal; for example, the two periodic statement forms
that were used in the testing only differed in the wording of several notices and the placement of
year-to-date totals of interest and fees.
As in Boston, participants in Dallas were asked to compare two Schumer Boxes, identify the
most important differences in terms, and choose which card they would prefer. Again, the goal
of this portion of the interview was to study how easily the revised format allowed consumers to
compare and shop for credit cards. Two pairs of models were used:
•
Pair F: Model F1 noted that the purchase APR of 14.99% would “vary with the market
based on the Prime Rate.” Model F2 offered the same APR, but did not indicate that this
rate would vary.
•
Pair G: Model G1 displayed a larger number of penalty triggers than model G2. In
addition, model G2 stated that if rates were increased to the penalty APR, the issuer
reserved the right to keep them at that level “indefinitely.” Model G1, on the other hand,
indicated that if the cardholder made six minimum payments when due and did not
exceed his or her credit limit for six consecutive months, the rates would return to
normal.
Two different Schumer Box models were used in Dallas. SB-11 reflected all revisions that had
been made over the course of the testing. SB-12, on the other hand, was designed to simulate
current Schumer Box disclosures. Each participant was shown a version of both of these models
so that the researchers could gather information on which format—current or revised—they
found easier to understand. Just as in Boston, two different versions of both SB-11 and SB-12
were created—one that included set-up and maintenance fees (SB-11SP/SB-12SP) and one that
listed a “required account protector plan” in the fees section (SB-11P/SB-12P).
The most noticeable difference between the Schumer Box and periodic statement models used in
Dallas and those used in previous rounds was their general appearance. Up to this point, the
layout of forms had been kept very generic, with minimal use of graphic elements like
highlighting and shading. The reason for this was that these types of graphic features are largely
not regulated by the Board, so by keeping the models generic the researchers were able to focus
more specifically on aspects of the forms that are covered in Regulation Z (such as the tabular
format of the Schumer Box).
However, since these documents were going to be released as model forms there was a desire to
have them reflect best design practices, which the generic versions used in prior testing did not.
Therefore, before the Dallas tests Macro’s design team revised the forms from a graphic
45
perspective and added features such as shaded bars and the use of reverse (i.e., white-on-black)
text in the headings of disclosures. These “best practice” forms were used in the Dallas testing to
determine if these graphic elements negatively impacted the usability of the forms.
The following model forms were shown to participants in this round and can be found in
Appendix B:
•
•
•
•
Solicitation Letter6: SL-6, SL-7
Schumer Box: SB-11P, SB-11SP, SB-12P, SB-12SP, SB-10F (pair), SB-10G (pair)
Periodic Statement: PS-11, PS-12
Convenience Checks: CC-3, CC-4, CC-5
Key Interview Findings
Schumer Box
General Comments
• Several participants commented that the revised Schumer Box was “clearer,” “easier to
understand,” or “more spaced out” than the current version.
Annual Percentage Rates
• Participants were more likely to be able to identify the APRs they would be charged on
balance transfers and cash advances when looking at revised Schumer Box models,
compared to current models. They also found it easier to identify the fees that they would be
charged for these transactions.
•
Participants were more likely to be able to identify the interest rate on purchases on a
Schumer Box using the revised format, compared to the current format. They were also
more likely to understand how the initial rate was determined, as well as how it would then
vary.
Penalty APR and Penalty Triggers
• While looking at a current Schumer Box model, none of the participants could find any
indication that their APRs could increase to the penalty APR. When looking at the revised
model, however, all found and understood this information.
•
When asked to compare two Schumer Boxes representing different offers that differed in
penalty triggers and how long the penalty APR would apply, participants did not notice these
differences. After being prompted to re-read that section of the Schumer Box, most did see
the difference in how long the rate would apply—but still very few noticed the difference in
triggers.
6
Participants were shown either SL-6 or SL-7 based on whether they were given SB-11 or SB-12, so that the terms
matched between the solicitation letter and the Schumer Box.
46
Fees
• Participants were able to identify the fee that they would be charged if they went over their
credit limit when looking at either model. However, they were able to find this fee more
quickly when using the revised model.
Other Disclosure Notices
• Participants were significantly more likely to be able to find information about payment
allocation when looking at a revised model. However, about half had difficulty
understanding what this disclosure was saying, as well as why payment allocation would
impact their interest charges.
•
Almost all participants noticed the reference on the revised Schumer Box about a website to
go to “for additional information.” However, several misunderstood the type of information
that they would find there—they indicated that the website would likely provide a
comparison of terms for specific cards. A few also assumed that the website would be run by
the credit card issuer itself, and that therefore the information it contained would not be
neutral. Participants were divided on whether they would be likely to use this website; about
two thirds said that they might, while the remainder said that they would not.
Periodic Statement
Interest and Fees
• When asked whether the interest rates on their account were shown on the statement, all but
one were able to find them in the Interest Charge Calculation section.
•
All but one of the participants were able to locate year-to-date totals of interest and fees
charged. Whether these totals were displayed at the end of the transaction list or in the
Summary of Account Activity box did not seem to impact the ease with which participants
found this information. Most indicated that this information would be useful to them, and
that they would like to have it on their statement.
Annual and Periodic Interest Rates
• While nearly all participants understood what the Daily Periodic Rates that were displayed
represented, a majority indicated that they would not find these rates valuable.
Effective APR
• In the models for this round the effective APRs were renamed the “Fee-Inclusive APRs,” to
see whether this label might be more descriptive to consumers. There was some evidence
that this label might be more effective—after reading the statement about half of the
participants understood that the effective APR included both interest and fees. Half of those
who understood this term (or about a quarter of all participants) thought that this was
important information that should be included on periodic statements.
•
As in previous rounds, there were a few participants that misidentified the effective APR as
the annual interest rate on their account.
47
Late Payment and Minimum Payment Disclosures
• Nearly all of the participants were able to find information on the statement about what
would happen if they paid late on the statement, and most noticed the late payment warning
before being prompted.
•
All but one of the participants were able to identify information on the statement about the
potential consequences of paying only the minimum amount each month. About half noticed
this warning on their first reading of the statement—significantly more than in previous
rounds.
Changes to Account Terms
• Participants had no difficulty finding information on the statement about changes to their
account terms, and all understood these changes after reading the text provided.
•
Models for this round included additional text in the change-in-terms notices indicating that
if consumers were already being charged the penalty APR, the changes to their transaction
APRs would not immediately impact their account. When asked to read this text,
participants understood it.
Convenience Checks
•
All of the participants indicated that they had received convenience checks previously from
their credit card issuer, but only a third said that they had used them.
•
Regardless of which model they were shown, all participants were able to identify the fee
that they would be charged for using the checks. However, those who were given models
with this disclosure on the back only saw the fee after being prompted to look for it, while
about half whose form had it on the front noticed it during their initial reading.
•
Two models used for this round had a disclosure on the front indicating that there was no
grace period for purchases made with convenience checks; the third model had this
information on the back. Participants who were shown models with the disclosure on the
front were more likely to understand that there was no grace period; in fact, no one noticed
this information when it was on the back.
•
Only a third of participants were able to find the disclosure text that indicated that after the
introductory rate expired they would be charged the APR on cash advances. No one was
able to find this information when it was provided on the back of the form. As in Boston, the
primary reason was that participants were looking for a numeric percentage for the go-to rate,
when in fact this rate was only stated in the form of text (i.e., “your regular APR for cash
advances.”)
•
There was no evidence in these tests that the specific format of the disclosures (i.e., text vs.
tabular) had an impact on participants’ ability to locate the information.
48
Subsequent Design Decisions
Schumer Box
Annual Percentage Rates
• The text used in this round for the “APR for Purchases” row was more succinct and seemed
to be clearer regarding how an initial rate would be determined and how it would then vary.
As a result, this wording was retained in the proposed model form.
•
In order to help consumers distinguish between transaction fees and APRs, references were
added in this round in the transaction fees section that directed readers’ attention back up to
the APRs. However, there was no evidence that this reference improved consumer
understanding, so these references were not included in the proposed form.
Penalty APR and Penalty Triggers
• This set of models included a reference in the “Penalty APR” row telling consumers that they
might also be charged a fee, and directing their attention to the penalty fees section.
However, this reference did not seem to impact consumer understanding—most participants
already understood that penalty fees could be charged. In addition, the reference distracted
them away from the penalty APR row, which was less familiar to them. Therefore, this text
was removed from the proposed form.
•
Because several participants did not initially notice information in the penalty APR row
indicating how long the rate would apply, the proposed form was revised to include the
heading, “How Long Will the Penalty APR Apply?”
Other Disclosure Notices
• In order to make it more noticeable to consumers, in the proposed form the heading for the
payment allocation disclosure was put in bold text and changed from “NOTICE” to “Notice
Regarding Interest Charges.”
•
Because some participants misunderstood the type of information that would be found at the
website referenced in the Schumer Box, the wording for this disclosure was revised. The text
used in the proposed form also explicitly notes that this website is run by the Federal Reserve
Board, to reassure readers that the information they find will be unbiased.
Periodic Statement
General Formatting
• The new appearance of the periodic statements used in this round (i.e., black bars with white
text identifying each section; increased use of shading, etc.) seemed to make the statement
clearer and more navigable to participants.
49
Interest and Fees
• Providing the year-to-date totals of interest and fees at the end of the transaction list proved
effective, since this list is one of the few pieces of the statement that participants consistently
read carefully. Therefore, the proposed periodic statement model provides year-to-date totals
in that location.
Annual and Periodic Interest Rates
• Because participants in Dallas and in previous rounds consistently indicated that they do not
find the periodic rate that is provided on statements to be useful, and because displaying
fewer percentages would likely make it easier for consumers to identify the interest rates on
their account, the proposed statement model does not include periodic rates.
Effective APR
• There was some indication in this round that re-labeling the effective APR as the “FeeInclusive APR” increased consumer comprehension of this term. However, previous rounds
had provided a great deal of evidence that this rate is not useful to consumers and might even
be counter-productive to include, given their potential confusion between the effective APR
and annual interest rates. Further testing may be needed to determine whether this change in
terminology has in fact made this term understandable and useful.
Late Payment and Minimum Payment Disclosures
• The models for this round included the notices about late payment and minimum payment
immediately following information about payment. Results from Dallas showed that
participants were much more likely to notice these disclosures in that location. Therefore,
the proposed model forms include these two disclosures in close proximity to payment
information.
Changes to Account Terms
• The text that was added to the change-in-terms summary regarding how to interpret the
changes if the cardholder was already being charged the penalty APR was clearly understood
by participants. Therefore, this text was included in proposed forms.
Convenience Checks
•
Because participants found information regarding fees, the go-to rate, and the absence of a
grace period more easily when it was on the front of the checks, the Board’s proposal would
require that issuers include these disclosures on the front of the page of checks. The two
formats used in this round—a clearly labeled bulleted list and a tabular format similar to the
Schumer Box—both seemed to be effective in making these disclosures clear and
conspicuous.
•
When looking for the interest rate that would be charged after the introductory period ended
participants consistently scanned the text for a numeric percentage, and when they did not
see a percentage assumed that the information was not there. Therefore, the Board’s
proposed regulations would require that issuers provide a numeric percentage on the front of
50
the page of checks, rather than simply stating that the percentage will be, for example, the
APR on cash advances.
51
SECTION IV: CONCLUSION AND DISCUSSION OF
NEED FOR CONSUMER EDUCATION
PROPOSED REVISIONS TO REGULATION Z
Following each round of interviews, the Board reviewed findings from the consumer testing.
These results were a key source of information as the Board developed proposed revisions to the
rules affecting open-end credit in Regulation Z. As noted above, this proposal is scheduled to be
released for public comment in May 2007; the revised disclosure forms that were developed
through the testing will be included as model forms.
NOTE ON NEED FOR CONSUMER EDUCATION
The proposed models that have been developed through this project were designed to explain
credit card terms as simply and clearly as possible so that a wide range of consumers could
understand them. However, one important finding has been that there are a number of
consumers who lack fundamental understanding of how credit card accounts work. These
participants tended to be those with lower educational levels, and were likely subprime
consumers (i.e., those with low credit scores). Unfortunately, this population is generally
charged higher fees and interest rates than other consumers, and thus has the most at stake in
understanding how these charges are calculated and how they can be avoided.
Some of the specific concepts that were misunderstood by a large number of participants
included the following:
•
Calculation of Interest Charges: Most participants understood that the Annual Percentage
Rate was associated with the calculation of their interest charges, and that a lower APR
generally corresponded to lower charges. However, very few participants could accurately
describe how interest charges were actually calculated. Many did not understand the balance
that would be used in the calculation each period; some thought it was the new balance on
the card, while others thought it was the sum of new purchases. Others thought that the APR
itself was used in the monthly calculation of interest, rather than a periodic rate. Most
participants who could not describe how interest was calculated were not concerned by their
lack of understanding. They indicated that they trusted that their issuers would perform the
calculations correctly, and that they would call them if the amount looked incorrect.
However, in many cases it was unclear that these participants would be able to identify a
mistake if it appeared on their statement.
•
Fees Versus Interest Rates: When shown a credit card offer and asked to consider the
potential costs of the account, there were some participants who had difficulty distinguishing
between fees and interest rates (for example, a 5% APR on balance transfers versus a 5% fee
on balance transfers). In some cases, there was a lack of understanding that fees were tied
into a specific action or occurrence, while interest rates would be applied to a balance each
52
period. Internal references were added to the Schumer Box to try to direct consumers’
attention to both fees and APRs to help them distinguish between the two. However, testing
showed that while these references helped some consumers, there were others who were still
unaware of the difference between the two.
•
Balances from Different Types of Transactions: Most participants understood that they
could be charged different interest rates on purchases, balance transfers, and cash advances.
However, testing showed that while they were aware of this at a conceptual level, many were
unable to apply this knowledge when making decisions. For example, while looking at
Schumer Boxes interview participants were asked to imagine a scenario in which they
transferred a balance to their card at a 0% introductory rate, then made purchases on the same
card at a higher rate, and then made a payment. They were asked whether they thought this
issuer would use their payment to pay off their balance transfer or their purchases. Although
the Schumer Box indicated that lower-APR balances would be paid off first, less than half of
participants were able to answer correctly—some, for example, thought the issuer would pay
off transactions in the order that they occurred. In order to alleviate these misunderstandings,
the proposed model includes text in the Schumer Box describing how payments will be
allocated.
This particular interview question was complex, and it is unsurprising that many consumers
were unable to answer it correctly. However, a surprising number of participants indicated
that the bank’s decision regarding payment allocation would have no impact on the amount
of interest they were charged. Others did not understand what was being asked, because they
did not realize that balances were calculated separately for purchases and balance transfers—
they assumed that all transactions were aggregated into a single balance. For participants
with these fundamental misunderstandings, even the disclosure included in the proposed
model is unlikely to be helpful.
Other misunderstandings were also revealed through the interviews, many of which led to
revisions to the formatting and language used in the disclosures. However, fundamental gaps in
consumer knowledge, such as those listed above, are difficult to address through disclosures.
Effectively explaining the difference between a 5% fee on balance transfers and a 5% APR on
balance transfers, for example, would require a great deal of text—so much, in fact, that the
consumers for whom it was intended would be unlikely to read it. In addition, adding this text
would make the disclosure much less useful to other consumers who did not need this
explanation.
To address these misunderstandings, therefore, more basic consumer education is necessary
about how credit cards work. The Board has proposed using its website to conduct some of this
work. This is a promising strategy, because a website would allow more targeted education—
users could focus on specific areas of interest, while skipping topics that they already understand.
However, a website is likely to be only part of the solution, because its effectiveness depends on
the extent to which people proactively decide to use it—and many of the participants who were
interviewed for this project were unaware of their own misconceptions. A more effective longterm strategy might be to expand coverage of these topics in K–12 school curricula, so that
people would have a more thorough understanding of how credit cards work by the time that
53
they became consumers. Obviously, addressing the problem of consumer understanding at this
level is far outside the scope of this particular project. However, the need for such a solution was
very apparent during the course of this work.
54
APPENDIX A:
DEMOGRAPHIC AND
BACKGROUND INFORMATION ON
FOCUS GROUP AND INTERVIEW
PARTICIPANTS
APPENDIX A: DEMOGRAPHIC AND BACKGROUND
INFORMATION ABOUT PARTICIPANTS
As noted in Sections II and III of this report, participants in focus groups and cognitive
interviews were recruited by telephone using a structured screening instrument. This instrument
was designed to ensure the selection of a range of participants in terms of gender, age, ethnicity,
and level of education. Prospective participants were also asked questions about their credit card
history and credit card behavior, such as how often they paid the full balance on their card or
whether they had opened a new account in the last 12 months. These questions made it possible
to ensure that the study encompassed a variety of credit card user populations (for example, new
versus experienced credit card users).
Other screening criteria that were used included:
-
Consumers were only invited to participate in focus groups or interviews if they had one
or more general-purpose credit cards.
-
Consumers were only invited to participate if they were the person in their household
who was responsible for making credit card decisions, such as choosing a new credit card
or deciding how much to pay each month.7
-
To avoid potential conflicts of interest, consumers who worked for a bank or credit card
company were excluded from participation.
While minor changes were made to the screening instrument between locations, the majority of
questions remained unchanged for all phases of the study.
On the following page, Table 1 provides some of the information collected about participants in
each location during the screening process.
7
Consumers were also invited to participate if they made these decisions in cooperation with a spouse or other
partner.
Table 1: Demographic and Background Data for Focus Group and Interview Participants
NOTE: The numbers at the top of each column refer to the number of participants. Because some data were collected through a
survey, and some participants did not respond to all questions, the sum of numbers in the table does not always equal the number of
participants.
Calverton
(n-21)
Birmingham
(n=23)
Preliminary
Interviews
Baltimore
(n=9)
9
12
12
11
5
4
3
6
2
5
5
3
5
4
41 (48%)
45 (52%)
3
2
5
9
2
1
7
12
3
0
2
1
3
3
0
2
2
4
1
0
0
2
4
1
0
1
3
2
2
0
2
1
4
2
0
11 (13%)
18 (21%)
33 (39%)
21 (25%)
2 (2%)
11
10
0
0
4
19
0
0
5
3
0
1
4
3
2
0
4
2
1
0
4
4
0
0
5
1
3
0
37 (43%)
42 (49%)
6 (7%)
1 (1%)
1
6
8
5
0
8
13
2
0
3
2
4
0
4
4
1
0
3
2
2
0
4
1
3
0
5
1
3
1 (1%)
33 (39%)
31 (36%)
20 (24%)
-
-
1
2
6
2
3
4
0
1
6
2
3
3
3
1
5
8 (19%)
10 (24%)
24 (57%)
Focus Groups
Gender
Male
Female
Age
18 to 25
26 to 35
36 to 45
46 to 60
61+
Race/Ethnicity
White
African-American
Hispanic/Latino
Asian-American
Education Level
Some high school
Graduated from high school
Some college
Graduated from college
How long ago did you get your first
credit card?9
Less than 5 years
5 to 10 years
More than 10 years
8
Cognitive Interviews for Testing of Revised Forms
Kansas
City (n=9)
Denver
(n=7)
Boston
(n=8)
Dallas
(n=9)
TOTAL8
(n=86)
When calculating the percentages in this column, the denominator that was used was the number of respondents to each question, not the total number of
participants. These percentages may not total 100 percent due to rounding.
