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Design and Testing of Effective
Truth in Lending Disclosures

December 15, 2008

Findings from Experimental Study

Submitted to:

Board of Governors of the Federal Reserve System
[Seal of the Board of Governors of the Federal Reserve System]

Submitted by:
[Macro International Inc. logo]

Design and Testing of Effective
Truth in Lending Disclosures
Findings from Experimental Study

[Seal of the Board of Governors of the Federal Reserve System]

Submitted to:
Board of Governors
of the Federal Reserve System
20th and C Streets, NW
Washington, DC 20551

[Macro International Inc. logo]

Submitted by:
Macro International
11785 Beltsville Drive
Calverton, MD 20705
www.macrointernational.com

TABLE OF CONTENTS

Executive Summary
Chapter I: Introduction
Background

Chapter II: Research Questions
Introduction
Research Questions Related to

2
Schumer

Box

Research Questions Related to Periodic Statement

Research Question Related to Change-in-Terms Notice

Research Question Related to Payment Allocation Disclosure

Chapter III: Experimental Methodology
Model Disclosures Used in Testing

Screening of Potential Participants

Interview Protocol

Pre-Testing of Protocol

Training of Interviewers

Quality Assurance Procedures

Chapter IV: Results and Analysis
Introduction
Research Questions Related to

18
Schumer

Box

Research Questions Related to Periodic Statement

Research Question Related to Change-in-Terms Notice

Research Question Related to Payment Allocation

Chapter V: Summary

Appendices:
Appendix A: Schumer Box Models Used in Testing
Appendix B: Periodic Statements Used in Testing
Appendix C: Change-in-Terms Insert Provided with Periodic Statement
Appendix D: Screening Questions
Appendix E: Participant Demographic Information
Appendix F: Mock Marketing Inserts Provided with Periodic Statement
Appendix G: Interview Protocol

EXECUTIVE SUMMARY
BACKGROUND OF PROJECT
The Federal Reserve Board (the "Board") is responsible for implementing the Truth in Lending
Act (TILA), and currently does so through its Regulation Z. Since 2004, the Board has been in
the process of reviewing portions of Regulation Z related 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.
In April 2006, the Board contracted with Macro International Inc. ("Macro") to assist the Board
in this effort. Over the past two and a half years, Macro conducted two rounds of focus groups
and eight rounds of one-on-one cognitive interviews with consumers to help the Board refine its
proposed regulations and produce model credit card forms that communicate key information to
consumers effectively. Results from this qualitative research have been described in two
previous reports for the Board.
While Macro's qualitative work produced a number of important and actionable findings for the
Board, after the final round of interviews there remained a number of issues on which the Board
sought more conclusive evidence. To get a more definitive answer to these remaining questions,
the Board contracted with Macro to conduct a quantitative study using mall intercept
methodology. Participants in the study were shown model credit card forms, and were then
asked to answer a series of questions to measure their understanding of the forms' content.
Because the forms shown to participants differed on a small number of variables related to
format and wording, Macro was able to use the response data to determine whether each of these
variables had a significant impact on consumer understanding.
The research questions that were addressed in this quantitative phase of the research were related
to four types of disclosures:
•

"Schumer Boxes," which are tabular disclosures that are provided on or with direct-mail
solicitations and applications for credit cards to help consumers compare and shop for
credit cards.

•

Periodic statements, which typically are provided on a monthly basis to inform
cardholders about transactions, fees, and interest charges incurred in the previous billing
cycle.

•

Change-in-terms notices that may be provided with periodic statements or separately to
inform consumers about revisions to their account agreements.

•

Payment allocation disclosures, which the Board proposed in June 2007 to require in the
Schumer Box, to describe to consumers how the issuer would allocate payments between
balances with different interest rates. These notices are not currently required.

Page i

METHODOLOGY
Macro carried out the survey using mall intercept methodology in seven locations across the
country: Dallas, TX; Detroit, MI; Los Angeles; CA, Seattle; WA, Springfield, MA; St. Louis,
MO; and Tallahassee, FL. Over a fielding period of four weeks in September 2008, a total of
1,022 consumers were interviewed.
After being recruited from public areas of the mall based on a series of screening questions,
participants were directed to a self-contained research office where they completed the interview.
Participants were first given one of eight different Schumer Box models and asked to review it
just as they normally would if they had received it as part of a credit card offer. After the
participants finished reviewing the Schumer Box, they were asked a series of questions to test
their understanding of what they had read.
After participants had answered the series of questions about the Schumer Box, they were given
an envelope containing one of 12 different periodic statement models. Participants were asked to
review the contents of the envelope just as they do when they receive their credit card statements
each month. Once they had completed their review, they were asked a series of questions to test
their understanding of the contents of the envelope. Again, these questions were designed to
answer the research questions related to periodic statements.
After participants had answered the series of questions about the periodic statement, they were
asked about a hypothetical scenario in which they had account balances with two different
interest rates. They were then asked a series of three questions to test their understanding of how
banks typically allocate payments between balances. Once they had answered these questions,
they were asked to read one of three sample disclosures related to payment allocation. After
reading the notice, they were asked the same three questions again to test whether reading the
notice had an impact on their understanding of payment allocation.
The models that were shown to consumers were rotated, so that approximately equal numbers
saw each model. Participants received $5 for completing the survey, which on average took
approximately 15 minutes.

KEY FINDINGS
Prior to designing the study, Macro worked with DCCA to develop a set of 13 specific
research questions, most of which related to the impact of a particular design variable on
consumer understanding. The testing forms and experimental framework were designed to
answer these specific questions. Our findings were as follows:

Findings Related to Schumer Boxes
• Finding 1: Adding references in the transaction APR rows of the Schumer Box directing
participants' attention to corresponding transaction fees that they could be charged had
very little impact on their awareness of those fees.

Page ii

• Finding 2: Displaying identical APRs for different types of transactions in separate rows,
rather than combining them into a single row, had a small, statistically insignificant
(p=0.16) positive impact on participants' ability to identify the APRs. 70.2 percent of
participants who saw Schumer Boxes with separate APR rows were able to identify their
APR on balance transfers, compared to 65.6 percent who saw models with a combined
APR row.
• Finding 3: Disclosing different types of fees in separate rows when the fee amounts were
the same had a small, statistically insignificant (p=0.27) positive impact on participants'
ability to identify these fees. 57.2 percent of participants who were shown Schumer
Boxes with separate fee rows were able to correctly identify the fee they would pay for
going over their credit limit, compared to 52.0 percent who saw models with a combined
fee row.
• Finding 4: Participants who saw Schumer Box forms that listed the over-the-credit limit
fee on the back of the page were statistically less likely to be able to identify this fee
(40.6% vs. 68.7%, p<0.01).
• Finding 5: Adding a reference in the rows disclosing penalty fees that directed
participants' attention to the Penalty APR had a small but statistically insignificant
(p=0.23) positive impact on the percentage of participants who could identify this rate.
54.5 percent of participants who saw a form with this reference correctly identified the
Penalty APR, compared to 50.0 percent who saw a form without the reference. The
reference was more effective when the rows in which it was located appeared on the front
of the page rather than the back.

Findings Related to Periodic Statements
• Finding 6: Grouping the transaction list on the periodic statement by transaction type led
to a statistically significant increase in the percentage of participants who could correctly
identify their first cash advance. 61.6 percent of participants who saw a grouped
transaction list could identify this transaction, compared to 49.7 percent of those who saw
a list in which transactions were displayed chronologically (p<0.01).
• Finding 7: Participants who saw a grouped transaction list were more likely than those
who saw chronological lists to be able to correctly identify the number of fees that they
had been charged (53.6% vs. 28.1%, p<0.01).
• Finding 8: Participants who were shown a chronological transaction list were more likely
than those who saw grouped lists (p=0.03) to be able to correctly match a transaction fee to
its corresponding transaction. Among participants who correctly identified the first cash
advance on their statement, 91.9 percent of those who saw chronological lists were able
to identify the corresponding cash advance fee they were charged for that transaction,
compared to 80.9 percent of those who saw a grouped list.

Page iii

• Finding 9: When asked what would happen to the Fee-Inclusive APR1 for cash advances
if no more advances were made and the balance was not entirely paid off, only 6.8
percent of participants understood that the following month the Fee-Inclusive APR would
be the same as the nominal APR on cash advances. 39.3 percent said that the FeeInclusive APR would stay the same in this scenario, while 31.9 percent indicated that
they did not know the answer to this question. [Footnote 1. The Fee-Inclusive APR
was the label used in testing for the term currently known as the Effective APR. This
term was used because it was considered by the Board, based on one-on-one cognitive
interviews, to be more descriptive for consumers. End footnote 1.]
• Finding 10: Participants who were shown a periodic statement that displayed the FeeInclusive APR were less likely to be able to correctly identify their current APR on cash
advances than those who saw a statement that did not include the Fee-Inclusive APR
(53.4% vs. 66.6%, p<0.01). At least part of this effect can be explained by the fact that
participants had difficulty distinguishing these two terms.
• Finding 11: All models used in testing included a section at the top of the page that
included payment information such as the due date, account balance, and minimum
payment. This section also included a Late Payment Warning that stated the fee and
Penalty APR that could be charged if a payment was not made on time. This information
was arranged in three different ways on the different statement models. However, this
difference had almost no impact on consumers' ability to find the information in the Late
Payment Warning.

Finding Related to Change-in-Terms Notices
• Finding 12: All periodic statement models that were shown to participants included a
notice of changes in terms on either the first or second page. In some cases, this notice
included a summary table of key changes; in other cases the notice simply stated that
changes were being made and directed the accountholder to a separate insert for more
details. Participants who saw forms that included the summary table were more than
twice as likely to be able to identify their new APR on purchases (7.2% vs. 3.5%, p<0.01).

Finding Related to Payment Allocation Notices
• Finding 13: As noted above, participants were asked a series of three questions to test
their understanding of how and why banks might allocate payments between balances.
They were then given a written description of a hypothetical bank's payment allocation
practice and asked the same three questions again. After reading this description, the
percentage of participants who correctly answered the three questions increased from
17.7 percent to 22.9 percent. However, there seemed to be uncertainty even among
people who answered all three questions correctly; about a fifth (19.4%) of participants
who answered the questions correctly before reading the notice went on to answer at least
one incorrectly after reading the notice.

Page iv

CHAPTER I: INTRODUCTION
BACKGROUND
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 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. Over the past two
and a half years, Macro conducted qualitative consumer testing for the Board to help it refine its
proposed regulations and produce model credit card forms that communicate key information to
consumers effectively. This consumer testing consisted of two rounds of focus groups and seven
rounds of one-on-one cognitive interviews. Results from this qualitative research have been
described in two other reports Macro has produced for the Board.
While Macro's qualitative work produced a number of important and actionable findings for the
Board, at the conclusion of this phase of the project there remained a number of issues on which
the Board sought more conclusive evidence. In other words, there were several questions related
to the formatting or wording of model forms for which it was unclear which option was most
effective—or whether variation in that area made any difference at all to consumer
understanding. To get a more definitive answer to these remaining questions, the Board
contracted with Macro to conduct a quantitative study using mall intercept methodology.
Participants in the study were shown model credit card forms, and then asked to answer a series
of questions to measure their understanding of the forms' content. Because the forms shown to
participants differed on a small number of variables related to formatting and wording, Macro
used the response data to determine whether each of these variables had a significant impact on
consumer understanding.
This report describes this quantitative mall intercept research project. The report is divided into
three primary sections; Chapter II describes the research questions that the Board was trying to
answer through this study, Chapter III describes the methodology used by Macro to conduct the
study, and Chapter IV provides a detailed account of the results of the experiment.

Page 1

CHAPTER II: RESEARCH QUESTIONS

INTRODUCTION
Macro began conducting consumer research for the Board related to Regulation Z open-end
credit rules in the spring of 2006. Between then and the spring of 2007, Macro completed two
sets of focus groups and five rounds of cognitive interviews with consumers. Based in part on
findings from this research, the Board released proposed revisions to Regulation Z in June of
2007 and solicited public comment on its proposals. Following the comment period, Macro
conducted another round of cognitive interviews in March 2008, the results of which informed
the Board's release of a second round of proposed revisions in May of that year. Macro
continued its work with two more rounds of cognitive interviews in July and August 2008.
As noted in Chapter I, Macro's qualitative research produced a number of clear findings related
to how credit card disclosures could be made most effective and useful for consumers. In other
cases, results from the focus groups and interviews did not provide a clear answer as to how
disclosure factors impacted consumer understanding. It was these unresolved issues that the
Board selected for further investigation in Macro's mall intercept study.
The research questions that were addressed in this quantitative phase of the research were related
to four types of disclosures:
•

Schumer Boxes, which are tabular disclosures that are provided on or with direct-mail
solicitations and applications for credit cards to help consumers compare and shop for
credit cards. Schumer Boxes are the only type of credit card disclosure for which a
specific layout is currently required by the Board.

•

Periodic statements, which typically are provided on a monthly basis to inform
cardholders 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 that may be provided with periodic statements or separately to
inform consumers about revisions to their account agreements. Currently, most issuers
provide a notice on the statement that indicates that changes have been made to account
terms and directs consumers to a separate insert that contains more detail about the
changes. Some forms used in this study also included a summary of key changes on the
statement itself.

•

Payment allocation disclosures, which the Board proposed in June 2007 to require in
the Schumer Box, to describe to consumers how the issuer would allocate payments
between balances with different interest rates. These notices are not currently required.

Page 2

RESEARCH QUESTIONS RELATED TO SCHUMER BOX

References from Transaction APRs to Transaction Fees
In early rounds of qualitative testing, there were some participants who, even after reading the
Schumer Box, did not realize that fees could be charged for balance transfers and cash advances.
In order to make this information more noticeable, cross-references were added in the APR rows
for these types of transactions stating that fees will apply, and directing consumers to the Fees
section of the Schumer Box for more information. Qualitative testing produced some evidence
that adding these references did increase participants' awareness of transaction fees. At the same
time, however, requiring this text would add to the length of the Schumer Box. The Board
sought to obtain additional data regarding whether cross-references were effective, to determine
whether the references should be required by the final rule. Therefore, this was included as a
research question in the quantitative study.
Research Question #1: Does including references to transaction fees in rows for
transaction APRs impact consumers' ability to correctly identify those fees?

Combined vs. Separate Rows for Transaction APRs and Penalty Fees
The proposed rules released by the Board in June 2007 would have required that Schumer Boxes
include separate rows displaying the APRs for purchases, balance transfers, and cash advances.
Some industry commenters asked that issuers be allowed to combine APRs for different
transaction types into the same row, assuming that all the information was the same. For
example, rather than including separate rows indicating that the APRs for balance transfers and
cash advances were variable rates of 21.99%, commenters suggested that the Board allow issuers
to show a single row listing information for "APRs on Balance Transfers and Cash Advances."
The commenters noted that this would save space on the form. However, the Board was
concerned that allowing issuers to combine rows in this way might negatively impact consumers'
ability to distinguish the different APRs. To test whether this was the case, the Board decided to
include this as a research question in the quantitative study.
Research Question #2: Does combining information about APRs for different transaction
types into a single row (as opposed to having a separate row for each type) impact
consumers' ability to correctly identify transaction APRs?
Similarly, the Board's June 2007 proposed rules also required that the Schumer Boxes include
separate rows for each type of fee. Again, commenters asked for the flexibility to combine
multiple types of fees into a single row if the fee amounts were the same. As with Research
Question #2 above, the Board decided to test the impact of combining rows for different types of
fees on consumers' awareness of the fees.
Research Question #3: Does combining information about penalty fees into a single row (as
opposed to having a separate row for each type of fee) impact consumers' ability to
correctly identify these fees?

Page 3

Displaying Penalty Fees on the Back of the Schumer Box
In its June 2007 proposed rules, the Board added some requirements for what information should
be included in the Schumer Box. In doing so, it was aware that it was increasing the possibility
that the Schumer Box would not fit on a single page, and therefore that the final rows of the box
could appear on the back of the page. However, there was some evidence from the final three
rounds of qualitative testing that information that appeared on the back of the Schumer Box was
less likely to be seen by consumers. To test the extent to which this was truly the case, the Board
included this as a research question for this quantitative study.
Research Question #4: Does having penalty fees appear on the back of the Schumer Box, as
opposed to the front, impact consumers' ability to correctly identify these fees?

References from Penalty Fees to Penalty APR
Most participants in early rounds of testing understood that they could be charged penalty fees if
they paid late or went over their credit limit. However, a significant number did not understand
that their APRs could also be increased in these situations. Even after a number of formatting
changes were made to the Schumer Box to increase the prominence of the information about
Penalty APRs (such as requiring that it be displayed in a separate row), a number of participants
still did not notice this information. To address this issue, references were added to the Penalty
Fee rows stating that APRs could also increase, and directing consumers to the Penalty APR
section of the Schumer Box for more information. Qualitative testing provided some evidence
that adding these references did increase participants' awareness of the Penalty APR. Again,
however, the Board was aware that requiring this text would add to the length of the Schumer
Box. For this reason, the Board wanted to obtain additional data regarding the effectiveness of
these references quantitatively before requiring them in the Schumer Box.
Research Question #5: Does including a reference to the Penalty APR in the rows
containing penalty fees impact consumers' awareness of the Penalty APR?

RESEARCH QUESTIONS RELATED TO PERIODIC STATEMENT

Grouped vs. Chronological Transaction Lists
One aspect of periodic statement design that was investigated through cognitive interviews with
consumers was grouping transaction lists by type. Currently, the transaction lists provided by
most issuers display transactions and charges in chronological order, regardless of their type—
that is, purchases, cash advances, fees, etc. are interspersed throughout the list. Qualitative
research, however, provided some preliminary evidence that listing all transactions of a given
type together made it easier for consumers to find and identify information in the list. Because
commenters on the Board's proposals stated that requiring transaction lists to be designed in this
way would entail significant burden for many credit card issuers, the Board wanted to investigate

Page 4

further whether grouping the lists in this way has an impact on consumers' ability to identify
individual transactions. As a result, this research question was included in this quantitative
study.
Research Question #6: Does grouping the transaction list by transaction type, rather than
presenting transactions in chronological order, impact consumers' ability to identify
individual transactions?
Results from the qualitative research showed that grouping transaction lists by type might have a
particularly strong impact on consumers' awareness of fees that they were charged. Cognitive
interviews showed that some consumers only skimmed their transaction lists quickly and as a
result did not notice fees that were interspersed in the list among other types of transactions.
When fees were displayed as a separate section in the list, however, participants were more
likely to see them. Because it considered the disclosure of fees to be a particularly important
purpose of periodic statements, the Board wanted to test the effect of grouped transaction lists on
consumers' awareness of fees.
Research Question #7: Does grouping the transaction list by transaction type, rather than
presenting transactions in chronological order, impact consumers' awareness of fees that
they have been charged?
Some industry commenters on the Board's June 2007 proposal expressed concern that grouping
transaction lists might make it more difficult for consumers to connect transaction fees with their
corresponding transactions. For example, they noted, in a chronological transaction list it is
relatively easy for consumers to connect cash advances and the fees they were charged for the
advances, because they are listed next to each other. In a grouped list, commenters argued, it
would be more difficult for consumers to connect cash advance fees with the corresponding cash
advances, which would no longer be listed next to the fees. Cognitive interviews provided some
preliminary evidence that this might be the case, but this evidence was not conclusive. As a
result, the Board decided to test this question quantitatively.
Research Question #8: Does grouping the transaction list by transaction type, rather than
presenting transactions in chronological order, impact consumers' ability to relate
transactions to their corresponding transaction fees?

