Overdraft Agreement and Disclosure Statement
This is the agreement that governs the use of your CFG Bank Overdraft Account (“Account”). Using your Account by any of the methods described in this Agreement constitutes your acceptance of all of the terms set forth in this Agreement. Please read the following terms and conditions carefully.
The following disclosures are required by law:
|Interest Rates and Interest Charges|
|APR for Cash Advances||18.00%|
|Minimum Interest Charge||If you are charged interest, the charge will be no less than $1.50.|
|Paying Interest||You will be charged interest from the transaction date.|
|Penalty Fees – Late Payment||$5|
How We Will Calculate Your Balance:
We use a method called “daily balance.” See the below terms of your Account agreement for more details.
Information on your rights to dispute transactions and how to exercise those rights is provided below.
1. “You”, “your” and “yours” means each and all of the customers who apply for, use or accept the account, all of whom are jointly and severally liable under this Agreement. “We”, “us”, “our” and “ours” means CFG Community Bank.
2. Your regular monthly statement will reflect transactions on your account. We will send statements and any other notices to you at the address shown in your application. All notices required in this Agreement must be in writing. If your account is a joint account, we can send statements and notices to either of you. You agree to notify us promptly of any change in your name or address. You will send all notices to us to the address shown in your periodic statement, unless we notify you otherwise.
3. You may not request any loan that increases the unpaid balance of your account above your Credit Limit which we will tell you if your application is approved. If we choose to make a loan to you in excess of that amount, you immediately will pay us the excess amount with or without notice or demand.
4. You may get loans under your account by overdrawing the linked checking account indicated in your application (called your “checking account” in this Agreement). Loans will be made directly to your checking account in multiples of $100 sufficient to pay the overdraft but not more than your unused Credit Limit. An overdraft will occur whenever your available balance is insufficient to pay a check drawn on your checking account or charge made against your checking account. “Charges” include, for example, any amount deducted from your checking account under an automatic savings plan, any withdrawal made at an automated teller machine, any transfer made at a point of sale terminal, safe deposit fees and service or other charges under depository agreements you have with us. In addition, we may charge any amount owed to us under this Agreement against your account as a loan. We are not liable for any damages resulting from our non-payment of checks or disapproval of a loan request in accordance with this Agreement.
5. Interest on any loan begins when the funds are disbursed to you and continues until the date when payment is posted to your account. On each monthly billing date, we compute interest on your account by imposing a Daily Periodic Rate to the Daily Balance of your account each day during the billing period (including current transactions) and adding the results. The Daily Periodic Rate is .049315%. This is equivalent to an ANNUAL PERCENTAGE RATE of 18%. To get the Daily Balance, we take the previous day’s ending principal balance on your Account, add any new loans, and subtract any principal payments or credits. We do not include any unpaid interest in the Daily Balance. If you are charged interest during a billing period, the charge will be no less than $1.50.
6. Until all sums owing by you under this Agreement have been paid in full, you promise to pay us, on or before the payment due date shown on each monthly statement furnished by us, the minimum payment due. Your Minimum Payment Due each month is 1 % of the “New Balance” shown on your monthly statement. If 1% of the New Balance is less than $25, then the Minimum Payment Due is $25 or the entire New Balance, whichever is less. You also must pay all past due amounts. The minimum payment due will be debited from your checking account on the payment due date shown on your monthly statement unless we have received your payment before the due date. You agree to maintain deposits in your checking account of an amount at least equal to each month’s minimum payment due until all amounts you owe under this Agreement are repaid. Failure to have on deposit at such time funds sufficient to satisfy such debt shall constitute a default under this Agreement. Alternatively, you may make the required payment yourself before the payment due date. Your payments shall be applied first to amounts exceeding your Credit Limit, then to interest, then to principal, then to other charges due under this agreement. You may make additional payments at any time for any amount, without prepayment penalty. However, so long as any loan balance is outstanding at the end of a billing period, the minimum payment due must be paid.
7. We will charge a late fee of $5 for each payment you make more than 15 days after it is due.
8. In consideration of opening your account, you agree to pay us a non-refundable annual fee of $25. The fee will be debited from your checking account when it is billed regardless of whether or not you have used your account. The fee will be billed during the billing period when your account is established and thereafter during the billing period in which the anniversary date of your account occurs.