9
This question was not asked of prospective participants for the focus groups.
Calverton
(n-21)
Birmingham
(n=23)
Preliminary
Interviews
Baltimore
(n=9)
6
14
9
14
4
5
3
6
3
4
4
4
7
2
36 (42%)
49 (58%)
6
12
2
1
8
13
0
6
3
2
4
3
2
3
2
1
4
3
2
4
3
14 (17%)
41 (49%)
29 (35%)
Focus Groups
Have you opened a new generalpurpose credit card account in the
past 12 months?
Yes
No
How often do you pay the full balance
on your primary credit card?
Always or almost always
Sometimes
Hardly ever
Cognitive Interviews for Testing of Revised Forms
Kansas
City (n=9)
Denver
(n=7)
Boston
(n=8)
Dallas
(n=9)
TOTAL8
(n=86)
APPENDIX B:
DISCLOSURE FORMS USED IN
TESTING
Focus Groups:
Calverton, MD (May 2006)
Birmingham, AL (June 2006)
Contents:
x Sample Credit Card Solicitation (front and back)
x Sample Cardholder Agreement (4 pages)
x Sample Periodic Statement (front and back)
x Sample Change-in-Terms Notice (front and back)
Preliminary Cognitive Interviews:
Baltimore, MD (August 2006)
Solicitation Letters and Solicitation and Application
Disclosures (“Schumer Boxes”) Used in
Baltimore Interviews
Contents:
x Solicitation Letter Sample A (front and back)
x Schumer Box Sample A (front and back)
x Solicitation Letter Sample B (front and back)
Note: Each interview participant was either given Letter Sample A and
Schumer Box Sample A together, or Letter Sample B (which includes a
Schumer Box on the back).
Account-Opening Disclosures
Used in
Baltimore Interviews
Contents:
•
•
•
•
•
Card Carrier Sample A (4 pages)
Summary of Terms Sample A (1 page)
Cardholder Agreement Sample A (4 pages)
Card Carrier Sample B (4 pages)
Cardholder Agreement Sample B (4 pages)
Note: Each interview participant was either the set of samples labeled A,
or those labeled B. Cardholder Agreement Sample A included a onepage summary of terms.
Both of the cardholder agreements were folded into brochure form.
Periodic Statements
Used in
Baltimore Interviews
Contents:
x Periodic Statement Sample A (front and back)
x Periodic Statement Sample B (front and back)
Change-in-Terms Notices
Used in
Baltimore Interviews
Contents:
x Sample Notice A (one page)
x Sample Notice B (front and back)
Note: Sample Notice B was folded into a six-page tri-fold brochure.
Cognitive Interviews:
Kansas City, MO (November 2006)
Solicitation Letters
Used in
Kansas City Interviews
Contents:
x
x
x
x
Model SL-1 (front)
Model SL-2 (front)
Model SL-3 (front)
Back of solicitation letter models
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Periodic Statements
Used in
Kansas City Interviews
Contents:
x
x
x
x
x
Model PS-1 (front)
Model PS-2 (front)
Model PS-3 (front)
Model PS-4 (front)
Back of periodic statements
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 1
ACCOUNT SUMMARY
ACCOUNT ACTIVITY
Statement Closing Date
Days in Billing Cycle
Previous Balance
Payments
Credits
Purchases & Other Charges
Debits
Cash Advances
Total FINANCE CHARGE
New Balance
Account Number
Credit Limit
Available Credit as of 01/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
01/19/07
30
$1,092.61
$100.00
$0.00
$76.09
$0.00
$43.00
$18.25
$1,129.95
1234567890123456
$1,500.00
$370.05
$1,129.95
02/13/07
+ $34.00
+ $0.00
= $34.00*
*If the minimum required payment is not paid by the due date listed on this
statement, you may be subject to a $35 late fee.
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
TRANSACTIONS
Trans Date
Post Date
Reference Number
Description of Transaction or Credit
Amount
12/26
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
12/28
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
5884186PS0388W6YM
9525156489SFD4545Q
854338203FS8OO0Z5
0544400060ZLV72VL
55541860705RDYD0X
1542202074TWWZV48
CITGO FOOD MART #74 ATLANTA GA
LATE FEE
PYMT THANK YOU 5147 E SIOUX FALLS SD
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE *FINANCE CHARGE*
EASY SAVER 877-844-9564 PA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE *FINANCE CHARGE*
WAYFIELD FOODS #1 S9B ATLANTA GA
$2.05
$35.00
$100.00$12.11
$4.63
$21.50
$2.00
$14.95
$21.50
$2.00
$7.35
554328608008W90M0
1542202083J78OPXW
054830709LYMRPT4L
FINANCE CHARGES
Type of Balance
% Periodic Rate
Corresponding
Annual
Percentage Rate
Balance Subject
to Finance Charge
Finance Charges
due to APR
ANNUAL
PERCENTAGE
RATE*
Purchases
1.249%
14.99%
$1,034.69
$12.92
14.99%
Cash Advances
1.833%
21.99%
$72.46
$1.33
88.27%
* The Annual Percentage Rate includes the cost of both interest and certain types of fees (such as balance transfer and cash
advance fees). If your Annual Percentage Rate is higher than your Corresponding Annual Percentage Rate, it is because you
were charged some of their fees.
BANK NEWS
IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card
Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information
carefully and retain it for your records.
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 1
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
02/13/07
Amount Due This Period
+ $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00
AMOUNT ENCLOSED: $
WARNING: Making only the minimum payment will increase the
interest you pay and the time it takes to repay your balance. For
example, if you had a balance of $1,000 at an interest rate of 17%
and always paid only the minimum required, it would take over
7 years to repay the balance in full. For an estimate of the time it
would take to repay your actual balance making only minimum
payments, call this toll-free telephone number: 1-800-555-5555.
35806
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-1
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 1
ACCOUNT SUMMARY
ACCOUNT ACTIVITY
Statement Closing Date
Previous Balance
Payments
Credits
Purchases
Debits
Cash Advances
Total INTEREST CHARGE
Total FEES
New Balance
Account Number
Credit Limit
Available Credit as of 01/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
01/19/07
$1,092.61
$100.00
$0.00
$41.09
$0.00
$43.00
$14.25
$39.00
$1,129.95
1234567890123456
$1,500.00
$370.05
$1,129.95
02/13/07 (before 12:00 noon)
+ $34.00
+ $0.00
= $34.00*
*If the minimum required payment is not paid by the due date listed on this
statement, you may be subject to a $35 late fee and your APRs may be
increased up to the default rate below.
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
TRANSACTIONS
Trans Date
Post Date
Reference Number
Description of Transaction or Credit
Amount
12/26
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
12/28
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
5884186PS0388W6YM
9525156489SFD4545Q
854338203FS8OO0Z5
0544400060ZLV72VL
55541860705RDYD0X
1542202074TWWZV48
CITGO FOOD MART #74 ATLANTA GA
LATE FEE
PYMT THANK YOU 5147 E SIOUX FALLS SD
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE
EASY SAVER 877-844-9564 PA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE
WAYFIELD FOODS #1 S9B ATLANTA GA
$2.05
$35.00
$100.00$12.11
$4.63
$21.50
$2.00
$14.95
$21.50
$2.00
$7.35
554328608008W90M0
1542202083J78OPXW
054830709LYMRPT4L
INTEREST CHARGES
Type of Balance
Balance Subject to
Interest Charge
APR
Interest Charged
Purchases
14.99%
$1,034.69
$12.92
Cash Advances
21.99%
$72.46
$1.33
Default Rate = Up to 34.99%
BANK NEWS
IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card
Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information
carefully and retain it for your records.
As of 2/1/07, all of your account APRs will increase to the default rate of 34.99%.
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 1
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
02/13/07
Amount Due This Period
+ $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00*
AMOUNT ENCLOSED: $
*WARNING: Making only the minimum payment will increase the
interest you pay and the time it takes to repay your balance. For
example, if you had a balance of $1,000 at an interest rate of 17% and
always paid only the minimum required, it would take over 7 years to
repay the balance in full. For an estimate of the time it would take to
repay your actual balance making only minimum payments, call this
toll-free telephone number: 1-800-555-5555.
35806
l l l lll lll lll
ll ll
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PS-2
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 1
ACCOUNT SUMMARY
ACCOUNT ACTIVITY
Statement Closing Date
Days in Billing Cycle
Previous Balance
Payments
Credits
Purchases & Other Charges
Debits
Cash Advances
Total INTEREST AND FEES
New Balance
Account Number
Credit Limit
Available Credit as of 01/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
01/19/07
30
$1,092.61
$100.00
$0.00
$41.09
$0.00
$43.00
$53.25
$1,129.95
1234567890123456
$1,500.00
$370.05
$1,129.95
02/13/07
+ $34.00
+ $0.00
= $34.00
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
TRANSACTIONS
Trans Date
Post Date
Reference Number
PAYMENTS AND OTHER CREDITS
01/03
01/03
854338203FS8OO0Z5
PURCHASES
12/26
12/28
5884186PS0388W6YM
01/05
01/05
0544400060ZLV72VL
01/05
01/05
55541860705RDYD0X
01/06
01/06
554328608008W90M0
01/09
01/09
054830709LYMRPT4L
CASH ADVANCES
01/06
01/06
1542202074TWWZV48
01/08
01/08
1542202083J78OPXW
FEES AND OTHER CHARGES
12/29
12/29
9525156489SFD4545Q
01/06
01/06
01/08
01/08
Description of Transaction or Credit
Amount
PYMT THANK YOU 5147 E SIOUX FALLS SD
$100.00-
CITGO FOOD MART #74 ATLANTA GA
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
EASY SAVER 877-844-9564 PA
WAYFIELD FOODS #1 S9B ATLANTA GA
$2.05
$12.11
$4.63
$14.95
$7.35
BESTBANK/ACCESS CASH ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
$21.50
$21.50
LATE FEE
CASH ADVANCE FEE
CASH ADVANCE FEE
$35.00
$2.00
$2.00
FINANCE CHARGES
Monthly
Interest Rate
APR
Balance Subject to
Interest Charge
Interest Charge
Purchases
1.249%
14.99%
$1,034.69
$12.92
Cash Advances
1.833%
21.99%
$72.46
$1.33
Type of Balance
Default Rate = Up to 34.99%
BANK NEWS
WARNING: Making only the minimum payment will increase the interest you pay and the time it takes to
repay your balance. For example, if you had a balance of $1,000 at an interest rate of 17% and always paid
only the minimum required, it would take over 7 years to repay the balance in full. For an estimate of the
time it would take to repay your actual balance making only minimum payments, call this toll-free telephone
number: 1-800-555-5555.
If the minimum required payment is not paid by the due date listed on this statement, you may be subject to a
$35 late fee and your APRs may be increased up to the default rate above.
IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card
Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information
carefully and retain it for your records.
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 1
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
02/13/07 (before 12:00 noon)
Amount Due This Period
+ $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00
AMOUNT ENCLOSED: $
35806
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ll l lllll l lll lll ll l ll llll
PS-3
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 1
ACCOUNT SUMMARY
ACCOUNT ACTIVITY
Statement Closing Date
Days in Billing Cycle
Previous Balance
Payments
Credits
Purchases & Other Charges
Debits
Cash Advances
Total FINANCE CHARGE
New Balance
Account Number
Credit Limit
Available Credit as of 01/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
01/19/07
30
$1,092.61
$100.00
$0.00
$76.09
$0.00
$43.00
$18.25
$1,129.95
1234567890123456
$1,500.00
$370.05
$1,129.95
02/13/07
+ $34.00
+ $0.00
= $34.00
WARNING: Making only the minimum payment will increase the interest
you pay and the time it takes to repay your balance. For example, if you
had a balance of $1,000 at an interest rate of 17% and always paid only
the minimum required, it would take over 7 years to repay the balance
in full. For an estimate of the time it would take to repay your actual
balance making only minimum payments, call this toll-free telephone
number: 1-800-555-5555.
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
TRANSACTIONS
Trans Date
Post Date
Reference Number
Description of Transaction or Credit
Amount
12/26
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
12/28
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
5884186PS0388W6YM
9525156489SFD4545Q
854338203FS8OO0Z5
0544400060ZLV72VL
55541860705RDYD0X
1542202074TWWZV48
CITGO FOOD MART #74 ATLANTA GA
LATE FEE
PYMT THANK YOU 5147 E SIOUX FALLS SD
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE *FINANCE CHARGE*
EASY SAVER 877-844-9564 PA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE *FINANCE CHARGE*
WAYFIELD FOODS #1 S9B ATLANTA GA
$2.05
$35.00
$100.00$12.11
$4.63
$21.50
$2.00
$14.95
$21.50
$2.00
$7.35
554328608008W90M0
1542202083J78OPXW
054830709LYMRPT4L
FINANCE CHARGES
Annual Percentage
Rate (APR)
Balance Subject
to APR
Finance Charges
Other Finance
Charges
Purchases
14.99%
$1,034.69
$12.92
$0.00
14.99%
Cash Advances
21.99%
$72.46
$1.33
$4.00
88.27%
Type of Balance
Effective APR*
Default Rate = Up to 34.99%
* The Effective APR includes the cost of both interest and certain types of fees (such as balance transfer and cash advance fees).
If your Effective APR is higher than your APR, it is because you were charged some of these fees.
BANK NEWS
IMPORTANT NOTICE: We are changing the terms of the Cardmember Agreement that governs your credit card
Account with us. These changes are set forth on and/or enclosed in this statement. Please read the information
carefully and retain it for your records.
According to our records, your payment for the last statement period was submitted late. For this reason, as of
2/1/07 all of your account APRs will increase to the default rate of 34.99%.
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 1
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
02/13/07
Amount Due This Period
+ $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00*
AMOUNT ENCLOSED: $
*If the minimum required payment is not paid by the due date
listed on this statement, you may be subject to a $35 late fee
and your APRs may be increased up to the default rate above.
35806
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PS-4
IMPORTANT INFORMATION ABOUT YOUR ACCOUNT
FINANCE CHARGE
Annual percentage rate (APR)
Refer to the Finance Charge Summary section of your statement
for your current rates. A “V” next to a Periodic Rate means the rate
may vary.
Grace Period on New Purchases (at least 25-days)
You can avoid Finance Charges on new Purchases that posted to
this statement if your Previous Balance is zero (or a credit balance)
and we receive full payment of the New Balance by the Payment
Due Date. If so, you have from the date you made your purchases
until the payment Due Date on the front to avoid any finance
charge on that purchase. If your Previous Balance is greater than
zero, there is no time period to pay the New Balance and avoid
additional finance charges. There is no grace period for Cash
Advances and Balance Transfers.
Periodic Finance Charge Calculation Method-Average Daily
Balance (Including New Transactions)
For each day in the Billing Cycle, we take your beginning balance,
add any new transactions or other debits (including other fees and
charges) and subtract any payments or other credits. This gives
us that day’s Daily Balance. We multiply this Daily Balance by
the Daily Periodic Rate to get your Periodic Finance Charge for
that day. We add these Periodic Finance Charges to your Daily
Balance to get the beginning balance for the next day.
To get your total Periodic Finance Charge for this Billing Cycle,
we add all of the Daily Periodic Finance Charges and round the
sum to the next highest cent. This amount is also equal to the
Average Daily Balance multiplied by the Daily periodic rate times
the number of days in the Billing Cycle rounded to the next highest
cent. To determine an Average Daily Balance, we add your Daily
Balance and divide by the number of days in the Billing Cycle.
We do this calculation separately for each feature such as
Purchases, Cash Advances, Balance Transfers or Promotional
Balances. Periodic Finance Charges begin to accrue from the later
of the transaction date or the first of the Billing Cycle in which the
transaction appears.
Account Renewal Information for Open Accounts
If your account has an Annual Fee and it is billed on this
Statement, we will reverse the fee if you cancel your account
and pay off any existing Balance within 30 days of receipt of this
Statement otherwise, the Annual Fee is non-refundable. You may
continue to use your account during the 30-day period before you
cancel. To cancel, write us at the Billing Inquiries address or call us
at the phone number on the front.
Your Liability
Our records show that you are liable for any outstanding balance
on this account if your name appears on the front of this statement
or you otherwise agreed.
Report a Lost or Stolen Card Immediately
Call the 24-hour toll free number 1.800.555.6666. Do not use your
account after you report a lost or stolen card.
Cardholder Security PlanTM/Payment Protection Plan
If you have questions about your enrollment or need to file
for benefits, please call the applicable toll free number below
(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time):
Cardholder Security Plan-1.888.668.6938; Payment Protection
Plan-1.888.838.0056.
Service for International Calling
Dial the AT&T Direct access code for the country you are in
and dial 1.888.801.3723. For a list of access codes visit
www.artesian.com and select Credit Cards. You may also call
us collect at 1.757.677.4701.
Service for Hearing-Impaired (TTY/TDD)
Contact our service for the hearing-impaired at 1.800.222.7365.
Pay on-line at www.artesian.com or mail your payment to:
Artesian Bank, PO BOX 60069, CITY OF INDUSTRY, CA
91716-0069
BILLING RIGHTS SUMMARY
STATEMENT DISCLOSURE:
In Case of Error or Billing Inquiries
If you think your bill is wrong, or if you need more information about
a transaction on your bill, you must write to us (on a separate
sheet) at PO BOX 1390, Norfolk, VA 23501-1390 as soon as
possible to preserve your rights. We must hear from you no later
than 60 days after we sent you the first bill on which the error or
problem appeared. In your letter, give us the following information:
- Your name and account number
- The dollar amount of the suspected error
- Describe the error and explain, if you can, why you believe there
is an error
You do not have to pay any amount in question while we are
investigating, but you are still obligated to pay the parts of your bill
that are not in question. While we investigate your questions, we
cannot report you as delinquent or take any action to collect the
amount you question.