Fee-Inclusive APR
Throughout the multiple stages of qualitative testing, one of the most consistent findings was that
very few participants understood the meaning of the Fee-Inclusive APR that was included on
statement models.2 [Footnote 2. This term is currently called the Effective APR. However,
during qualitative testing it was re-labeled "Fee-Inclusive APR" because the term was
considered more descriptive to consumers. End footnote 2.] Participants had a wide variety
of incorrect interpretations of these
percentages, including that they were the interest rates that would be paid on fees, penalty rates
that would be charged if late payments were made, or the percentages of total transactions that

Page 5

were made of each type. These misconceptions persisted even after multiple labels were tested
for this term and a more detailed description was added to the statement. At the same time, some
consumer group commenters on the Board's June 2007 proposal felt strongly that this term is the
best measure of the true cost of credit and that it should continue to be required on statements. In
order to gather more data as to how many consumers are able to understand this term, the Board
decided to include it in the quantitative study.
Research Question #9: What percentage of consumers understand the meaning of the FeeInclusive APR?
In addition to a general lack of understanding of the Fee-Inclusive APR, qualitative testing also
found several instances when participants confused this term with their nominal APR for a given
transaction. The Board was concerned that continuing to require that the Fee-Inclusive APRs be
disclosed would cause confusion for consumers—particularly if, as described under Research
Question #8 above, they did not understand the significance of the term itself. Therefore, the
Board decided to test the extent to which consumers confuse these two terms.
Research Question #10: Does including the Fee-Inclusive APR on periodic statements
impact consumers' ability to correctly identify their transaction APRs?

Late Payment Warning and Format of Payment Information
The Board's June 2007 proposal required the inclusion of a Late Payment Warning that disclosed
that if a late payment was made a late fee would be charged and APRs may be increased. The
proposed Late Payment Warning also disclosed the amount of the late fee, as well as the specific
Penalty APR that would be charged. The proposal indicated that this warning would have to be
located "in close proximity" to the account balance and minimum payment amount. However,
some industry commenters were concerned that because the Board released a model form with
its proposal, this would amount to a de facto requirement for how this section of the statement
should be laid out and formatted. These commenters asked for more flexibility for how this
information (referred to here as the "payment information" section of the statement) could be
designed. Before granting this flexibility, however, the Board wished to ensure that alternate
formats would not negatively impact consumer awareness of the Late Payment Warning.
Therefore, this question was included in the quantitative study.
Research Question #11: Does the format in which payment information is provided impact
consumers' awareness of the required Late Payment Warning?

RESEARCH QUESTION RELATED TO CHANGE-IN-TERMS NOTICE
Currently, when credit card issuers make account changes they often put a notice on the periodic
statement that changes have been made, but then provide details about the changes themselves in
a separate insert that is provided with the statement. However, qualitative research showed that
many consumers do not notice these minimal change-in-terms notices on their statements, and do

Page 6

not read inserts that come in the same envelope as their statement. Because the Board was
concerned that consumers were not becoming aware of changes to their account, it proposed that
when changes are made to account terms, issuers would have to include a notice on the statement
that includes a summary chart of key changes, when a change-in-terms notice is included with
the periodic statement. Because complying with this regulation would entail some burden on
the part of issuers, before finalizing the rule the Board decided to gather more quantitative data
as to the effectiveness of adding a summary chart to the periodic statement when a change-interms notice is included with the statement.
The Board was also interested in investigating whether the placement of this change-in-terms
notice had an impact on consumer awareness of the changes—specifically, whether the notice
was displayed on the first or second page of the statement. This research question was also
included in this study.
Research Question #12: Is consumers' awareness of changes to their account impacted by
a) whether the periodic statement includes a summary table of changes to key terms, and b)
whether the change-in-terms notice appears on the first or second page of their statement?

RESEARCH QUESTION RELATED TO PAYMENT ALLOCATION
DISCLOSURE
One of the topics of qualitative testing was how and if issuers should disclose in the Schumer
Box their method of allocating payments to different account balances. Over the course of this
testing, a number of different disclosure wordings and locations were tested. However, the
researchers found that regardless of how this disclosure was presented, it was unclear whether it
had a significant impact on consumer understanding. Among participants who did not already
understand how banks allocated payments based on prior knowledge or experience, many did not
understand it any better after reading the disclosure. The Board felt that the effectiveness of this
disclosure was an important factor in how and if it should be required, and therefore included
this as a research question in the quantitative testing.
Research Question #13: Does consumers' understanding of payment allocation practices
improve after reading a written description of these practices?

Page 7

CHAPTER III: EXPERIMENTAL METHODOLOGY

MODEL DISCLOSURES USED IN TESTING
Each of the 13 research questions above was designed to test one or more factors related to the
location or wording of disclosures. Therefore, the forms that were shown to participants in
testing were designed so that each of these factors was varied between forms. A total of three
factors were varied in Schumer Box forms, and five factors were varied in periodic statement
forms. These factors are described below in narrative form. Figures 1 and 2 illustrate how these
differing factors appeared on the forms that were used in testing. Figure 1 shows the front and
back of two representative Schumer Box forms, while Figure 2 shows the first and second page
of two representative periodic statement forms.3 [Footnote 3. Note: The Schumer Box and
periodic statement models shown in Figures 1 and 2 are meant only to illustrate the factors
that were varied between forms; they are not models that were actually used in testing. End
footnote 3.]

Schumer Boxes (Figure 1)
Factor 1: Combined APR and Penalty Fee Rows
In some Schumer Box models, the APRs for balance transfers and cash advances were listed in
separate rows, as were the returned payment and over-the-credit limit fees (Model A). In other
models, these two APRs were listed in a single row, as were the two penalty fees (Model B).
Factor 2: Inclusion of Cross-References
Some Schumer Box models (such as Model A) included two types of references: a) references in
the transaction APR rows directing readers to information about corresponding transaction fees;
and b) references in the Penalty Fee rows directing readers to information about the Penalty
APR. Other models did not include these references (Model B).
Factor 3: Penalty Fees on Back
In some Schumer Box models, information about returned payment and over-the-credit limit fees
appeared on the back of the page (Model A). In other models, this information appeared on the
front of the page (Model B).
For the portion of the experiment related to Schumer Boxes, a full factorial experimental design
was used. Eight different Schumer Box models were developed and used in testing, each of
which represented one of the possible combinations of the three factors listed above. Appendix
A provides the eight models that were used in testing, as well as a table that summarizes the
characteristics of each.

Page 8

Figure 1
Form A

Form B
Interest Rates and Interest Charges

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)

Annual Percentage Rate
(APR) for Purchases

0.00%

APR for Balance
Transfers

20.99%
This APR will vary with the market based on the Prime Rate.

Your standard APR will vary with the market based on the Prime Rate.

Your standard APR will vary with the market based on the Prime Rate.
[This row is labeled F1]
APR for Cash Advances
and Balance Transfers

20.99%

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your
outstanding balance if you perform any of the actions listed in the Penalty APR
row below.

Penalty APR and When
It Applies

31.99%

This APR will vary with the market based on the Prime Rate.

This APR may be applied to your account if you:
1) Make a late payment twice in a six-month period;
2) Go over your credit limit; or
3) Make a payment that is returned.
How Long Will the Penalty APR Apply?: If your APRs are increased for
any of these reasons, we may keep them at this higher level indefinitely.

How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We will
not charge you interest on purchases if you pay your entire outstanding
balance (excluding promotional balances) by the due date each month.

Minimum Interest
Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips
from the Federal
Reserve Board

To learn more about factors to consider when applying for or using a credit
card, visit the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction
2% of the amount of each transaction.
[The following three rows are labeled F3]
Penalty Fees
• Late Payment
$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000
• Returned Payment or
Over-the-Credit Limit

$35

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)"

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)

[The following sentence is labeled F2]
Balance transfer fees will also apply (see Fees section below).

[This row is labeled F1]
APR for Cash Advances

23.99%
This APR will vary with the market based on the Prime Rate.

[The following sentence is labeled F2]
Cash advance fees will also apply (see Fees section below).

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your
outstanding balance if you perform any of the actions listed in the Penalty
APR row below.

Penalty APR and When
It Applies

31.99%
This APR may be applied to your account if you:
1) Make a late payment twice in a six-month period;
2) Go over your credit limit; or
3) Make a payment that is returned.
How Long Will the Penalty APR Apply?: If your APRs are increased for
any of these reasons, we may keep them at this higher level indefinitely.

How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We
will not charge you interest on purchases if you pay your entire outstanding
balance (excluding promotional balances) by the due date each month.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips from
the Federal Reserve
Board

To learn more about factors to consider when applying for or using a credit
card, visit the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
[The following sentence is labeled F2]
$27 if balance is more than $1,000 (Your APRs may also increase; see
Penalty APR section above.)
TURN OVER for more important information about your account.

Figure 1 (continued)
Form A

Form B
State Law Disclosures

Notice to New York State Residents: Consumer reports may be requested in
connection with the processing of your application and any resulting account. Upon
request, we will inform you of the names and addresses of any consumer reporting
agencies which have provided us with such reports.

Notice to Ohio Residents: Ohio laws against discrimination require that all
creditors make credit equally available to all creditworthy customers, and that credit
reporting agencies maintain separate credit histories on each individual upon
request. The Ohio Civil Rights Commission administers compliance with this law.

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

• If we do not believe there was a mistake: You will have to pay the amount
in question, along with applicable interest and fees. We will send you a
statement of the amount you owe and the date payment is due. We may
then report you as delinquent if you do not pay the amount we think you
owe.

What To Do If You Find A Mistake On Your Statement
If you think there is an error on your statement, write to us at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
You may also contact us on the web: www.artesianbank.com
In your letter, give us the following information:
• Account information: Your name and account number.
• Dollar amount: The dollar amount of the suspected error.
• Description of problem: If you think there is an error on your bill, describe
what you believe is wrong and why you believe it is a mistake.
You must contact us:
• Within 60 days after the error appeared on your statement.
• At least 3 business days before an automated payment is scheduled, if you
want to stop payment on the amount you think is wrong.
You must notify us of any potential errors in writing or electronically. You may
call us, but if you do we are not required to investigate any potential errors and
you may have to pay the amount in question.
What Will Happen After We Receive Your Letter
When we receive your letter, we must do two things:
1. Within 30 days of receiving your letter, we must tell you that we received
your letter. We will also tell you if we have already corrected the error.
2. Within 90 days of receiving your letter, we must either correct the error or
explain to you why we believe the bill is correct.
While we investigate whether or not there has been an error:
• We cannot try to collect the amount in question, or report you as delinquent
on that amount.
• The charge in question may remain on your statement, and we may
continue to charge you interest on the amount in question.
• While you do not have to pay the amount in question, you are responsible
for the remainder of your balance.
• We can apply any unpaid amount against your credit limit.
After we finish our investigation, one of two things will happen:
• If we made a mistake: You will not have to pay the amount in question or
any interest or other fees related to that amount.

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Penalty Fees (cont.)
[The text in this layout table is labeled F3]

[The text in this column is labeled F2]

• Returned Payment

$38 (Your APRs may also increase; see Penalty APR section above.)

• Over-the-Credit Limit

$35 (Your APRs may also increase; see Penalty APR section above.)

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)".
State Law Disclosures
Notice to New York State Residents: Consumer reports may be requested in
connection with the processing of your application and any resulting account. Upon
request, we will inform you of the names and addresses of any consumer reporting
agencies which have provided us with such reports.

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank

[Recycled Paper logo]

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank

[Recycled Paper logo]

Periodic Statements (Figure 2)
Factor 1: Presence of Change-in-Terms Summary Table
In some statement models, the change-in-terms notice included a summary table that highlighted
changes to the APR on Purchases and returned payment fee (Model A) with a reference to a
separate insert for more details. In other models, the change-in-terms notice noted only that
changes were being made to the account, and also directed readers to a separate insert for more
details (Model B). The same insert was provided with all models; this insert provided a
summary table, as well as more details about the account changes. The insert is shown in
Appendix C.
Factor 2: Change-in-Terms Notice on First Page
Some statement models displayed the change-in-terms notice on the first page of the statement
(Model B). Other models displayed this notice on the second page (Model A).
Factor 3: Chronological Transaction List
In some models, transactions and fees were listed chronologically (Model A). In other models,
transactions in the list and fees were grouped by type (Model B).
Factor 4: Presence of Fee-Inclusive APR
Some statement models included the Fee-Inclusive APRs on the second page (Model B), while
others did not include the Fee-Inclusive APRs (Model A).
Factor 5: Formatting of Payment Information and Late Payment Warning
In all models, the top section of the first page displayed summary information about the account
such as the balance, minimum payment, and payment due date. This section also included the
Late Payment Warning. Three different formats for this section of the statement were tested:
Version 1 (Model A), Version 2 (Model B), and Version 3, which is shown in Figure 4.
Because of the larger number of factors involved, a fractional factorial experimental design was
used for the portion of the experiment related to periodic statements. A total of 12 different
periodic statement models were developed and used in testing, each of which represented one of
the 48 possible combinations of the five factors listed above. The 12 combinations represented
in the testing models were selected so that factors are orthogonal. This orthogonality, combined
with the fact that the models were randomly assigned to participants, allows for the measurement
of the effect of each of the factors independently. Appendix B provides the 12 models that were
used in testing, as well as a table that summarizes the characteristics of each.

Page 11

Figure 2
Page 1 of 2

Form A

Page 1 of 2
FormB.Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

[This part is labeled F5]
Account Summary/Payment Information
Previous Balance

$535.07

Payments and Other Credits

-$463.45

New Activity including Fees and Interest
New Balance

+$1,717.01
$1,788.63

Payment Due Date

10/17/08

Minimum Payment Due

$48.00

Credit Limit
Available Credit

$2,000.00
$211.37

Days in Billing Cycle

QUESTIONS?
Call Customer Service
Lost or Stolen Credit Card

1-800-987-5521
1-800-987-5521

Late Payment Warning: If we do not receive your
minimum payment by the date listed above, you may have
to pay a $35 late fee and your APRs may be increased up
to the Penalty APR of 28.99%.
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 you to repay your balance making only
minimum payments, call 1-800-555-5555 or go to
www.artesianbank.com/minimumpayment.

Please send billing inquiries and correspondence to:
PO Box 1390, Norfolk, VA 23501-1390.

[This part is labeled F3]
Transactions
[A list of sample transactions in tabular format. Each transaction includes a Reference Number
(sequence of letters and digits), Transaction Date (month and day), Post Date (month and day),
Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[This part is labeled F5] Account Summary/Payment Information
Previous
Balance
$535.07

Payments and
Other Credits
-$463.45

New Activity
Including Fees
and Interest
+$1,717.01

New Balance
$1,788.63

Minimum
Payment Due
$48.00

Payment
Due Date
10/17/08

Days in
Billing Cycle
30

Total
Credit Line
$2,000.00

Available
Credit Line
$211.37

Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty APR of 28.99%.
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 you to repay your balance making only minimum payments, call 1-800-555-5555orgotowww.artesianbank.com/
minimumpayment.

[ThispartislabeledF1andF2]Important News
Important Changes to Your Account Terms: Please see the enclosed Notice of Change in Terms for important changes
to your Card agreement.
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 enwww.artesianbank.com,modificando su Perfil Personal en la seccion
Administrar mi Cuenta.
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 towww.artesianbank.comand choose
Manage My Account.
Need to add an authorized user to your account? Just sign on towww.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!

[This part is labeled F3]
Transactions
[A list of sample transactions in tabular format. The transactions are categorized as Payments and Other Credits,
and Purchases. Each transaction includes a Reference Number (sequence of letters and digits), Transaction Date
(month and day), Post Date (month and day), Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]

[dashed line indicates serration for payment slip]
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 1390
Norfolk, VA23501-1390

[barcodes and alphanumeric codes]

[dashed line indicates serration for payment slip]
Please detach this portion and return with your payment to insure proper credit. Retain upper portion for your records.
Account Number:

1234 5678 9012 3456

Account Number:

1234 5678 9012 3456

New Balance:

$1,788.63

New Balance:

$1,788.63

Minimum Payment Due:

$48.00

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Please indicate address change and additional
cardholder requests on the reverse side.
Artesian Bank
P.O. Box 1390
Norfolk, VA23501-1390

[barcodes and alphanumeric codes]

AMOUNT ENCLOSED: $

Figure 2 (continued)
Page 2 of 2

Form A

Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. Each transaction includes a
Reference Number (sequence of letters and digits), Transaction Date (month and day), Post Date
(month and day), Description of Transaction or Credit, and Amount (in dollars). The list concludes
with rows TOTAL FEES FOR THIS PERIOD, Interest Charge on Purchases, Interest Charge on
Cash Advances, and TOTAL INTEREST CHARGES FOR THIS PERIOD.]

Form B

Page 2 of2
Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. The transactions are categorized as
Purchases (implied), Cash Advances, Balance Transfers, Fees (with subtotal), and Interest Charged (with
subtotal). Except subtotals and interest charges, each transaction includes a Reference Number (sequence
of letters and digits), Transaction Date (month and day), Post Date (month and day), Description of Transaction
or Credit, and Amount (in dollars). Descriptions under Fees are Pay-by-Phone Fee, Cash Advance Fee
*Transaction Fee* (two instances), Balance Transfer Fee *Transaction Fee*, and TOTAL FEES FOR THIS
PERIOD. Descriptions under Interest Charged are Interest Charge on Purchases, Interest Charge on Cash
Advances, and TOTAL INTEREST FOR THIS PERIOD.]

