Wisconsin Consumer Act: Open-End Credit Plan
Open-End Credit Agreement Sample
SAMPLE OPEN-END CREDIT AGREEMENT
I agree that the following terms will govern any purchases made or authorized by me which are charged to this account.
- I will pay the cash price (including taxes) of goods and services charged to this account, together with applicable FINANCE CHARGES.
- Calculation of Finance Charge. The FINANCE CHARGE shall be determined by applying a periodic rate of 1.5% per month, or an ANNUAL PERCENTAGE RATE OF 18%.
- Balance on which Finance Charge is computed. The FINANCE CHARGE will be computed on the Adjusted Balance of the account, which shall be the Previous Balance at the beginning of the billing cycle less all payments, credits and refunds due during the billing cycle.
- Minimum Amount Due. Within 25 days of the Closing Date I will pay the New Balance or Minimum Amount Due, which shall be the greater of $10 or 1/12th of the Previous Balance. If the New Balance is less than $10, the Minimum Amount Due shall be the New Balance. If I pay the New Balance within 25 days of the Closing Date, I will not be assessed a Finance Charge in the succeeding billing cycle.
- Default. If I default by failing to pay the Minimum Amount Due when due on two (2) occasions within any twelve month period, and I do not cure the default within 15 days of written notice of default in accordance with applicable law, my entire balance may, at your option, become due and payable. Your waiver of any default shall not operate as a waiver of any other default.
- Application of Payments. Each payment shall be applied first to unpaid FINANCE CHARGES; then, as to merchandise and services purchased on different dates, the first purchased shall be deemed the first paid; as to merchandise and services purchased on the same date, the lowest priced shall be deemed first paid.
- Security Interest. To secure full payment and performance of all of my obligations and my entire indebtedness under this account, you are hereby granted a security interest under the Uniform Commercial Code in and to all merchandise purchased with this account.
- All parties agree that this account is governed by the provisions of the Wisconsin Consumer Act, as amended, and the creditor may amend the terms of this account with 15 days notice to the customer, except that notice of 90 days is required for changes which are adverse to the customer with respect to outstanding balances, or which alters a permitted additional charge.
Customer's Signature Customer's Signature (Joint Account)
NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.
NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION REGARDING CUSTOMER'S RIGHTS TO DISPUTE BILLING ERRORS.
YOUR RIGHTS TO DISPUTE BILLING ERRORS
(Keep this notice for future use.)
This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act.
Notify Us In Case Of Errors Or Questions About Your Bill
If you think your bill is wrong, or if you need more information about a transaction on your bill write us on a separate sheet (at the address listed on your bill). In order to protect your rights, we must receive your letter no later than 60 days after we sent you the first bill on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights.
- In your letter, provide us with the following information:
- Your name and your account number;
- The dollar amount of the suspected error;
- Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are unsure about.
Your Rights And Our Responsibilities After We Receive Your Written Notice
We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct.
After we receive your letter, we cannot try to collect any amount you question or report you as delinquent. We can continue to bill you for the amount in question, including finance charges, and we can apply any unpaid amount against your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question.
If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If we did not 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, we will send you a statement of the amount you owe and the date that it is due.
If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write us within 10 days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we report you to. We must tell anyone we report you to that the matter has been settled between us when it finally is.
If we don't follow these rules, we cannot collect the first $50 of the questioned amount, even if your bill was correct.