Special Rate for Credit Card Purchases
If you have a problem with the quality of goods or services that you
purchased with a credit card, and you have tried in good faith to
correct the problem with the merchant, you may not have to pay
the remaining amount due on the goods or services. You have this
protection only when the purchase price was more than $50 and
the purchase was made in your home state or within 100 miles
of your mailing address (if we own or operate the merchant, or if
we mailed you the advertisement for the property or service, all
purchases are covered regardless of the amount or location of
purchase).
IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY
FEDERAL LAW TO BE DISCLOSED TO YOU
WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED
PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT.
For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below.
If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate
processing.
________________________________________________________________________________________________________________
Address
________________________________________________________________________________________________________________
City
State
Zip
________________________________________________________________________________________________________________
Home Phone
Work Phone
________________________________________________________________________________________________________________
E-mail Address
By providing us with your e-mail address, you agree that we may communicate with you by electronic mail.
Prompt Crediting of Payments
We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later
than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All
payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post
Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only.
Change-in-Terms Notices
Used in
Kansas City Interviews
Contents:
•
•
•
•
Model CT-1 (front and back)
Model CT-2 (front and back)
Model CT-3 (front and back)
Model CT-4 (front and back)
Note: These documents were each folded into a six-page tri-fold
pamphlet.
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Cognitive Interviews:
Denver, CO (January 2007)
Solicitation Letter
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Denver Interviews
Contents:
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Account-Opening Disclosures
Used in
Denver Interviews
Contents:
•
•
•
•
•
•
Card Carrier (1 page)
Cardmember Agreement (4 pages)
Model AO-5
Model AO-6
Model AO-7
Model AO-8
ARTESIAN BANK
P.O. BOX 1234
THORNVILLE, FL 56789
801345Z1 0075 00725
PAT SMITH
135 WILDELAKE DRIVE
DENVER, CO 80010
Please call 1-800-555-6727 to activate your card. You will not be able to use your card until it is
activated.
Your card number: 1234567890123456
Number of cards: 1
Credit Line: $2,000
Loss/Theft Notification
Business Hours: 1-800-555-2578
After Hours: 1-800-555-4526
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$2
Summary of Key Account Terms
TRANSACTION RATES AND FEES
Purchases
APR: A variable rate1, currently 14.99%.
Balance Transfers
APR: 0.0% introductory rate until your statement closing date in December
2007; thereafter 15.99% (see “Notice Regarding Balance Transfers”
below)
Fee: Either $5 or 3% of the amount of each transfer, whichever is greater
Cash Advances
APR: A variable rate1, currently 21.99%
Fee: Either $5 or 3% of the amount of each advance, whichever is greater
Other Transaction Fees
Foreign Transaction Fee: 2% of transaction in U.S. dollars
Minimum finance charge
$0.50
PENALTY RATES AND FEES
Penalty APR
Your interest rates may increase up to the Penalty APR of 34.99% if:
x You make a late payment;
x You exceed your credit limit;
x You make a payment that is returned due to insufficient funds; or
x You do any of the above on another account you have with us.
If your APRs are increased for any of these reasons, they will
automatically revert back to the standard interest rates disclosed above if
you make six consecutive minimum payments when due and you do not
exceed your credit limit within that same time period.
Late Payment Fee
$29 if balance is less than or equal to $1,000; $35 if balance is greater than
$1,000
Over-the-Credit Limit Fee
$29
Returned Payment Fee
$35
OTHER ACCOUNT TERMS THAT MAY AFFECT THE INTEREST YOU PAY
Grace Period
If you pay your balance in full each month, you will not be charged interest
on purchases for at least 25 days after the close of each statement period.
This 25-day period is called your “grace period.” If you do not pay your
balance in full each month you lose this interest-free period, and will begin
paying interest as soon as you make a purchase. No grace period exists for
cash advances or balance transfers; when you make these transactions you
begin paying interest immediately.
How We Will Calculate Your
Balance
To calculate your balance we use a method called “two-cycle average daily
balance (including new purchases)”. If you sometimes pay your balance in
full and sometimes do not, this method may lead to higher interest charges
than other methods.
Notice Regarding Balance Transfers
If you transfer balances at our low introductory APR and then make
purchases using this card, we will apply your payments first to your
transferred balances during your promotional period. We will only apply
payments to your purchases after your transferred balances have been paid
off completely.
1
Your APR on purchases will be calculated each month by taking the Prime Rate (currently 7.00%) and adding 7.99%. Your APR on
cash advances will be calculated each month by taking the Prime Rate and adding 14.99%. If the Prime Rate changes, your APRs on
purchases and cash advances will change as well.
AO-8
Periodic Statements
Used in
Denver Interviews
Contents:
x
x
x
x
x
Model PS-5 (pages 1 and 2)
Model PS-6 (pages 1 and 2)
Model PS-7 (pages 1 and 2)
Model PS-8 (pages 1 and 2)
Back of periodic statement pages
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 2
ACCOUNT SUMMARY
ACCOUNT ACTIVITY
Statement Closing Date
Days in Billing Cycle
Previous Balance
Payments
Credits
Purchases
Debits
Cash Advances
Total INTEREST CHARGE
Total FEES
New Balance
Account Number
Credit Limit
Available Credit as of 1/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
1/19/07
30
$1,092.61
$100.00
$0.00
$41.09
$0.00
$43.00
$14.25
$39.00
$1,129.95
1234567890123456
$1,500.00
$370.05
$1,129.95
2/13/07 (before 12:00 noon)
= $34.00
+ $0.00
= $34.00*
*Making only the minimum payment will increase the interest you pay and
the time it takes to repay your balance. For example, if you had a balance
of $1,000 at an interest rate of 17% and always paid only the minimum
required, it would take over 7 years to repay the balance in full. For an
estimate of the time it would take to repay your actual balance making only
minimum payments, call this toll-free telephone number: 1-800-555-5555.
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
TRANSACTIONS
Trans Date
Post Date
Reference Number
Description of Transaction or Credit
Amount
12/26
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
12/28
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
5884186PS0388W6YM
9525156489SFD4545Q
854338203FS8OO0Z5
0544400060ZLV72VL
55541860705RDYD0X
1542202074TWWZV48
CITGO FOOD MART #74 ATLANTA GA
LATE FEE
PYMT THANK YOU 5147 E SIOUX FALLS SD
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE *TRANSACTION FEE*
EASY SAVER 877-844-9564 PA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE *TRANSACTION FEE*
WAYFIELD FOODS #1 S9B ATLANTA GA
$2.05
$35.00
$100.00$12.11
$4.63
$21.50
$2.00
$14.95
$21.50
$2.00
$7.35
554328608008W90M0
1542202083J78OPXW
054830709LYMRPT4L
CALCULATION OF INTEREST CHARGES
Annual Percentage
Rate (APR)
Monthly
Interest Rate
Balance Subject to
Interest Rate
Interest Charge
Purchases
14.99% (v)
1.249%
$1,034.69
$12.92
Cash Advances
21.99% (v)
1.833%
$72.46
$1.33
Interest Charges
Transaction Fees
Type of Balance
(v) = Variable Rate
EFFECTIVE APR
Type of Balance
Purchases
Cash Advances
Effective APR
$12.92
$0.00
14.99%
$1.33
$4.00
88.27%
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Your Effective APR is the rate that includes both interest and transaction fees that you paid this month.
The Default APR for your account is 34.99%. All your APRs may be increased to this rate
if you pay late or for other reasons; see your Cardholder Agreement for more details.
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
2/13/07 (before 12:00 noon)
Amount Due This Period
+ $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00 (see warning below)
WARNING: If the minimum required payment is not paid by the due date listed
on this statement, you may be subject to a $35 late fee and your APRs may be
increased up to the Default APR listed above.
AMOUNT ENCLOSED: $
35806
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-5
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 2 of 2
***NOTICE OF CHANGES TO ACCOUNT TERMS***
The following is a summary of changes that are being made to your account terms. You have the right
to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this
statement. The effective date of these changes is 3/1/07.
Revised Terms, as of 3/1/07
APR on Purchases
16.99%
Late Payment Fee
$32 if your balance is less than or equal to $1,000;
$39 if your balance is more than $1,000
Want to receive your billing statement in Spanish?
Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
Fast Online Card Payments with Click-to-Pay
Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that
same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu.
Save Time. Save Paper. Sign up for All Electronic.
You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when
your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account.
Need to add an authorized user to your account?
Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu
and select Add Authorized User. Complete the form and submit. It’s that simple!
5825
TRD
2
100
7
Page 2 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Account Number:
New Balance
PAYMENT INFORMATION
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
AMOUNT ENCLOSED: $
35806
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-5
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 2
ACCOUNT SUMMARY
ACCOUNT ACTIVITY
Statement Closing Date
Days in Billing Cycle
Previous Balance
Payments
Credits
Purchases
Debits
Cash Advances
Total INTEREST AND FEES
New Balance
Account Number
Credit Limit
Available Credit as of 1/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
1/19/07
30
$1,092.61
$100.00
$0.00
$41.09
$0.00
$43.00
$53.25
$1,129.95
1234567890123456
$1,500.00
$370.05
$1,129.95
2/13/07 (before 12:00 noon)
= $34.00
+ $0.00
= $34.00 (see warning below)
WARNING: Making only the minimum payment will increase the interest
you pay and the time it takes to repay your balance. For example, if you
had a balance of $1,000 at an interest rate of 17% and always paid only
the minimum required, it would take over 7 years to repay the balance in
full. For an estimate of the time it would take to repay your actual balance
making only minimum payments, call this toll-free telephone number:
1-800-555-5555.
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
TRANSACTIONS
Trans Date
Post Date
Reference Number
PAYMENTS AND OTHER CREDITS
01/03
01/03
854338203FS8OO0Z5
PURCHASES
12/26
12/28
5884186PS0388W6YM
01/05
01/05
0544400060ZLV72VL
01/05
01/05
55541860705RDYD0X
01/06
01/06
554328608008W90M0
01/09
01/09
054830709LYMRPT4L
CASH ADVANCES
01/06
01/06
1542202074TWWZV48
01/08
01/08
1542202083J78OPXW
FEES
12/29
12/29
9525156489SFD4545Q
01/06
01/06
01/08
01/08
INTEREST CHARGES
1/19
1/19
1/19
1/19
Description of Transaction or Credit
Amount
PYMT THANK YOU 5147 E SIOUX FALLS SD
$100.00-
CITGO FOOD MART #74 ATLANTA GA
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
EASY SAVER 877-844-9564 PA
WAYFIELD FOODS #1 S9B ATLANTA GA
$2.05
$12.11
$4.63
$14.95
$7.35
BESTBANK/ACCESS CASH ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
$21.50
$21.50
LATE FEE
CASH ADVANCE FEE
CASH ADVANCE FEE
$35.00
$2.00
$2.00
*TRANSACTION FEE*
*TRANSACTION FEE*
INTEREST ON PURCHASES
INTEREST ON CASH ADVANCES
$12.92
$1.33
APRs AND CALCULATION OF INTEREST CHARGES
Annual Percentage
Rate (APR)
Balance Subject
to Interest Rate
Interest Charges
Transaction Fees
Purchases
14.99% (v)
$1,034.69
$12.92
$0.00
14.99%
Cash Advances
21.99% (v)
$72.46
$1.33
$4.00
88.27%
Type of Balance
Effective APR
(v) = Variable Rate
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Your Effective APR is the rate that includes both interest and transaction fees that you paid this month.
The Default APR for your account is 34.99%. All your APRs may be increased to this rate
if you pay late or for other reasons; see your Cardholder Agreement for more details.
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
2/13/07 (before 12:00 noon)
Amount Due This Period
+ $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00* (see below)
*NOTICE: If the minimum required payment is not paid by the due date listed
on this statement, you may be subject to a $35 late fee and your APRs may be
increased up to the Penalty APR listed above.
AMOUNT ENCLOSED: $
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
35806
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-6
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 2 of 2
Want to receive your billing statement in Spanish?
Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
Fast Online Card Payments with Click-to-Pay
Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that
same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu.
Save Time. Save Paper. Sign up for All Electronic.
You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when
your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account.
Need to add an authorized user to your account?
Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu
and select Add Authorized User. Complete the form and submit. It’s that simple!
***NOTICE OF CHANGES TO ACCOUNT TERMS***
The following is a summary of changes that are being made to your account terms. You have the right
to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this
statement. The effective date of these changes is 3/1/07.
Revised Terms, as of 3/1/07
5825
APR on Purchases
16.99%
Late Payment Fee
$32 if your balance is less than or equal to $1,000;
$39 if your balance is more than $1,000
TRD
2
100
7
Page 2 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Account Number:
New Balance
PAYMENT INFORMATION
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
AMOUNT ENCLOSED: $
35806
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-6
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 2
ACCOUNT ACTIVITY
ACCOUNT SUMMARY
Statement Closing Date
Days in Billing Cycle
Previous Balance
Payments
Credits
Purchases
Debits
Cash Advances
Total INTEREST CHARGE
Total FEES
New Balance
1/19/07
30
$1,092.61
$100.00
$0.00
$41.09
$0.00
$43.00
$14.25
$39.00
$1,129.95
Account Number
Credit Limit
Available Credit as of 1/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
1234567890123456
$1,500.00
$370.05
$1,129.95
2/13/07 (before 12:00 noon)
= $34.00
+ $0.00
= $34.00 (see warning below)
LATE PAYMENT WARNING: If the minimum required
payment is not paid by the due date listed on this
statement, you may be subject to a $35 late fee and your
APRs may be increased up to the Default APR of 34.99%.
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
***NOTICE OF CHANGES TO ACCOUNT TERMS***
The following is a summary of changes that are being made to your account terms. You have the right
to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this
statement. The effective date of these changes is 3/1/07.
Revised Terms, as of 3/1/07
APR on Purchases
16.99%
Late Payment Fee
$32 if your balance is less than or equal to $1,000;
$39 if your balance is more than $1,000
TRANSACTIONS
Trans Date
Post Date
Reference Number
PAYMENTS AND OTHER CREDITS
01/03
01/03
854338203FS8OO0Z5
PURCHASES
12/26
12/28
5884186PS0388W6YM
01/05
01/05
0544400060ZLV72VL
01/05
01/05
55541860705RDYD0X
01/06
01/06
554328608008W90M0
01/09
01/09
054830709LYMRPT4L
CASH ADVANCES
01/06
01/06
1542202074TWWZV48
01/08
01/08
1542202083J78OPXW
FEES AND OTHER CHARGES
12/29
12/29
9525156489SFD4545Q
01/06
01/06
01/08
01/08
Description of Transaction or Credit
Amount
PYMT THANK YOU 5147 E SIOUX FALLS SD
$100.00-
CITGO FOOD MART #74 ATLANTA GA
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
EASY SAVER 877-844-9564 PA
WAYFIELD FOODS #1 S9B ATLANTA GA
$2.05
$12.11
$4.63
$14.95
$7.35
BESTBANK/ACCESS CASH ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
$21.50
$21.50
LATE FEE
CASH ADVANCE FEE
CASH ADVANCE FEE
$35.00
$2.00
$2.00
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
2/13/07 (before 12:00 noon)
Amount Due This Period
= $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00* (see below)
*NOTICE: Making only the minimum payment will increase the interest you pay
and the time it takes to repay your balance. For example, if you had a balance
of $1,000 at an interest rate of 17% and always paid only the minimum required,
it would take over 7 years to repay the balance in full. For an estimate of the
time it would take to repay your actual balance making only minimum payments,
call this toll-free telephone number: 1-800-555-5555.
AMOUNT ENCLOSED: $
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
35806
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-7
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 2 of 2
CALCULATION OF INTEREST CHARGES
Annual Percentage
Rate (APR)
Monthly
Interest Rate
Balance Subject to
Interest Rate
Interest Charge
Purchases
14.99% (v)
1.249%
$1,034.69
$12.92
Cash Advances
21.99% (v)
1.833%
$72.46
$1.33
Type of Balance
(v) = Variable Rate
Want to receive your billing statement in Spanish?
Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
Fast Online Card Payments with Click-to-Pay
Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that
same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu.
Save Time. Save Paper. Sign up for All Electronic.
You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when
your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account.
Need to add an authorized user to your account?
Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu
and select Add Authorized User. Complete the form and submit. It’s that simple!
5825
TRD
2
100
7
Page 2 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Account Number:
New Balance
PAYMENT INFORMATION
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
AMOUNT ENCLOSED: $
35806
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-7
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 2
ACCOUNT ACTIVITY
ACCOUNT SUMMARY
Statement Closing Date
Previous Balance
Payments
Credits
Purchases
Debits
Cash Advances
Total INTEREST AND FEES
New Balance
1/19/07
$1,092.61
$100.00
$0.00
$41.09
$0.00
$43.00
$53.25
$1,129.95
Account Number
Credit Limit
Available Credit as of 1/19/07
New Balance
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
1234567890123456
$1,500.00
$370.05
$1,129.95
2/13/07 (before 12:00 noon)
= $34.00
+ $0.00
= $34.00*
*If the minimum required payment is not paid by the due
date listed on this statement, you may be subject to a
$35 late fee and your APRs may be increased up to the
Penalty APR listed below.
For prompt credit, mail payments to:
PO BOX 5147
SIOUX FALLS, SD 57117-5147
Payment sent to any other address may delay crediting your
account up to 5 days.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, SIOUX FALLS, SD 57117-8824
TRANSACTIONS
Trans Date
Post Date
Reference Number
Description of Transaction or Credit
Amount
12/26
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
01/19
12/28
12/29
01/03
01/05
01/05
01/06
01/06
01/06
01/08
01/08
01/09
01/19
5884186PS0388W6YM
9525156489SFD4545Q
854338203FS8OO0Z5
0544400060ZLV72VL
55541860705RDYD0X
1542202074TWWZV48
CITGO FOOD MART #74 ATLANTA GA
LATE FEE
PYMT THANK YOU 5147 E SIOUX FALLS SD
CVS PHARMACY #7338 003 ATLANTA GA
ECKERD DRUGS #2708 ATLANTA GA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE
EASY SAVER 877-844-9564 PA
BESTBANK/ACCESS CASH ATLANTA GA
CASH ADVANCE FEE
WAYFIELD FOODS #1 S9B ATLANTA GA
TOTAL INTEREST CHARGE
$2.05
$35.00
$100.00$12.11
$4.63
$21.50
$2.00
$14.95
$21.50
$2.00
$7.35
$14.25
554328608008W90M0
1542202083J78OPXW
054830709LYMRPT4L
***NOTICE OF CHANGES TO ACCOUNT TERMS***
The following is a summary of changes that are being made to your account terms. You have the right
to opt out of these changes. For more detailed information, please refer to the booklet enclosed with this
statement. The effective date of these changes is 3/1/07.