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

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

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Type of Balance

Balance Transfers

2008 Totals Year-to-Date

[Thispart,includingRevisedTerms,islabeledF1.]Important Changes to Your Account Terms

Total fees charged in 2008

The following is a summary of changes that are being made to your account terms.

$124.50

Total interest charged in 2008

$47.42

These changes will impact your account as follows:
Transactions made on or after 10/10/08: As of 11/10/08, any changes to APRs described below will apply to the:
transactions.
Transactions made before 10/10/08: Current APRs will continue to apply to these transactions.

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.

[ThispartislabeledF2]Revised Terms, as of 11/10/08
Type of Balance
APR for Purchases
Balance

Transfer

16.99%
Fee

$24 if amount of transfer is less than or equal to $1,000;
$34 if amount of transfer is more than $1,000

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

[This part is labeled F4] Fee-Inclusive APR
The Fee-Inclusive APRs in this table are the APRs that you paid this period when transaction or fixed fees are taken into
account as well as interest.

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 towww.artesianbank.comand choose Manage My Account.

Type of Balance

Need to add an authorized user to your account?
Just sign on towww.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!

Interest Charges

Transaction or
Fixed Fees

Fee-Inclusive APR

Purchases

$6.31

$0.00

14.99%

Cash Advances

$4.58

$12.00

61.60%

Balance Transfers

$0.00

$23.55

36.00%

Payment Allocation Disclosures
The research question related to payment allocation disclosures asked whether consumers would
understand the disclosures after reading them, as opposed to whether or not consumers would
notice and comprehend the disclosures in the context of the Schumer Box or periodic statement.
Therefore, the Board and Macro made the decision to test these disclosures in a separate portion
of the interview. Three different versions of the disclosure were tested with participants:
•

Version 1: "You will have to pay off your low-interest balances in full before your
payment is used to satisfy your higher-interest balances, such as purchases or cash
advances. If you do not pay in full, payments will be applied to the low-rate portion of
your balance, and your higher rate balances will continue to accrue interest, extending the
time it will take you to repay your debt."

•

Version 2: "Payments will be applied to balances with lower APRs before balances with
higher APRs. This means that if you have balances at higher APRs, you may pay more
in interest because these balances cannot be paid off until all lower-APR balances are
paid in full."

•

Version 3: "You authorize us to allocate your payments and credits in a way that is most
favorable to or convenient to us. For example, you authorize us to apply your payments
and credits to balances with lower APRs (such as promotional or introductory APRs)
before balances with higher APRs."

SCREENING OF POTENTIAL PARTICIPANTS
Macro carried out the survey using mall intercept methodology in seven mall locations across the
country: Dallas, TX; Detroit, MI; Los Angeles; CA, Seattle; WA, Springfield, MA; St. Louis,
MO; and Tallahassee, FL. The seven locations were selected because of their geographic and
demographic diversity. The study was fielded over a period of four weeks in September 2008.
Over that time, 1,022 consumers were interviewed in the seven locations.
Potential participants were approached by an interviewer in the public areas of the mall. The
interviewer asked the participant a series of screening questions (Appendix D). Participation was
limited to individuals who were literate in English and who were not an employee of a bank,
savings and loan, credit union, or investment firm. Participants also had to have one or more
general purpose credit cards and be responsible for making credit card decisions in their
household. Recruiting quotas were used in each location to ensure a representative mix of
participants in terms of gender, age, and educational level. If participants qualified for the
interview based on their responses to the screening questions, they were then taken to a selfcontained research office in the mall, where they completed the interview. Appendix E lists the
characteristics of participants in each location.

Page 14

INTERVIEW PROTOCOL
P a r t i c i p a n t s

a b o u t

r e c e i v e d

m i n u t e s .

i n s t r u m e n t

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$ 5

f o r

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i n t e r v i e w s ;

i n t e r v i e w ,

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i t

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p a r t i c i p a n t s

a s

t h e y

t h e

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( c o m p u t e r - a s s i s t e d

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a n

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i t

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p a r t

o f

credit card offer.4 [Footnote 4. In the case of the Schumer Box, periodic statement, and

payment allocation notices, the models that were given to participants were rotated so that

each was used an approximately equal number of times. End footnote 4.]

After the participants finished reviewing the Schumer Box, they were asked a

s e r i e s

o f

q u e s t i o n s

s p e c i f i c a l l y

A f t e r

a n

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e n v e l o p e

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g i v e n

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changes to account terms.5 [Footnote 5. The marketing inserts, which did not contain any

information relevant to the test, were included to more accurately simulate consumers'

"real world" experience when they open their periodic statements. These inserts are shown as

Appendix F. End footnote 5.]

Participants were asked to review the contents of the envelope just as

t h e y

d o

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O n c e

t h e y

u n d e r s t a n d i n g

a n s w e r

t h e

r e s e a r c h

h a d

o f

c o m p l e t e d

t h e

c o n t e n t s

q u e s t i o n s

o f

r e l a t e d

t o

n o t i c e s .

s e r i e s

o f

q u e s t i o n s

a b o u t

t h e

p e r i o d i c

s t a t e m e n t ,

t h e y

w e r e

given a scenario in which they had account balances with two different interest rates.6

[Footnote 6. Because this scenario was fairly complex, participants were both read the

scenario aloud and given it in written form. End footnote 6.] They were then asked a series

of three questions to test their understanding of how banks typically

a l l o c a t e

t o

r e a d

p a y m e n t s

o n e

o f

d i s c l o s u r e ,

a n

i m p a c t

A t

t h e

o p e n e d

t h e i r

t h e

first

o f

w o u l d

p a y

i n t e r v i e w e r

i n t e r v i e w e r s

s a m p l e

a s k e d

t h e

d i s c l o s u r e s

s a m e

y o u

r e c o r d e d

s e l e c t e d

i n t e r v i e w

t h r e e

t h e y

h a d

r e l a t e d

a n s w e r e d

t o

t h e s e

p a y m e n t

q u e s t i o n s

c a r d

s e t

a g a i n

q u e s t i o n s ,

a l l o c a t i o n .

t o

t e s t

t h e y

A f t e r

w h e t h e r

w e r e

r e a d i n g

t h e

a s k e d

t h e

n o t i c e

h a d

o n

t h e i r

w e r e

p r i m a r y

a s k e d

c r e d i t

t o

i d e n t i f y

c a r d ,

a n d

t h e i r

r a c e / e t h n i c i t y ,

l o n g

a g o

t h e y

a n n u a l

h a d

a c c o u n t .

o f

w e r e

" c l o s e d - e n d e d "

o p t i o n s ,

t r a n s f e r r e d

v e r b a t i m

t h e

p a r t i c i p a n t s

l i m i t

q u e s t i o n s

d e f i n e d

i f

t h e

c r e d i t

i n t e r v i e w

f r o m

b a l a n c e s .

u n d e r s t a n d i n g .

i n c o m e ,

t h e i r

o f

r e s p o n s e

y o u

t h r e e

w e r e

c o n c l u s i o n

h o u s e h o l d

t h e

t h e y

o n

b e t w e e n

s o m e

b a l a n c e

a n s w e r s .

p r e - c o d e d

b u t

o f

F o r

r e s p o n s e

i t e m s ,

w e r e

$ 2 , 0 0 0 ? " ) .

f o u r

i n

F o r

o p e n - e n d e d

o p t i o n

w h i c h

" o p e n - e n d e d "

t h a t

m o s t

p a r t i c i p a n t s

i t e m s

o p e n - e n d e d

q u e s t i o n s

c l o s e s t

( e . g . ,

t o

( Q 1 4 ,

t h e

s e l e c t e d

i t e m s ,

3 0 ,

3 4 ,

i s

t h e

f e e

t h e

a n d

p a r t i c i p a n t ' s

3 7 ) ,

a n s w e r .

Page 15

Responses were required for all questions, except for demographic questions at the end of the
survey. For all questions, however, participants could indicate that they did not know the
answer.
The final interview protocol is included as Appendix G.

PRE-TESTING OF PROTOCOL
Macro and the Board conducted one round of pre-testing of the interview protocol and materials.
This pre-test, which was conducted in an actual mall intercept facility and was attended by
representatives of both Macro and the Board, had two primary goals. The first was to test
whether the questions were clear and would be interpreted as intended by participants. Second,
the pre-test was used as an opportunity to clarify the directions that would be given to
interviewers, and to identify issues that would be emphasized in onsite interviewer trainings.
After the pre-test, Macro and the Board used the findings to make appropriate revisions to the
protocol and the testing forms that were used.

TRAINING OF INTERVIEWERS
Before fielding began, a representative from Macro's research team visited each of the seven
mall intercept locations to conduct a training session with interviewers. The director of each
local facility also attended this training. The training session focused on explaining the goals of
the study, clarifying the screening criteria, and familiarizing interviewers with the interview
protocol and procedures. Interviewers were given an opportunity to conduct mock interviews
until they felt comfortable with the questions. During these interviews, the Macro trainer
answered questions and provided feedback to each interviewer.

QUALITY ASSURANCE PROCEDURES
Macro built into its methodology a number of strategies to ensure that the data that were
collected were accurate and reliable. Some of these included the following:
• Participants were "double-screened" to ensure that they met the study requirements.
After being told that they qualified for the study based on a series of questions,
participants were asked the screening questions again when the actual survey began. In
most cases, these questions were asked by a different interviewer than the one that had
initially screened them. If participants' responses varied at all, they were not allowed to
complete the survey.
• The organization responsible for the day-to-day operation of the interview facilities
conducted phone verification of 10 percent of completed interviews. Participants were
contacted by phone within 48 hours of their interviews, and asked the screening questions
a third time. If their responses varied at all from their original answers, their interview
was removed from the database.

Page 16

• The online survey instrument included a series of "checks" to make sure that interviewers
showed participants the correct credit card offer and periodic statement. Each time they
were handed one of these documents, participants were asked to read an alphanumeric
code that was on the bottom-right corner. The interviewer then typed this code into the
survey instrument. If the code was not correct, the interviewer was notified by the survey
programming that he or she was using the wrong notice, and the interview was
immediately terminated.
• As noted above, facility directors participated in all training conducted by Macro staff.
Throughout the fielding process, directors then took an active role in verifying that all
interviewers were following the survey protocol exactly.
• Macro research staff downloaded and reviewed the survey data on a daily basis. In
situations when a facility appeared to be in danger of missing its participant quotas,
Macro contacted the facility to inquire. Macro staff also reviewed the data for patterns
indicating that one or more interviewers were not following the study protocols carefully;
however, no such patterns appeared during fielding.

Page 17

CHAPTER IV: RESULTS AND ANALYSIS

INTRODUCTION
This section of the report addresses each of the 13 research questions individually. For each
research question, the report provides a) the relevant survey items that were used to collect data;
b) how responses to these items were interpreted in the context of the analysis; c) tables of
results; and d) a summary of conclusions related to that research question.
In most cases, response data were analyzed through one or more regression models. The goal
was to isolate the impact of relevant disclosure factors on the outcome variable, which was the
likelihood that consumers would answer survey items correctly. Whenever regressions were
used, this report provides two different tables of data. The first provides estimated parameters
for the regression model used for the analysis, as well as significance tests for each parameter.
Following the table of estimated regression parameters, we provide a table that illustrates the
impact that changing a particular factor (e.g., moving penalty fees from the front to the back of
the form) would have on the percent of consumers that could answer the survey question
correctly.

Page 18

RESEARCH QUESTIONS RELATED TO SCHUMER BOX

Research Question #1: Does including references to transaction fees
in rows for transaction APRs impact consumers' ability to correctly
identify those fees?
Relevant Survey Questions:
Question 12: "If you transferred a balance from another credit card to this one, would you be
charged a fee?"
• Yes
• No
• I don't know
[Correct response: Yes]
Question 13: "If you transferred a balance of $2,000, what is the amount of the fee you would
pay?"
[Correct response: $30]
Interpretation of Responses:
Participants who answered Q12 correctly were asked Q13; participants who answered Q12
incorrectly were not asked Q13. If participants answered Q13 correctly they were assumed to
be able to identify the fee they would pay for making a balance transfer. If they answered Q12
or Q13 incorrectly, they were assumed not to be able to identify this fee.
Results and Analysis:
Table 1A: Estimated Regression Parameters for Question 117
[Footnote 7. The regression models shown in this report do not include all possible factors, only a subset that proved to be most relevant to the given research question. However, before
removing any factors from the model the researchers checked to make sure that none had unanticipated effects. Therefore, if a given factor is not included in the model shown, the reader can
assume that this factor does not have a significant effect on the outcome variable. End footnote 7.]
E s t i m a t e d
T e r m

S t d

E r r o r

R a t i o

E f f e c t

Intercept
Factor 2: Inclusion of References

0.622
0.004

0.006
0.006

98.87
0.71

p
< 0 . 0 0 0 1 *[seefootnote]

.5072

*p<0.05

Summary of Fit: R2=0.077

Page 19

Table 1B: Predicted Percentage of Correct Answers to Question 13, by Factor 28
[Footnote8. The percentages shown in Table 1B and similar tables in this report are not observed response percentages—that is, they are not the actual percentage of
participants who answered the question correctly. Rather, they represent the predicted percentage of correct answers after controlling for the effect of any other terms
in the regression model. Because forms were randomized between participants, however, observed percentages are in all cases very close to those shown. End footnote 8.]

F o r m s
R e f e r e n c e s

Percentage of Participants Answering
Q13 Correctly

w i t h
to

62.7%

F e e s

F o r m s

w i t h o u t

R e f e r e n c e s

F e e s

61.8%

As Tables 1A and 1B show, the percentage of participants who answered Q13 correctly when
looking at forms with and without references to the transaction fees in the APR rows was almost
exactly the same (62.7% with the fee references vs. 61.8% without the fee references).
Therefore, based on the results of this experiment there is no conclusive evidence that including
these references in the Schumer Box would impact consumers' ability to identify transaction
fees.

Page 20

Research Question #2: Does combining information about APRs for
different transaction types into a single row (as opposed to having a
separate row for each type) impact consumers' ability to correctly
identify transaction APRs?
Relevant Survey Questions:
Q11: "Assume that when you applied for this card, you transferred a balance from another card
to this one. What interest rate would you be charged on the balance that you transferred to this
card?"
[Correct response: 20.99%]
Interpretation of Responses:
If participants answered Q11 correctly, they were assumed to be able to correctly find the APR
on balance transfers. If they answered Q11 incorrectly, they were assumed not to be able to
find this APR.
Results and Analysis:
Table 2A: Estimated Regression Parameters for Question 11
Term
Intercept
Factor 1: Combined APR and Fee Rows

Estimated
Effect
0.679
-0.023

Std Error
0.014
0.019

t Ratio
47.01
-1.24

p
<0.0001* [see footnote]

.1555

*p<0.05

Summary of Fit: R2=0.305
Table 2B: Predicted Percentage of Correct Answers to Question 11, by Factor 1

Percentage of Participants Answering
Q11 Correctly

Forms with
Combined APR Rows

Forms with
Separate APR Rows

65.6%

70.2%

As Tables 2A and 2B show, participants who saw forms in which the APR for Balance Transfers
and APR for Cash Advances were displayed in the same row were slightly less likely to answer
Q11 correctly than those who saw forms in which these terms were displayed in two separate
rows (65.6% vs. 70.2%). However, this difference was not large enough to be statistically
significant. Therefore, based on the results of this experiment there is no conclusive evidence
that combining rows in this way will impact consumers' awareness of transaction APRs.

Page 21

Research Question #3: Does combining information about penalty
fees into a single row (as opposed to having a separate row for each
type of fee) impact consumers' ability to correctly identify these fees?
Research Question #4: Does having penalty fees appear on the back
of the Schumer Box, as opposed to the front, impact consumers'
ability to correctly identify these fees?
Relevant Survey Questions:
Q14: What would happen on this account if you went over the credit limit? (check all that
apply)
a) I would be charged a fee
b) My interest rate/APR may increase
c) Nothing would happen
d) Other
e) I don't know
[Correct response: a and b]
Q15: What is the dollar amount of the fee you would pay for going over the credit limit?
[Correct response: $35]
Interpretation of Responses:
Participants

w h o

p r o v i d e d

a n

a n s w e r

o f

'a'

Q14

w e r e

a s k e d

Q15;

participants w h o

did

n o t

answer 'a' were not asked Q15.9 [Footnote 9. Response 'b' was also a correct response to Q14, but this response did not relate to this research question.
For an analysis of these responses, see our discussion of Research Question 5. End footnote 9.] If participants answered Q15 correctly they were assumed to
be able to correctly identify the fee they would pay for going over their credit limit (the "OCL
fee"). If they answered Q15 incorrectly, or were not asked this question, they were assumed not to be able to identify this fee.

Results and Analysis:
Table 3A: Estimated Regression Parameters for Question 15
Term
Intercept
Factor 1: Combined APR and Fee Rows
Factor 3: Penalty Fees on Back
Interaction: Factor 1 x Factor 2
*p<0.05
Summary of Fit: R2=0.969

Estimated
Effect
0.967
-0.026
-0.281
0.011

Std Error
0.041
0.013
0.026
0.026

t Ratio
23.76
-1.99
-10.90
-0.44

P
<0.0001* [see footnote]

.1171
0.0004* [see footnote]

.6860

Page 22

Table 3B: Predicted Percentage of Correct Answers to Question 15, by Factor 1

Percentage of Participants Answering
Q15 Correctly

Forms with
Combined Fee Rows

Forms with
Separate Fee Rows

52.0%

57.2%

Table 3C: Predicted Percentage of Correct Answers to Question 15, by Factor 3

Percentage of Participants Answering
Q15 Correctly

Forms with
OCL Fee on Back

Forms with
OCL Fee on Front

40.6%

68.7%

As Tables 3A and 3B show, participants were slightly more likely to answer Q15 correctly when
looking at forms that listed the over-the-credit limit fee and returned payment fees in separate
rows, as opposed to a single combined row (57.2% vs. 52.0%). However, this difference was not
large enough to be statistically significant. Therefore, based on this experiment there is no
conclusive evidence that allowing issuers to combine fee rows in this way would negatively
impact consumers' ability to identify fees.
As Tables 3A and 3C show, participants were more likely to answer Q15 correctly when looking
at forms with the OCL fee on the front (68.7%>) than when the OCL fee was on the back (40.6%>).
This difference was extremely statistically significant (p<0.0001). This provides strong evidence
that displaying penalty fees on the back of the Schumer Box would negatively impact
consumers' ability to identify these fees.

