IMPORTANT ACCOUNT DISCLOSURES

Transcription

1 GUARANTY BANK OR BESTBANK EASY ADVANCE LINE OF CREDIT AGREEMENT AND DISCLOSURES The information described is accurate as of November 2, Keep a copy of this Agreement for your records. Easy Advance is an OPTIONAL service designed for unexpected short-term cash needs. Easy Advances are costly and must be repaid quickly. Please read this Agreement carefully so you can make an informed decision. This Agreement governs the Easy Advance service (the Service ) provided by Guaranty Bank F.S.B., doing business as BestBank in Georgia and Michigan (the Bank ) and sets out the terms and conditions of that service. This Agreement supplements the terms and conditions of your Account and other agreements between you and the Bank and contains important information about our Easy Advance Line of Credit. Easy Advance is a line of credit that allows eligible customers to borrow money from their next Qualified Direct Deposit. The borrowed funds are automatically deposited into the customer s Qualified Checking Account. This service is costly and must be repaid quickly. It is designed to help our customers meet their short term needs and is not intended to provide a solution for longer-term financial needs or recurring expenses that you can plan for. IMPORTANT ACCOUNT DISCLOSURES Fees Transaction Fees Advance Fee 10% of the amount of each cash Advance Billing Rights: Refer to page 4 of this Agreement for details on billing-error rights. Definitions In this Agreement: You and your refer to any account owner(s) of the account receiving Qualified Direct Deposit(s), without regard to which account owner may use the Easy Advance service. We, us, and our refer to Guaranty Bank, F.S.B., doing business as BestBank in Michigan and Georgia. Qualified Checking Account is the consumer checking account that you maintain with us, to which the Easy Advance service is attached and into which you receive Qualified Direct Deposits that meet the eligibility requirements set forth in this agreement. Advance means each transaction in which you access credit from the Easy Advance service. Credit Limit is the amount of credit available to you when using the Easy Advance service. Qualified Direct Deposit is a deposit of $100 or more that is electronically made directly to your Qualified Checking Account by your employer, a governmental agency, or other payor, and may include such electronic deposits as payroll or benefit-related income, or other special onetime non-repetitive electronic deposits. Qualified Direct Deposits do not include ATM deposits, internal transfers between accounts, or transactions that have descriptions demonstrating that the transactions are tax refunds, payday loan proceeds and external bank to bank transfers. Calendar Day is all calendar days, including weekends and holidays. 1

2 Important Information You may qualify for another type of credit that may be less expensive and/or more suitable to your credit needs. Some alternative sources you could consider include: a credit card, personal loans, a home equity line of credit, using existing savings, or borrowing from a relative. If you decide to use this service, only use as much as you can afford to pay back with your next deposits within the required timeframe of 35 days per Advance. You can minimize your need for this service by planning ahead and understanding that this type of borrowing is expensive. We discourage regular, repeated use of the Easy Advance service and we encourage you to seek credit counseling (many agencies can be found in your local telephone book) and explore other credit options. If you find yourself in a situation where the available funds in your Qualified Checking Account may be insufficient to cover checks or other items that will post to that account, you may choose to use the Easy Advance service to avoid the overdraft. In order for an Advance to cover an overdraft item, the Advance must be completed before the item posts to your account. Remember, though, the Easy Advance service is an expensive form of credit, and while the Advance Fee may be lower than an overdraft fee, you may want to consider other ways to minimize your exposure to overdraft fees. Eligibility To use the Easy Advance service you must have an open Guaranty Bank or BestBank consumer checking account (Qualified Checking Account). A Qualified Checking Account does not include accounts held by minors, Health Savings accounts, accounts titled as joint-and and non-individual such as custodial, trust, conservatorship/guardianship, representative payee, personal representative, executor or administrator, or any business ownerships. You will only be eligible to take an Advance under the Easy Advance line of credit if you meet all of the following eligibility criteria: You must reside in the state of Georgia, Illinois, Michigan, Minnesota, or Wisconsin and be at least 18 years of age. You are only allowed to take Advances on one Qualified Checking Account at a time. The Qualified Checking account must have been open at least 180 calendar days. The Qualified Checking Account must have received Qualified Direct Deposits totaling at least $400 in each of the three (3) previous calendar months immediately preceding the application. The Qualified Direct Deposits must total at least $400 in the 35 days immediately preceding the application for an Advance. For a Qualified Direct Deposit to be recognized it must be credited to the account prior to the request for an Advance. Even if you are otherwise eligible, you may not receive more than one Advance each calendar day. You will NOT be eligible if: You are a participant in our Fresh Start Program repayment plan You have a past due, unpaid Easy Advance You have a past due balance on a closed Guaranty Bank or BestBank account You are included in a current bankruptcy proceeding Any Guaranty Bank or BestBank account in which you have an ownership interest has been overdrawn for 7 or more consecutive calendar days. You will not be eligible for an Advance until the balance in each such overdrawn account is brought to zero or positive for 1 calendar day. 2