Revised Terms, as of 3/1/07
APR on Purchases
16.99%
Late Payment Fee
$32 if your balance is less than or equal to $1,000;
$39 if your balance is more than $1,000
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Sioux Falls, SD 57117-5147
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
Account Number:
1234567890123456
New Balance
$1,129.95
PAYMENT INFORMATION
Payment Due Date
2/13/07 (before 12:00 noon)
Amount Due This Period
+ $34.00
+ $0.00
Past Due Amount
Total Minimum Amount Due
= $34.00
AMOUNT ENCLOSED: $
WARNING: Making only the minimum payment will increase the
interest you pay and the time it takes to repay your balance. For
example, if you had a balance of $1,000 at an interest rate of 17% and
always paid only the minimum required, it would take over 7 years to
repay the balance in full. For an estimate of the time it would take to
repay your actual balance making only minimum payments, call this
toll-free telephone number: 1-800-555-5555.
ll ll
35806
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-8
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 2 of 2
Want to receive your billing statement in Spanish?
Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
Fast Online Card Payments with Click-to-Pay
Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that
same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu.
Save Time. Save Paper. Sign up for All Electronic.
You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when
your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account.
Need to add an authorized user to your account?
Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu
and select Add Authorized User. Complete the form and submit. It’s that simple!
CALCULATION OF INTEREST CHARGES
Type of Balance
APR
Balance Subject to
Interest Charge
Interest Charge
Purchases
14.99% (v)
$1,034.69
$12.92
Cash Advances
21.99% (v)
$72.46
$1.33
(v) = Variable Rate
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Your Effective APR is the rate that includes both interest and transaction fees that you paid this month.
5825
TRD
2
100
7
Page 2 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Account Number:
New Balance
PAYMENT INFORMATION
Payment Due Date
Amount Due This Period
Past Due Amount
Total Minimum Amount Due
AMOUNT ENCLOSED: $
35806
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
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PS-8
IMPORTANT INFORMATION ABOUT YOUR ACCOUNT
Grace Period on New Purchases (at least 25 days)
You can avoid Interest Charges on new Purchases that posted to this
statement if your Previous Balance is zero (or a credit balance) and we
receive full payment of the New Balance by the Payment Due Date. If so,
you have from the date you made your purchases until the payment Due
Date on the front to avoid any interest charge on that purchase. If your
Previous Balance is greater than zero, there is no time period to pay the
New Balance and avoid additional interest charges. There is no grace
period for Cash Advances and Balance Transfers.
Explanation of Interest Charges and Transaction Fees
We calculate periodic interest charges using the applicable monthly
periodic rates separately for each feature (e.g., purchases, balance
transfers, cash advances, promotional balances, or overdraft advances).
We calculate the monthly periodic rate for each feature by dividing the
APR for each feature by 12. There is a minimum charge in any billing
cycle in which you owe any periodic interest charges, and a transaction
charge for each balance transfer, cash advance, or check transaction, in
the amounts stated in your Cardmember Agreement, as amended.
To get the daily balance for each day of the current billing cycle, we
take the beginning balance for each feature, add any new transactions
or other debits (including fees, unpaid interest charges and other
charges), subtract any payments or credits, and make other adjustments.
Transactions are added as of the transaction date, the beginning of the
billing cycle in which they are posted to your account, or a later date
of our choice (except that check transactions are added as of the date
deposited by the payee or a later date of our choice). Fees are added
either on the date of a related transaction, the date they are posted to
your account, or the last day of the billing cycle. This gives us that day’s
daily balance. A credit balance is treated as a balance of zero. If a daily
periodic rate applies to any feature we multiply the daily balance by the
daily periodic rate to get your periodic interest charges for that day. We
then add these periodic interest charges to your daily balance to get the
beginning balance for the next day. (If more than one daily periodic rate
could apply based on the average daily balance, we will use the daily
periodic rate that applies for the average daily balance amount at the end
of the billing cycle to calculate the daily periodic interest charges each
day.) If this statement shows a previous cycle average daily balance for
purchases, we do the same thing for each day of the previous cycle to
get the daily balance of purchases for the previous billing cycle. However,
the daily balance for previous billing cycle purchases is considered to be
zero for each day of the previous billing cycle if a periodic interest charge
was already billed on purchases itemized on your previous statement or
we receive payment of your New Balance on your previous statement in
full by the date and time your payment was due.
To get your total periodic interest charge for a billing cycle when a daily
periodic rate(s) applies, we add all of the daily periodic interest charges
for all features. To determine an average daily balance, we add your
daily balances and divide by the number of the days in the applicable
billing cycle(s). If you multiply the average daily balance for each feature
by the applicable daily periodic rate, and then multiply each of these
results by the number of days in the applicable billing cycle(s), and
then add all of the results together, the total will also equal the periodic
interest charges for the billing cycles except for minor variations due to
rounding. To get your total periodic interest charge for a billing cycle when
a monthly periodic rate(s) applies, multiply the average daily balance for
each feature by the applicable monthly periodic rate and add the results
together. The total will equal the periodic interest charges for the billing
cycle, except for minor variations due to rounding.
Account Renewal Information for Open Accounts
If your account has an Annual Fee and it is billed on this Statement, we
will reverse the fee if you cancel your account and pay off any existing
Balance within 30 days of receipt of this Statement. Otherwise, the
Annual Fee is non-refundable. You may continue to use your account
during the 30-day period before you cancel. To cancel, write us at the
Billing Inquiries address or call us at the phone number on the front.
Your Liability
Our records show that you are liable for any outstanding balance on
this account if your name appears on the front of this statement or you
otherwise agreed.
Report a Lost or Stolen Card Immediately
Call the 24-hour toll free number 1.800.555.6666. Do not use your
account after you report a lost or stolen card.
Cardholder Security PlanTM/Payment Protection Plan
If you have questions about your enrollment or need to file for
benefits, please call the applicable toll free number below
(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time):
Cardholder Security Plan-1.888.668.6938; Payment Protection
Plan-1.888.838.0056.
Service for International Calling
Dial the AT&T Direct access code for the country you are in
and dial 1.888.801.3723. For a list of access codes visit
www.artesian.com and select Credit Cards. You may also call
us collect at 1.757.677.4701.
Service for Hearing-Impaired (TTY/TDD)
Contact our service for the hearing-impaired at 1.800.222.7365.
Pay on-line at www.artesian.com or mail your payment to:
Artesian Bank, PO BOX 5147, SIOUX FALLS, SD 57117-5147.
BILLING RIGHTS SUMMARY
STATEMENT DISCLOSURE:
In Case of Error or Billing Inquiries
If you think your bill is wrong, or if you need more information about a
transaction on your bill, you must write to us (on a separate sheet) at PO
BOX 1390, Norfolk, VA 23501-1390 as soon as possible to preserve your
rights. We must hear from you no later than 60 days after we sent you the
first bill on which the error or problem appeared. In your letter, give us the
following information:
- Your name and account number
- The dollar amount of the suspected error
- Describe the error and explain, if you can, why you believe there
is an error
You do not have to pay any amount in question while we are investigating,
but you are still obligated to pay the parts of your bill that are not in question.
While we investigate your questions, we cannot report you as delinquent or
take any action to collect the amount you question.
Special Rate for Credit Card Purchases
If you have a problem with the quality of goods or services that you
purchased with a credit card, and you have tried in good faith to correct
the problem with the merchant, you may not have to pay the remaining
amount due on the goods or services. You have this protection only when
the purchase price was more than $50 and the purchase was made in
your home state or within 100 miles of your mailing address (if we own
or operate the merchant, or if we mailed you the advertisement for the
property or service, all purchases are covered regardless of the amount
or location of purchase).
IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY
FEDERAL LAW TO BE DISCLOSED TO YOU
WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED
PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT.
For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below.
If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate
processing.
________________________________________________________________________________________________________________
Address
________________________________________________________________________________________________________________
City
State
Zip
________________________________________________________________________________________________________________
Home Phone
Work Phone
________________________________________________________________________________________________________________
E-mail Address
By providing us with your e-mail address, you agree that we may communicate with you by electronic mail.
Prompt Crediting of Payments
We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later
than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All
payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post
Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only.
Change-in-Terms Notices
Used in
Denver Interviews
Contents:
x
x
x
x
Model CT-5 (front and back)
Model CT-6 (front and back)
Model CT-7
Model CT-8
Note: Model CT-7 and Model CT-8 are summary inserts that were
included with Model CT-5.
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PAT SMITH
135 WILDELAKE DRIVE
DENVER, CO 80010
Regarding your
account ending
in 3456
Summary of Changes to your
Artesian Bank Credit Card Account
The notice enclosed in this envelope informs you of changes that are being made to the
terms of your Artesian Bank credit card account. These changes will be effective for
billing periods ending after April 1, 2007.
This sheet contains a summary of changes to key terms of your Account. You have the
right to reject these changes as described in the enclosed notice. For a more detailed
description of these changes, or for a list of any additional account changes that are not
included on this sheet, please refer to the notice enclosed with this summary.
Cognitive Interviews:
Boston, MA (February 2007)
Solicitation Letter
Used in
Boston Interviews
Contents:
x Model SL-5 (front and back)
0% Introductory APR
for Balance Transfers
(until December 2007, then 15.99%1)
You’re Invited to Apply!
Dear Potential Customer:
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Credit LineXSWR
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Sincerely,
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ITA-POX-1NO-0606
Acceptance Certificate
$872 6&+',*,7
Initial Credit:8SWR
$ &$9
Reply by:)HEUXDU\
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Artesian Bank
Phone:
32%R[
Web:ZZZP\QHZFDUGFRP
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Step 1
YES! I’d like to receive the Complimentary Companion Mini Card.
SOCIAL SECURITY NUMBER
Step 2
DATE OF BIRTH
GROSS YEARLY HOUSEHOLD INCOME†
SELF-EMPLOYED
Step 3
Step 4
$
,
WORK TELEPHONE
MOTHER’S MAIDEN NAME
E-MAIL ADDRESS (OPTIONAL)
Overdraft protection is only available if you provide a valid
Artesian Bank checking account.
Complete with your checking account number below
Please check here if you would like
overdraft protection
1
HOME TELEPHONE
Income from alimony child support, or separate maintenance payment need not be revealed if you do not wish us to consider it as a basis for repayment. Minimun annual income of $9,000 ($14,000 in California)
By signing below, you agree to the authorizations, terms and conditions on the
enclosed insert.
REQUEST AN ADDITIONAL CARD (Print the name of the person who is authorized to
use your account.)
APPLICANT SIGNATURE
PRINT NAME OF AUTHORIZED USER (FIRST NAME, MIDDLE INTIAL, LAST NAME)
x SIGN HERE
Save Today on Balance Transfers with a 0% Introductory APR
ACCOUNT NUMBER
PAYEE
EXACT AMOUNT TO BE TRANSFERRED
$
ACCOUNT NUMBER
,
EXACT AMOUNT TO BE TRANSFERRED
PAYEE
$
,
Balance transfer requests will be processed in the order above. Each balance transfer request must be at least $100. Allow 3-4 weeks to process. Please see the enclosed insert for Fee and Rate Information.
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6/
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Your Artesian Bank Visa® Platinum comes with
everything you expect in a premium credit card:
Platinum
Services
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Helpful
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To request your Artesian Bank Visa®3ODWLQXP&DUG
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Visit
Call
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front of the letter
Mini Card, U,S, Pat. 6,471,127B2
Credit subject to approval.
Credit cards issued by Artesian Bank
© 2006
86$
5HF\FOHG3DSHU
Solicitation and Application Disclosures
(“Schumer Boxes”)
Used in
Boston Interviews
Contents:
x
x
x
x
x
x
x
x
x
x
Model SB-10P (front and back)
Model SB-10SP (front and back)
Model SB-10A1
Model SB-10A2
Model SB-10B1
Model SB-10B2
Model SB-10C1
Model SB-10C2
Model SB-10D1
Model SB-10D2
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR)
for Purchases
8.99% to 19.99%, based on your creditworthiness.
Your initial
APR will be within this range based on current rates.
After that, your APR will vary with the market based on the Prime Rate.
APR for Balance Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and then
make purchases using this card, we will apply your payment first to your
transferred balances during the promotional period. You will be charged
interest on the full amount of your purchases during this period until your
transferred balances have been paid off completely.
APR for Cash Advances
21.99% currently.
This APR will vary with the market based on the Prime Rate, but will not
go below 16.99% or above 25.99%. Cash advance fees will also apply.
Penalty APR and When It Applies
34.99%
All of your APRs (including introductory APRs) may increase up to this
rate if:
• You make a late payment;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do any of the above on another account that you have with us.
Minimum Interest Charge
If you are charged interest, this charge will be no less than $0.50.
Grace Period on Purchases
If you pay your balance in full each month, you have at least 25 days after
the close of each period to pay your balance on purchases with no interest
charge. If you do not pay your balance in full each month, you will lose this
interest-free period and will pay interest on purchases.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is greater
(maximum fee: $100)
x Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever is greater
x Foreign Transaction
2% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$29 if balance is less than or equal to $1,000;
$35 if balance is more than $1,000 (Penalty APR may also apply)
x Over-the-Credit Limit
$29 (Penalty APR may also apply)
x Returned Payment
$35 (Penalty APR may also apply)
Other Fees
x Required Payment Suspension
Plan
$0.79 per $100 of balance at the end of each statement period up to a
balance of $10,000. See back for details.
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including
new purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10P
Overdraft Protection
If you link your Artesian Bank checking account to your credit card for Overdraft
Protection, we will automatically transfer funds in multiples of $100 ($25 if you
opened your checking account in Washington or Idaho) from your credit card
account to cover any overdraft on your checking account, as long as your credit
FDUGDFFRXQWKDVVXI¿FLHQWDYDLODEOHFUHGLWDQG\RXDUHQRWLQGHIDXOWXQGHU\RXU
Cardholder Agreement. A fee of 3% of the amount transferred ($10 minimum)
will apply and the cash advance will accrue interest at the APR stated in your
&DUGKROGHU$JUHHPHQW ,I WKH DYDLODEOH EDODQFH RQ \RXU FUHGLW FDUG DFFRXQW LV
LQVXI¿FLHQWWRRYHUWKHDPRXQWUHTXLUHGE\WKHRYHUGUDIW LQWKHPXOWLSOHRIIXQGV
VWDWHGDERYH ZHPD\DGYDQFHWKHIXQGVHYHQLILWFDXVHV\RXUFUHGLWFDUGDFFRXQW
WRH[FHHG\RXUFUHGLWOLPLW,QWKDWHYHQWDQRYHUFUHGLWOLPLWIHHZLOOEHDSSOLHG
Linking Overdraft Protection from your Artesian Bank checking account to your
credit card will end any Overdraft Protection connections to your Artesian Bank
savings account. Please see your Cardholder Agreement for additional details.
State Law Disclosures
Notice to New York State Residents: &RQVXPHU UHSRUWV PD\ EH UHTXHVWHG LQ
connection with the processing of your application and any resulting account. Upon
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agencies which have provided us with such reports. Notice to Ohio Residents:
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DYDLODEOHWRDOOFUHGLWZRUWK\FXVWRPHUVDQGWKDWFUHGLWUHSRUWLQJDJHQFLHVPDLQWDLQ
VHSDUDWHFUHGLWKLVWRULHVRQHDFKLQGLYLGXDOXSRQUHTXHVW7KH2KLR&LYLO5LJKWV
Commission administers compliance with this law. Notice to Married Wisconsin
Residents: No agreement, individual statement, or court order applying to marital
property will adversely affect the creditor’s interest unless the creditor, prior to the
time credit is extended, is furnished with a copy of the agreement, statement, or
RUGHURUKDVDFWXDONQRZOHGJHRIWKHDGYHUVHSURYLVLRQZKHQWKHREOLJDWLRQWRWKH
creditor is incurred. Notice to California Residents: Regardless of your marital
status, you may apply for credit in your name alone.
Billing Rights Summary
Notify Us in Case of Errors or Questions About Your Bill
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In your letter, give us the following information:
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savings or checking account, you can stop the payment on any amount you think is
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the automatic payment is scheduled to occur.
Your Rights and Our Responsibilities After We Receive Your Written Notices
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amount. In either case, we will send you a statement of the amount you owe and
the date that it is due.
If you fail to pay the amount that we think you owe, we may report you as
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within ten days telling us that you still refuse to pay, we must tell anyone we report
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anyone we reported you to. We must tell anyone we report you to that the matter
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Special Rules for Credit Card Purchases
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ZLWKDFUHGLWFDUGDQG\RXKDYHWULHGLQJRRGIDLWKWRFRUUHFWWKHSUREOHPZLWKWKH
merchant, you may not have to pay the remaining amount due on the property or
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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
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you the advertisement for the property or services.
Periodic Interest Calculation
We compute Periodic Interest Charges each day for purchases, cash advances,
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IROORZLQJHTXDWLRQ $YHUDJH'DLO\%DODQFH[QXPEHURIGD\VLQWKHELOOLQJSHULRG
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transaction category to get the total Periodic Interest Charges for your Account.
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WRWKHEDODQFHLQDWUDQVDFWLRQFDWHJRU\
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ELOOLQJVWDWHPHQWDVZHOODVQHZSXUFKDVHVWKDW¿UVWDSSHDURQWKHFXUUHQWELOOLQJ
statement, unless we already imposed Periodic Interest Charges on the purchases
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E\WKH¿UVWDGGLQJWKHIROORZLQJWRWKHSUHYLRXVGD\¶VGDLO\EDODQFH WUDQVDFWLRQV
made that day, fees charged that day and Periodic Interest Charges accrued on the
SUHYLRXVGD\¶VGDLO\EDODQFH DQGE\WKHQVXEWUDFWLQJDQ\FUHGLWVDQGSD\PHQWVWKDW
DUHDSSOLHGDJDLQVWWKHEDODQFHRIWKHWUDQVDFWLRQFDWHJRU\RQWKDWGD\,QFDOFXODWLQJ
WKHGDLO\EDODQFHIRUWKHSUHYLRXVELOOLQJSHULRGZHFRQVLGHUWKH³SUHYLRXVGD\¶V
GDLO\EDODQFH´WRKDYHEHHQ]HURRQWKH¿UVWGD\RIWKHELOOLQJSHULRG
Balance Transfer
$UWHVLDQ%DQNUHVHUYHVWKHULJKWWRGHFOLQHWRSURFHVVDQ\EDODQFHWUDQVIHUIRUDQ\
UHDVRQ,I\RXKDYHDGLVSXWHZLWKDFUHGLWRUDQGSD\WKDWEDODQFHE\WUDQVIHUULQJLW
to your new Visa Platinum Card account, you may lose certain dispute rights. By
PDNLQJDEDODQFHWUDQVIHU\RXXQGHUVWDQGWKDWIXWXUHSD\PHQWVZLOOEHDSSOLHGWR
promotional offers (which are normally at a lower interest rate). Prior to any existing
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UHTXHVW7KHUHIRUH\RXZLOOVWLOOQHHGWRPDNHSD\PHQWVRQ\RXURWKHUDFFRXQWVWR
NHHSWKHPFXUUHQWXQWLO\RXUUHTXHVWLVFRPSOHWH<RXU%DODQFH7UDQVIHUUHTXHVWV
ZLOOEHSURFHVVHGLQWKHRUGHUOLVWHGRQWKH%DODQFH7UDQVIHUIRUP:HZLOOPDNH
WKHPD[LPXPSRVVLEOHSDUWLDOSD\PHQW3DUWLDOSD\PHQWZLOOQRWEHPDGHRQPRUH
WKDQRQHDFFRXQW,QWHUHVWFKDUJHV LIDQGZKHUHDSSOLFDEOH ZLOOEHJLQRQWKHGDWH
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Payment Suspension Plan® Terms and Conditions
7KH3D\PHQW6XVSHQVLRQ3ODQ ³WKH3ODQ´ LVDUHTXLUHG product on your Artesian
Bank credit card account.