Page 23

Research Question #5: Does including a reference to the Penalty APR
in the rows containing penalty fees impact consumers' awareness of
the Penalty APR?
Relevant Survey Questions:
Question 14: What would happen on this account if you went over the credit limit?
a) I would be charged a fee
b) My interest rate/APR may increase
c) Nothing would happen
d) Other
e) I don't know
[Correct response: a and b]
Question 16: If you went over the credit limit on this credit card account, what is the interest
rate that you would pay on new purchases with this credit card?
[Correct response: 31.99%]
Interpretation of Responses:
Participants w h o provided an answer of ' b ' to Q 1 4 w e r e asked Q 1 6 ; participants w h o did not
answer 'b' were not asked Q16.10 [Footnote 10. Response 'a' was also a correct response to Q14, but this response did
not relate to this research question. For an analysis of these responses, see our discussion of Research Questions 3 and 4.
End footnote 10.] If participants answered Q16 correctly they were assumed to
b e a b l e t o c o r r e c t l y i d e n t i f y t h e P e n a l t y A P R t h a t t h e y w o u l d b e c h a r g e d if t h e y w e n t o v e r t h e i r
c r e d i t l i m i t . If t h e y a n s w e r e d Q 1 6 i n c o r r e c t l y , o r w e r e n o t a s k e d t h i s q u e s t i o n , t h e y w e r e
a s s u m e d not to b e able to identify this A P R .

Results and Analysis:
Table 4A: Estimated Regression Parameters for Question 16
Term
Intercept
Factor 2: Inclusion of References
Factor 3: Penalty Fees on Back
Interaction: Factor 2 x Factor 3
*p<0.05
Summary of Fit: R2=0.678

Estimated
Effect
0.539
0.023
-0.011
-0.080

Std Error
0.050
0.016
0.032
0.032

t Ratio
10.68
1.41
-0.34
-2.51

P
.0004*
.2307
.7526
.0659

Page 24

Table 4B: Predicted Percentage of Correct Answers to Question 16, by Factors 2 and 3

Forms with OCL Fee on
Back
Forms with OCL Fee on
Front
All Forms

Forms with
References to
Penalty APR

Forms without
References to
Penalty APR

All Forms

49.9%

53.6%

51.7%

59.2%

46.5%

52.8%

54.5%

50.0%

Overall, participants were slightly more likely to answer Q16 correctly when looking at forms
that included references to the Penalty APR in the Penalty Fees rows. However, this difference
was not large enough to be statistically significant (54.5% with the references, vs. 50.0% without
the references). Based on these results, there is no conclusive evidence that including these
references would improve consumers' awareness of the Penalty APR.
It is interesting to note that the impact of references to the Penalty APR was substantially greater
when the row containing the references was located on the front of the form. When the over-thecredit limit fee row appeared on the front, the presence of the references was associated with an
improvement in 12.7 percent in the proportion of participants correctly answering Q16 (59.2%
with the references vs. 46.5% without). When this row appeared on the back of the page, the
references had essentially no effect—they were associated with a small decrease of 3.7 percent in
the proportion of participants who answered Q16 correctly.11
[Footnote 11. While it may seem counterintuitive that the presence of references would have
a negative effect on consumer understanding, the fact that this difference is so small means
that the direction of the effect is likely due to random variation. End footnote 11.]
This finding should not be
surprising, because the results of Research Question #4 showed that participants were
significantly more likely to notice the Penalty Fee rows when they appeared on the front.
Therefore, one would hypothesize that participants would also be more likely to notice other text
that appears in this row when it appears on the front of the page.

Page 25

RESEARCH QUESTIONS RELATED TO PERIODIC STATEMENT

Research Question #6: Does grouping the transaction list by
transaction type, rather than presenting transactions in chronological
order, impact consumers' ability to identify individual transactions?
Relevant Survey Questions:
Q19: Often, people with credit cards can use their cards to get money at ATM machines. These
transactions are called "cash advances." Based on the information you have been given, were
any cash advances taken during the past billing period?
• Yes
• No
• I don't know
[Correct response: Yes]
Q20: What was the dollar amount of the first cash advance taken?
[Correct response: $121.50]

Interpretation of Responses:
Participants who answered Q19 correctly were asked Q20; participants who answered Q19
incorrectly were not asked Q20. If participants answered Q20 correctly they were assumed to
be able to identify the first cash advance that took place during the statement period shown. If
they answered Q19 or Q20 incorrectly, they were assumed not to be able to identify this cash
advance.

Results and Analysis:
Table 5A: Estimated Regression Parameters for Question 20
Term
Intercept
Factor 3: Chronological Transaction List

Estimated
Effect
0.557
-0.060

Std Error
0.012
0.012

t Ratio
47.83
-5.15

P
< 0 . 0 0 0 1 *[seetablefootnote]

.0004*

*p<0.05

Summary of Fit: R2=0.726

Page 26

Table 5B: Predicted Percentage of Correct Answers to Question 20, by Factor 3

Percentage of Participants
Answering Q20 Correctly

Forms with
Grouped
Transaction List

Forms with
Chronological
Transaction List

61.6%

49.7%

As Tables 5 A and 5B show, participants were more likely to answer Q20 correctly when looking
at forms in which the transaction list was grouped by type (61.6%, compared to 49.7% of those
who saw a chronological list). This difference was statistically significant (p=0.0004), indicating
that grouping transaction lists by transaction type does appear to make it easier for consumers to
identify individual transactions.

Page 27

Research Question #7: Does grouping the transaction list by
transaction type, rather than presenting transactions in chronological
order, impact consumers' awareness of fees that they have been
charged?
Relevant Survey

Questions:

Q24: Not including interest charges, were there any fees charged during the billing period on
this statement?
• Yes
• No
• I don't know
[Correct response: Yes]
Q25: Not including interest charges, how many fees were charged during this billing period?
Please give me the number of fees, not the total dollar amount.
[Correct response: 5]

Interpretation

of Responses:

Participants who answered Q24 correctly were asked Q25; participants who answered Q24
incorrectly were not asked Q25. If participants answered Q25 correctly they were assumed to
be aware of all fees that were charged during the statement period shown. If they answered
Q24 or Q25 incorrectly, they were assumed not to be aware of all of the fees they had been
charged.12 [Footnote 12. Question 21 asked whether the participant had been charged a fee
for their first cash advance. Participants who had already answered "Yes" to Q21 were not
asked Q24, because they had already indicated that they had been charged at least one fee.
Participants who were not asked Q24 for this reason were then asked Q25. End footnote 12.]
Results and Analysis:
Table 6A: Estimated Regression Parameters for Question 25

Term
Intercept
Factor 3: Chronological Transaction List

Estimated
Effect
0.408
-0.127

Std Error
0.017
0.017

t Ratio
23.34
-7.27

P
< 0 . 0 0 0 1 *[seetablefootnote]

<0.0001*

*p<0.05

Summary of Fit: R2=0.841

Page 28

Table 6B: Predicted Percentage of Correct Answers to Question 25, by Factor 3

Percentage of Participants
Answering Q25 Correctly

Forms with
Grouped
Transaction List

Forms with
Chronological
Transaction List

53.6%

28.1%

As Tables 6A and 6B show, participants were more likely to answer Q25 correctly when looking
at forms in which the transaction list was grouped by type (53.6%, compared to 28.1% of those
who saw a chronological list). This difference was statistically significant (p<0.0001). This
provides very strong evidence that grouping transaction lists by transaction type increases
consumers' awareness of fees that they have been charged.

Page 29

Research Question #8: Does grouping the transaction list by
transaction type, rather than presenting transactions in chronological
order, impact consumers' ability to relate transactions to their
corresponding transaction fees?
Relevant Survey Questions:
Question 19: Often, people with credit cards can use their cards to get money at ATM
machines. These transactions are called "cash advances." Based on the information you have
been given, were any cash advances taken during the past billing period?
• Yes
• No
• I don't know
[Correct response: Yes]
Question 20: What was the dollar amount of the first cash advance taken?
[Correct response: $121.50]
Question 21: Was a fee charged for this first cash advance?
• Yes
• No
• I don't know
[Correct response: Yes]
Question 22: What was the dollar amount of the fee that was charged to take out the first cash
advance?
[Correct response: $5]
Interpretation of Responses:
Participants who answered Q19 correctly were asked Q20 and Q21; participants who answered
Q19 incorrectly were not asked these two questions. Participants who answered Q21 correctly
were then asked Q22; those who did not were not asked this question. If participants answered
Q22 correctly they were assumed to be able to identify the fee that was charged for the first
cash advance. If they answered Q22 incorrectly, they were assumed not to be able to identify
this fee.
NOTE: In the analysis shown below, participants' responses were only included if they
correctly answered Q20 (i.e., if they correctly identified the first cash advance on the
statement). The reason for excluding participants who did not answer Q20 correctly is that

Page 30

Research Question #8 asks whether grouping the transaction list by type impacts consumers'
ability to relate transactions to their corresponding fees. Therefore, responses from people who
could not identify the transaction in question are irrelevant to this research question.
Results and Analysis:
Table 7A: Estimated Regression Parameters for Question 22
Term
Intercept
Factor 3: Chronological Transaction List

Estimated
Effect
0.864
0.055

Std Error
0.021
0.021

t Ratio
40.45
2.59

P
< 0 . 0 0 0 1 *[seetablefootnote]

.0268*

*p<0.05

Summary of Fit: R2=0.402
Table 7B: Predicted Percentage of Correct Answers to Question 22, by Factor 3

Percentage of Participants
Answering Q22 Correctly

Forms with
Grouped
Transaction List

Forms with
Chronological
Transaction List

80.9%

91.9%

As Tables 7A and 7B show, participants who successfully identified the first cash advance on
their statement (i.e., those that answered Q20 correctly) were more likely to answer Q22
correctly when looking at forms in which transactions were listed chronologically, rather than
grouped by type (91.9% vs. 80.9%). This difference was statistically significant (p=.0268). This
provides evidence that grouping transaction lists by transaction type makes it more difficult for
consumers to connect transactions to corresponding fees.

Page 31

Research Question #9: What percentage of consumers understand
the meaning of the Fee-Inclusive APR?
Relevant Survey Questions:
Interviewer points to the Fee-Inclusive APR on cash advances, and asks the following
question:
Question 32: Imagine that during the next month you did not make a cash advance with this
card, but had not entirely paid off your current balance of cash advances. When you received
your next monthly statement, what percentage would be listed in this location on that
statement? 13 [Footnote 13. Participants who were given a version of the periodic statement
that did not include the Fee-Inclusive APR were not asked this question. End footnote 13.]
[Correct response: 21.99%, the nominal APR on cash advances]
Interpretation of Responses:
Participants who answered Q32 correctly were assumed to understand that if no transaction
fees are paid, the Fee-Inclusive APR would be the same as the transaction APR. Therefore,
participants who provided a correct answer were assumed to understand the meaning of the
Fee-Inclusive APR, while those that did not provide a correct answer were assumed not to
understand its meaning.
Results and Analysis:
Of 511 participants who were asked this question, only 35 (6.8%) answered Q32 correctly.
Two responses to Q32 were by far most common; 201 participants (39.3%) incorrectly said if
no cash advances were made the Fee-Inclusive APR the following month would remain 61.60
percent (the Fee-Inclusive APR shown on the statement for the current month), and 163
participants (31.9%) indicated that they did not know the answer.

Page 32

Research Question #10: Does including the Fee-Inclusive APR on
periodic statements impact consumers' ability to correctly identify
their transaction APRs?
Relevant Survey Question:
Question 23: What is the interest rate that you would be charged if you used this card to take
out a cash advance?
[Correct response: 21.99%]
Interpretation of Responses:
Participants who answered Q23 correctly were assumed to be able to correctly identify their
current APR on cash advances.
Results and Analysis:
Table 8A: Estimated Regression Parameters for Question 23
Term
Intercept
Factor 1: Presence of CIT Summary Table
Factor 2: CIT Notice on First Page
Factor 4: Presence of Fee-Inclusive APR

Estimated
Effect
0.600
-0.024
-0.015
-0.066

Std Error
0.009
0.009
0.009
0.009

t Ratio
66.16
-2.61
-1.62
-7.24

P
< 0 . 0 0 0 1 *[seetablefootnote]

.0309*
.1443
<0.0001*

*p<0.05

Summary of Fit: R2=0.885
Table 8B: Predicted Percentage of Correct Answers to Question 23, by Factor 4 14
[Footnote 14. The figures shown in Table 8B assume no effect from Factors 1 or 2; in other words, they assume that these two factors are held constant in all forms. End footnote 14.]

Percentage of Participants
Answering Q23 Correctly

Forms with
Fee-Inclusive APR

Forms without
Fee-Inclusive APR

53.4%

66.6%

Table 8C: Predicted Percentage of Correct Answers to Question 23, by Factor 1
[Footnote 15. The figures shown in Table 8C assume no effect from Factors 2 or 4; in other words, they assume that these two factors are held constant in all forms. End footnote 15.]

Percentage of Participants
Answering Q23 Correctly

Forms with
CIT Summary Table

Forms without
CIT Summary Table

57.6%

62.4%

Page 33

As Tables 8A and 8B show, participants were more likely to answer Q23 correctly when looking
at forms that did not include the Fee-Inclusive APR (66.6%, compared to 53.4% of those who
saw forms that included this term). This difference was statistically significant (p<0.0001). This
provides strong evidence that the inclusion of the Fee-Inclusive APR on periodic statements
causes confusion that makes it more difficult for consumers to correctly identify their transaction
APRs. In fact, 8.4 percent of participants who saw models with the Fee-Inclusive APR
incorrectly identified that rate as their nominal APR.
As Tables 8A and 8C show, participants were also more likely to answer Q23 correctly when
looking at forms that did not have a summary table in the change-in-terms notice (62.4%,
compared to 57.6% of those who saw forms with a summary table). While this effect was less
than half the size of the effect of the Fee-Inclusive APR, it was statistically significant at the
p<.05 level. This negative impact of the summary table is likely for the same reason as the
negative impact of the Fee-Inclusive APR described above—the more percentages that appear on
a statement, the less likely consumers will be able to correctly identify their transaction APRs.
In fact, 3.7 percent of participants who saw forms in which the change-in-terms notice included a
summary table incorrectly provided the new rate on purchases (16.99%), compared to 1.4
percent of those who saw a form in which the change-in-terms notice did not include such a
table.16 [Footnote 16. If the change-in-terms notice did not include a summary table, then the
new rate on purchases appeared only on a separate insert provided with the periodic statement.
This could explain why participants were less likely to confuse this rate with their current rate
on cash advances. End footnote 16.]

Page 34

Research Question #11: Does the format in which payment
information is provided impact consumers' awareness of the required
Late Payment Warning?
Relevant Survey Questions:
Question 29: Is there any information on this statement about what would happen if you made
a payment late?
• Yes
• No
• I don't know
[Correct response: Yes]
Question 30: What would happen if you made a payment late?
a) I would be charged a fee
b) My interest rate/APR may increase
c) Nothing would happen
d) Other
e) I don't know
[Correct response: a and b]
Question 31: If you make a payment late, what is the amount of the late fee you would pay?
[Correct response: $35]
Question 31b: If you made a payment late, what is the interest rate you would pay on new
purchases?
[Correct response: 28.99%]

Interpretation of Responses:
Participants who answered Q29 correctly were asked Q30; those that did not were not asked
Q30. Participants who provided an answer of 'a' to Q30 were asked Q31; participants who did
not answer 'a' were not asked Q31. Participants who provided an answer of 'b' to Q30 were
asked Q31b; participants who did not answer 'b' were not asked Q31b. If participants
answered Q31 correctly they were assumed to be able to correctly identify the amount of the
fee they would be charged for making a late payment. If they answered Q31b correctly they
were assumed to be able to correctly identify the Penalty APR they would be charged if they
made a late payment. Both of these pieces of information were provided in the Late Payment
Warning on the statement.

Page 35

Results and Analysis:
Table 9A: Estimated Regression Parameters for Question 31
Estimated
Effect
0.646
-0.003
-0.016

Term
Intercept
Factor 5: Payment Info Version 1
Factor 5: Payment Info Version 2

Std Error
0.016
0.022
0.022

t Ratio
41.99
-0.13
-0.75

p
<0.0001*
.9028
.4695

*p<0.05

Summary of Fit: R2=0.092

Table 9B: Predicted Percentage of Correct Answers to Question 31, by Factor 5

Percentage of Participants
Answering Q31 Correctly

Forms with
Payment Info
Version 1

Forms with
Payment Info
Version 2

Forms with
Payment Info
Version 3

64.3%

63.0%

64.6%

Table 9C: Estimated Regression Parameters for Question 31b
Term
Intercept
Factor 1: Presence of CIT Summary Table
Factor 2: CIT Notice on First Page
Factor 5: Payment Info Version 1
Factor 5: Payment Info Version 2
Interaction: Factor 1 x Factor 2

Estimated
Effect
0.543
-0.011
-0.035
0.009
-0.005
0.008

Std Error
0.007
0.007
0.007
0.010
0.010
0.007

t Ratio
76.64
-1.62
-4.98
0.90
-0.48
1.07

p
<0.0001*
.1565
.0025*
.4037
.6472
.3271

*p<0.05

Summary of Fit: R2=0.092

Table 9D: Predicted Percentage of Correct Answers to Question 31b, by Factor 5

Percentage of Participants
Answering Q31b Correctly

Forms with
Payment Info
Version 1

Forms with
Payment Info
Version 2

Forms with
Payment Info
Version 3

55.2%

53.8%

54.3%

Page 36

Tables 9A through 9D show that Factor 5, the formatting of the payment information on the
statement, did not have a significant impact on participants' ability to answer Q31 or Q31b
correctly. For both questions, the difference in correct responses was extremely small between
the different versions of Factor 5. Therefore, based on this experiment there is no evidence that
varying the formatting of this section of the statement would have an impact on consumer
understanding of the Late Payment Warning. It is important to note, of course, that only three
possible formats were tested. While the results here imply that none of these three formats is
more or less effective in this respect, it is possible that other formats that were not tested could
perform significantly better or worse.
Table 9C shows that the one factor that did have a significant impact on consumers' ability to
answer Q3 lb correctly was the placement of the change-in-terms notice. When this notice was
on the first page of the statement instead of the second page, participants were significantly less
likely to correctly identify the Penalty APR (50.8% vs. 57.8%). The reason for this effect is
likely that, as was discussed in Research Question #10, the presence of additional information
about rates on the statement can cause confusion for participants. This is supported by the fact
that the presence of a summary table on the change-in-terms notice—which makes the new rate
on purchases more prominent—also had a small (although non-significant) negative impact on
participants' ability to correctly answer Q31b.

