Please read this Agreement carefully and keep it for your records. This Agreement contains the terms and conditions of your Overdraft Protection Line of Credit with Compass Bank and amends your Consumer Deposit Account Agreement to add a fee for this service (see Section 7.b below). The application you signed or otherwise submitted (including the accompanying federal and state notices) is part of and is incorporated into this Agreement. You do not need to separately sign this Agreement. By signing or otherwise submitting the application, you are considered to have signed this Agreement. By drawing on or permitting others to draw on the Credit Line, you accept and agree to the terms of this Agreement. However, you may cancel this Agreement before drawing on the Credit Line if you comply with Section 10 below and the Bank receives from you a written termination notice. Only one Overdraft Protection Line of Credit is permitted per Checking Account at a time.
|Interest Rate and Interest Charges|
|Annual Percentage Rate (APR) For Advances||21.00%|
|Minimum Interest Charge||None|
|Paying Interest||There is no grace period in which to repay the balance of your credit line before finance charges will be imposed. You will be charged interest from the transaction date.|
|Overdraft Protection Fee||$12 ($7 in CA) per day will be charged to your checking account for each day in which an advance is made from your ODP Line of Credit. *Overdraft Protection Fee will be waived for MLA-covered borrowers*.|
How We Will Calculate Your Balance: We use a method called "daily balance method" See your account agreement for more details.
Billing Rights: Information on your rights to dispute transactions and how to exercise those rights is provided in your account agreement.
Whenever the Bank receives one or more items that would create an overdraft in your Checking Account (such as a check, Compass Bank Visa Check Card charge, preauthorized electronic fund transfer, ATM withdrawal or a fee or other service charge), regardless of whether the item was executed or authorized by you, your Authorized Agent or any other Authorized Agent or any other Authorized Signer (as those terms are defined in your Account Agreement) on your Checking Account, the Bank shall consider those items to be your request for an Advance from your Credit Line.
If the amount of your Available Credit is sufficient to cover an overdraft caused by payment of one or more items, the Bank will make an Advance in the amount of the overdraft (rounded up to the nearest dollar) and the related Overdraft Protection Fee, which is described in Section 7 below.
If the amount of your Available Credit is not sufficient to cover an overdraft, the Bank may, solely at its option:
If the Bank chooses to decline payment or to authorize payment against your Checking Account, as described in a., b. or d. above, you shall pay, without further notice or demand, all applicable service charges for handling and processing items presented against insufficient funds (including any NSF fee(s) and Extended Overdraft fee(s)) and the amount of any overdraft, as provided in your Checking Account Agreement. The Bank is not liable for either paying or declining to authorize payment for items that exceed the amount in your Checking Account.
By drawing on or permitting others to draw on the Credit Line, you agree:
For each Billing Cycle, the Bank will send you a periodic statement of your Credit Line, which may be included as part of the statement for your Checking Account. You agree promptly to review the statement of your Credit Line and to report any errors, unauthorized use, forgeries or alterations to the Bank. Among other information, your statement will show the outstanding balance of your Credit Line at the beginning and the close of the Billing Cycle, any Advances from or interest imposed on your Credit Line during that Billing Cycle, your Credit Limit and Available Credit, the minimum payment due for that Billing Cycle, the date on which the Bank automatically will deduct the minimum payment from your Checking Account if the Bank has not already received this payment, as provided in Section 5 below.
If, at the close of any Billing Cycle, you have an outstanding balance on your Credit Line, you agree to pay the Bank a minimum payment within twenty-one (21) days after the close of that Billing Cycle. If your closing balance is $10 or less, the minimum payment will be the entire balance due on your Credit Line. If your closing balance is $10 or more, the minimum payment will be an amount equal to four percent (4%) of the total balance or $10, whichever is greater, plus any amount in excess of your Credit Limit and any amount past due from the previous Billing Cycle.
If the Bank has not received this minimum payment within twenty-one (21) days after the close of that Billing Cycle, you authorize the Bank automatically to deduct the required minimum payment from your Checking Account at the close of the twenty-first (21st) day or, if the twenty-first (21st) day is not a business day, at the close of the next business day. You agree that, if the Bank is initially unable to obtain the full amount of any minimum payment from your Checking Account, the Bank may choose (but has no obligation) to continue attempting to deduct the uncollected portion of that minimum payment from your Checking Account until the Bank receives that entire minimum payment. You also agree that, in this situation, the Bank has no obligation to make an Advance in order to collect any minimum payment from your Checking Account. You may pay more than the required minimum payment and, at any time, you may pay the full amount you owe the Bank without incurring any additional charge as a result of that payment.