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0RQWKO\%HQH¿W$PRXQWVSHUXQUHODWHG3URWHFWHG(YHQWWR\RXUFUHGLWFDUG
DFFRXQWLI<RXRURQH $XWKRUL]HG8VHUEHFRPH+RVSLWDOL]HG7RWDOO\'LVDEOHG
,QYROXQWDULO\8QHPSOR\HGRUWDNHDQ8QSDLG)DPLO\/HDYHRI$EVHQFH,QWKH
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Outstanding Balance on the Date of Loss or $10,000, whichever is less.
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additional details.
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on your statement, there is no charge for the Plan.
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©2006 Artesian Bank
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refer to the Addendum to the Cardholder Agreement for a full explanation of all
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• 7HUPLQDWLRQ 7KH3ODQZLOODXWRPDWLFDOO\WHUPLQDWHLI\RXQRORQJHUKDYH\RXU
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due on the Protected Account.
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Recycled Paper
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR)
for Purchases
8.99% to 19.99%, based on your creditworthiness.
Your initial
APR will be within this range based on current rates.
After that, your APR will vary with the market based on the Prime Rate.
APR for Balance Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and then
make purchases using this card, we will apply your payment first to your
transferred balances during the promotional period. You will be charged
interest on the full amount of your purchases during this period until your
transferred balances have been paid off completely.
APR for Cash Advances
21.99% currently.
This APR will vary with the market based on the Prime Rate, but will not
go below 16.99% or above 25.99%. Cash advance fees will also apply.
Penalty APR and When It Applies
34.99%
All of your APRs (including introductory APRs) may increase up to this
rate if:
• You make a late payment;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do any of the above on another account that you have with us.
Minimum Interest Charge
If you are charged interest, this charge will be no less than $0.50.
Interest-Free Period on
Purchases
If you pay your balance in full each month, you have at least 25 days after
the close of each period to pay your balance on purchases with no interest
charge. If you do not pay your balance in full each month, you will lose this
interest-free period and will pay interest on purchases.
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, your initial available credit will be only $72 (or $52 if you choose to have an additional card).
x Annual Fee
$48
x Account Set-up Fee
$29 (one-time fee)
x Program Fee
$95 (one-time fee)
x Participation Fee
$72 annually ($6 per month)
x Additional Card Fee
$20 annually (if applicable)
x Account Maintenance Fee
$3 per month (on closed accounts with an outstanding balance of $20 or
more)
Transaction Fees
x Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is greater
(maximum fee: $100)
x Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever is greater
x Foreign Transaction
2% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$29 if balance is less than or equal to $1,000;
$35 if balance is more than $1,000 (Penalty APR may also apply)
x Over-the-Credit Limit
$29 (Penalty APR may also apply)
x Returned Payment
$35 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including
new purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10SP
Overdraft Protection
If you link your Artesian Bank checking account to your credit card for Overdraft
Protection, we will automatically transfer funds in multiples of $100 ($25 if you
opened your checking account in Washington or Idaho) from your credit card
account to cover any overdraft on your checking account, as long as your credit
FDUGDFFRXQWKDVVXI¿FLHQWDYDLODEOHFUHGLWDQG\RXDUHQRWLQGHIDXOWXQGHU\RXU
Cardholder Agreement. A fee of 3% of the amount transferred ($10 minimum)
will apply and the cash advance will accrue interest at the APR stated in your
&DUGKROGHU$JUHHPHQW ,I WKH DYDLODEOH EDODQFH RQ \RXU FUHGLW FDUG DFFRXQW LV
LQVXI¿FLHQWWRRYHUWKHDPRXQWUHTXLUHGE\WKHRYHUGUDIW LQWKHPXOWLSOHRIIXQGV
VWDWHGDERYH ZHPD\DGYDQFHWKHIXQGVHYHQLILWFDXVHV\RXUFUHGLWFDUGDFFRXQW
WRH[FHHG\RXUFUHGLWOLPLW,QWKDWHYHQWDQRYHUFUHGLWOLPLWIHHZLOOEHDSSOLHG
Linking Overdraft Protection from your Artesian Bank checking account to your
credit card will end any Overdraft Protection connections to your Artesian Bank
savings account. Please see your Cardholder Agreement for additional details.
State Law Disclosures
Notice to New York State Residents: &RQVXPHU UHSRUWV PD\ EH UHTXHVWHG LQ
connection with the processing of your application and any resulting account. Upon
UHTXHVWZHZLOOLQIRUP\RXRIWKHQDPHVDQGDGGUHVVHVRIDQ\FRQVXPHUUHSRUWLQJ
agencies which have provided us with such reports. Notice to Ohio Residents:
2KLR ODZV DJDLQVW GLVFULPLQDWLRQ UHTXLUH WKDW DOO FUHGLWRUV PDNH FUHGLW HTXDOO\
DYDLODEOHWRDOOFUHGLWZRUWK\FXVWRPHUVDQGWKDWFUHGLWUHSRUWLQJDJHQFLHVPDLQWDLQ
VHSDUDWHFUHGLWKLVWRULHVRQHDFKLQGLYLGXDOXSRQUHTXHVW7KH2KLR&LYLO5LJKWV
Commission administers compliance with this law. Notice to Married Wisconsin
Residents: No agreement, individual statement, or court order applying to marital
property will adversely affect the creditor’s interest unless the creditor, prior to the
time credit is extended, is furnished with a copy of the agreement, statement, or
RUGHURUKDVDFWXDONQRZOHGJHRIWKHDGYHUVHSURYLVLRQZKHQWKHREOLJDWLRQWRWKH
creditor is incurred. Notice to California Residents: Regardless of your marital
status, you may apply for credit in your name alone.
Billing Rights Summary
Notify Us in Case of Errors or Questions About Your Bill
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In your letter, give us the following information:
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savings or checking account, you can stop the payment on any amount you think is
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the automatic payment is scheduled to occur.
Your Rights and Our Responsibilities After We Receive Your Written Notices
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WKHQ:LWKLQ GD\VZHPXVWHLWKHUFRUUHFWWKHHUURURUH[SODLQZK\ZHEHOLHYH
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UHSRUW\RXDVGHOLQTXHQW:HFDQFRQWLQXHWRELOO\RXIRUWKHDPRXQW\RXTXHVWLRQ
LQFOXGLQJ¿QDQFHFKDUJHVDQGZHFDQDSSO\DQ\XQSDLGDPRXQWDJDLQVW\RXUFUHGLW
OLPLW<RXGRQRWKDYHWRSD\DQ\TXHVWLRQHGDPRXQWZKLOHZHDUHLQYHVWLJDWLQJ
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amount. In either case, we will send you a statement of the amount you owe and
the date that it is due.
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within ten days telling us that you still refuse to pay, we must tell anyone we report
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anyone we reported you to. We must tell anyone we report you to that the matter
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Special Rules for Credit Card Purchases
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ZLWKDFUHGLWFDUGDQG\RXKDYHWULHGLQJRRGIDLWKWRFRUUHFWWKHSUREOHPZLWKWKH
merchant, you may not have to pay the remaining amount due on the property or
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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
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you the advertisement for the property or services.
Periodic Interest Calculation
We compute Periodic Interest Charges each day for purchases, cash advances,
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IROORZLQJHTXDWLRQ $YHUDJH'DLO\%DODQFH[QXPEHURIGD\VLQWKHELOOLQJSHULRG
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transaction category to get the total Periodic Interest Charges for your Account.
7KH$YHUDJH'DLO\%DODQFHLVVKRZQDV]HURLIQR3HULRGLF,QWHUHVW&KDUJHVDSSO\
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PHDQV LI \RX GLG QRW SD\ WKH 1HZ %DODQFH VKRZQ RQ WKH ELOOLQJ VWDWHPHQW \RX
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ELOOLQJVWDWHPHQWDVZHOODVQHZSXUFKDVHVWKDW¿UVWDSSHDURQWKHFXUUHQWELOOLQJ
statement, unless we already imposed Periodic Interest Charges on the purchases
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made that day, fees charged that day and Periodic Interest Charges accrued on the
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Balance Transfer
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UHDVRQ,I\RXKDYHDGLVSXWHZLWKDFUHGLWRUDQGSD\WKDWEDODQFHE\WUDQVIHUULQJLW
to your new Visa Platinum Card account, you may lose certain dispute rights. By
PDNLQJDEDODQFHWUDQVIHU\RXXQGHUVWDQGWKDWIXWXUHSD\PHQWVZLOOEHDSSOLHGWR
promotional offers (which are normally at a lower interest rate). Prior to any existing
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Recycled Paper
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage
Rate (APR) for
Purchases
8.99% to 19.99%, based on your creditworthiness.
APR for Balance
Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Your initial APR will
be within this range based on current rates.
After that, your APR will vary with the market based on the Prime Rate.
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and then make
purchases using this card, we will apply your payment first to your transferred
balances during the promotional period. You will be charged interest on the full
amount of your purchases during this period until your transferred balances have
been paid off completely.
APR for Cash
Advances
20.99% currently.
Penalty APR and
When It Applies
36.99%
Minimum Interest
Charge
If you are charged interest, this charge will be no less than $0.75.
Grace Period on
Purchases
If you pay your balance in full each month, you have at least 28 days after the close of
each period to pay your balance on purchases with no interest charge. If you do not pay
your balance in full each month, you will lose this interest-free period and will pay
interest on purchases.
This APR will vary with the market based on the Prime Rate. Cash advance fees will
also apply.
All of your APRs (including introductory APRs) may increase up to this rate if:
• You make a late payment;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do any of the above on another account that you have with us.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is greater (maximum fee:
$80)
x Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever is greater
x Foreign Transaction
1% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$26 if balance is less than or equal to $1,000;
$32 if balance is more than $1,000 (Penalty APR may also apply)
x Over-the-Credit Limit
$25 (Penalty APR may also apply)
x Returned Payment
$25 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including
new purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10A1
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR) for
Purchases
14.99%
APR for Balance Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR
and then make purchases using this card, we will apply your
payment first to your transferred balances during the
promotional period. You will be charged interest on the full
amount of your purchases during this period until your
transferred balances have been paid off completely.
APR for Cash Advances
21.99% currently.
This APR will vary with the market based on the Prime Rate,
but will go not go below 14.99% or 34.99%. Cash advance
fees will also apply.
Penalty APR and When It Applies
36.99%
All of your APRs (including introductory APRs) may increase
up to this rate if:
• You make a late payment;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do any of the above on another account that you have
with us.
Minimum Interest Charge
If you are charged interest, this charge will be no less than
$0.50.
Grace Period on Purchases
If you pay your balance in full each month, you have at least 26
days after the close of each period to pay your balance on
purchases with no interest charge. If you do not pay your
balance in full each month, you will lose this interest-free period
and will pay interest on purchases.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is
greater (maximum fee: $80)
x Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever
is greater
x Foreign Transaction
1% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$27 if balance is less than or equal to $1,000;
$33 if balance is more than $1,000 (Penalty APR may also
apply)
x Over-the-Credit Limit
$27 (Penalty APR may also apply)
x Returned Payment
$27 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including
new purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10A2
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage
Rate (APR) for
Purchases
12.99% currently.
APR for Balance
Transfers
0.00% (until December 2007)
15.99% (after December 2007)
This APR will vary with the market based on the Prime Rate.
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and then make
purchases using this card, we will apply your payment first to your transferred
balances during the promotional period. You will be charged interest on the full
amount of your purchases during this period until your transferred balances have
been paid off completely.
APR for Cash
Advances
21.99% currently.
Penalty APR and
When It Applies
27.99%
Minimum Interest
Charge
If you are charged interest, this charge will be no less than $0.50.
Grace Period on
Purchases
If you pay your balance in full each month, you have at least 25 days after the
close of each period to pay your balance on purchases with no interest charge. If
you do not pay your balance in full each month, you will lose this interest-free
period and will pay interest on purchases.
This APR will vary with the market based on the Prime Rate. Cash advance fees
will also apply.
All of your APRs (including introductory APRs) may increase up to this rate if:
• You exceed your credit limit;
• You pay late;
• You make a payment that is returned; or
• You do any of the above on another account that you have with us.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $10 or 5% of the amount of each transfer, whichever is greater (maximum
fee: $150)
x Cash Advance
Either $10 or 5% of the amount of each cash advance, whichever is greater
x Foreign
Transaction
2% of transaction in U.S. dollars
Penalty Fees
x Late Payment
x Over-the-Credit
Limit
x Returned Payment
$21 (Penalty APR may also apply)
$21 (Penalty APR may also apply)
$21 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "average daily balance (including new
purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10B1
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR) for Purchases
12.99% currently.
This APR will vary with the market based on the
Prime Rate.
APR for Balance Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low
introductory APR and then make purchases using
this card, we will apply your payment first to your
transferred balances during the promotional period.
You will be charged interest on the full amount of
your purchases during this period until your
transferred balances have been paid off
completely.
APR for Cash Advances
21.99% currently.
This APR will vary with the market based on the
Prime Rate. Cash advance fees will also apply.
Penalty APR and When It Applies
34.99%
All of your APRs (including introductory APRs) may
increase up to this rate if:
• You pay late;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do any of the above on another account that
you have with us.
Minimum Interest Charge
If you are charged interest, this charge will be no less
than $0.65.
Grace Period on Purchases
If you pay your balance in full each month, you have
at least 26 days after the close of each period to pay
your balance on purchases with no interest charge. If
you do not pay your balance in full each month, you
will lose this interest-free period and will pay interest
on purchases.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $10 or 5% of the amount of each transfer,
whichever is greater (maximum fee: $150)
x Cash Advance
Either $10 or 5% of the amount of each cash
advance, whichever is greater
x Foreign Transaction
2% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$21 (Penalty APR may also apply)
x Over-the-Credit Limit
$19 (Penalty APR may also apply)
x Returned Payment
$19 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "average daily balance (including new
purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10B2
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR) for
Purchases
8.99% to 19.99%, based on your creditworthiness.
Your initial APR will be within this range based on current rates.
After that, your APR will vary with the market based on the Prime
Rate.
APR for Balance Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and
then make purchases using this card, we will apply your payment
first to your transferred balances during the promotional period.
You will be charged interest on the full amount of your purchases
during this period until your transferred balances have been paid
off completely.
APR for Cash Advances
20.99% currently.
This APR will vary with the market based on the Prime Rate. Cash
advance fees will also apply.
Penalty APR and When It Applies
32.99%
All of your APRs (including introductory APRs) may increase up to
this rate if:
• You make a late payment;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do any of the above on another account that you have with
us.
Minimum Interest Charge
If you are charged interest, this charge will be no less than $0.50.
Grace Period on Purchases
If you pay your balance in full each month, you have at least 26 days
after the close of each period to pay your balance on purchases with
no interest charge. If you do not pay your balance in full each month,
you will lose this interest-free period and will pay interest on
purchases.
Fees
Annual Fee
$10
Transaction Fees
x Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is greater
(maximum fee: $100)
x Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever is
greater
x Foreign Transaction
2% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$29 if balance is less than or equal to $1,000;
$35 if balance is more than $1,000 (Penalty APR may also apply)
x Over-the-Credit Limit
$29 (Penalty APR may also apply)
x Returned Payment
$35 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "average daily balance (including new
purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10C1
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR)
for Purchases
7.99% to 18.99%, based on your creditworthiness.
Your initial
APR will be within this range based on current rates.
After that, your APR will vary with the market based on the Prime Rate.
APR for Balance Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and then
make purchases using this card, we will apply your payment first to your
transferred balances during the promotional period. You will be charged
interest on the full amount of your purchases during this period until your
transferred balances have been paid off completely.
APR for Cash Advances
19.99% currently.
This APR will vary with the market based on the Prime Rate. Cash
advance fees will also apply.
Penalty APR and When It Applies
30.99%
All of your APRs (including introductory APRs) may increase up to this
rate if:
• You make a late payment;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do any of the above on another account that you have with us.
Minimum Interest Charge
If you are charged interest, this charge will be no less than $0.50.
Interest-Free Period on
Purchases
If you pay your balance in full each month, you have at least 25 days after
the close of each period to pay your balance on purchases with no interest
charge. If you do not pay your balance in full each month, you will lose this
interest-free period and will pay interest on purchases.
Fees
Set-up and Maintenance Fees
NOTICE: Some of these set-up and maintenance fees will be assessed before you begin using your card and will
reduce the amount of credit you initially have available. For example, if you are assigned the minimum credit limit of
$250, your initial available credit will be only $72 (or $52 if you choose to have an additional card).
x Annual Fee
$29
x Account Set-up Fee
$29 (one-time fee)
x Program Fee
$89 (one-time fee)
x Participation Fee
$36 annually ($3 per month)
x Additional Card Fee
$20 annually (if applicable)
x Account Maintenance Fee
$4 per month (on closed accounts with an outstanding balance of $20 or
more)
Transaction Fees
x Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is greater
(maximum fee: $100)
x Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever is greater
x Foreign Transaction
2% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$29 if balance is less than or equal to $1,000;
$35 if balance is more than $1,000 (Penalty APR may also apply)
x Over-the-Credit Limit
$29 (Penalty APR may also apply)
x Returned Payment
$35 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including
new purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10C2
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR)
for Purchases
7.99% to 18.99%, based on your creditworthiness.
Your initial
APR will be within this range based on current rates.
After that, your APR will vary with the market based on the Prime Rate.