3 Any Guaranty Bank or BestBank account in which you have an ownership interest is restricted by the Bank or by court order. Examples include lost or stolen account information, an account owner has died, or there is fraudulent activity on the account. Cooling Off Period: If you have obtained one or more Advances in each of six consecutive months, you will be ineligible for an Advance beginning the first calendar day of the seventh month until 30 calendar days after the repayment in full of your Easy Advance balance. Advance Fee A 10% Advance Fee will be assessed for each dollar that you borrow through the Easy Advance service The Advance fee is charged without regard to how long the Advance remains outstanding. Enrolling in the Easy Advance Service and Requesting an Advance You may request to be enrolled in the Easy Advance Service through the INFO Line, our 24-Hour Banking service at , Option 4. Each approved Advance is automatically deposited into your Qualified Checking Account and will generally be available on the day of the request. Easy Advance will become effective when you request to enroll in the service. Access to Easy Advance is subject to eligibility criteria as provided in this Agreement. For joint account holders, either account holder may access the Easy Advance service, and the account holders are jointly liable for the repayment of the Advance to the extent permitted by applicable law. If you do not meet all the eligibility criteria at the time of your request for an Advance, your request will be declined. Credit Limit The minimum Credit Limit for the first Advance is $200 and the maximum Credit Limit is the lesser of $500 or 50% of the total Qualified Direct Deposits of $100 or more which have been deposited to your Qualified Checking Account during the 35 day period prior to your request for an Advance, rounded to the next $20. While your first Advance has not been paid in full and is not in default, you can take additional Advances in increments of $20 up to your Credit Limit applicable to your first Advance. Once the entire balance and fee(s) associated with this first Advance or these first Advances are paid in full, the minimum Credit Limit for subsequent Advances is $200 and the maximum Credit Limit is the lesser of $1,000 or 50% of the total Qualified Direct Deposits of $100 or more which have been deposited to your Qualified Checking Account during the 35 day period prior to your request for an Advance, rounded to the next $20. If you have an outstanding Easy Advance which has not been repaid and is not in default, you can take additional Advances in increments of $20 up to your Credit Limit. Each Qualified Checking Account will have its own first Advance and subsequent Advance limits. Your Easy Advance Credit Limit is subject to change with changes in your Qualified Direct Deposits and your Qualified Checking Account status. We reserve the right, at any time at our sole discretion, and upon notice as may be required by applicable law, to adjust your Credit Limit based on your use of the Easy Advance service, your handling of the funds in your Checking Account(s), or other factors. Repaying Your Advance Each Advance and the related Advance Fee must be repaid within 35 days from the date of your last unpaid Advance. All Easy Advance payments will be applied first to any unpaid fees and then to the unpaid principal balance. The way that your Advance will be repaid is described below. 3