Page 37

RESEARCH QUESTION RELATED TO CHANGE-IN-TERMS NOTICE

Research Question #12: Is consumers' awareness of changes to their
account impacted by a) whether the periodic statement includes a
summary table of changes to key terms, and b) whether the changein-terms notice appears on the first or second page of their
statement?
Relevant Survey Questions:
Question 26: If you pay this entire balance in full and on time, are the terms of this account
going to change in the near future or are they going to remain the same?
• Change in the near future
• Remain the same
• I don't know
[Correct response: Change in the near future]
Question 27: Based on the information you have been given, is there going to be a change in
the interest rate you are charged on new purchases?
• Yes
• No
• I don't know
[Correct response: Yes]
Question 28: What is the interest rate that will apply to new purchases when the changes go
into effect?
[Correct response: 16.99%]

Interpretation of Responses:
Participants who answered Q26 correctly were asked Q27; those that did not were not asked
Q27. Participants who answered Q27 correctly were asked Q28; those that did not were not
asked Q28. Participants who answered Q28 correctly were assumed to have located and
understand the impending changes to their interest rates. Those that answered Q28 correctly,
or were not asked this question, were assumed not to have located and understood this
information.

Page 38

Results and Analysis:
Table 10A: Estimated Regression Parameters for Question 28
Term
Intercept
Factor 1: Presence of CIT Summary Table
Factor 2: CIT Notice on First Page
Interaction: Factor 1 x Factor 2

Estimated
Effect
0.054
0.018
-0.007
-0.011

Std Error
0.004
0.004
0.004
0.004

t Ratio
13.95
4.78
-1.82
-2.87

P
<0.0001*
.0014*
.1069
.0207*

*p<0.05

Summary of Fit: R2=0.811
Table 10B: Predicted Percentage of Correct Answers to Question 28, by Factors 1 and 2

Forms with CIT Notice
on First Page
Forms with CIT Notice
on Second Page
All Forms

Forms with
Summary Table

Forms without
Summary Table

All Forms

5.4%

4.0%

4.7%

9.0%

3.1%

6.1%

7.2%

3.5%

Tables 10A and 10B show that the presence of a summary table in the change-in-terms notice
had a statistically significant positive impact on participants' understanding of impending
changes to their interest rates. 7.2 percent of participants who saw forms that included a
summary table answered Q28 correctly, compared to 3.5 percent of those who saw forms without
a summary table.
The location of the change-in-terms notice on the first or second page of the periodic statement
did not in itself have a statistically significant impact on consumer understanding. However,
there was an interaction between the placement of the notice and whether or not there was a
summary table. This interaction is illustrated most clearly in Table 10B, which shows that while
the presence of the summary table increased participants' comprehension whether the notice
appeared on the first or second page, the effect was actually stronger when the notice, and the
summary table, appeared on the second page.
This finding is somewhat counterintuitive, since qualitative research on the periodic statements
had shown that consumers tend to spend the most time reading the first page of their statement.
One possibility is that it is an artifact of the testing instrument itself. Question 25, which
immediately preceded the series of questions on changes in terms, asked participants to identify
their current APR on cash advances. Since the information needed to answer this question was
located on the second page of the periodic statement models, it may be that when participants

Page 39

were asked Questions 26, 27, and 28 they were already looking at the second page of the
statement. This could explain why comprehension of the changes in terms was highest when a
summary table was provided on the second page, rather than the first.

Page 40

RESEARCH QUESTION RELATED TO PAYMENT ALLOCATION

Research Question #13: Does consumers' understanding of payment
allocation practices improve after reading a written description of
these practices?
Relevant Survey Questions:
Participants were given a payment allocation scenario and asked a series of questions (Q33
through Q35) to test their understanding of how and why a payment would be allocated
between balances. They were then asked to read one of three written descriptions of how
payments would be allocated, and were then asked the same three questions again (Q36
through Q38).
Question 33/36: Imagine that you transferred a $500 balance to a new credit card and then
made $500 of purchases. Imagine also that the interest rate on your balance transfer was 0%,
while your interest rate on purchases was 12%. If you then made a $500 payment, how would
the credit card company apply your payment? Would they...
a) Apply it to your purchases
b) Apply it to your balance transfer
c) Apply some to your purchases and some to your balance transfer
d) None of the above
e) I don't know
[Correct response: b]
Question 34/37: Why would the credit card company apply your payments in this way?
(Interviewer does not read response options)
a) So the credit card company will make more money
b) So I have to pay interest/So I have to pay more interest
c) Because the interest rate on balance transfers is lower than the interest rate on purchases
d) Because the balance transfers happened before the purchases
e) Other explanation
f) I don't know
[Correct response: a, b, or c]
Question 35/38: How would you WANT the credit card company to apply your $500 payment?
a) Apply it to your purchases
b) Apply it to your balance transfer
c) Apply some to your purchases and some to your balance transfer
d) None of the above
e) It doesn't make a difference to me.
f) I don't know
[Correct response: a]

Page 41

Interpretation of Responses:
Participants who answered all three of the questions correctly were considered to understand
this payment allocation scenario, either before or after reading the written description.17
[Footnote 17. If a participant answered all three questions correctly before reading the written payment allocation description (Q33 through Q35), read the
written notice, and then answered the first question correctly again (Q36), he or she skipped questions Q37 and Q38, and the assumption was made that they
understood payment allocation both before and after reading the description. This procedure was put into place due to limit the length of interviews.
End footnote 17.]

Results and Analysis:

Table 11: Understanding of Payment Allocation, Before and After Reading Description
Payment Allocation
Description
Version 1 (n=264)
Version 2 (n=281)
Version 3 (n=270)
Total

% Answering
Correctly Before
Reading
15.5
18.1
19.3
17.7

% Answering
Correctly After
Reading
20.1
24.9
23.7
22.9

Change in %
4.6
6.8
4.4
5.2

As Table 11 shows, 17.7 percent of participants were able to answer all three questions before
reading the notice—that is, they understood payment allocation based on previous knowledge or
experience. After reading the notice, 22.9 percent of participants were able to answer all three
questions. Therefore, reading the notice was associated with a 5.2 percent increase in
comprehension—a change which was statistically significant (p=0.010).
However, even among people who answered all three questions correctly, there still seemed to be
some uncertainty. About a fifth (19.4%) of participants who answered the questions correctly
before reading the notice went on to answer at least one incorrectly after reading the notice.
There are three potential explanations this finding. The first is that these participants' correct
answers before reading the notice were due in part to guessing, not true understanding of the
issue. The second is that the finding is an artifact of the testing environment—participants
assumed that they would not have been asked the questions a second time if their first answers
had been correct, and therefore answered differently the second time. The third possibility is that
the content of the notice actually confused participants, and gave them misconceptions about
how their payments would be allocated.18
[Footnote 18. There were no statistically significant differences between versions in how often
people changed their minds from the right to the wrong answer, and therefore no evidence that
one caused more confusion than the others. End footnote 18.]

Page 42

CHAPTER V: SUMMARY
As described in Chapter II, the goal of this experiment was to provide the Board with valid
quantitative data on the extent to which various factors in disclosure formatting and wording
have an impact on consumer understanding. Macro is submitting this report to the Board so that
it can use these results, as well as findings from the qualitative portions of this project and other
sources of data such as comment letters, to develop its final revisions to Regulation Z. Our hope
is that this consumer research will lead to credit card disclosures that consumers notice, pay
attention to, and understand, and that provide the information that consumers need to make good
financial decisions.

Page 43

Appendix A:
Schumer Box Models Used in Testing

Characteristics of Schumer Box Models

Schumer
Box
Model #
1
2
3
4
5
6
7
8

Factor 1: Combined
APR and Fee Rows

Factor 2: Inclusion of
References

Combined Rows
Combined Rows
Combined Rows
Combined Rows
Separate Rows
Separate Rows
Separate Rows
Separate Rows

References
References
No References
No References
References
References
No References
No References

Factor 3: Some
Penalty Fees on
Back?
Yes
No
Yes
No
Yes
No
Yes
No

Model 1

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Cash Advances
and Balance Transfers

20.99%
This APR will vary with the market based on the Prime Rate.
Cash advance and balance transfer fees will also apply (see Fees section
below).

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your
outstanding balance if you perform any of the actions listed in the Penalty
APR row below.

Penalty APR and When
It Applies

How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We
will not charge you interest on purchases if you pay your entire outstanding
balance (excluding promotional balances) by the due date each month.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips from
the Federal Reserve
Board

To learn more about factors to consider when applying for or using a credit
card, visit the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000 (Your APRs may also increase; see
Penalty APR section above.)
TURN OVER for more important information about your account.

Model SB1

Code CC2

Penalty Fees (cont.)
• Returned Payment or
Over-the-Credit Limit

$35 (Your APRs may also increase; see Penalty APR section above.)

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)"

State Law Disclosures
Notice to New York State Residents: Consumer reports may be requested in
connection with the processing of your application and any resulting account. Upon
request, we will inform you of the names and addresses of any consumer reporting
agencies which have provided us with such reports.

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Model 2

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Cash Advances
and Balance Transfers

20.99%
This APR will vary with the market based on the Prime Rate.
Cash advance and balance transfer fees will also apply (see Fees section below).

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your outstanding
balance if you perform any of the actions listed in the Penalty APR row below.

Penalty APR and When
It Applies

31.99%
This APR may be applied to your account if you:
1) Make a late payment twice in a six-month period;
2) Go over your credit limit; or
3) Make a payment that is returned.
How Long Will the Penalty APR Apply?: If your APRs are increased for any of
these reasons, we may keep them at this higher level indefinitely.

How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We will not
charge you interest on purchases if you pay your entire outstanding balance
(excluding promotional balances) by the due date each month.

Minimum Interest
Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips
from the Federal
Reserve Board

To learn more about factors to consider when applying for or using a credit card, visit
the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000 (Your APRs may also increase; see Penalty APR
section above.)

• Returned Payment or
Over-the-Credit Limit

$35 (Your APRs may also increase; see Penalty APR section above.)

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)".

Model SB2

Code CC1

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Model 3

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Cash Advances
and Balance Transfers

20.99%

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your
outstanding balance if you perform any of the actions listed in the Penalty
APR row below.

Penalty APR and When
It Applies

31.99%

This APR will vary with the market based on the Prime Rate.

This
1)
2)
3)

APR may be applied to your account if you:
Make a late payment twice in a six-month period;
Go over your credit limit; or
Make a payment that is returned.

How Long Will the Penalty APR Apply?: If your APRs are increased
for any of these reasons, we may keep them at this higher level
indefinitely.
How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We
will not charge you interest on purchases if you pay your entire outstanding
balance (excluding promotional balances) by the due date each month.

Minimum Interest
Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips
from the Federal
Reserve Board

To learn more about factors to consider when applying for or using a credit
card, visit the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000

TURN OVER for more important information about your account.

Model SB3

Code CX2

Penalty Fees (cont.)
• Returned Payment or
Over-the-Credit Limit

$35

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)".

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Model 4

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Cash Advances
and Balance Transfers

20.99%

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your
outstanding balance if you perform any of the actions listed in the Penalty APR
row below.

Penalty APR and When
It Applies

31.99%

This APR will vary with the market based on the Prime Rate.

How To Avoid Paying
Interest On Purchases

Minimum Interest
Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips
from the Federal
Reserve Board

To learn more about factors to consider when applying for or using a credit
card, visit the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000

• Returned Payment or
Over-the-Credit Limit

$35

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)"

Model SB4

Code CX1

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Model 5

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Balance
Transfers

20.99%
This APR will vary with the market based on the Prime Rate.
Balance transfer fees will also apply (see Fees section 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 Fees section below).

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your
outstanding balance if you perform any of the actions listed in the Penalty
APR row below.

Penalty APR and When
It Applies

How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We
will not charge you interest on purchases if you pay your entire outstanding
balance (excluding promotional balances) by the due date each month.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips from
the Federal Reserve
Board

To learn more about factors to consider when applying for or using a credit
card, visit the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

Model SB5.

Code SC2

Penalty Fees (cont.)
• Returned Payment

$38 (Your APRs may also increase; see Penalty APR section above.)

• Over-the-Credit Limit

$35 (Your APRs may also increase; see Penalty APR section above.)

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)".

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Model 6

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Balance
Transfers

20.99%
This APR will vary with the market based on the Prime Rate.
Balance transfer fees will also apply (see Fees section 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 Fees section below).

Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your outstanding
balance if you perform any of the actions listed in the Penalty APR row below.

Penalty APR and When
It Applies

31.99%
This
1)
2)
3)

APR may be applied to your account if you:
Make a late payment twice in a six-month period;
Go over your credit limit; or
Make a payment that is returned.

How Long Will the Penalty APR Apply?: If your APRs are increased for any of these
reasons, we may keep them at this higher level indefinitely.
How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We will not charge
you interest on purchases if you pay your entire outstanding balance (excluding
promotional balances) by the due date each month.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips from
the Federal Reserve Board

To learn more about factors to consider when applying for or using a credit card, visit the
website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000 (Your APRs may also increase; see Penalty APR
section above.)

• Returned Payment

$38 (Your APRs may also increase; see Penalty APR section above.)

• Over-the-Credit Limit

$35 (Your APRs may also increase; see Penalty APR section above.)

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)".
Model SB6.

Code SC1

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2.Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Model 7

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Balance
Transfers

20.99%

APR for Cash Advances

23.99%

This APR will vary with the market based on the Prime Rate.

This APR will vary with the market based on the Prime Rate.
Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your outstanding
balance if you perform any of the actions listed in the Penalty APR row below.

Penalty APR and When
It Applies

31.99%
This APR may be applied to your account if you:
1) Make a late payment twice in a six-month period;
2) Go over your credit limit; or
3) Make a payment that is returned.
How Long Will the Penalty APR Apply?: If your APRs are increased for any of
these reasons, we may keep them at this higher level indefinitely.

How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We will not
charge you interest on purchases if you pay your entire outstanding balance
(excluding promotional balances) by the due date each month.

Minimum Interest
Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips
from the Federal
Reserve Board

To learn more about factors to consider when applying for or using a credit card, visit
the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000
TURN OVER for more important information about your account.

Model SB7

Code SX2

Penalty Fees (cont.)
• Returned Payment

$38

• Over-the-Credit Limit

$35

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)".

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Model 8

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Purchases

0.00%

(Intro. APR through your May 2009 billing cycle)

1 1 . 9 9 % (Standard APR after May 2009)
Your standard APR will vary with the market based on the Prime Rate.

APR for Balance
Transfers

20.99%

APR for Cash Advances

23.99%

This APR will vary with the market based on the Prime Rate.

This APR will vary with the market based on the Prime Rate.
Loss of Introductory
APR

We will end your introductory APR and apply the standard APR to your outstanding
balance if you perform any of the actions listed in the Penalty APR row below.

Penalty APR and When
It Applies

31.99%
This APR may be applied to your account if you:
1) Make a late payment twice in a six-month period;
2) Go over your credit limit; or
3) Make a payment that is returned.
How Long Will the Penalty APR Apply?: If your APRs are increased for any of
these reasons, we may keep them at this higher level indefinitely.

How To Avoid Paying
Interest On Purchases

Your due date is at least 24 days after the close of each billing cycle. We will not
charge you interest on purchases if you pay your entire outstanding balance
(excluding promotional balances) by the due date each month.

Minimum Interest
Charge

If you are charged interest, the charge will be no less than $1.50.

For Credit Card Tips
from the Federal
Reserve Board

To learn more about factors to consider when applying for or using a credit card, visit
the website of the Federal Reserve Board at
www.federalreserve.gov/location.

Fees
Annual Fee

$60

Transaction Fees
• Balance Transfer

$20 if amount of transfer is less than or equal to $1,000;
$30 if amount of transfer is more than $1,000

• Cash Advance

Either $10 or 5% of the amount of each cash advance, whichever is greater.

• Foreign Transaction

2% of the amount of each transaction.

Penalty Fees
• Late Payment

$24 if balance is less than or equal to $1,000;
$27 if balance is more than $1,000

• Returned Payment

$38

• Over-the-Credit Limit

$35

How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases)"

Model SB8

Code SX1

Your Billing Rights: Keep This Document for Future Use
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.

Mini Card, U.S. Pat. 6,471,127B2. Credit subject to approval.
Credit cards issued by Artesian Bank, N.A. (USA).
©2008 Artesian Bank
[recycle
symbol]

If you receive our explanation but still believe your bill is wrong, you must write
to us within 10 days telling us that you still refuse to pay. If you do so, we
cannot report you as delinquent without also reporting that you are questioning
your bill. We must tell you the name of anyone to whom we reported you as
delinquent, and we must let those organizations know when the matter has been
settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of
the amount you question even if your bill is correct.
Your Rights If You Are Dissatisfied With Your Credit Card Purchases
If you are dissatisfied with the goods or services that you have purchased with
your credit card, and you have tried in good faith to correct the problem with the
merchant, you may have the right not to pay the remaining amount due on the
purchase.
To use this right, all of the following must be true:
1. The purchase must have been made in your home state or within 100 miles
of your current mailing address, and the purchase price must have been
more than $50. (Note: Neither of these are necessary if your purchase was
based on an advertisement we mailed to you, or if we own the company
that sold you the goods or services.)
2. You must have used your credit card for the purchase. Purchases made
with cash advances from an ATM or with a check that accesses your credit
card account do not qualify.
3. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing or electronically at:
Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390
www.artesianbank.com
While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that
point, if we think you owe an amount and you do not pay, we may report you as
delinquent.