APR for Balance Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and then
make purchases using this card, we will apply your payment first to your
transferred balances during the promotional period. You will be charged
interest on the full amount of your purchases during this period until your
transferred balances have been paid off completely.
APR for Cash Advances
21.99% currently.
This APR will vary with the market based on the Prime Rate. Cash
advance fees will also apply.
Penalty APR and When It Applies
35.99%
All of your APRs (including introductory APRs) may increase up to this
rate if you do any of the following twice in a six-month period:
• You make a late payment;
• You make a payment that is returned; or
• You do either of the above on another account that you have with us.
Minimum Interest Charge
If you are charged interest, this charge will be no less than $1.00.
Grace Period on Purchases
If you pay your balance in full each month, you have at least 26 days after
the close of each period to pay your balance on purchases with no interest
charge. If you do not pay your balance in full each month, you will lose this
interest-free period and will pay interest on purchases.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $10 or 5% of the amount of each transfer, whichever is greater
(maximum fee: $200)
x Cash Advance
Either $10 or 5% of the amount of each cash advance, whichever is greater
x Foreign Transaction
2% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$30 if balance is less than or equal to $1,000;
$36 if balance is more than $1,000 (Penalty APR may also apply)
x Over-the-Credit Limit
$30 (Penalty APR may also apply)
x Returned Payment
$30 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "average daily balance (including new
purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10D1
Important Information About Your Artesian Bank Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate
(APR) for Purchases
7.99% to 18.99%, based on your creditworthiness.
Your initial APR will be within this
range based on current rates.
After that, your APR will vary with the market based on the Prime Rate.
APR for Balance
Transfers
0.00% (until December 2007)
15.99% (after December 2007)
Balance transfer fees will also apply.
NOTICE: If you transfer balances at our low introductory APR and then make purchases using
this card, we will apply your payment first to your transferred balances during the promotional
period. You will be charged interest on the full amount of your purchases during this period until
your transferred balances have been paid off completely.
APR for Cash Advances
21.99% currently.
This APR will vary with the market based on the Prime Rate. Cash advance fees will also apply.
Penalty APR and When It
Applies
35.99%
Minimum Interest Charge
If you are charged interest, this charge will be no less than $1.00.
Grace Period on
Purchases
If you pay your balance in full each month, you have at least 26 days after the close of each period to
pay your balance on purchases with no interest charge. If you do not pay your balance in full each
month, you will lose this interest-free period and will pay interest on purchases.
All of your APRs (including introductory APRs) may increase up to this rate if you do any of the
following:
• You make a late payment;
• You exceed your credit limit;
• You make a payment that is returned; or
• You do either of the above on another account that you have with us.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $10 or 5% of the amount of each transfer, whichever is greater (maximum fee: $200)
x Cash Advance
Either $10 or 5% of the amount of each cash advance, whichever is greater
x Foreign Transaction
1% of transaction in U.S. dollars
Penalty Fees
x Late Payment
$30 if balance is less than or equal to $1,000;
$36 if balance is more than $1,000 (Penalty APR may also apply)
x Over-the-Credit Limit
$28 (Penalty APR may also apply)
x Returned Payment
$28 (Penalty APR may also apply)
How We Will Calculate Your Balance: We use a method called "average daily balance (including new
purchases)." For more information about this method, go to http://www.federalreserve.gov/location.
SB-10D2
Periodic Statements
Used in
Boston Interviews
Contents:
x Model PS-9 (pages 1 and 2)
x Model PS-10 (pages 1 and 2)
x Back of periodic statement pages
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 2
ACCOUNT SUMMARY
Account Number
Credit Limit
Available Credit as of 2/7/07
New Balance
Payment Due Date
Minimum Amount Due
1234567890123456
$2,000.00
$215.47
$1,784.53
2/22/07 (before 12:00 noon)
= $48.00 (see warning below)
WARNING ABOUT MINIMUM PAYMENTS: Given the
current APRs and balances on this account, if you made
only the minimum payment each month it would take you
about 15 years to repay your balances in full.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, NEWARK, DE 19711
For prompt credit, mail payments to:
PO BOX 5147
NEWARK, DE 19711
Payment sent to any other address may delay crediting your
account up to 5 days.
***NOTICE OF CHANGES TO INTEREST RATES***
You have triggered the Penalty APR of 34.99%. Beginning on the first day of your next billing period, we
will apply the penalty rate to all balances on this account. Your APRs will automatically revert back to the
standard APRs if you make 6 consecutive minimum payments when due and you do not exceed your
credit limit during that time. For more information on penalty rate triggers, see your cardholder agreement
and summary.
TRANSACTIONS
Trans Date
1/8
1/9
1/9
1/9
1/11
1/11
1/12
1/12
1/13
1/13
1/13
1/13
1/13
1/14
1/14
1/14
1/14
1/15
1/17
1/18
1/18
1/18
1/19
Post Date
1/9
1/9
1/10
1/10
1/11
1/12
1/12
1/12
1/14
1/14
1/14
1/15
1/15
1/15
1/15
1/15
1/15
1/16
1/18
1/19
1/19
1/19
1/20
Reference Number
Description of Transaction or Credit
Amount
CITGO FOOD MART #74 ATLANTA GA
$2.05
LATE FEE
$35.00
CVS PHARMACY #7338 003 ATLANTA GA
$12.11
ECKERD DRUGS #2708 ATLANTA GA
$4.63
PYMT THANK YOU
$450.00–
EASY SAVER 877-844-9564 PA
$114.95
BESTBANK/ACCESS CASH ATLANTA GA
$121.50
CASH ADVANCE FEE *TRANSACTION FEE*
$5.00
WAYFIELD FOODS #1 S9B ATLANTA GA
$7.35
ACME #1456 ATLANTA GA
$14.35
CITGO #1276 DECATUR GA
$40.35
BALANCE TRANSFER
$785.00
BALANCE TRANSFER FEE *TRANSACTION FEE*
$23.55
SAVE-A-LOT GROCERY #287 ATLANTA GA
$27.68
BEST BUY ATLANTA GA
$124.76
BESTBANK/ACCESS CASH DECATUR GA
$196.50
CASH ADVANCE FEE *TRANSACTION FEE*
$5.90
SHELL OIL #8765 ATHENS GA
$32.87
ECKERD DRUGS #2708 ATLANTA GA
$14.76
WALMART #2998 ATHENS GA
$3.76
MACYS #78 DECATUR GA
$13.45
CITGO FOOD MART #74 ATLANTA GA
$2.35
SHELL OIL #8765 ATHENS GA
$25.00
(transactions continued on next page)
5884186PS0388W6YM
9525156489SFD4545Q
0544400060ZLV72VL
55541860705RDYD0X
854338203FS8OO0Z5
554328608008W90M0
1542202074TWWZV48
56415615647OJSNDS
054830709LYMRPT4L
564891561545KOSHD
841517877845AKOJIO
4545754784KOHUIOS
84151564SADS8745H
895848561561894KOH
1871556189456SAMKL
14547847586KDDL564
256489156189451516L
2564894185189LKDFID
2564561023184102315
55542818705RASD0X
289189194ASDS8744
178105417841045784
8456152156181SDSA
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Account Number:
1234567890123456
New Balance
$1,784.53
PAYMENT INFORMATION
Minimum Amount Due
Payment Due Date
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Newark, DE 19711
= $48.00
2/22/07 (before 12:00 noon)
WARNING ABOUT LATE PAYMENT: If the minimum
required payment is not paid by the due date listed on this
statement, you may be subject to a $35 late fee and your
APRs may be increased up to the Penalty APR of 34.99%.
AMOUNT ENCLOSED: $
35806
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-9
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 2 of 2
TRANSACTIONS
Trans Date
1/19
1/20
1/23
1/24
1/25
1/25
1/27
Post Date
1/20
1/21
1/24
1/25
1/26
1/26
1/28
Reference Number
31289105205648AWD
045148714518979874
04518478415615ASD
0547810544898718AF
056489413216848OP
054894561564ASDW
5648974891AD98156
Description of Transaction or Credit
EASY SAVER 877-844-9564 PA
MACYS #78 DECATUR GA
SAVE-A-LOT GROCERY #287 ATLANTA GA
SHELL OIL #8765 ATHENS GA
WALMART #2998 ATHENS GA
ACME #1456 ATLANTA GA
MACYS #78 DECATUR GA
INTEREST CHARGE ON PURCHASES
INTEREST CHARGE ON CASH ADVANCES
Amount
$7.34
$13.45–
$10.56
$24.50
$8.76
$14.23
$23.76
$6.31
$4.58
TOTAL FEES FOR THIS PERIOD:
INTEREST CHARGE FOR THIS PERIOD:
$69.45
$10.89
2007 TOTALS YEAR-TO-DATE
FEES CHARGED
INTEREST CHARGED
$74.40
$13.12
INTEREST CHARGE CALCULATION
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Annual Percentage
Rate (APR)
Daily
Interest Rate
Balance Subject to
Interest Rate
Purchases
14.99% (v)
0.0411%
$512.14
$6.31
Cash Advances
21.99% (v)
0.0602%
$253.50
$4.58
0.00%
0.0000%
$637.50
$0.00
Type of Balance
Balance Transfers
Interest Charge
(v) = Variable Rate
EFFECTIVE APR
Your Effective APR is the rate that includes both interest and transaction fees that you were charged this month.
Type of Balance
Interest Charges
Transaction Fees
Effective APR
Purchases
$6.31
$0.00
14.99%
Cash Advances
$4.58
$10.90
58.42%
Balance Transfers
$0.00
$23.55
36.00%
SUMMARY OF ACCOUNT ACTIVITY
Statement Closing Date: 2/7/07
Days in Billing Cycle: 30
Previous
Balance
Payments and
Other Credits
Purchases
and Advances
Balance
Transfers
Total Fees
and Interest
New
Balance
$535.07
$463.45
$847.57
$785.00
$80.34
$1,784.53
Want to receive your billing statement in Spanish?
Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
Fast Online Card Payments with Click-to-Pay
Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that
same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu.
Save Time. Save Paper. Sign up for All Electronic.
You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when
your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account.
Need to add an authorized user to your account?
Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu
and select Add Authorized User. Complete the form and submit. It’s that simple!
PS-9
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 1 of 2
ACCOUNT SUMMARY
Account Number
Credit Limit
Available Credit as of 2/7/07
New Balance
Payment Due Date
Minimum Amount Due
1234567890123456
$2,000.00
$215.47
$1,784.53
2/22/07 (before 12:00 noon)
= $48.00 (see warning below)
WARNING ABOUT MINIMUM PAYMENTS: Given the
current APRs and balances on this account, if you made
only the minimum payment each month it would take you
about 15 years to repay your balances in full.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO BOX 5524, NEWARK, DE 19711
For prompt credit, mail payments to:
PO BOX 5147
NEWARK, DE 19711
Payment sent to any other address may delay crediting your
account up to 5 days.
***NOTICE OF CHANGES TO ACCOUNT TERMS***
We will be making changes to your account terms. Some of these changes will affect your APR on
Purchases and your Late Fee. These changes will be effective April 1, 2007. You have the right to
opt out of these changes; for more information please refer to the notice enclosed with this statement.
TRANSACTIONS
Trans Date
Post Date
Reference Number
Description of Transaction or Credit
PAYMENTS AND OTHER CREDITS
1/11
1/11
854338203FS8OO0Z5
1/20
1/21
045148714518979874
PURCHASES
1/8
1/9
1/9
1/11
1/13
1/13
1/13
1/14
1/14
1/15
1/17
1/18
1/18
1/18
1/19
1/19
1/23
1/24
1/25
1/25
1/27
1/9
1/10
1/10
1/12
1/14
1/14
1/14
1/15
1/15
1/16
1/18
1/19
1/19
1/19
1/20
1/20
1/24
1/25
1/26
1/26
1/28
Amount
PYMT THANK YOU
MACYS #78 DECATUR GA
$450.00–
$13.45–
CITGO FOOD MART #74 ATLANTA GA
$2.05
CVS PHARMACY #7338 003 ATLANTA GA
$12.11
ECKERD DRUGS #2708 ATLANTA GA
$4.63
EASY SAVER 877-844-9564 PA
$114.95
WAYFIELD FOODS #1 S9B ATLANTA GA
$7.35
ACME #1456 ATLANTA GA
$14.35
CITGO #1276 DECATUR GA
$40.35
SAVE-A-LOT GROCERY #287 ATLANTA GA
$27.68
BEST BUY ATLANTA GA
$124.76
SHELL OIL #8765 ATHENS GA
$32.87
ECKERD DRUGS #2708 ATLANTA GA
$14.76
WALMART #2998 ATHENS GA
$3.76
MACYS #78 DECATUR GA
$13.45
CITGO FOOD MART #74 ATLANTA GA
$2.35
SHELL OIL #8765 ATHENS GA
$25.00
EASY SAVER 877-844-9564 PA
$7.34
SAVE-A-LOT GROCERY #287 ATLANTA GA
$10.56
SHELL OIL #8765 ATHENS GA
$24.50
WALMART #2998 ATHENS GA
$8.76
ACME #1456 ATLANTA GA
$14.23
MACYS #78 DECATUR GA
$23.76
(transactions continued on next page)
5884186PS0388W6YM
0544400060ZLV72VL
55541860705RDYD0X
554328608008W90M0
054830709LYMRPT4L
564891561545KOSHD
841517877845AKOJIO
895848561561894KOH
1871556189456SAMKL
2564894185189LKDFID
2564561023184102315
55542818705RASD0X
289189194ASDS8744
178105417841045784
8456152156181SDSA
31289105205648AWD
04518478415615ASD
0547810544898718AF
056489413216848OP
054894561564ASDW
5648974891AD98156
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Account Number:
1234567890123456
New Balance
$1,784.53
PAYMENT INFORMATION
Minimum Amount Due
Payment Due Date
Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 5147
Newark, DE 19711
= $48.00
2/22/07 (before 12:00 noon)
WARNING ABOUT LATE PAYMENT: If the minimum
required payment is not paid by the due date listed on this
statement, you may be subject to a $35 late fee and your
APRs may be increased up to the Penalty APR of 34.99%.
AMOUNT ENCLOSED: $
35806
l l l l ll lll llll ll ll llllll ll llll llll ll llll llll lllll
l l l lll lll lll
ll ll
ll ll l l l ll l lll llll ll ll ll lll llll ll
ll l lllll l lll lll ll l ll llll
PS-10
CREDIT CARD ACCOUNT # 1234567890123456
Artesian
Bank
Artesian Bank
Page 2 of 2
TRANSACTIONS
Reference Number
Description of Transaction or Credit
Amount
CASH ADVANCES
1/12
1/12
1/14
1/15
Trans Date
Post Date
1542202074TWWZV48
14547847586KDDL564
BESTBANK/ACCESS CASH ATLANTA GA
BESTBANK/ACCESS CASH DECATUR GA
$121.50
$196.50
BALANCE TRANSFERS
1/13
1/15
4545754784KOHUIOS
BALANCE TRANSFER
$785.00
FEES
1/9
1/12
1/13
1/14
9525156489SFD4545Q
56415615647OJSNDS
84151564SADS8745H
256489156189451516L
LATE FEE
CASH ADVANCE FEE *TRANSACTION FEE*
BALANCE TRANSFER FEE *TRANSACTION FEE*
CASH ADVANCE FEE *TRANSACTION FEE*
TOTAL FEES:
$35.00
$5.00
$23.55
$5.90
$69.45
INTEREST CHARGE ON PURCHASES
INTEREST CHARGE ON CASH ADVANCES
TOTAL INTEREST:
$6.31
$4.58
$10.89
2007 TOTALS YEAR-TO-DATE
FEES CHARGED
INTEREST CHARGED
$74.40
$13.12
1/9
1/12
1/15
1/15
INTEREST CHARGES
INTEREST CHARGE CALCULATION
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Annual Percentage
Rate (APR)
Balance Subject to
Interest Rate
Purchases
14.99% (v)
$512.14
$6.31
Cash Advances
21.99% (v)
$253.50
$4.58
0.00%
$637.50
$0.00
Type of Balance
Balance Transfers
Interest Charge
(v) = Variable Rate
EFFECTIVE APR
Your Effective APR is the rate that includes both interest and transaction fees that you were charged this month.
Type of Balance
Interest Charges
Transaction Fees
Effective APR
Purchases
$6.31
$0.00
14.99%
Cash Advances
$4.58
$10.90
58.42%
Balance Transfers
$0.00
$23.55
36.00%
SUMMARY OF ACCOUNT ACTIVITY
Statement Closing Date: 2/7/07
Days in Billing Cycle: 30
Previous
Balance
Payments and
Other Credits
Purchases
and Advances
Balance
Transfers
Total Fees
and Interest
New
Balance
$535.07
$463.45
$847.57
$785.00
$80.34
$1,784.53
Want to receive your billing statement in Spanish?
Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
Fast Online Card Payments with Click-to-Pay
Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that
same business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu.
Save Time. Save Paper. Sign up for All Electronic.
You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when
your statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account.
Need to add an authorized user to your account?
Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu
and select Add Authorized User. Complete the form and submit. It’s that simple!
PS-10
IMPORTANT INFORMATION ABOUT YOUR ACCOUNT
Grace Period on New Purchases (at least 25 days)
You can avoid Interest Charges on new Purchases that posted to this
statement if your Previous Balance is zero (or a credit balance) and we
receive full payment of the New Balance by the Payment Due Date. If so,
you have from the date you made your purchases until the payment Due
Date on the front to avoid any interest charge on that purchase. If your
Previous Balance is greater than zero, there is no time period to pay the
New Balance and avoid additional interest charges. There is no grace
period for Cash Advances and Balance Transfers.
Explanation of Interest Charges and Transaction Fees
We calculate periodic interest charges using the applicable monthly
periodic rates separately for each feature (e.g., purchases, balance
transfers, cash advances, promotional balances, or overdraft advances).
We calculate the monthly periodic rate for each feature by dividing the
APR for each feature by 12. There is a minimum charge in any billing
cycle in which you owe any periodic interest charges, and a transaction
charge for each balance transfer, cash advance, or check transaction, in
the amounts stated in your Cardmember Agreement, as amended.
To get the daily balance for each day of the current billing cycle, we
take the beginning balance for each feature, add any new transactions
or other debits (including fees, unpaid interest charges and other
charges), subtract any payments or credits, and make other adjustments.