Manner of Payment: All payments must be made in United States dollars. If you mail any payment to the Bank that payment must be addressed to the address shown on your periodic statement to be credited to your Credit Line (except as provided in Section 15 below), and you agree not to send cash. If the Bank allows you to make payments in any other manner, including at a branch or an ATM, or if the Bank accepts a payment and you have not followed the Bank's instructions for payment, the Bank will credit your payment to your Credit Line within five (5) business days after the Bank's receipt of it. Any required procedures for making payments will be included in your periodic statement, and the Bank may change these procedures at any time and without notice to you. The Bank may electronically present and re-present items (such as checks) that it receives as payment on your Credit Line, as allowed by applicable law and clearinghouse rules.
Payment Allocation: Subject to applicable law, the Bank reserves the right to allocate payments to your Credit Line among interest, Advances, and any other charges or amounts due in any manner the Bank chooses.
You agree to pay interest based on the Daily Balance of your Credit Line during each Billing Cycle. To calculate the interest for each Billing Cycle, the Bank multiplies the Daily Balance by the daily interest rate provided below to arrive at each Daily Interest Charge, and then totals all Daily Interest Charges accrued during the Billing Cycle. The resulting interest charge is posted to your account on the last business day of the Billing Cycle. Interest begins to accrue when an Advance is posted to your Credit Line, and there is no grace period in which to repay the balance on your Credit Line before finance charges will be imposed. The daily periodic rate used to determine this interest is 0.0575% for a 365-day year and 0.0573% for a 366-day year and the ANNUAL PERCENTAGE RATE is twenty-one percent (21%).
The following language is only applicable if you are a "covered borrower" or a "dependent" of a "covered member" as those terms are defined under the Military Lending Act, 10 U.S.C. 987, 32 CFR Part 232:
Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specified credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account).
In your Checking Account Agreement, you agreed to pay a service charge for any item presented against insufficient funds in your Checking Account. With this Agreement, you and the Bank agree your Checking Account Agreement is modified to provide that, for each day on which:
If you are a “covered borrower” or a “dependent” of a “covered member” under the Military Lending Act and have questions regarding your eligibility, please contact us at 1-800-239-1996.
Subject to any restrictions of applicable law, you will be in default and the Bank may terminate your privileges under this Agreement and/or demand immediate payment of the entire amount you owe the Bank without giving you any notice if:
If the Bank terminates your privileges under this Agreement, your payment of any amounts owed under this Agreement will not automatically reinstate these privileges, and you will need to reapply for a Credit Line in order to obtain overdraft protection for your Checking Account.
To the extent permitted by applicable law, you shall be liable to the Bank for all costs and damages resulting from any breach of this Agreement. If you fail to pay any amounts due under this Agreement and your debt is referred to one or more attorneys who are not salaried employees of the Bank for collection or other enforcement proceedings, whether by suit or otherwise, and the unpaid balance of your debt exceeds $300, you agree to pay all reasonable expenses permitted by applicable law, including but not limited to, court costs and attorneys' fees.
Subject to any restrictions of applicable law, the Bank may terminate or temporarily suspend your right to obtain Advances from your Credit Line at any time without notice to you or liability to the Bank. You agree that you will not obtain or attempt to obtain any Advance after you have been notified that your privilege to use your Credit Line has been terminated or suspended. You may terminate your right to obtain Advances at any time by notifying the Bank in writing of your intent to do so. If you are not in default at the time of termination, you may pay off the balance due on your Credit Line according to the terms and conditions of this Agreement. Neither termination nor suspension will affect your existing obligations or the Bank's rights or remedies under this Agreement, including the Bank's right to change the terms of this Agreement from time to time. Except as otherwise provided in this Agreement, you will remain liable for all debits posted to your Credit Line in connection with any Advance made prior to the time your right to obtain Advances from your Credit Line is terminated or suspended.
The Bank may change the terms of this Agreement at any time by giving you notice of the change, as required by applicable law. These changes may include modifying or deleting existing terms and adding new terms. Subject to the requirements of applicable law, any changes to this Agreement will become effective at the time stated in the Bank's notice to you and the amended terms of the Agreement will apply to all outstanding unpaid balances you owe the Bank as well as new charges, unless you terminate your right to use the Credit Line on or before the date provided in the Bank's notice. No change to any term or condition of this Agreement shall be effective unless accepted or authorized by the Bank in writing.