4 Automatic Payment from your next Qualified Direct Deposit When a Qualified Direct Deposit of $100 or more is made to your Qualified Checking Account, we will deduct an automatic payment from your Qualified Checking Account. The automatic payment will be whichever of the following amounts is LESS: 75% of the amount of the Qualified Direct Deposit; or The amount of the outstanding balance of your Advance. We will apply the automatic payment to the repayment of your Advance. All Easy Advance payments will be applied first to any unpaid fees and then to the unpaid principal balance. We will continue to make such automatic payments from Qualified Direct Deposits to your Qualified Checking Account until the Advance has been paid in full. Manual Payment (PayNow) You may make manual partial payments in $20 increments or full payments of your outstanding Easy Advance balance by calling the INFO Line, our 24-hour Banking service at , option 4. Manual payments are limited to one request per calendar day. Automatic Payments of Outstanding Balance at the Due Date If your outstanding Easy Advances are not fully repaid within 35 days of the date of your last unpaid Advance, you authorize us to automatically apply your account balance from your Qualified Checking Account to the Easy Advance amount owed on the 35 th day after the last unpaid Advance was credited. If there are insufficient funds in the Qualified Checking Account to cover the balance due at the time, your Qualified Checking Account will become overdrawn when the Advance is repaid. Although we will not impose an overdraft charge for an overdraft caused by payment of the Easy Advance balance, other transactions that post to your account may be subject to overdraft fees in accordance with the Account Contract governing your Checking Account. If you cannot repay your overdrawn balance and fees, you risk the closure of your Checking Account, and negative information may be reported to consumer reporting agencies. This may impact your future ability to open a deposit account or qualify for credit. Please contact our Customer Retention Center at if you are in a situation where you cannot repay your Advance. Transaction Processing Order Repayment of your Advance may take priority over the processing of other items such as checks and may result in a negative balance in your Qualified Checking Account. Refer to your Account Disclosure for more detailed information on the transaction posting order. Statements We will mail you a statement every month in which there is a debit or credit of more than One Dollar ($1.00) that reflects your Easy Advance activity. Your statement may be combined with the statement for your Qualified Checking Accounts or other statements. All Advances and their payment due dates, Advance fees incurred, outstanding balances, payments and credits will appear on your statement. 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. What to Do If You Find a Mistake on Your Statement 4

5 If you think there is an error on your statement, write to us at: Guaranty Bank/BestBank Customer Service Center P.O. BOX Milwaukee, Wisconsin 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. You may call our Customer Service Center at , 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 that amount. While you do not have to pay the amount in question, you are responsible for the remainder of your balance. We can apply any unpaid amount against your credit limit. 5

6 After we finish our investigation, one of two things will happen: If we made a mistake: You will not have to pay the amount in question or any interest or other fees related to that amount. If we do not believe there was a mistake: You will have to pay the amount in question, along with applicable interest and fees. We will send you a statement of the amount you owe and the date payment is due. We may then report you as delinquent if you do not pay the amount we think you owe. If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling us that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting that you are questioning your bill. We must tell you the name of anyone to whom we reported you as delinquent, and we must let those organizations know when the matter has been settled between us. If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question even if your bill is correct. Default and Remedies If you are a resident of Wisconsin or your account is assigned to a branch in Wisconsin, you will be in default of this Agreement if you fail (1) to make your final payment within 35 days of its scheduled due date, or (2) to observe any other covenant of the Agreement, breach of which materially impairs the condition, value or protection of or our right in any collateral securing the Agreement, or materially impairs your ability to pay amounts due under the Agreement. If your account is assigned to a branch in any other state (not Wisconsin),you will be in default of this Agreement if you fail to meet the eligibility criteria specified in the ELIGIBILITY section of this Agreement or violate any terms of your Qualified Checking Account Contract. Regardless of the branch to which your account is assigned, you will also be considered in default if: (1) you file a bankruptcy petition or one is filed against you; (2) you commit fraud or make any misrepresentation in connection with your use of the Easy Advance service; or (3) you fail to pay an outstanding balance after your Qualified Checking Account is closed. In the event you default under this Agreement, we have the following rights and remedies in addition to any other rights and remedies we have by law. These rights are in addition to the actions we may take based on your failure to meet the eligibility requirements, including suspending your right to obtain Advances. Our rights are subject to any applicable notice and right to cure. If you are in default (and subject to any applicable notice requirement and right to cure) we may: require you to pay the entire unpaid balance of principal and advance fees before the scheduled due date; set off the debt against any account you have with us; enforce our security interest, if applicable; terminate or suspend your right to further Advances under this agreement; and pursue any other method permitted by law to collect a debt. Closure of Qualified Checking Account If you close your Qualified Checking Account and there is a balance due on an outstanding Advance, we will automatically deduct that balance due from your closing balance. Even if there are insufficient funds in the Qualified Checking Account to cover the balance due at the time the account is closed, you will still be obligated to pay the outstanding balance of the Advance. 6