Transactions are added as of the transaction date, the beginning of the
billing cycle in which they are posted to your account, or a later date
of our choice (except that check transactions are added as of the date
deposited by the payee or a later date of our choice). Fees are added
either on the date of a related transaction, the date they are posted to
your account, or the last day of the billing cycle. This gives us that day’s
daily balance. A credit balance is treated as a balance of zero. If a daily
periodic rate applies to any feature we multiply the daily balance by the
daily periodic rate to get your periodic interest charges for that day. We
then add these periodic interest charges to your daily balance to get the
beginning balance for the next day. (If more than one daily periodic rate
could apply based on the average daily balance, we will use the daily
periodic rate that applies for the average daily balance amount at the end
of the billing cycle to calculate the daily periodic interest charges each
day.) If this statement shows a previous cycle average daily balance for
purchases, we do the same thing for each day of the previous cycle to
get the daily balance of purchases for the previous billing cycle. However,
the daily balance for previous billing cycle purchases is considered to be
zero for each day of the previous billing cycle if a periodic interest charge
was already billed on purchases itemized on your previous statement or
we receive payment of your New Balance on your previous statement in
full by the date and time your payment was due.
To get your total periodic interest charge for a billing cycle when a daily
periodic rate(s) applies, we add all of the daily periodic interest charges
for all features. To determine an average daily balance, we add your
daily balances and divide by the number of the days in the applicable
billing cycle(s). If you multiply the average daily balance for each feature
by the applicable daily periodic rate, and then multiply each of these
results by the number of days in the applicable billing cycle(s), and
then add all of the results together, the total will also equal the periodic
interest charges for the billing cycles except for minor variations due to
rounding. To get your total periodic interest charge for a billing cycle when
a monthly periodic rate(s) applies, multiply the average daily balance for
each feature by the applicable monthly periodic rate and add the results
together. The total will equal the periodic interest charges for the billing
cycle, except for minor variations due to rounding.
Account Renewal Information for Open Accounts
If your account has an Annual Fee and it is billed on this Statement, we
will reverse the fee if you cancel your account and pay off any existing
Balance within 30 days of receipt of this Statement. Otherwise, the
Annual Fee is non-refundable. You may continue to use your account
during the 30-day period before you cancel. To cancel, write us at the
Billing Inquiries address or call us at the phone number on the front.
Your Liability
Our records show that you are liable for any outstanding balance on
this account if your name appears on the front of this statement or you
otherwise agreed.
Report a Lost or Stolen Card Immediately
Call the 24-hour toll free number 1.800.555.6666. Do not use your
account after you report a lost or stolen card.
Cardholder Security PlanTM/Payment Protection Plan
If you have questions about your enrollment or need to file for
benefits, please call the applicable toll free number below
(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time):
Cardholder Security Plan-1.888.668.6938; Payment Protection
Plan-1.888.838.0056.
Service for International Calling
Dial the AT&T Direct access code for the country you are in
and dial 1.888.801.3723. For a list of access codes visit
www.artesian.com and select Credit Cards. You may also call
us collect at 1.757.677.4701.
Service for Hearing-Impaired (TTY/TDD)
Contact our service for the hearing-impaired at 1.800.222.7365.
Pay on-line at www.artesian.com or mail your payment to:
Artesian Bank, PO BOX 5147, SIOUX FALLS, SD 57117-5147.
BILLING RIGHTS SUMMARY
STATEMENT DISCLOSURE:
In Case of Error or Billing Inquiries
If you think your bill is wrong, or if you need more information about a
transaction on your bill, you must write to us (on a separate sheet) at PO
BOX 1390, Norfolk, VA 23501-1390 as soon as possible to preserve your
rights. We must hear from you no later than 60 days after we sent you the
first bill on which the error or problem appeared. In your letter, give us the
following information:
- Your name and account number
- The dollar amount of the suspected error
- Describe the error and explain, if you can, why you believe there
is an error
You do not have to pay any amount in question while we are investigating,
but you are still obligated to pay the parts of your bill that are not in question.
While we investigate your questions, we cannot report you as delinquent or
take any action to collect the amount you question.
Special Rate for Credit Card Purchases
If you have a problem with the quality of goods or services that you
purchased with a credit card, and you have tried in good faith to correct
the problem with the merchant, you may not have to pay the remaining
amount due on the goods or services. You have this protection only when
the purchase price was more than $50 and the purchase was made in
your home state or within 100 miles of your mailing address (if we own
or operate the merchant, or if we mailed you the advertisement for the
property or service, all purchases are covered regardless of the amount
or location of purchase).
IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY
FEDERAL LAW TO BE DISCLOSED TO YOU
WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED
PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT.
For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below.
If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate
processing.
________________________________________________________________________________________________________________
Address
________________________________________________________________________________________________________________
City
State
Zip
________________________________________________________________________________________________________________
Home Phone
Work Phone
________________________________________________________________________________________________________________
E-mail Address
By providing us with your e-mail address, you agree that we may communicate with you by electronic mail.
Prompt Crediting of Payments
We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later
than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All
payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post
Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only.
Convenience Checks
Used in
Boston Interviews
Contents:
x Model CC-1 (front and back)
x Model CC-2 (front and back)
Let summer go out
with a splash
Make things happen with extra cash!
This time of year offers
countless opportunities, so now
is the time to act! Use these
checks to take advance of your
low, promotional 1.7% Annual
Percentage Rate (APR) through
your November 2007 statement
closing date!*
481
DATE
62 –16
20
311
PAY TO THE
ORDER OF
$
DOLLARS
Wilmington, Delaware
Use these checks before the
season fades away! Or contact
us at www.artesianbank.com or
1-888-555-2890.
FOR
482
DATE
62 –16
20
311
PAY TO THE
ORDER OF
$
DOLLARS
Wilmington, Delaware
FOR
483
DATE
20
62 –16
311
PAY TO THE
ORDER OF
$
DOLLARS
Wilmington, Delaware
FOR
*See Disclosures on Reverse Side
CC-1
Share your account — not your card!
Give trusted family members and friends
charging privileges on your account simply
by adding them as users. You can add up to
six people at no extra cost. Each will receive
a personalized credit card with the same
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they will have access to the same line of credit.
All charges are conveniently itemized on one
monthly statement, so there is just one bill to
pay.
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additional cards today!
§ As the primary cardholder, you are responsible for all acount activity incurred by additional cardholders.
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
b RESERVED FOR FINANCIAL INSTITUTION USE b
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
b RESERVED FOR FINANCIAL INSTITUTION USE b
* Check Cash Advances (i.e., credit card
access checks) and Balance Transfers are
processed as Cash Advances according to
the terms of your Credit Card Agreement
and are subject to credit availability. For
your current APR on Cash Advances,
please refer to your current billing
statement. The transaction date for
each Check Cash Advance and Balance
Transfer made by check is the date you
or the person to whom the check is
PDGHSD\DEOH¿UVWGHSRVLWVRUFDVKHV
the check. There is no grace period
for Cash Advance transactions; interest
charges accrue from the transaction date.
The Two-Cycle Average Daily Balance
method (including new purchases) as
described in your Credit Card Agreement
(and on your periodic statement) is used
to compute your Cash Advance Balance.
Check Cash Advances and Balance
Transfers may not be used for repayment
of any Artesian Bank-issued accounts; use
of these checks as repayment will result in
a Returned Payment Fee as described in
your Credit Card Agreement.
We will allocate your payment to balances
(including new transactions) with lower
APRs before balances with higher APRs.
If you would like to opt out of receiving
checks like these in the future, call 1-800555-5245.
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
b RESERVED FOR FINANCIAL INSTITUTION USE b
This account is issued and administered
by Artesian Bank. MasterCard and World
Mastercard are federally registered service
marks of MasterCard International, Inc.,
and are used pursuant to license. Visa
is a federally registered service mark of
Visa U.S.A., Inc., and is used pursuant to
license.
CC-1
Let summer go out
with a splash
Make things happen with extra cash!
This time of year offers countless
opportunities, so now is the time to act!
Use these checks to take advance of your
low, promotional 1.7% Annual Percentage
Rate (APR) through your November 2007
statement closing date! Use these checks
before the season fades away! Or contact
us at www.artesianbank.com or 1-888555-2890.
Important Information About These
Checks:
• You will be charged a fee for using
these checks. This fee will be equal
to either $5 or 3% of the amount of
each check, whichever is greater.
•
•
481
DATE
311
PAY TO THE
ORDER OF
$
DOLLARS
Wilmington, Delaware
FOR
After November 2007, you will
be charged interest for the use
of these checks at your regular
APR for cash advances. You can
¿QGWKLV$35LQWKH,QWHUHVW5DWH
Calculation section of your most
recent credit card statement.
If you use these checks at our low
introductory APR and then make
purchases using this card, we will
DSSO\\RXUSD\PHQWV¿UVWWRWKH
balance of these checks during
the promotional period. You
will be charged interest on the
full amount of your credit card
purchases until the balance of
these checks has been paid off
completely.
62 –16
20
482
DATE
62 –16
20
311
PAY TO THE
ORDER OF
$
DOLLARS
Wilmington, Delaware
FOR
483
•
•
There is no grace period for
payments you make with these
checks; you will being accruing
interest on the transaction date.
If you would like to opt out of
receiving checks like these from
Artesian Bank in the future, call
1-800-555-5245.
DATE
20
62 –16
311
PAY TO THE
ORDER OF
$
DOLLARS
Wilmington, Delaware
FOR
See Additional Disclosures on Reverse Side*
CC-2
Share your account — not your card!
Give trusted family members and friends
charging privileges on your account simply
by adding them as users. You can add up to
six people at no extra cost. Each will receive
a personalized credit card with the same
H[FHSWLRQDOEHQH¿WVDVWKHFDUG\RXFDUU\$QG
they will have access to the same line of credit.
All charges are conveniently itemized on one
monthly statement, so there is just one bill to
pay.
Call the toll-free number on the lower right corner of your billing statement to request
additional cards today!
§ As the primary cardholder, you are responsible for all acount activity incurred by additional cardholders.
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
b RESERVED FOR FINANCIAL INSTITUTION USE b
* The transaction date for each Check
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by check is the date you or the person
WRZKRPWKHFKHFNLVPDGHSD\DEOH¿UVW
deposits or cashes the check. The TwoCycle Average Daily Balance method
(including new purchases) as described in
your Credit Card Agreement (and on your
periodic statement) is used to compute
your Cash Advance Balance. Check Cash
Advances and Balance Transfers may not
be used for repayment of any Artesian
Bank-issued accounts; use of these checks
as repayment will result in a Returned
Payment Fee as described in your Credit
Card Agreement.
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
b RESERVED FOR FINANCIAL INSTITUTION USE b
This account is issued and administered
by Artesian Bank. MasterCard and World
Mastercard are federally registered service
marks of MasterCard International, Inc.,
and are used pursuant to license. Visa
is a federally registered service mark of
Visa U.S.A., Inc., and is used pursuant to
license.
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
b RESERVED FOR FINANCIAL INSTITUTION USE b
CC-2
Cognitive Interviews:
Dallas, TX (March 2007)
Solicitation Letters
Used in
Dallas Interviews
Contents:
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Solicitation and Application Disclosures
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Used in
Dallas Interviews
Contents:
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Back of Models SB-11P and SB-12P
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5HF\FOHG3DSHU
Important Information About Your Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR) for
Purchases
14.99%
This APR will vary with the market based on the Prime Rate.
APR for Balance Transfers
14.99%
Balance transfer fees will also apply (see below).
APR for Cash Advances
23.99%
This APR will vary with the market based on the Prime Rate.
Cash advance fees will also apply (see below).
Penalty APR and When It Applies
32.99%
This APR may be applied to your entire balance (including introductory
APR balances) if you:
1) Exceed your credit limit;
2) Make a late payment;
3) Make a payment that is returned; or
4) Do any of the above on another account that you have with us or
another creditor.
For some of these actions you may also be charged a fee; see Penalty
Fees section below for more details.
If your APRs are increased for any of these reasons, they will remain at
that level until you make minimum payments when due and do not
exceed your credit limit for six consecutive months.
Minimum Interest Charge
If you are charged interest, this charge will be no less than $1.00.
Grace Period on Purchases
If you pay your entire balance in full each month, you have at least 26 days
after the close of each period to pay your balance on purchases without
being charged interest.
Website for Additional
Information
For more information about how to compare credit cards or what to consider
when applying for a card, go to http://www.frb.gov/location.
Fees
Annual Fee
None
Transaction Fees
x Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is greater
(maximum fee: $100). This fee is in addition to the interest you will be
charged on this amount (see Balance Transfer APR above).
x Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever is greater.
This fee is in addition to the interest you will be charged on this amount (see
Cash Advance APR above).
Penalty Fees
x Late Payment
$31 if balance is less than or equal to $1,000;
$35 if balance is more than $1,000 (Your APRs may also increase; see
Penalty APR section above)
x Over-the-Credit Limit
$30 (Your APRs may also increase; see Penalty APR section above)
x Returned Payment
$30 (Your APRs may also increase; see Penalty APR section above)
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including
new purchases)."
SB-11F1
Important Information About Your Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate
(APR) for Purchases
14.99%
APR for Balance
Transfers
14.99%
APR for Cash Advances
25.99%
Balance transfer fees will also apply (see below).
This APR will vary with the market based on the Prime Rate.
Cash advance fees will also apply (see below).
Penalty APR and When
It Applies
29.99%
This APR may be applied to your entire balance (including introductory
APR balances) if you:
1) Do not make a required payment by the payment due date;
2) Exceed your credit limit;
3) Make a payment that is returned; or
4) Do any of the above on another account that you have with us or
another creditor.
For some of these actions you may also be charged a fee; see Penalty
Fees section below for more details.
If your APRs are increased for any of these reasons, they will remain at
that level until you make minimum payments when due and do not exceed
your credit limit for six consecutive months.
Minimum Interest
Charge
If you are charged interest, this charge will be no less than $0.50.
Grace Period on
Purchases
If you pay your entire balance in full each month, you have at least 24 days
after the close of each period to pay your balance on purchases without
being charged interest.
Website for Additional
Information
For more information about how to compare credit cards or what to consider
when applying for a card, go to http://www.frb.gov/location.
Fees
Annual Fee
None
Transaction Fees
x
Balance Transfer
Either $5 or 3% of the amount of each transfer, whichever is greater (maximum
fee: $150). This fee is in addition to the interest you will be charged on this
amount (see Balance Transfer APR above).
x
Cash Advance
Either $5 or 3% of the amount of each cash advance, whichever is greater. This
fee is in addition to the interest you will be charged on this amount (see Cash
Advance APR above).
Penalty Fees
x
Late Payment
$32 if balance is less than or equal to $1,000;
$36 if balance is more than $1,000 (Your APRs may also increase; see Penalty
APR section above)
x
Over-the-Credit
Limit
$30 (Your APRs may also increase; see Penalty APR section above)
x
Returned
Payment
$29 (Your APRs may also increase; see Penalty APR section above)
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance
(including new purchases)."
SB-11F2
Important Information About Your Credit Card Account
Interest Rates And Interest Charges
Annual Percentage Rate (APR)
for Purchases
7.99% to 14.99% when you open your account, based on your
APR for Balance Transfers
14.99%
creditworthiness.
After that, your APR will vary with the market based on the Prime Rate.
Balance transfer fees will also apply (see below).
APR for Cash Advances
22.99%
This APR will vary with the market based on the Prime Rate.
Cash advance fees will also apply (see below).
Penalty APR and When It
Applies
29.99%
This APR may be applied to your entire balance (including introductory APR
balances) if you:
1) Make a late payment;
2) Exceed your credit limit;
3) Make a payment that is returned; or
4) Do any of the above on another account that you have with us or
another creditor.
For some of these actions you may also be charged a fee; see Penalty Fees
section below for more details.
If your APRs are increased for any of these reasons, they will remain at that
level until you make minimum payments when due and do not exceed your
credit limit for six consecutive months.
Minimum Interest Charge
If you are charged interest, this charge will be no less than $0.50.
Grace Period on Purchases
If you pay your entire balance in full each month, you have at least 26 days after
the close of each period to pay your balance on purchases without being charged
interest.
Website for Additional
Information
For more information about how to compare credit cards or what to consider
when applying for a card, go to http://www.frb.gov/location.
Fees
Annual Fee
None
Transaction Fees
x
Balance Transfer
Either $10 or 5% of the amount of each transfer, whichever is greater (maximum
fee: $150). This fee is in addition to the interest you will be charged on this
amount (see Balance Transfer APR above).
x
Cash Advance
Either $10 or 5% of the amount of each cash advance, whichever is greater.
This fee is in addition to the interest you will be charged on this amount (see
Cash Advance APR above).
Penalty Fees
x
Late Payment
$30 if balance is less than or equal to $1,000;
$36 if balance is more than $1,000 (Your APRs may also increase; see Penalty
APR section above)
x
Over-the-Credit Limit
$30 (Your APRs may also increase; see Penalty APR section above)
x
Returned Payment
$32 (Your APRs may also increase; see Penalty APR section above)
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance (including new
purchases)."
SB-11G1
Important Information About Your Credit Card Account
Interest Rates And Interest Charges
Annual
Percentage Rate
(APR) for
Purchases
6.99% to 15.99% when you open your account, based on your
APR for Balance
Transfers
15.99%
APR for Cash
Advances
19.99%
creditworthiness.
After that, your APR will vary with the market based on the Prime Rate.
Balance transfer fees will also apply (see below).
This APR will vary with the market based on the Prime Rate.
Cash advance fees will also apply (see below).
Penalty APR and
When It Applies
29.99%
This APR may be applied to your entire balance (including introductory APR
balances) if you:
1) Make a late payment;
2) Exceed your credit limit; or
3) Do any of the above on another account that you have with us or another
creditor.
For some of these actions you may also be charged a fee; see Penalty Fees
section below for more details.
If your APRs are increased for any of these reasons, we reserve the right to keep
them at this higher level indefinitely.
Minimum Interest
Charge
If you are charged interest, this charge will be no less than $0.75.
Grace Period on
Purchases
If you pay your entire balance in full each month, you have at least 28 days after the
close of each period to pay your balance on purchases without being charged
interest.
Website for
Additional
Information
For more information about how to compare credit cards or what to consider when
applying for a card, go to http://www.frb.gov/location.
Fees
Annual Fee
None
Transaction Fees
x Balance
Transfer
x Cash Advance
Either $10 or 5% of the amount of each transfer, whichever is greater (maximum fee:
$130). This fee is in addition to the interest you will be charged on this amount (see
Balance Transfer APR above).
Either $10 or 5% of the amount of each cash advance, whichever is greater. This
fee is in addition to the interest you will be charged on this amount (see Cash
Advance APR above).