EXCEPT AS EXPRESSLY PROVIDED IN SECTION 7 ABOVE, THIS AGREEMENT AND YOUR CREDIT LINE, AND ANY CLAIM, DISPUTE OR CONTROVERSY ARISING FROM OR RELATING TO THIS AGREEMENT OR YOUR CREDIT LINE, WHETHER BASED ON CONTRACT, TORT, FRAUD AND OTHER INTENTIONAL TORTS, STATUTE, REGULATION, CONSTITUTION, COMMON LAW AND/OR EQUITY, ARE GOVERNED BY AND WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ALABAMA (WITHOUT REGARD TO INTERNAL PRINCIPLES OF CONFLICTS OF LAW) AND APPLICABLE FEDERAL LAW. THE LEGALITY, ENFORCEABILITY AND INTERPRETATION OF THIS AGREEMENT AND THE AMOUNTS CONTRACTED FOR, CHARGED AND RECEIVED UNDER THIS AGREEMENT WILL BE GOVERNED BY THESE LAWS. THIS AGREEMENT IS ENTERED INTO BETWEEN YOU AND THE BANK IN ALABAMA. THE BANK MAKES DECISIONS ABOUT GRANTING CREDIT TO YOU FROM, EXTEND CREDIT TO YOU UNDER THIS AGREEMENT FROM, AND ACCEPT YOUR PAYMENTS IN ALABAMA. IF ANY PROVISION OF THIS AGREEMENT IS FOUND TO BE INVALID OR UNENFORCEABLE, THE REMAINING PROVISIONS WILL REMAIN IN FULL FORCE AND EFFECT.
You promise that all information you have given the Bank, whether on the application for the Credit Line or otherwise, is true. You agree that the Bank may re-evaluate your financial condition and credit standing at any time and for any reason, including periodically to determine whether to renew your Credit Line for any additional period. The credit re-evaluation may include obtaining a current consumer credit report or asking you for current financial information, including accurate, up-to-date information on your assets and liabilities, true copies of your signed federal income tax returns, and verification of your employment and income. Based upon such a review, the Bank also may increase or lower your Credit Limit at its discretion and upon notice to you in accordance with applicable laws and regulations. You agree to permit and cooperate with any investigation of your credit record. A negative credit report reflecting on your credit record may be submitted to one or more credit reporting agencies if you fail to fulfill your obligations under this Agreement.
Inaccurate Information: If you believe that the Bank has information about you that is inaccurate or that the Bank has reported or may report to a credit reporting agency information about you that is inaccurate, please notify the Bank of the specific information that you believe is inaccurate in writing at the following address: Compass Bank, P.O. Box 2210, Decatur, AL 35699.
The Bank treats every customer call confidentially. To assure that you receive accurate and courteous customer service, on occasion your call may be monitored by a second employee and/or recorded, and you agree to this monitoring and recording.
Subject to applicable law, the Bank reserves the right, at any time and in its sole discretion, to delay imposing or not to impose part or all of any fee or other amount permitted by this Agreement or to delay exercising or not to exercise any of its other rights under this Agreement and, should the Bank do so, the Bank will not have waived its right to impose such fee or other amount or to exercise the right as set forth in this Agreement in the future. Without limiting the foregoing, and subject to applicable law, the Bank may, at its option: (a) accept late or partial payments, (b) agree to extend the due date of any payment due under this Agreement for any length of time; and/or (c) release any other person responsible under this Agreement, all without notifying you and without releasing you from your obligation to pay in full all amounts owing under this Agreement and to perform all of your other obligations under this Agreement. To the extent allowed by applicable law, the Bank may take other action not described in this Agreement, and by doing so the Bank does not limit and will not lose its rights under this Agreement.
No payment shall operate as an accord and satisfaction without the Bank's prior written approval. You agree that the Bank may accept, endorse, and collect any payment that is marked "payment in full" or that is tendered with other conditions or limitations without changing any of its rights or your obligations under this Agreement (including your obligation to pay in full all amounts owed to the Bank) if: (i) the Bank receives the payment at any location and its records do not reflect an existing dispute of an amount owed by you to which the payment relates, or (ii) the Bank receives the payment at any location other than the special payment address provided in this Section below, and the Bank's records show an existing dispute of an amount owed by you to which the payment relates. You agree that, for the purposes of this Section, the Bank's determination and records regarding the existence of a dispute by you of any amount owed by you will be conclusive, except in the event that you prove otherwise by written evidence. If you dispute any obligation under this Agreement, including any payment obligation, you agree to mail or deliver all written communications concerning such disputes, including any check or other payment instrument that is marked "payment in full" or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount, to: Compass Bank, P.O. Box 2101, Decatur, AL 35602-2101.