Recycled Paper

Appendix B:
Periodic Statements Used in Testing

Characteristics of Periodic Statement Models

Periodic
Statement
Model #

Factor 1:
Change-inTerms
Summary
Table

Factor 2:
Location of
Change-inTerms Notice

Factor 3:
Transaction
List

Factor 4:
Presence of
Fee-Inclusive
APR

Factor 5:
Format of
Payment
Information

1
2
3
4
5
6
7
8
9
10
11
12

No Table
Table
No Table
No Table
Table
Table
No Table
No Table
Table
Table
Table
No Table

First Page
Second Page
Second Page
First Page
First Page
Second Page
Second Page
Second Page
First Page
Second Page
First Page
First Page

Chronological
Chronological
Chronological
Grouped
Grouped
Grouped
Grouped
Grouped
Grouped
Chronological
Chronological
Chronological

Present
Absent
Present
Present
Present
Present
Absent
Absent
Absent
Present
Absent
Absent

Version 1
Version 1
Version 3
Version 2
Version 1
Version 3
Version 2
Version 1
Version 3
Version 2
Version 2
Version 3

Model 1

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account S u m m a r y / P a y m e n t Information
Previous Balance

$535.07

Payments and Other Credits

-$463.45

New Activity including Fees and Interest

+$1,717.01

New Balance

$1,788.63

Payment Due Date

10/17/08

Minimum Payment Due

$48.00

Credit Limit

$2,000.00

Available Credit

$211.37

Days in Billing Cycle

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 1390, Norfolk, VA23501-1390.

Important News
Important Changes to Your Account Terms: Please see the enclosed Notice of Change in Terms for important changes
to your Card agreement.
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, modificandosu Perfil Personal en la seccion
Administrar mi Cuenta.
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!

Transactions
Reference Number
5884186PS0388W6YM
0544400060ZLV72VL
554328608008W90M0
854338203FS8OO0Z5
9525156489SFD4545Q
054830709LYMRPT4L
564891561545KOSHD
841517877845AKOJIO
55541860705RDYD0X
1542202074TWWTV48G
564891561545KOSHD
895848561561894KOH

Trans Date
8/24
8/24
8/24
8/25
8/25
8/25
8/25
8/25
8/25
8/26
8/26
8/26

Post Date
8/24
8/25
8/25
8/25
8/25
8/26
8/26
8/26
8/26
8/26
8/26
8/27

Description of Transaction or Credit
Citgo Food Mart #74 Atlanta GA
CVS Pharmacy #7338 003 Atlanta GA
Easy Saver 877-844-9564 PA
Payment Thank You
Pay-by-Phone Fee
Wayfield Foods #1 S9b Atlanta GA
Acme #1456 Atlanta GA
Citgo #1276 Decatur GA
Eckerd Drugs #2708 Atlanta GA
Best Bank Cash Advance Atlanta GA
Cash Advance Fee *Transaction Fee*
Save-a-Lot Grocery #287 Atlanta GA

Amount
$2.05
$12.11
$114.95
$450.00$33.00
$7.35
$14.35
$40.35
$4.63
$121.50
$5.00
$27.68

(transactions continued on next page)

[codes] Page 1of2[codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-1

Code X1CE1

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions (cont.)
Reference Number
1871556189456SAMKL
4545754784KOHUIOS
84151564SADS8745H
2564894185189LKDFD
14547847586KDOL564

Trans Date
8/26
8/27
8/27
8/27
8/28

Post Date
8/27
8/27
8/27
8/28
8/28

Description of Transaction or Credit
Best Buy #123 Atlanta GA
Balance Transfer
Balance Transfer Fee *Transaction Fee*
Shell Oil #8765 Athens GA
Best Bank Cash Advance Decatur GA

Amount
$124.76
$785.00
$23.55
$32.87
$201.50

256489156189451516L
2564561023184102315
55542818705RASD0X
289189194ASDS8744
178105417841045784
8456152156181SDSA
31289105205648AWD
045148714518979874
04518478415615ASD
0547810544898718AF
056489413216848OP
054894561564ASDW
5648974891AD98156

8/28
8/28
9/1
9/1
9/2
9/5
9/11
9/11
9/11
9/15
9/16
9/17
9/19

8/28
9/1
9/2
9/3
9/6
9/7
9/12
9/15
9/16
9/17
9/17
9/18
9/20

Cash Advance Fee *Transaction Fee*
Eckerd Drugs #2708 Atlanta GA
Walmart #2998 Athens GA
Macys #78 Decatur GA
Citgo Food Mart #74 Atlanta GA
Shell Oil #8765 Athens GA
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

$7.00
$14.76
$3.76
$13.45
$2.35
$25.00
$7.34
$13.45$10.56
$24.50
$8.76
$14.23
$23.76

TOTAL FEES FOR THIS PERIOD

$68.55

Interest Charge on Purchases
Interest Charge on Cash Advances

$6.31
$4.58

TOTAL INTEREST CHARGES FOR THIS PERIOD

$10.89

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge
$6.31

Purchases

14.99%

$505.14

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

Fee-Inclusive APR
The Fee-Inclusive APRs in this table are the APRs that you paid this period when transaction or fixed fees are taken into
account as well as interest.
Type of Balance

PS-1

Interest Charges

Transaction or
Fixed Fees

Fee-Inclusive APR

Purchases

$6.31

$0.00

14.99%

Cash Advances

$4.58

$12.00

61.60%

Balance Transfers

$0.00

$23.55

36.00%

Code X1CE1

Model 2

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account Summary/Payment Information
Previous Balance

$535.07

Payments and Other Credits

-$463.45

New Activity including Fees and Interest

+$1,717.01

New Balance

$1,788.63

Payment Due Date

10/17/08

Minimum Payment Due

$48.00

Credit Limit

$2,000.00

Available Credit

$211.37

Days in Billing Cycle

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 1390, Norfolk, VA23501-1390.

Trans Date
8/24
8/24
8/24
8/25
8/25
8/25
8/25
8/25
8/25
8/26

Post Date
8/24
8/25
8/25
8/25
8/25
8/26
8/26
8/26
8/26
8/26

Amount
$2.05
$12.11
$114.95
$450.00$33.00
$7.35
$14.35
$40.35
$4.63
$121.50

564891561545KOSHD
895848561561894KOH
1871556189456SAMKL
4545754784KOHUIOS
84151564SADS8745H
2564894185189LKDFD
14547847586KDOL564
256489156189451516L
2564561023184102315
55542818705RASD0X
289189194ASDS8744
178105417841045784
8456152156181SDSA
31289105205648AWD
045148714518979874
04518478415615ASD

8/26
8/26
8/26
8/27
8/27
8/27
8/28
8/28
8/28
9/1
9/1
9/2
9/5
9/11
9/11
9/11

8/26
8/27
8/27
8/27
8/27
8/28
8/28
8/28
9/1
9/2
9/3
9/6
9/7
9/12
9/15
9/16

Cash Advance Fee *Transaction Fee*
Save-a-Lot Grocery #287 Atlanta GA
Best Buy #123 Atlanta GA
Balance Transfer
Balance Transfer Fee Transaction Fee*
Shell Oil #8765 Athens GA
Best Bank Cash Advance Decatur GA
Cash Advance Fee *Transaction Fee*
Eckerd Drugs #2708 Atlanta GA
Walmart #2998 Athens GA
Macys #78 Decatur GA
Citgo Food Mart #74 Atlanta GA
Shell Oil #8765 Athens GA
Easy Saver 877-844-9564 PA
Macys #78 Decatur GA
Save-a-Lot Grocery #287 Atlanta GA

$5.00
$27.68
$124.76
$785.00
$23.55
$32.87
$201.50
$7.00
$14.76
$3.76
$13.45
$2.35
$25.00
$7.34
$13.45$10.56

(transactions continued on next page)

[codes] Page 1of2[codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-2

Code C2CX1

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions (cont.)
Reference Number
0547810544898718AF
056489413216848OP
054894561564ASDW
5648974891AD98156

Trans Date
9/15
9/16
9/17
9/19

Post Date
9/17
9/17
9/18
9/20

Description of Transaction or Credit
Shell Oil #8765 Athens GA
Walmart #2998 Athens GA
Acme #1456 Atlanta GA
Macys #78 Decatur GA

Amount
$24.50
$8.76
$14.23
$23.76

TOTAL FEES FOR THIS PERIOD

$68.55

Interest Charge on Purchases
Interest Charge on Cash Advances

$6.31
$4.58

TOTAL INTEREST CHARGES FOR THIS PERIOD

$10.89

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

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

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Type of Balance

Balance Transfers

Important Changes to Your Account Terms
The following is a summary of changes that are being made to your account terms.
These changes will impact your account as follows:
Transactions made on or after 10/10/08: As of 11/10/08, any changes to APRs described below will apply to these
transactions.
Transactions made before 10/10/08: Current APRs will continue to apply to these transactions.

Revised Terms, as of 11/10/08
APR for Purchases

16.99%

Balance Transfer Fee

$24 if amount of transfer is less than or equal to $1,000;
$34 if amount of transfer 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, oelija su idioma de
preferencia en www.artesianbank.com, modificando su Perfil Personal en la seccion Administrar mi Cuenta.
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-2

Code C2CX1

Model 3

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Payment Information

S u m m a r y of Account Activity
Previous Balance
Payments and Other Credits
New Activity including Fees and Interest
New Balance

$535.07
-$463.45
$1,717.01
$1,788.63

Credit limit
Available credit
Days in billing cycle

$2,000.00
$211.37
30

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 1390, Norfolk, VA23501-1390.

New Balance

$1,788.63

Minimum Payment Due

$48.00

Payment Due Date

10/17/08

Late Payment Warning: If we do not receive your minimum
payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty
APR of 28.99%.
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 you to repay your balance making only minimum
payments, call 1-800-555-5555 or go to www.artesianbank.
com/minimumpayment.

Transactions [A list of sample transactions in tabular format. Each transaction includes a
Reference Number (sequence of letters and digits), Transaction Date (month and day), Post
Date (month and day), Description of Transaction or Credit, and Amount (in dollars).]

(transactions continued on next page)

[codes] Page 1of2[codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-3

Code X2CE3

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

TOTAL FEES FOR THIS PERIOD

$68.55

Interest Charge on Purchases
Interest Charge on Cash Advances

$6.31
$4.58

TOTAL INTEREST CHARGES FOR THIS PERIOD

$10.89

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

Fee-Inclusive APR
The Fee-Inclusive APRs in this table are the APRs that you paid this period when transaction or fixed fees are taken into
account as well as interest.
Type of Balance

Interest Charges

Transaction or
Fixed Fees

Fee-Inclusive APR

Purchases

$6.31

$0.00

14.99%

Cash Advances

$4.58

$12.00

61.60%

Balance Transfers

$0.00

$23.55

36.00%

Important News
Important Changes to Your Account Terms: Please see the enclosed Notice of Change in Terms for important changes
to your Card agreement.
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.
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-3

Code X2CE3

Model 4

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account Summary/Payment Information
Previous
Balance
$535.07

Payments and
Other Credits
-$463.45

Minimum
Payment Due
$48.00

Payment
Due Date

10/17/08

New Activity
Including Fees
and Interest
+$1,717.01

New Balance
$1,788.63

Days in
Billing Cycle
30

Total
Credit Line
$2,000.00

Available
Credit Line
$211.37

Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty APR of 28.99%.
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 you to repay your balance making only minimum payments, call 1-800-555-5555 or go to www.artesianbank.com/
minimumpayment.

Important News
Important Changes to Your Account Terms: Please see the enclosed Notice of Change in Terms for important changes
to your Card agreement.
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.
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!

Transactions

[A list of sample transactions in tabular format. The transactions are categorized as Payments and Other Credits, and
Purchases. Each transaction includes a Reference Number (sequence of letters and digits), Trans Date (month and day),
Post Date (month and day), Description of Transaction or Credit, and Amount (in dollars).]

(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-4

Code X1GE2

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. The transactions are
categorized as Purchases (implied), Cash Advances, Balance Transfers, Fees (with subtotal),
and Interest Charged (with subtotal). Except subtotals and interest charges, each transaction
includes a Reference Number (sequence of letters and digits), Transaction Date (month and day),
Post Date (month and day), Description of Transaction or Credit, and Amount (in dollars).
Descriptions under Fees are Pay-by-Phone Fee, Cash Advance Fee *Transaction Fee*
(two instances), Balance Transfer Fee *Transaction Fee*, and TOTAL FEES FOR THIS PERIOD.
Descriptions under Interest Charged are Interest Charge on Purchases, Interest Charge on Cash
Advances, and TOTAL INTEREST FOR THIS PERIOD.]

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

Fee-Inclusive APR
The Fee-Inclusive APRs in this table are the APRs that you paid this period when transaction or fixed fees are taken into
account as well as interest.
Type of Balance

PS-4

Interest Charges

Transaction or
Fixed Fees

Fee-Inclusive APR

Purchases

$6.31

$0.00

14.99%

Cash Advances

$4.58

$12.00

61.60%

Balance Transfers

$0.00

$23.55

36.00%

Code X1GE2

Model 5

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account S u m m a r y / P a y m e n t Information
Previous Balance
Payments and Other Credits
New Activity including Fees and Interest
New Balance
Payment Due Date

$535.07
-$463.45
+$1,717.01
$1,788.63
10/17/08

Minimum Payment Due
Credit Limit
Available Credit

$48.00
$2,000.00
$211.37

Days in Billing Cycle

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 1390, Norfolk, VA23501-1390.

Revised Terms, as of 11/10/08
APR for Purchases

16.99%

Balance Transfer Fee

$24 if amount of transfer is less than or equal to $1,000;
$34 if amount of transfer is more than $1,000

Transactions [A list of sample transactions in tabular format. The transactions are categorized as Payments and Other Credits,
and Purchases. Each transaction includes a Reference Number (sequence of letters and digits), Transaction Date (month and day),
Post Date (month and day), Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-5

Code C1GE1

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. The transactions are categorized as
Purchases (implied), Cash Advances, Balance Transfers, Fees (with subtotal), and Interest Charged (with subtotal).
Except subtotals and interest charges, each transaction includes a Reference Number (sequence of letters and digits),
Transaction Date (month and day), Post Date (month and day), Description of Transaction or Credit, and Amount
(in dollars). Descriptions under Fees are Pay-by-Phone Fee, Cash Advance Fee *Transaction Fee* (two instances),
Balance Transfer Fee *Transaction Fee*, and TOTAL FEES FOR THIS PERIOD. Descriptions under Interest Charged
are Interest Charge on Purchases, Interest Charge on Cash Advances, and TOTAL INTEREST FOR THIS PERIOD.]

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge
$6.31

Purchases

14.99%

$505.14

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

Fee-Inclusive APR
The Fee-Inclusive APRs in this table are the APRs that you paid this period when transaction or fixed fees are taken into
account as well as interest.
Type of Balance

Interest Charges

Transaction or
Fixed Fees

Fee-Inclusive APR

Purchases

$6.31

$0.00

14.99%

Cash Advances

$4.58

$12.00

61.60%

Balance Transfers

$0.00

$23.55

36.00%

PS-5

Code C1GE1

Model 6

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Payment Information

S u m m a r y of Account Activity
Previous Balance
Payments and Other Credits
New Activity including Fees and Interest
New Balance

$535.07
-$463.45
$1,717.01
$1,788.63

Credit limit
Available credit
Days in billing cycle

$2,000.00
$211.37
30

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 1390, Norfolk, VA23501-1390.

New Balance

$1,788.63

Minimum Payment Due

$48.00

Payment Due Date

10/17/08

Late Payment Warning: If we do not receive your minimum
payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty
APR of 28.99%.
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 you to repay your balance making only minimum
payments, call 1-800-555-5555 or go to www.artesianbank.
com/minimumpayment.

Transactions [A list of sample transactions in tabular format. The transactions are categorized as Payments and Other Credits,
Purchases, and Cash Advances. Each transaction includes a Reference Number (sequence of letters and digits), Transaction
Date (month and day), Post Date (month and day), Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-6

Code C2GE3

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. The transactions are categorized as
Balance Transfers, Fees (with subtotal), and Interest Charged (with subtotal). Except subtotals and interest charges,
each transaction includes a Reference Number (sequence of letters and digits), Transaction Date (month and day),
Post Date (month and day), Description of Transaction or Credit, and Amount (in dollars). Descriptions under Fees
are Pay-by-Phone Fee, Cash Advance Fee *Transaction Fee* (two instances), Balance Transfer Fee *Transaction Fee*,
and TOTAL FEES FOR THIS PERIOD. Descriptions under Interest Charged are Interest Charge on Purchases,
Interest Charge on Cash Advances, and TOTAL INTEREST FOR THIS PERIOD.]

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

Fee-Inclusive APR
The Fee-Inclusive APRs in this table are the APRs that you paid this period when transaction or fixed fees are taken into
account as well as interest.
Type of Balance

Interest Charges

Transaction or
Fixed Fees

Fee-Inclusive APR

Purchases

$6.31

$0.00

14.99%

Cash Advances

$4.58

$12.00

61.60%

Balance Transfers

$0.00

$23.55

36.00%

Revised Terms, as of 11/10/08
APR for Purchases

16.99%

Balance Transfer Fee

$24 if amount of transfer is less than or equal to $1,000;
$34 if amount of transfer 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.
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-6

Code C2GE3

Model 7

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account Summary/Payment Information
Previous
Balance
$535.07

Payments and
Other Credits
-$463.45

Minimum
Payment Due
$48.00

Payment
Due Date

10/17/08

New Activity
Including Fees
and Interest
+$1,717.01

New Balance
$1,788.63

Days in
Billing Cycle
30

Total
Credit Line
$2,000.00

Available
Credit Line
$211.37

Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty APR of 28.99%.
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 you to repay your balance making only minimum payments, call 1-800-555-5555 or go to www.artesianbank.com/
minimumpayment.

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 1390, Norfolk, VA23501-1390.

Transactions [A list of sample transactions in tabular format. The transactions are categorized as
Payments and Other Credits, and Purchases. Each transaction includes a Reference Number (sequence
of letters and digits), Transaction Date (month and day), Post Date (month and day), Description of
Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-7

Code X2GX2

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. The transactions are
categorized as Cash Advances, Balance Transfers, Fees (with subtotal), and Interest Charged
(with subtotal). Except subtotals and interest charges, each transaction includes a Reference
Number (sequence of letters and digits), Transaction Date (month and day), Post Date
(month and day), Description of Transaction or Credit, and Amount (in dollars). Descriptions
under Fees are Pay-by-Phone Fee, Cash Advance Fee *Transaction Fee* (two instances), Balance
Transfer Fee *Transaction Fee*, and TOTAL FEES FOR THIS PERIOD. Descriptions under
Interest Charged are Interest Charge on Purchases, Interest Charge on Cash Advances, and
TOTAL INTEREST FOR THIS PERIOD.]

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

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

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Type of Balance

Balance Transfers

Important News
Important Changes to Your Account Terms: Please see the enclosed Notice of Change in Terms for important changes
to your Card agreement.
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.
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-7

Code X2GX2

Model 8

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account S u m m a r y / P a y m e n t Information
Previous Balance

$535.07

Payments and Other Credits
New Activity including Fees and Interest
New Balance

-$463.45
+$1,717.01
$1,788.63

Payment Due Date

10/17/08

Minimum Payment Due

$48.00

Credit Limit

$2,000.00

Available Credit

$211.37

Days in Billing Cycle

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 1390, Norfolk, VA23501-1390.

