BSB OVERDRAFT PROTECTION AGREEMENT
The BSB Overdraft Protection Account offers you financial flexibility.
For example, you might want a line of credit (maximum $5,000.00) for a weekend retreat or even car repairs.
Remember, with BSB Overdraft Protection you will not be charged until you use it.
When you’ve completed your application, simply seal the application and drop it in the nearest mailbox or return it to Belmont Savings Bank.
If you have any questions, call or stop by one of our offices. We’ll be happy to give you the answers you need and help you complete your application.
BSB OVERDRAFT PROTECTION APPLICATION AND AGREEMENT
The BSB Overdraft Protection Account is a revolving line of credit to be used with your Belmont Savings Bank DDA account. Here is the agreement that covers it. You will be obligated by this agreement as soon as you borrow money by using your BSB Overdraft Protection Account. If this is a joint BSB Overdraft Account, each of you will be responsible to pay the entire balance.
You can borrow money by simply writing a check or making a withdrawal by any other means authorized by us that exceeds the balance of your DDA account. If you borrow money by writing a check or making a withdrawal, your loan will be for the exact amount of the overdraft. Each time you borrow on your BSB Overdraft Protection Account, you will owe us the amount borrowed, including any amount over your credit line plus interest.
You may borrow on your BSB Overdraft protection Account only up to your credit line. We may honor, at our sole discretion, any request for a BSB Overdraft Account loan or check that is more than your credit line. If we do so, you will pay us, on demand, an amount sufficient to reduce the balance to the limit of your credit line. You can apply for a change in your credit line any time. Upon request, you must update the information in your BSB overdraft Account application.
BSB OVERDRAFT PROTECTION ACCOUNT STATEMENTS
After the close of each monthly billing cycle, we will mail you a BSB Overdraft Protection Account statement which will show: (1) the statement date, (2) the previous balance, (3) the amount and date of each payment or other debits and each payment or other credits to your account during the billing cycle, (4) the finance charge for the billing cycle, (5) the new loan balance, (6) the amount of avail-able credit, (7) the minimum payment (if any) for the billing cycle, (8) and the date by which you must pay us the minimum payment. This date will be 25 days after the statement date.
Although you may pay back more, you must pay us, each billing cycle, a monthly minimum payment. This monthly minimum payment will be 1/20th of the Current Principle Balance plus any amounts past due, but at least $25.00. If the Current Principle Balance is less than $25.00, the minimum payment will be the entire balance. The new balance will include the outstanding amounts that you have borrowed plus a finance charge. We will deduct automatically when due, the minimum payment from your DDA account if you have not made the payment by the payment due date. Payments to your account will not be accomplished by the making of deposits to your DDA account.
ADDITIONAL OR LARGER PAYMENTS
You may pay us back more than the minimum payment, or pay us before the minimum payment is due, or make payment to us more than once a month in order to reduce the balance, or pay it completely. If you do this, you will save money. Additional payments must be accompanied by specific written instructions to credit your BSB Overdraft Protection Account.
You will pay a monthly interest charge on the outstanding amount that you have borrowed. The interest charge begins to accrue on the date that the loan transaction is posted to your BSB Overdraft Protection Account. This is the way that we will calculate it:
- We figure the interest charge on your account by applying the periodic rate to the “average daily balance” of your account. To get the “average daily balance”, we take the beginning of your account each day, add any new advances, and subtract any unpaid interest or other finance charges and any payments or credits. This gives us the daily balance. Then, we add all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the “average daily balance”.
- To calculate your INTEREST CHARGE, we multiply your average daily balance by a DAILY PERIODIC RATE of .04932% (a corresponding ANNUAL PERCENTAGE RATE of 18%) by the number of days in the statement period shown on the statement.
- An ANNUAL FEE of $20.00 will be assessed every March 15th for the upcoming year. The fee will be deducted from your DDA account.
You will be in default if you do not pay us the minimum payment when you are required to, if you try to or do borrow more than your credit line, if you do not keep your other promises in this agreement, if we find that you have made misleading statements in your BSB Overdraft Protection Account application, if your DDA account is closed because you have mishandled (or misused) such account, or if you do not live up to your obligations. If you are in default, we can refuse to pay your checks that are presented to us for payment and declare the entire balance payable immediately. At our option, we may require you to pay off your outstanding balance in equal monthly installments, the amount of which will he determined by us. If we fail to require you to pay this obligation in full immediately, we will not be deemed to have waived our rights to require you to do so at a later time. If we fail to treat any of the above acts by you as a default, we will not be deemed to have waived our right to treat any similar acts by you as a default.
LENDER’S RIGHT OF SET-OFF
The Lender has the right to set-off against any of the Borrower’s overdue obligations and liabilities, to the extent of such obligations and liabilities, any deposit, deposit balance, credit or sum then due from Lender to the Borrower.
To the extent permitted by law, you agree to pay the reasonable cost we incur to collect this note in the event of your default, including attorney’s fees and court costs.
We can cancel or temporarily suspend your right to borrow money under this agreement at any time. If we should do so, you will pay us the balance under the terms of this agreement.
ERRORS OR INQUIRIES ABOUT YOUR BILL
YOUR BILLING RIGHTS – KEEP THIS NOTICE FOR FUTURE USE
This notice tells you about your rights and 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:
Belmont Savings Bank
Consumer Lending Department
P.O. Box 146
Belmont MA 02478
In your letter, please include the following information:
- Account information: Your name and account number
- Dollar amount: The dollar amount of the suspected error
- Description of the problem: If you think there is an error on your statement, 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 believe is wrong
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 it. 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 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.
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 believe 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 whether 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.
We can change this agreement, including the finance charge and annual percentage rate, at any time. However, if we do, we will mail you written notice at least 30 days before the effective date of the changes (or any longer time period required by applicable law). This notice will be mailed to your last address appearing on our records. If you do not agree to the changes, you must notify us in writing within 15 days from the date of such notice, stop borrowing any more money and pay us the balance, either all at once or under the terms of the unchanged agreement. Otherwise, we will understand that you agree to the changes in this notice.
Questions about the meaning of this agreement will be decided by Massachusetts law. If any clause of this agreement is in conflict with Massachusetts law, that clause will be considered by each of us to be modified to conform with Massachusetts law.
We hope that you find your BSB Overdraft Protection Account to be an easy, convenient way to borrow money when you need it.
If we can assist you with any special arrangements to make the use of or payments due under this agreement more convenient (for instance at vacation time), or if there is any other banking or financial service that we might be able to provide, please call us at (617) 484-6700. We would like to help.
|Interest Rate and Interest Charges|
|APR for Cash Advances||18.00%|
|Minimum Interest Charge||If the balance due on your account is $25 or less (including interest charges), you will be charged that amount.|
|Paying Interest||You will be charged interest from the transaction date.|
How We Will Calculate Your Balance: We use a method called “average daily balance (including current transactions)”. 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.