7 Change in Agreement We may change the terms of this Agreement by mailing or delivering written notice of the changes within the time limits prescribed by the Federal Truth in Lending Act and Regulation Z, or applicable state law if state law requires a longer notice period. You may choose to accept changes in terms by continuing to use the Easy Advance service, or you may decline the change in terms by no longer using the Easy Advance service after the effective date of the change or requesting that access to the Easy Advance service be discontinued. We may also waive or fail to exercise any of our rights under this Agreement from time to time, without affecting any of our other rights. Governing Law This Agreement shall be governed by and interpreted in accordance with federal law and, to the extent state law applies, the law of Wisconsin. If any provision of this Agreement is held to be invalid, the remaining provisions will remain valid and enforceable. Notice to Married Wisconsin Residents All obligations on this account will be incurred in the interest of your marriage or family. Security Interest in Qualified Checking Account/Set Off You acknowledge and agree that Guaranty Bank is granted a security interest in, and may, at any time, set off, against any balance in the Qualified Checking Account any debt owed to Guaranty Bank by any person having the right to make Advances using Guaranty Bank access. A debt includes, but is not limited to, any unpaid Advance. This security interest is subordinate to any right of setoff we have against your Qualified Checking Account. The right of setoff will not extend to any IRA or Health Savings accounts that you may have. Change of Name, Address, or Telephone Number You must notify us immediately of any change in your name, your residence or mailing address or phone number. We may use any source available to us to update and validate the accuracy of this information. Notices We will notify you of any action taken on your account or any change in terms or conditions as required by law or this Agreement. When notice is not required by law, we may take any action and exercise any of our rights under this Agreement without notice or demand. Telephone Monitoring and Contacting You We may monitor and record telephone calls regarding your account to assure the quality of our service. You agree, in order for us to service the account or to collect any amounts you may owe, that we may from time to time make calls and/or send s and/or text messages to you, using pre-recorded or artificial voice messages and/or through the use of an automatic dialing device, at any telephone number associated with your account, including wireless telephone numbers that could result in charges to you, or at any address you provide to us. For Executive Officers Executive Officers of Guaranty Bank or any of its affiliates are not eligible for the Easy Advance service. Notwithstanding any other provision of this Agreement, we have the option to terminate the Checking Account Advance and make the entire outstanding balance immediately due and payable if: You are or become an executive officer of ours or are otherwise subject to limitations on loans to insiders, and Your indebtedness to any bank or number of banks, in the aggregate, exceeds the amount (in any regulated category) permitted to an executive officer under Federal law. 7

8 "Federal law" includes regulations and interpretations of federal agencies. "Your indebtedness" includes any debts attributed to you by Federal law. Costs of Collection If you are a resident of Wisconsin or your account is assigned to a branch in Wisconsin, you agree to pay our statutory costs and attorneys fees as specifically authorized by Wis. Stat , and any other charges we incur as specifically authorized by Wis. Stat. Chaps. 421 to 427. This previous provision also shall apply if you file a petition or any other claim for relief under any bankruptcy rule or law of the United States, or if such petition or other claim for relief is filed against you by another. If your account is assigned to a branch in any other state (not Wisconsin), you agree to pay the costs we incur to collect this debt in the event of your default to the extent allowed by applicable law. In the event we have to collect this note through your bankruptcy proceeding, voluntary or otherwise, and without regard to your state of residence, these costs will include our reasonable attorney s fees and other related collection costs to the extent allowed by applicable law, for an attorney who is not our salaried employee, in the bankruptcy proceedings. Dispute Resolution Program: Non-Judicial Resolution of Disputes If you have a dispute with us, and you are not able to resolve the dispute informally, you and we agree that the arbitration process described in detail in the Account Contract governing your Qualified Checking Account will apply to any dispute arising from or related to this Agreement as if this Agreement were part of your Account Contract. For more information Customer Service Representatives are available to help answer any questions you may have about the Easy Advance service. For more information call (INFO) 2013 Guaranty Bank Member FDIC 8