Transactions [A list of sample transactions in tabular format. The transactions are categorized as
Payments and Other Credits, and Purchases. Each transaction includes a Reference Number (sequence
of letters and digits), Transaction Date (month and day), Post Date (month and day), Description of
Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-8

Code X2GX1

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

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

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Type of Balance

Balance Transfers

Important News
Important Changes to Your Account Terms: Please see the enclosed Notice of Change in Terms for important changes
to your Card agreement.
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.
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-8

Code X2GX1

Model 9

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Payment Information

S u m m a r y of Account Activity
Previous Balance
Payments and Other Credits
New Activity including Fees and Interest
New Balance

$535.07
-$463.45
$1,717.01
$1,788.63

Credit limit
Available credit
Days in billing cycle

$2,000.00
$211.37
30

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 1390, Norfolk, VA23501-1390.

New Balance

$1,788.63

Minimum Payment Due

$48.00

Payment Due Date

10/17/08

Late Payment Warning: If we do not receive your minimum
payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty
APR of 28.99%.
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 you to repay your balance making only minimum
payments, call 1-800-555-5555 or go to www.artesianbank.
com/minimumpayment.

Revised Terms, as of 11/10/08
APR for Purchases

16.99%

Balance Transfer Fee

$24 if amount of transfer is less than or equal to $1,000;
$34 if amount of transfer is more than $1,000

Transactions [A list of sample transactions in tabular format. The transactions are categorized as
Payments and Other Credits, and Purchases. Each transaction includes a Reference Number
(sequence of letters and digits), Transaction Date (month and day), Post Date (month and day),
Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-9

Code C1GX3

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. The transactions are
categorized as Purchases (implied), Cash Advances, Balance Transfers, Fees (with subtotal),
and Interest Charged (with subtotal). Except subtotals and interest charges, each transaction
includes a Reference Number (sequence of letters and digits), Transaction Date (month and day),
Post Date (month and day), Description of Transaction or Credit, and Amount (in dollars).
Descriptions under Fees are Pay-by-Phone Fee, Cash Advance Fee *Transaction Fee*
(two instances), Balance Transfer Fee *Transaction Fee*, and TOTAL FEES FOR THIS PERIOD.
Descriptions under Interest Charged are Interest Charge on Purchases, Interest Charge on Cash
Advances, and TOTAL INTEREST FOR THIS PERIOD.]

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge
$6.31

Purchases

14.99%

$505.14

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

PS-9

Code C1GX3

Model 10

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account Summary/Payment Information
Previous
Balance
$535.07

Payments and
Other Credits
-$463.45

Minimum
Payment Due
$48.00

Payment
Due Date

10/17/08

New Activity
Including Fees
and Interest
+$1,717.01

New Balance
$1,788.63

Days in
Billing Cycle
30

Total
Credit Line
$2,000.00

Available
Credit Line
$211.37

Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty APR of 28.99%.
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 you to repay your balance making only minimum payments, call 1-800-555-5555 or go to www.artesianbank.com/
minimumpayment.

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 1390, Norfolk, VA23501-1390.

Transactions [A list of sample transactions in tabular format. Each transaction includes a Reference
Number (sequence of letters and digits), Transaction Date (month and day), Post Date (month and
day), Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-10

Code C2CE2

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Transactions [A continued list of sample transactions in tabular format. Except subtotals and
interest charges, each transaction includes a Reference Number (sequence of letters and digits),
Transaction Date (month and day), Post Date (month and day), Description of Transaction or
Credit, and Amount (in dollars). Last four descriptions are TOTAL FEES FOR THIS PERIOD,
Interest Charge on Purchases, Interest Charge on Cash Advances, and TOTAL INTEREST
CHARGES FOR THIS PERIOD.]

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

I 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

Interest Charge

Purchases

14.99%

$505.14

$6.31

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Type of Balance

Balance Transfers

Fee-Inclusive APR
The Fee-Inclusive APRs in this table are the APRs that you paid this period when transaction or fixed fees are taken into
account as well as interest.
Type of Balance

Interest Charges

Transaction or
Fixed Fees

Fee-Inclusive APR

Purchases

$6.31

$0.00

14.99%

Cash Advances

$4.58

$12.00

61.60%

Balance Transfers

$0.00

$23.55

36.00%

Revised Terms, as of 11/10/08
APR for Purchases

16.99%

Balance Transfer Fee

$24 if amount of transfer is less than or equal to $1,000;
$34 if amount of transfer is more than $1,000

PS-10

Code C2CE2

Model 11

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Account Summary/Payment Information
Previous
Balance
$535.07

Payments and
Other Credits
-$463.45

Minimum
Payment Due
$48.00

Payment
Due Date

10/17/08

New Activity
Including Fees
and Interest
+$1,717.01

New Balance
$1,788.63

Days in
Billing Cycle
30

Total
Credit Line
$2,000.00

Available
Credit Line
$211.37

Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty APR of 28.99%.
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 you to repay your balance making only minimum payments, call 1-800-555-5555 or go to www.artesianbank.com/
minimumpayment.

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 1390, Norfolk, VA23501-1390.

Revised Terms, as of 11/10/08
APR for Purchases

16.99%

Balance Transfer Fee

$24 if amount of transfer is less than or equal to $1,000;
$34 if amount of transfer is more than $1,000

Transactions [A list of sample transactions in tabular format. Each transaction includes a Reference
Number (sequence of letters and digits), Transaction Date (month and day), Post Date (month and
day), Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-11

Code C1CX2

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Annual Percentage Rate (APR)

Balance Subject to
Interest Rate

Interest Charge
$6.31

Purchases

14.99%

$505.14

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

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.
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

Code C1CX2

Model 12

Page 1 of 2
Artesian Bank Credit Card Account Statement
Account N u m b e r 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

Payment Information

S u m m a r y of Account Activity
Previous Balance
Payments and Other Credits
New Activity including Fees and Interest
New Balance

$535.07
-$463.45
$1,717.01
$1,788.63

Credit limit
Available credit
Days in billing cycle

$2,000.00
$211.37
30

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 1390, Norfolk, VA23501-1390.

New Balance

$1,788.63

Minimum Payment Due

$48.00

Payment Due Date

10/17/08

Late Payment Warning: If we do not receive your minimum
payment by the date listed above, you may have to pay a $35
late fee and your APRs may be increased up to the Penalty
APR of 28.99%.
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 you to repay your balance making only minimum
payments, call 1-800-555-5555 or go to www.artesianbank.
com/minimumpayment.

Important News
Important Changes to Your Account Terms: Please see the enclosed Notice of Change in Terms for important changes
to your Card agreement.
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.
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!

Transactions [A list of sample transactions in tabular format. Each transaction includes a Reference
Number (sequence of letters and digits), Transaction Date (month and day), Post Date (month and
day), Description of Transaction or Credit, and Amount (in dollars).]
(transactions continued on next page)

[codes] Page 1 of 2 [codes]
[dashed line indicates serration for payment slip]
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:

$1,788.63

Minimum Payment Due:

$48.00

Payment Due Date:

10/17/08

AMOUNT ENCLOSED: $

Artesian Bank
P.O. Box 1390
Norfolk, VA 23501-1390

[barcodes]

Model PS-12

Code X1CX3

Page 2 of 2
Artesian Bank Credit Card Account Statement
Account Number 1234 5678 9012 3456
August 24, 2008 to September 22, 2008

2008 Totals Year-to-Date
Total fees charged in 2008

$124.50

Total interest charged in 2008

$47.42

Interest Charge Calculation
Your Annual Percentage Rate (APR) is the annual interest rate on your account.
Type of Balance

Balance Subject to
Interest Rate

Interest Charge
$6.31

Purchases

14.99%

$505.14

Cash Advances

21.99%

$249.93

$4.58

0.00%

$637.50

$0.00

Balance Transfers

PS-12

Annual Percentage Rate (APR)

Code X1CX3

Appendix C:
Change-in-Terms Insert Provided with
Periodic Statement

Artesian Bank [logo]
NOTICE OF CHANGE IN TERMS TO
ARTESIAN BANK CARDMEMBER AGREEMENT
The following is a summary of changes that are being made to
your account terms. These changes will impact your account
as follows:
Transactions made on or after 10/10/08: As of 11/10/08, any
changes to APRs described below will apply to these
transactions.
Transactions made before 10/10/08: Current APRs will
continue to apply to these transactions.

Revised Terms, as of 11/10/08
APR for Purchases

balance that you owe us under the current terms of the Agreement. Note that these changes will not apply to your Account
if your Account is closed by November 3, 2008. Use of your
Account on or after November 4, 2008 means that you accept
these changes even if you previously notified us that you did
not agree to these changes.
Purchase APR
The standard rate of interest for credit card purchases will be
a Daily Periodic Rate of .04655% (corresponding 16.99%
ANNUAL PERCENTAGE RATE).
Balance Transfer Fee
We charge you a fee each time that you transfer an additional
balance to your account. Under your new account terms this
fee is $24 if the amount of the transfer is less than or equal
to $1,000, or $34 if the amount of the transfer is more than
$1,000.

16.99%

Balance Transfer Fee $24 if amount of transfer is
less than or equal to $1,000;
$34 if amount of transfer is
more than $1,000
The following changes will apply to your Account unless
you notify us in writing that you reject them by November
3, 2008. Send your notice to P.O. Box 30937, Salt Lake City,
UT 84130-0937. Your notice should include your name, address, telephone number and Account number(s) and should
not be sent with any other correspondence. Calling us to indicate you reject these changes is insufficient notice. In order to
process your notice, we require that the notice be provided by
you directly and not through a third party. If you reject these
changes, we will close your Account and you will pay us the

If you would like to receive a copy of the most current
version of the Artesian Bank Cardmember Agreement,
please call 1-800-555-1234.

Appendix D:
Screening Questions

Screening Questions
1. Do you read and speak English fluently?
[checkbox] Yes
[checkbox] No [POLITELY EXCUSE RESPONDENT]
2.

Do you currently have one or more general-purpose credit cards, such as MasterCard, Visa,
Discover or American Express? Please do not include debit or ATM cards, or credit cards
that can only be used at a single chain of stores.
[checkbox] Yes
[checkbox] No [POLITELY EXCUSE RESPONDENT]

In your household, are you responsible for making credit card decisions such as choosing a
new credit card or deciding how much to pay each month? [DO NOT READ RESPONSE
OPTIONS]
[checkbox] Yes
[checkbox] Yes, in cooperation with my [spouse, partner, etc.]
[checkbox] No [POLITELY EXCUSE RESPONDENT]

4. Do you currently work for a bank or a credit card company?
[checkbox] Yes [POLITELY EXCUSE RESPONDENT]
[checkbox] No
5. Gender
[checkbox] Male
[checkbox] Female
6.

Which of the following categories best describes your age?
[checkbox] 18-24
[checkbox] 25-34
[checkbox] 35-54
[checkbox] 55 and over

What is the highest level of education you have completed?
[checkbox] Less than high school
[checkbox] High school graduate or G.E.D.
[checkbox] Some college or post-secondary work
[checkbox] College graduate

Appendix E:
Participant Demographic Information

T o t a l

Detroit,
MI

Los Angeles,
CA

Seattle,
WA

Springfield,
MA

St. Louis,
MO

Tallahassee,
FL

TOTAL

137

151

140

145

147

152

150

1022

57 (42%)
80 (58%)

82 (54%)
69 (46%)

71 (51%)
69 (49%)

72 (50%)
73 (50%)

73 (50%)
74 (50%)

76 (50%)
76 (50%)

78 (52%)
72 (48%)

509 (50%)
513 (50%)

23
39
45
30

21
38
49
43

(14%)
(25%)
(32%)
(28%)

22(16%)
37 (26%)
50 (36%)
31 (22%)

19
36
51
39

21
35
54
37

23
37
51
41

(15%)
(24%)
(34%)
(27%)

22(15%)
35 (23%)
55 (37%)
38 (25%)

151
257
355
259

17(11%)
50 (33%)

12 (9%)
45 (32%)

15 (10%)
41 (28%)

17(12%)
46(31%)

17(11%)
43 (28%)

16(11%)
42 (28%)

101 (10%)
306 (30%)

35 (26%)

27(18%)

28 (20%)

32 (22%)

30 (20%)

29(19%)

32 (21%)

213 (21%)

56 (41%)

57 (38%)

55 (39%)

57 (39%)

54 (37%)

63 (41%)

60 (40%)

402 (39%)

64 (47%)

86 (57%)

38 (27%)

144(99%)

87 (59%)

141 (93%)

80 (54%)

640 (63%)

47 (34%)
22(16%)
3 (2%)
2 (2%)

61 (40%)
1 (1%)
2 (1%)
6 (4%)

15(11%)
82 (59%)
2(1%)
1 (1%)

35 (24%)
31 (21%)
0 (0%)
1 (1%)

8 (5%)
4 (3%)
1 (1%)
1 (1%)

63 (42%)
7 (5%)
0 (0%)
1 (1%)

234 (23%)
152 (15%)
9(1%)
19 (2%)

0 (0%)

2 (1%)

P a r t i c i p a n t s

G e n d e r

( s e et a b l ef o o t n o t e1 ) :

M a l e
Gender: F e m a l e

A g e :

Dallas,
TX

18-24

Age: 2 5 - 3 4
Age: 3 5 - 5 4
Age: 5 5 +
H i g h e s t

L e v e l

7 (5%)
39 (28%)

school

Highest Level of Education:
school

graduate or

Highest Level of Education:
S o m e

(13%)
(25%)
(35%)
(27%)

(14%)
(24%)
(37%)
(25%)

(15%)
(25%)
(35%)
(25%)

of E d u c a t i o n :

L e s s t h a n high

H i g h

(17%)
(28%)
(33%)
(22%)

college

G . E . D .

o rpost-secondaryw o r k

HighestLevelofEducation:C o l l e g e

graduate

R a c e / E t h n i c i t y ( s e et a b l ef o o t n o t e2 ) :
W h i t e

(including

Eastern

M i d d l e

A r a b )

Race/Ethnicity: B l a c k / A f r i c a n - A m e r i c a n
Race/Ethnicity: H i s p a n i c / L a t i n o
Race/Ethnicity: A s i a n
Race/Ethnicity:
A m e r i c a n

I n d i a n / A l a s k a

Race/Ethnicity:

Race/Ethnicity: O t h e r
r e s p o n s e

(3%)
(3%)
(1%)
(5%)

N a t i v e

N a t i v e H a w a i i a n / P a c i f i c

Race/Ethnicity: N o

5
5
1
7

1 (1%)

2(1%)

0 (0%)

5(1%)

8 (6%)
17(12%)

1 (1%)
7 (5%)

7 (5%)
1 (1%)

1 (1%)
0 (0%)

2 (1%)
0 (0%)

30 (3%)
25 (2%)

Islander

7 (5%)
0 (0%)

4 (3%)
0 (0%)

[Footnote 1. Information about gender, age, and education level was collected during the screening process. Information about race/ethnicity, household size, and income
was collected through questions at the end of the survey. End footnote 1.]
[Footnote 2. Because participants were given the opportunity to self-identify with up to three of the ethnic categories shown, these figures may add up to more than 100%.
End footnote 2.]

H o u s e h o l d
U n d e r

HouseholdIncome:$

t o

HouseholdIncome:$

t o

HouseholdIncome:$

t o

HouseholdIncome:O v e r

L i m i t

C r e d i t

$ 1 0 0 K

r e s p o n s e

C r e d i t

U n d e r

o n

TOTAL

(23%)
(52%)
(17%)
(3%)
(1%)
(3%)

35 (24%)
48 (33%)
27(18%)
8 (5%)
3 (2%)
26(18%)

16(11%)
47(31%)
57 (38%)
19 (13%)
12 (8%)
1 (1%)

44 (29%)
54 (36%)
37 (25%)
10 (7%)
4 (3%)
1 (1%)

222 (22%)
369 (36%)
256 (25%)
87 (9%>)
43 (4%>)
45 (4%)

(10%)
(60%)
(26%)
(3%)
(1%)

12 (8%)
73 (50%)
46 (32%)
3 (2%)
11(8%)

18(12%)
67 (46%)
38 (26%)
6 (4%)
18(12%)

11 (7%)
66 (43%)
72 (47%)
1 (1%)
2(1%)

33
69
44
4
0

(22%)
(46%)
(29%)
(3%)
(0%)

115 (11%)
521 (51%)
324 (32%)
24 (2%>)
38 (4%>)

56 (40%)
45 (32%)
37 (26%)
1 (1%)
1 (1%)

28(19%)
48 (33%)
59 (41%)
2(1%)
8(6%)

61
44
29
5
8

34 (22%)
47 (31%)
67 (44%)
1 (1%)
3 (2%)

43
54
53
0
0

(29%)
(36%)
(35%)
(0%)
(0%)

333 (33%)
307 (30%)
348 (34%)
10 (1%)
24 (2%>)

Seattle,
WA

28 (20%)
35 (26%)
32 (23%)
23 (17%)
16(12%)
3 (2%)

45 (30%)
60 (40%)
30 (20%)
8 (5%)
2 (1%)
6 (4%)

21 (15%)
49(35%)
49(35%)
14(10%)
4 (3%)
3 (2%)

33
76
24
5
2
5

16(12%)
73 (53%)
42(31%)
2 (2%)
4 (3%)

11 (7%)
89 (59%)
46 (30%)
4 (3%)
1 (1%)

14
86
36
4
2

61
29
43
0
4

50 (33%)
40 (26%)
60 (40%)
1 (1%)
0 (0%)

A c c o u n t :

$ 5 0 0

$ 3 0 0 0

CreditLimitonPrimaryCreditCardA c c o u n t : O v e r$ 3 0 0 0

CreditLimitonPrimaryCreditCardA c c o u n t : D o n ' tk n o w

CreditLimitonPrimaryCreditCardAccount:Nor e s p o n s e

o f

Tallahassee,
FL

Los Angeles,
CA

P r i m a r y

CreditLimitonPrimaryCreditCardA c c o u n t : $ 5 0 0t o

Y e a r s

St. Louis,
MO

Detroit,
MI

I n c o m e :

HouseholdIncome:N

Springfield,
MA

Dallas,
TX

C r e d i t

E x p e r i e n c e :
L e s s

t h a n

YearsofCreditCardExperience:5

y e a r s

t o

1 0

YearsofCreditCardExperience:M o r e

YearsofCreditCardExperience:D o n ' t

YearsofCreditCardExperience:N

a g o

y e a r s

t h a n

1 0

k n o w

r e s p o n s e

a g o

y e a r s

a g o

(45%)
(21%)
(31%)
(0%)
(3%)

Due to rounding some rows may not equal 100 percent.