9. If property is or will be security for another debt you owe us and under the terms of that indebtedness the property would secure amounts you owe under this Agreement, we waive the right to treat the property as security for amounts you owe under this Agreement. If you are in default, you authorize us to setoff and apply any deposits or credits we owe you to amounts you owe us under this Agreement to the extent allowed by law.
10. If any of the following events occurs, you will be in default under this Agreement: failure to make any payment under this Agreement when due; failure to observe or perform any term, condition or agreement contained in this Agreement; any representation in this Agreement or in your application for this account or any financial statement furnished to us proving to be false or misleading in any material respect; failure to perform any term, condition or agreement in, or being otherwise in default under, any other agreement or instrument executed by any of you and (or in favor of) us; insolvency or the appointment of a receiver for any part of your property or your making of any assignment for the benefit of creditors or the commencement of bankruptcy or insolvency proceedings by or against any of you; or any of you move your principal residence from the State of Maryland. Upon the occurrence or at any time during the continuance of any one or more of such events, at our option, this Agreement shall be terminated and the entire unpaid balance of your account immediately shall become due and payable without notice or demand. You will pay all court and other costs of collection actually incurred by us relating to your default, including the reasonable fees of our attorney (who is not our salaried employee) of 15% of the amount you owe us.
11. Subject to any contrary provisions of this Agreement, the terms and conditions otherwise applicable to your checking account, including those pertaining to service charges, shall continue in full force and effect. You may not terminate or change the account which is your checking account under this Agreement without our prior written consent.
12. We may amend this Agreement by notifying you of the amendment in accordance with federal and applicable state law. Amendments will become effective on the effective date stated in our notice. After the effective date of any amendment, the amended Agreement will apply to the entire unpaid balance of your account, including the balance existing before the amendment became effective. We may add new credit services for you or replace your account with another account. We will advise you of any changes in your Credit Limit. We reserve the right to increase or decrease the amount of your Credit Limit at any time without prior notice to you.
13. You will immediately deliver written notice to us of any adverse change in your financial condition or any change in your residence address or employment. You will also furnish to us promptly upon request such financial statements, and such other information with respect to your financial condition as we may from time to time require.
14. Without prior notice, we may suspend or terminate your right to obtain credit at any time for any reason. If at any time you wish to terminate your line of credit, you need only send us a written statement to that effect. If this Agreement is signed initially or subsequently by more than one customer, termination by any one of you terminates the line of credit for all of you. The termination will be effective upon our acknowledgement that your request has been received. Your obligations under this Agreement continue after the Agreement is terminated.
15. You understand and agree that we may honor checks creating overdrafts drawn by any person having authority, as shown by our records, to draw checks upon your checking account. You agree not to post-date checks and also agree (if there is more than one of you) not to give us conflicting directions. All our rights insure to the benefit of our successors and assigns. All your obligations bind your heirs, executors and administrators. If any part of this Agreement is found to be invalid, the rest remains effective. We shall not charge more interest or other charges than law allows, but if we do, the excess shall be returned to you.
16. This Agreement is governed by the laws of the United States and the laws of Maryland. Except to the extent preempted by federal law, we elect to extend credit under Subtitle 9 of Title 12 of the Commercial Law Article of the Annotated Code of Maryland and federal 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.
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:
CFG Community Bank
1422 Clarkview Road
Baltimore, MD 210934
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 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:
- 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.
- Within 90 days of receiving your letter, we must either correct the error or explain.
While we investigate whether or not there has been error:
- We cannot try to collect the amount in question, or report you as delinquent on that amount.
- The charge in question may remain on your statement, and we may continue to charge you interest on that amount.
- While you do not have to pay the amount in question, you are responsible for the remainder of your balance.
- We can apply any unpaid amount against your credit limit.
After we finish our investigation, one of two things will happen:
- If we made a mistake: You will not have to pay the amount in question or any interest or other fees related to that amount.
- If we do not believe there was a mistake: You will have to pay the amount in question, along with applicable interest and fees. We will send you a statement of the amount you owe and the date payment is due. We may then report you as delinquent if you do not pay the amount we think you owe.
If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling us that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting that you are questioning your bill.
We must tell you the name of anyone to whom we reported you as delinquent, and we must let those organizations know when the matter has been settled between us.
If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question even if your bill is correct.