The fact that the Bank may at any time make an Advance in excess of your Credit Limit or at a time when you are in default under this Agreement does not obligate the Bank to do so again.
The following provision(s) is not applicable if you are a "covered borrower" as that term is defined under the Military Lending Act, 10 U.S.C. 987, 32 CFR Part 232
BY OPENING OR MAINTAINING YOUR CREDIT LINE, YOU AGREE THAT IF A DISPUTE ARISES BETWEEN US, YOU OR WE MAY REQUIRE THAT IT BE RESOLVED THROUGH ARBITRATION, RATHER THAN THROUGH JURY TRIAL. YOUR ATTENTION IS DRAWN TO THE ARBITRATION AND WAIVER OF JURY TRIAL PROVISIONS IN YOUR CHECKING ACCOUNT AGREEMENT, WHICH APPLY TO YOUR CHECKING ACCOUNT AND ANY SERVICE OR PRODUCT RELATED TO YOUR CHECKING ACCOUNT, INCLUDING YOUR CREDIT LINE.
This notice contains important information about your rights and the Bank's responsibilities under the Fair Credit Billing Act
NOTIFY THE BANK IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR STATEMENT: If you think your statement is wrong, or if you need more information about a transaction on your statement, write the Bank on a separate sheet at the address listed on your statement. DO NOT write to the Bank on the statement or on any instrument used to make a payment. Write to the Bank as soon as possible. The Bank must hear from you no later than sixty (60) days after the Bank sent you the FIRST statement on which the error or problem appeared. You can telephone the Bank, but doing so will not preserve your rights. In your letter, give the Bank the following information:
You can stop the automatic deduction of any required minimum payment from your Checking Account if you think your payment amount is wrong. To stop the payment, your letter must reach the Bank at least three (3) business days before the automatic deduction is scheduled to occur. YOUR RIGHTS AND THE BANK'S RESPONSIBILITIES AFTER THE BANK RECEIVES YOUR WRITTEN NOTICE: The Bank must acknowledge your letter within thirty (30) days, unless the Bank has corrected the error by then. Within ninety (90) days, the Bank must either correct the error or explain why the Bank believes the statement was correct.
After the Bank receives your letter, the Bank cannot try to collect any amount you question, or report you as delinquent. The Bank can continue to bill you for the amount you question, including finance charges, and the Bank can apply any unpaid amount against your Available Credit. You do not have to pay any questioned amount while the bank is investigating, but you are still obligated to pay the parts of your statement that are not in question.
If the Bank finds that it made a mistake on your statement, you will not have to pay any finance charges related to any questioned amount. If the Bank didn't make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, the Bank will send you a statement of the amount you owe and the date that it is due.
If you fail to pay the amount that the Bank thinks you owe, the Bank may report you as delinquent. However, if the Bank's explanation does not satisfy you and you write to the Bank within (10) days telling it that you still refuse to pay, the Bank must tell anyone it reports you to that you have a question about your statement. And, the Bank must tell you the name of anyone the Bank reported you to. The Bank must tell anyone it reports you to that the matter has been settled between you and the Bank when it finally is. If the Bank doesn't follow these rules, the Bank can't collect the first $50 of the questioned amount, even if your statement was correct.
In Case of Errors or Questions About Check Card Transactions on Your Credit Line: If your Credit Line may be accessed by a Visa Check Card, and you dispute or need more information about a transaction on this Check Card, please refer to the agreement provided to you with your Check Card or call the Bank at 1-800-239-4357.
Maryland Residents: You have the right under Maryland Commercial Law Code Scion 12-510 to receive an answer to a written inquiry concerning the status of your Credit Line. Finance charges will be imposed on the outstanding balances from month to month in amounts or at rates not in excess of those permitted by law.
New Jersey Residents: Because certain provisions of this Agreement are subject to applicable law, they may be void, unenforceable or inapplicable in some jurisdictions. None of these provisions, however, is void, unenforceable, or inapplicable in New Jersey.
NOTICE TO THE BUYER – DO NOT SIGN THIS CREDIT AGREEMENT BEFORE YOU READ IT OR IF IT CONTAINS BLANK SPACES. YOU ARE ENTITLED TO A COPY OF THIS AGREEMENT. KEEP IT TO PROTECT YOUR LEGAL RIGHTS.