(42%)
(30%)
(20%)
(3%)
(5%)

Appendix F:
Mock Marketing Inserts Provided with
Periodic Statement

Artesian Bank offers:
Certificates of Deposit (CDs)
Money Market
Deposit Accounts
Individual Retirement
Accounts (IRAs)
FDIC insured
For current rates or to open an
account, call 1-877-555-1234.

A friendlier way to save!
[photo of piggy bank]

Money Does Grow On Trees

Get $50
When you open a new
checking account at Artesian Bank.
(Minimum balance: $1,000)
[graphic of a tree]

[FDIC logo] Artesian Bank
[USA Olympic Official Sponsor logo]

Visit www.artesianbank.com today!

DEP-21234

Appendix G:
Interview Protocol

Federal Reserve Board Credit Card Project
Mall Intercept Study Protocol
9/8/08
Notes about Protocol:
• Three different types of documents were shown to participants in the interviews:
Schumer Boxes ("SB Forms"), periodic statements ("PS Forms"), and
descriptions of how banks allocate payments between balances ("PA Forms").
Several different versions of each form were used; each participant was randomly
assigned an SB Form, PS Form, and PA Form to see.1

[Footnote 1. Eight different SB forms were used, along with 12 different PS
forms and 3 PA forms. End footnote 1.] For each interview, the
programming of the interview instrument displayed the forms for that participant.
In this document, the codes "[SB Form]", "[PS Form]", and "[PA Form]" are used
to designate when a specific form would be shown to interviewers.
• This document contains several skip patterns, in which respondents skip certain
questions based on their responses to previous items. These skip patterns were
carried out automatically through the programming of the survey instrument, and
did not actually appear on the screen during the interview.
INTERVIEWER DIRECTIONS: For this interview, you will need [SB Form], the
envelope containing [PS Form], and [PA Form]. Please take these out so that they are
ready when you need them.
1. Interview Location:
[checkbox] Dallas
[checkbox] Detroit
[checkbox] Los Angeles
[checkbox] Seattle
[checkbox] Springfield
[checkbox] St. Louis
[checkbox] Tallahassee
[checkbox] Macro

2. Interviewer's Initials (Example, E S):

3. Do you read and speak English fluently?
[checkbox] Yes
[checkbox] No (POLITELY EXCUSE RESPONDENT)

4. Do you currently have one or more general-purpose credit cards, such as
MasterCard, Visa, Discover or American Express? Please do not include debit
or ATM cards, or credit cards that can only be used at a single chain of stores.
[checkbox] Yes
[checkbox] No (POLITELY EXCUSE RESPONDENT)

5. In your household, are you responsible for making credit card decisions such as
choosing a new credit card or deciding how much to pay each month?
(DO NOT READ RESPONSE OPTIONS.)
[checkbox] Yes
[checkbox] Yes, in cooperation with my (spouse, partner, etc.)
[checkbox] No (POLITELY EXCUSE RESPONDENT)

6. Do you currently work for a bank or credit card company?
[checkbox] Yes (POLITELY EXCUSE RESPONDENT)

[checkbox] No
7. Gender
[checkbox] Male
[checkbox] Female

8. Which of the following categories best describes your age?
[checkbox] 18-24
[checkbox] 25-34
[checkbox] 35-54
[checkbox] 55 and over

9. What is the highest level of education you have completed?
[checkbox] Less than high school
[checkbox] High school graduate or G.E.D
[checkbox] Some college or post-secondary work
[checkbox] College graduate

INTERVIEWER READS: Today we want to get your reactions to credit card
documents that you might receive in the mail. I am going to show you some examples of
credit card offers and monthly statements that have been created for fictional credit card
companies. Then I will ask you some questions about the information shown on the
forms. Please feel free to refer to the forms to answer the questions. The whole interview

should take about 15 to 20 minutes. Let's get started.

INTERVIEWER DIRECTIONS: Hand the participant [SB Form].
INTERVIEWER READS: Please look at the bottom-right hand corner of this page, and
read me the letters and numbers that appear after the word "Code."

10. Enter code provided by participant:

SKIP PATTERN: If code is correct, continue with interview. If not, interviewer has one
more attempt to input the correct code before the interview is terminated.

INTERVIEWER READS: This document is part of a credit card offer that you might
receive from a credit card company. Please take a minute to review this form just as you
would a real credit card offer you received. I will then ask you some questions about the
offer. You will be able to look at the page when answering the questions, so you don't
need to memorize any information.

INTERVIEWER DIRECTIONS: After the respondent has finished reading, click "Next
page " to continue to the next question.

INTERVIEWER READS: Please answer the following questions based on the credit
card offer that is in front of you.

11. Assume that when you applied for this card, you transferred a balance from
another card to this one. What interest rate would you be charged on the balance
that you transferred to this card? Type answer in the space provided (for example,
12.99%).

[checkbox]
[checkbox] I don't know

12. If you transferred a balance from another credit card to this one, would you be
charged a fee?
[checkbox] Yes
[checkbox] No
[checkbox] I don't know

SKIP PATTERN: If Q12= "No" or "I don't know ", skip to Q14.

13. If you transferred a balance of $2,000, what is the amount of the fee you would
pay? Type answer in the space provided (for example, $50).

[checkbox] $
[checkbox] I don't know
14. What would happen on this account if you went over the credit limit? Check all
that apply. (DO NOT READ RESPONSE OPTIONS)
[checkbox]
[checkbox]
[checkbox]
[checkbox]
[checkbox]
SKIP
•
•
•
•

a) I would be charged a fee
b) My interest rate/APR may increase
c) Nothing would happen
d) Other
e) I don't know

PATTERN:
If on Q14, 'a' is checked but not 'b', skip to Q14b.
If 'b' is checked but not 'a', skip to Q14c.
If both 'a' and 'b' are checked, skip to Q15.
If neither 'a' not 'b' are checked, skip to after Q16.

14b. Is there anything else that would happen if you went over the credit limit?
(DO NOT READ RESPONSE OPTIONS.)
[checkbox] My interest rate/APR may increase
[checkbox] Nothing else will happen
[checkbox] Other
[checkbox] I don't know

SKIP PATTERN: Skip to Q15.

14c. Is there anything else that would happen if you went over the credit limit?
(DO NOT READ RESPONSE OPTIONS.)
[checkbox] I would be charged a fee
[checkbox] Nothing else will happen
[checkbox] Other
[checkbox] I don't know

15. [If participant has indicated in Q14 or Q14c that a fee will be chargedfor going
over the credit limit] What is the dollar amount of the fee you would pay for going
over the credit limit? Type answer in the space provided (for example, $50).

[checkbox] $
[checkbox] I don't know
16. [If participant has indicated in Q14 or Q14b that your interest rate will be
increasedfor going over the credit limit] If you went over the credit limit on this
credit card account, what is the interest rate that you would pay on new purchases
with this credit card? Type answer in the space provided (for example, 12.99%).

[checkbox]
[checkbox] I don't know
INTERVIEWER DIRECTIONS: Take back [SB Form] from participant. Give
participant the envelope containing [PS Form].
INTERVIEWER READS: This envelope contains an example of a monthly statement
that you might get from a credit card company. Please take a minute to review this
information just as you do with your real credit card statements each month. I will then
ask you some questions. Again, you will be able to look at this information when
answering the questions.

INTERVIEWER DIRECTIONS: After the respondent has finished reading, click "Next
Page " to continue to the next question.

INTERVIEWER READS: Please look at the bottom-right hand corner of the first page
of the statement, and read me the letters and numbers that appear after the word "Code."

17. Enter code provided by participant:

SKIP PATTERN: If code is correct, continue with interview. If not, interviewer has one
more attempt to input the correct code before the interview is terminated.

INTERVIEWER READS: Please answer the following questions based on the
information that you have been given.

18. What is the minimum payment that is required for this billing period? Type
answer in the space provided (for example, $34).

[checkbox] $
[checkbox] I don't know
19. Often, people with credit cards can use their cards to get money at ATM
machines. These transactions are called "cash advances." Based on the information
you have been given, were any cash advances taken during the past billing period?
[checkbox] Yes
[checkbox] No
[checkbox] I don't know
SKIP PATTERN: If Q19= "No " or "I don't know ", skip to Q23.

20. What was the dollar amount of the first cash advance taken? Type answer in the
space provided.

[checkbox] $
[checkbox] I don't know

21. Was a fee charged for this first cash advance?
[checkbox] Yes
[checkbox] No
[checkbox] I don't know
SKIP PATTERN: If Q21="No" or "I don't know", skip to Q23.

22. What was the dollar amount of the fee that was charged to take out the first cash
advance?

[checkbox] $
[checkbox] I don't know

23. What is the interest rate that you would be charged if you used this card to take
out a cash advance? Type answer in the space provided (for example, 12.99%).

[checkbox]
[checkbox] I don't know
SKIP PATTERN: If Q21="Yes", skip to Q25.

24. Not including interest charges, were there any fees charged during the billing
period on this statement?
[checkbox] Yes
[checkbox] No
[checkbox] I don't know
SKIP PATTERN: If Q24= "No " or "I don't know ", skip to Q26.

25. Not including interest charges, how many fees were charged during this billing
period? Please give me the number of fees, not the total dollar amount. Write answer
in the space provided.

[checkbox]
[checkbox] I don't know

26. If you pay this entire balance in full and on time, are the terms of this account
going to change in the near future or are they going to remain the same?
[checkbox] Terms will change
[checkbox] Terms will remain the same
[checkbox] I don't know
SKIP PATTERN: If Q26= "Terms will remain the same " or "I don't know ", skip to
Q29.

27. Based on the information you have been given, is there going to be a change in
the interest rate you are charged on new purchases?
[checkbox] Yes
[checkbox] No
[checkbox] I don't know
SKIP PATTERN: If Q27= "No " or "I don't know ", skip to Q29.

28. What is the interest rate that will apply to new purchases when the changes go
into effect? Write answer in the space provided (for example, 12.99%).

[checkbox]
[checkbox] I don't know
29. Is there any information on this statement about what would happen if you
made a payment late?
[checkbox]Yes
[checkbox] No
[checkbox] I don't know

SKIP PATTERN: If Q29= "No " or "I don't know ", skip to after Q31b.
30. What would happen if you made a payment late? Check all that apply.
(DO NOT READ RESPONSE OPTIONS.)
[checkbox] a) I would be charged a fee
[checkbox] b) My interest rate/APR may increase
[checkbox] c) Nothing would happen
[checkbox] d) Other
[checkbox] e) I don't know
SKIP
•
•
•
•

PATTERN:
If on Q30, 'a' is checked but not 'b', skip to Q30b.
If 'b' is checked but not 'a', skip to Q30c.
If both 'a' and 'b' are checked, skip to Q31.
If neither 'a' not 'b' are checked, skip to after Q31b.

30b. Is there anything else that would happen if you made a payment late?
(DO NOT READ RESPONSE OPTIONS.)
[checkbox] My interest rate/APR may increase
[checkbox] Nothing else will happen
[checkbox] Other
[checkbox] I don't know

SKIP PATTERN: Skip to Q31.
30c. Is there anything else that would happen if you made a payment late?
(DO NOT READ RESPONSE OPTIONS.)
[checkbox] I would be charged a fee
[checkbox] Nothing else will happen
[checkbox] Other
[checkbox] I don't know

31. [If participant has indicated in Q30 or Q30c that a fee will be chargedfor paying
late] If you make a payment late, what is the amount of the late fee you would pay?

[checkbox] $
[checkbox] I don't know
31b. [If participant has indicated in Q30 or Q30b that your interest rate will be
increasedfor paying late] If you made a payment late, what is the interest rate you

would pay on new purchases? Type answer in the space provided (for example,
12.99%)
[checkbox]
[checkbox] I don't know

SKIP PATTERN: If [PS Form] does not include Effective APR, skip to question 33.
INTERVIEWER DIRECTIONS: Point to the number "61.60%" in the "Fee-Inclusive
APR" box on the second page of the statement, and show it to the respondent.

INTERVIEWER READS: Please look at this percentage here, where it says 61.60%.

32. Imagine that during the next month you did not make a cash advance with this
card, but had not entirely paid off your current balance of cash advances. When you
received your next monthly statement, what percentage would be listed in this
location on that statement? Write answer in the space provided (for example, 12.99%).
[checkbox]
[checkbox] I don't know

INTERVIEWER READS: Now I am going to ask you some questions about how credit
card companies apply payments to balances on an account. I am going to give you a
written copy of the questions so you can follow along.

INTERVIEWER DIRECTIONS: Take back the envelope with [PS Form], and give the
participant Sheet A.

33. Imagine that you transferred a $500 balance to a new credit card and then made
$500 of purchases. Imagine also that the interest rate on your balance transfer was
0%, while your interest rate on purchases was 12%. If you then made a $500
payment, how would the credit card company apply your payment? Would they...
(READ RESPONSE OPTIONS)
[checkbox] a) Apply it to your purchases
[checkbox] b) Apply it to your balance transfer
[checkbox] c) Apply some to your purchases and some to your balance transfer
[checkbox] d) None of the above
[checkbox] (DO NOT READ) I don't know

34. Why would the credit card company apply your payments in this way?
(DO NOT READ RESPONSE
OPTIONS)
[checkbox] a) So the credit card company will make more money
[checkbox] b) So I have to pay interest/So I have to pay more interest
[checkbox] c) Because the interest rate on balance transfers is lower than the interest rate on
purchases
[checkbox] d) Because the balance transfers happened before the purchases
[checkbox] e) Other explanation
[checkbox] f) I don't know

35. How would you WANT the credit card company to apply your $500 payment?
(Direct respondent to choose one of the answer options on Sheet A.)
[checkbox] a) Apply it to your purchases
[checkbox] b) Apply it to your balance transfer
[checkbox] c) Apply some to your purchases and some to your balance transfer
[checkbox] d) None of the above
[checkbox] (DO NOT READ) It doesn't make a difference to me.
[checkbox] (DO NOT READ) I don't know

INTERVIEWER READS: I am now going to show you an explanation of the way this
credit card company would apply the payments that you make on your account. Please
take a minute to read this notice and let me know when you are done.

INTERVIEWER
DIRECTIONS: Give participant [PA Form]. After the respondent has
finished reading, continue with the next question.

36. Now that you have read this notice, please answer the question on this sheet
again. [Point to Sheet A.]
[checkbox] a) Apply it to your purchases
[checkbox] b) Apply it to your balance transfer
[checkbox] c) Apply some to your purchases and some to your balance transfer
[checkbox] d) None of the above
[checkbox] I don't know

SKIP PATTERN: If Q33=b AND Q34=a, b, or c AND Q35=a AND Q36=b, skip to
after Q38.2

[Footnote 2. This skip pattern was included because if participants answered Q33, Q34, Q35, and Q36 correctly, the
assumption was made that they understand payment allocation and would have answered Q37 and Q38
correctly as well. This assumption was made because of the limited amount of interview time available.
End footnote 2.]

37. W h y
(DO

w o u l d

N O T

t h e

READ

credit

c a r d

c o m p a n y

RESPONSE

[checkbox] a )

S o the

[checkbox] b )

S o

credit

I h a v e

y o u r

p a y m e n t s

in this

w a y ?

OPTIONS)

card

to p a y

a p p l y

c o m p a n y
interest/So

will

m a k e

m o r e

I h a v e to p a y

m o n e y

m o r e

interest

[checkbox] c) Because the interest rate on balance transfers is lower than the
interest rate on purchases

[checkbox] d ) B e c a u s e

the b a l a n c e transfers

[checkbox] e ) Other
[checkbox] f ) I d o n ' t

h a p p e n e d

b e f o r e

the

p u r c h a s e s

explanation
k n o w

38. How would you WANT the credit card company to apply your $500
payment? (Direct respondent to choose one of the answer options on Sheet A.)
[checkbox] a) Apply it to your purchases
[checkbox] b) Apply it to your balance transfer
[checkbox] c) Apply some to your purchases and some to your balance transfer
[checkbox] d) None of the above
[checkbox] (DO NOT READ) It doesn't make a difference to me
[checkbox] (DO NOT READ) I don't know

INTERVIEWER DIRECTIONS: Take back Sheet A and [PA Form] from participant.
Give participant Sheet B, which lists categories of race/ethnicity.

Codes for Race/Ethnicity Responses:
1 = White (including Middle Eastern or Arab)
2 = Black/African-American
3 = Hispanic
4 = Asian
5 = American Indian/Alaska Native
6 = Native Hawaiian/Pacific Islander
7 = Other
9 = No response

39. Please look at this card. Which category or categories in this list do you feel best
describe you? You can select more than one.
(For each response in order, enter the number shown above. If participant does not
provide a second or third response, leave those fields empty.)
First Response:
Second Response:
Third Response:

40. (Turn Sheet B over.) Again, please look at this card. Which of these categories
best describes your annual combined household income?
[checkbox] 1) Under $25,000
[checkbox] 2) $25,000 - $50,000
[checkbox] 3) $50,000 - $75,000
[checkbox] 4) $75,000 - $100,000
[checkbox] 5) Over $100,000
[checkbox] No response

41. What is the credit limit on your primary credit card account (that is, the
maximum balance that you are allowed to have at any one time)?
[checkbox] Under $500
[checkbox] $500 to $3000
[checkbox] Over $3000
[checkbox] Don't know
[checkbox] No response

42. How long ago did you get your first credit card?
[checkbox] Less than 5 years ago
[checkbox] 5 to 10 years ago
[checkbox] More than 10 years ago
[checkbox] Don't know
[checkbox] No response

[Macro International Inc. logo]
Macro International
11785 Beltsville Drive
Calverton, MD 20705
www.macrointernational.com

[Seal of the Board of Governors
of the Federal Reserve System]
Board of Governors
of the Federal Reserve System
20th and C Streets, NW
Washington, DC 20551
www.federalreserve.gov

Full text of District Notices (Federal Reserve Bank of Dallas) : Federal Reserve Approves Rules That Will Better Protect Credit Card Users, Notice 08-64 : Design and Testing of Effective Truth in Lending Disclosures: Findings from Experimental Study

FRASER