Penalty Fees
x Late Payment
$32 (Your APRs may also increase; see Penalty APR section above)
x Over-the-
$28 (Your APRs may also increase; see Penalty APR section above)
Credit Limit
x Returned
$34 (Your APRs may also increase; see Penalty APR section above)
Payment
How We Will Calculate Your Balance: We use a method called "two-cycle average daily balance
(including new purchases)."
SB-11G2
Periodic Statements
Used in
Dallas Interviews
Contents:
x Model PS-11 (pages 1 and 2)
x Model PS-12 (pages 1 and 2)
x Back of periodic statement pages
Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
February 21, 2007 to March 22, 2007
Page 1 of 2
Payment Information
Summary of Account Activity
Previous Balance
Payments
Other Credits
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
$535.07
-$450.00
-$13.45
+$529.57
+$785.00
+$318.00
+$0.00
+$69.45
+$10.89
New Balance
$1,784.53
Credit limit
Available credit
Statement closing date
Days in billing cycle
$2,000.00
$215.47
3/22/2007
30
2007 Totals Year-to-Date
Total fees charged in 2007
Total interest charged in 2007
$90.14
$18.27
New Balance
$1,784.53
Minimum Payment Due
$48.00
Payment Due Date
4/20/07 (before 12:00 noon)
Late Payment Warning: If we do not receive your
minimum payment by the date and time listed above, you
may have to pay a $35 late fee and your APRs may be
increased up to the Penalty APR of 34.99%.
Notice about Minimum Payments: If you make only the
minimum payment each period, you will pay more in interest
and it will take you longer to pay off your balance. For example,
if you had a balance of $1,000 at an interest rate of 17% and
always paid only the minimum required, it would take over
7 years to repay the entire balance. For an estimate of the
time it would take to repay your actual balance making only
minimum payments, call 1-800-555-5555.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
Please send billing inquiries and correspondence to:
PO Box 5524, Newark, DE 19711
For prompt credit, mail payments to:
PO Box 5147, Newark, DE 19711
Payment sent to any other address may delay crediting
your account up to 5 days.
Important Changes to Your Account Terms
The following is a summary of changes that are being made to your account terms. You have the right to opt out of these
changes. For more detailed information, please refer to the booklet enclosed with this statement. The effective date of
these changes is 5/1/07.
Revised Terms, as of 5/1/07
APR for Purchases
16.99%
$32 if your balance is less than or equal to $1,000;
$39 if your balance is more than $1,000
Late Payment Fee
Transactions
Reference Number
Trans Date
854338203FS8OO0Z5
045148714518979874
2/25
3/4
5884186PS0388W6YM
0544400060ZLV72VL
55541860705RDYD0X
554328608008W90M0
054830709LYMRPT4L
564891561545KOSHD
841517877845AKOJIO
895848561561894KOH
1871556189456SAMKL
2564894185189LKDFID
2/22
2/24
2/25
2/24
2/25
2/25
2/25
2/26
2/26
2/27
Post Date
Description of Transaction or Credit
Amount
Payments and Other Credits
2/25
Pymt Thank You
$450.00–
3/5
Macys #78 Decatur GA
$13.45–
Purchases
2/23
Citgo Food Mart #74 Atlanta GA
$2.05
2/25
CVS Pharmacy #7338 003 Atlanta GA
$12.11
2/26
Eckerd Drugs #2708 Atlanta GA
$4.63
2/25
Easy Saver 877-844-9564 PA
$114.95
2/26
Wayfield Foods #1 S9B Atlanta GA
$7.35
2/26
Acme #1456 Atlanta GA
$14.35
2/26
Citgo #1276 Decatur GA
$40.35
2/27
Save-A-Lot Grocery #287 Atlanta GA
$27.68
2/27
Best Buy Atlanta GA
$124.76
2/28
Shell Oil #8765 Athens GA
$32.87
(transactions continued on next page)
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Account Number:
1234 5678 9012 3456
New Balance
$1,784.53
Minimum Payment Due
$48.00
Payment Due Date
4/20/07 (before 12:00 noon)
AMOUNT ENCLOSED: $
Artesian Bank
P.O. Box 5147
Newark, DE 19711
35806
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PS-11
Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
February 21, 2007 to March 22, 2007
Page 2 of 2
Transactions (cont.)
Reference Number
Trans Date
2564561023184102315
55542818705RASD0X
289189194ASDS8744
178105417841045784
8456152156181SDSA
31289105205648AWD
04518478415615ASD
0547810544898718AF
056489413216848OP
054894561564ASDW
5648974891AD98156
2/28
3/1
3/1
3/2
3/5
3/11
3/11
3/15
3/16
3/17
3/19
1542202074TWWZV48
14547847586KDDL564
2/26
2/28
4545754784KOHUIOS
2/27
9525156489SFD4545Q
56415615647OJSNDS
84151564SADS8745H
256489156189451516L
2/23
2/26
2/27
2/28
Post Date
Description of Transaction or Credit
Purchases (cont.)
3/1
Eckerd Drugs #2708 Atlanta GA
3/2
Walmart #2998 Athens GA
3/3
Macys #78 Decatur GA
3/6
Citgo Food Mart #74 Atlanta GA
3/12
Shell Oil #8765 Athens GA
3/12
Easy Saver 877-844-9564 PA
3/16
Save-A-Lot Grocery #287 Atlanta GA
3/17
Shell Oil #8765 Athens GA
3/17
Walmart #2998 Athens GA
3/18
Acme #1456 Atlanta GA
3/20
Macys #78 Decatur GA
Cash Advances
2/26
Best Bank/Access Cash Atlanta GA
2/26
Best Bank/Access Cash Decatur GA
Balance Transfers
3/1
Balance Transfer
Fees
2/23
Late Fee
2/26
Cash Advance Fee *Transaction Fee*
2/27
Balance Transfer Fee *Transaction Fee*
2/28
Cash Advance Fee *Transaction Fee*
TOTAL FEES FOR THIS PERIOD
Interest Charged
Interest Charge on Purchases
Interest Charge on Cash Advances
TOTAL INTEREST FOR THIS PERIOD
Amount
$14.76
$3.76
$13.45
$2.35
$25.00
$7.34
$10.56
$24.50
$8.76
$14.23
$23.76
$121.50
$196.50
$785.00
$35.00
$5.00
$23.55
$5.90
$69.45
$6.31
$4.58
$10.89
Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Annual Percentage
Rate (APR)
Daily
Interest Rate
Balance Subject to
Interest Rate
Purchases
14.99% (v)
0.0411%
$512.14
$6.31
Cash Advances
21.99% (v)
0.0602%
$253.50
$4.58
0.0000%
$637.50
$0.00
Type of Balance
Balance Transfers
0.00%
Interest Charge
(v) = Variable Rate
Fee-Inclusive APR
The Fee-Inclusive APRs in this table represent the APRs that you paid this period when transaction fees are taken into
account as well as interest.
Type of Balance
Interest Charges
Transaction Fees
Fee-Inclusive APR
Purchases
$6.31
$0.00
14.99%
Cash Advances
$4.58
$10.90
58.42%
Balance Transfers
$0.00
$23.55
36.00%
Want to receive your billing statement in Spanish?
Prefiere recibir su estado de cuesta en Espanol? Llamenos al 1-800-947-9100, o elija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
Fast Online Card Payments with Click-to-Pay
Pay your Artesian Bank bill online anytime, day or night. Payments received by 12 noon EST will post that same
business day! Sign-on to www.artesianbank.com and choose the Make a Payment menu.
Save Time. Save Paper. Sign up for All Electronic.
You’ll have instant access to your statement online, without that pile of paper. Get an e-mail notice when your
statement is ready. Register or sign-on to www.artesianbank.com and choose Manage My Account.
Need to add an authorized user to your account?
Just sign on to www.artesianbank.com, go to Maintenance Requests under the Manage My Account menu and
elect Add Authorized User. Complete the form and submit. It’s that simple!
PS-11
Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
February 21, 2007 to March 22, 2007
Page 1 of 2
Payment Information
Summary of Account Activity
Previous Balance
Payments
Other Credits
Purchases
Balance Transfers
Cash Advances
Past Due Amount
Fees Charged
Interest Charged
$535.07
-$450.00
-$13.45
+$529.57
+$785.00
+$318.00
+$0.00
+$69.45
+$10.89
New Balance
$1,784.53
Credit limit
$YDLODEOHFUHGLW
Statement closing date
'D\VLQELOOLQJF\FOH
$2,000.00
$215.47
3/22/2007
30
New Balance
$1,784.53
Minimum Payment Due
$48.00
3D\PHQW'XH'DWH EHIRUH QRRQ
Late Payment Warning: If we do not receive your
PLQLPXPSD\PHQWE\WKHGDWHDQGWLPHOLVWHGDERYH\RX
PD\KDYHWRSD\DODWHIHHDQG\RXU$35VPD\EH
increased up to the Penalty APR of 34.99%.
Notice about Minimum Payments: If you make only the
minimum payment each month on this account it will take you
DERXW15 yearsWRUHSD\WKHEDODQFHVKRZQRQWKLVVWDWHPHQW
in full.
QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card
1-800-987-5521
1-800-987-5521
3OHDVHVHQGELOOLQJLQTXLULHVDQGFRUUHVSRQGHQFHWR
PO Box 5524, Newark, DE 19711
For prompt credit, mail payments to:
PO Box 5147, Newark, DE 19711
Payment sent to any other address may delay crediting
your account up to 5 days.
Notice of Changes to Your Interest Rates
]
<RXKDYHWULJJHUHGWKH3HQDOW\$35RI %HJLQQLQJRQWKH¿UVWGD\RI\RXUQH[WELOOLQJ
SHULRGZHZLOODSSO\WKHSHQDOW\UDWHWRDOOEDODQFHVRQWKLVDFFRXQW:HUHVHUYHWKHULJKWWRNHHS
\RXU$35VDWWKLVOHYHOLQGH¿QLWHO\)RUPRUHLQIRUPDWLRQRQSHQDOW\UDWHWULJJHUVVHH\RXUFDUGholder agreement and summary.
Transactions
Reference Number
Trans Date
854338203FS8OO0Z5
045148714518979874
2/25
3/4
36:<0
0544400060ZLV72VL
55541860705RDYD0X
: 0
054830709LYMRPT4L
564891561545KOSHD
841517877845AKOJIO
895848561561894KOH
1871556189456SAMKL
2564894185189LKDFID
2/22
2/24
2/25
2/24
2/25
2/25
2/25
2/26
2/26
2/27
Post Date
Description of Transaction or Credit
Amount
Payments and Other Credits
2/25
Pymt Thank You
$450.00–
3/5
Macys #78 Decatur GA
$13.45–
Purchases
2/23
Citgo Food Mart #74 Atlanta GA
$2.05
2/25
CVS Pharmacy #7338 003 Atlanta GA
$12.11
2/26
Eckerd Drugs #2708 Atlanta GA
$4.63
2/25
Easy Saver 877-844-9564 PA
$114.95
2/26
:D\¿HOG)RRGV6 %$WODQWD*$
$7.35
2/26
Acme #1456 Atlanta GA
$14.35
2/26
Citgo #1276 Decatur GA
$40.35
2/27
Save-A-Lot Grocery #287 Atlanta GA
$27.68
2/27
Best Buy Atlanta GA
$124.76
2/28
Shell Oil #8765 Athens GA
$32.87
(transactions continued on next page)
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION
5825
TRD
2
100
7
Page 1 of 2
8382
4000
USM2
0003
050118
O1AC5825
35ADM
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Please indicate address change and additional
cardholder requests on the reverse side.
Account Number:
1234 5678 9012 3456
New Balance
$1,784.53
Minimum Payment Due
$48.00
Payment Due Date
4/20/07 (before 12:00 noon)
AMOUNT ENCLOSED: $
Artesian Bank
P.O. Box 5147
Newark, DE 19711
35806
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36D
IMPORTANT INFORMATION ABOUT YOUR ACCOUNT
Grace Period on New Purchases (at least 25 days)
You can avoid Interest Charges on new Purchases that posted to this
statement if your Previous Balance is zero (or a credit balance) and we
receive full payment of the New Balance by the Payment Due Date. If so,
you have from the date you made your purchases until the payment Due
Date on the front to avoid any interest charge on that purchase. If your
Previous Balance is greater than zero, there is no time period to pay the
New Balance and avoid additional interest charges. There is no grace
period for Cash Advances and Balance Transfers.
Explanation of Interest Charges and Transaction Fees
We calculate periodic interest charges using the applicable monthly
periodic rates separately for each feature (e.g., purchases, balance
transfers, cash advances, promotional balances, or overdraft advances).
We calculate the monthly periodic rate for each feature by dividing the
APR for each feature by 12. There is a minimum charge in any billing
cycle in which you owe any periodic interest charges, and a transaction
charge for each balance transfer, cash advance, or check transaction, in
the amounts stated in your Cardmember Agreement, as amended.
To get the daily balance for each day of the current billing cycle, we
take the beginning balance for each feature, add any new transactions
or other debits (including fees, unpaid interest charges and other
charges), subtract any payments or credits, and make other adjustments.
Transactions are added as of the transaction date, the beginning of the
billing cycle in which they are posted to your account, or a later date
of our choice (except that check transactions are added as of the date
deposited by the payee or a later date of our choice). Fees are added
either on the date of a related transaction, the date they are posted to
your account, or the last day of the billing cycle. This gives us that day’s
daily balance. A credit balance is treated as a balance of zero. If a daily
periodic rate applies to any feature we multiply the daily balance by the
daily periodic rate to get your periodic interest charges for that day. We
then add these periodic interest charges to your daily balance to get the
beginning balance for the next day. (If more than one daily periodic rate
could apply based on the average daily balance, we will use the daily
periodic rate that applies for the average daily balance amount at the end
of the billing cycle to calculate the daily periodic interest charges each
day.) If this statement shows a previous cycle average daily balance for
purchases, we do the same thing for each day of the previous cycle to
get the daily balance of purchases for the previous billing cycle. However,
the daily balance for previous billing cycle purchases is considered to be
zero for each day of the previous billing cycle if a periodic interest charge
was already billed on purchases itemized on your previous statement or
we receive payment of your New Balance on your previous statement in
full by the date and time your payment was due.
To get your total periodic interest charge for a billing cycle when a daily
periodic rate(s) applies, we add all of the daily periodic interest charges
for all features. To determine an average daily balance, we add your
daily balances and divide by the number of the days in the applicable
billing cycle(s). If you multiply the average daily balance for each feature
by the applicable daily periodic rate, and then multiply each of these
results by the number of days in the applicable billing cycle(s), and
then add all of the results together, the total will also equal the periodic
interest charges for the billing cycles except for minor variations due to
rounding. To get your total periodic interest charge for a billing cycle when
a monthly periodic rate(s) applies, multiply the average daily balance for
each feature by the applicable monthly periodic rate and add the results
together. The total will equal the periodic interest charges for the billing
cycle, except for minor variations due to rounding.
Account Renewal Information for Open Accounts
If your account has an Annual Fee and it is billed on this Statement, we
will reverse the fee if you cancel your account and pay off any existing
Balance within 30 days of receipt of this Statement. Otherwise, the
Annual Fee is non-refundable. You may continue to use your account
during the 30-day period before you cancel. To cancel, write us at the
Billing Inquiries address or call us at the phone number on the front.
Your Liability
Our records show that you are liable for any outstanding balance on
this account if your name appears on the front of this statement or you
otherwise agreed.
Report a Lost or Stolen Card Immediately
Call the 24-hour toll free number 1.800.555.6666. Do not use your
account after you report a lost or stolen card.
Cardholder Security PlanTM/Payment Protection Plan
If you have questions about your enrollment or need to file for
benefits, please call the applicable toll free number below
(Monday-Friday, 7:00 a.m.-10:00 p.m. Central Time):
Cardholder Security Plan-1.888.668.6938; Payment Protection
Plan-1.888.838.0056.
Service for International Calling
Dial the AT&T Direct access code for the country you are in
and dial 1.888.801.3723. For a list of access codes visit
www.artesian.com and select Credit Cards. You may also call
us collect at 1.757.677.4701.
Service for Hearing-Impaired (TTY/TDD)
Contact our service for the hearing-impaired at 1.800.222.7365.
Pay on-line at www.artesian.com or mail your payment to:
Artesian Bank, PO BOX 5147, SIOUX FALLS, SD 57117-5147.
BILLING RIGHTS SUMMARY
STATEMENT DISCLOSURE:
In Case of Error or Billing Inquiries
If you think your bill is wrong, or if you need more information about a
transaction on your bill, you must write to us (on a separate sheet) at PO
BOX 1390, Norfolk, VA 23501-1390 as soon as possible to preserve your
rights. We must hear from you no later than 60 days after we sent you the
first bill on which the error or problem appeared. In your letter, give us the
following information:
- Your name and account number
- The dollar amount of the suspected error
- Describe the error and explain, if you can, why you believe there
is an error
You do not have to pay any amount in question while we are investigating,
but you are still obligated to pay the parts of your bill that are not in question.
While we investigate your questions, we cannot report you as delinquent or
take any action to collect the amount you question.
Special Rate for Credit Card Purchases
If you have a problem with the quality of goods or services that you
purchased with a credit card, and you have tried in good faith to correct
the problem with the merchant, you may not have to pay the remaining
amount due on the goods or services. You have this protection only when
the purchase price was more than $50 and the purchase was made in
your home state or within 100 miles of your mailing address (if we own
or operate the merchant, or if we mailed you the advertisement for the
property or service, all purchases are covered regardless of the amount
or location of purchase).
IMPORTANT CREDIT BUREAU REPORTING INFORMATION REQUIRED BY
FEDERAL LAW TO BE DISCLOSED TO YOU
WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS. LATE PAYMENTS, MISSED
PAYMENTS OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN YOUR CREDIT REPORT.
For address changes, you may access your account online at: www.artesian.com, call 1.800.555.6666 or write your address changes below.
If you choose to call the 800# provided, you must have your credit card present. Please include your account number to ensure accurate
processing.
________________________________________________________________________________________________________________
Address
________________________________________________________________________________________________________________
City
State
Zip
________________________________________________________________________________________________________________
Home Phone
Work Phone
________________________________________________________________________________________________________________
E-mail Address
By providing us with your e-mail address, you agree that we may communicate with you by electronic mail.
Prompt Crediting of Payments
We will credit any payments as of the date we receive it as long as it is mailed with the enclosed payment coupon and received by us no later
than 12:00 noon at either the P.O. Box on the front or the P.O. Box above. Crediting of all other payments may be delayed up to 5 days. All
payments must be in the form of a check or money order drawn in U.S. dollars on a financial institution located in the U.S. or the U.S. Post
Office or made by electronic funds transfers, however cash payments may be made in person at our banking centers only.
Convenience Checks
Used in
Dallas Interviews
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