Motown First FCU: Disclosure Information

Starting in October 2004, federal law will recognize a new type of payment document called a "substitute check" that will be used for clearing and settlement. The Check Clearing for the 21st Century Act, the law that makes this possible, will permit quicker processing of checks by allowing the receiving financial institutions to treat an electronic image the same as the check itself. The government, media and industry call this new ability, check 21.

To make check processing faster, federal law permits banks to replace original checks with "substitute checks". These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: "This is a legal copy of your check. You can use it the same way you would use the original check."

Some or all of the checks that you receive back from financial institutions may be substitute checks. This notice describes rights you have when you reeive substitute checks. The rights in this disclosure do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.

In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawan from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).

The amount of your refund under this procedure is limited to the amount of your loss or the amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your loss or the amount of your refund if your account is an interest-bearing account. If your loss exceeds the amount of the substitute check, you may be able to receover additional amounts under other law.

If you use this procedure, you may receive up to $2,500.00 of your refund (plus interest if your account earns interest) within 10 business days in most cases, after we receive your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we receive your claim.

If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at:

You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statement showing that the substitute check was posted to your account, whichever is later. We may extend this time period if you were not able to make a timely claim because of extradordinary circumstances.

Regulation Z (Truth-in-Lending)

The Truth-in-Lending Act, which is implemented by the Federal Reserve Board´s Regulation Z, requires lenders to provide consumers with disclosure statements that explain the terms and cost of credit using standardized terminology.

Regulation Z applies to institutions that regularly offer credit that is primarliy for personal, family, or household purposes and is subject to a written agreement that imposes a finance charge or is payable in more than four installments.  The finance charge represents the cost of borrowing the money an includes all charges, with certain specific exceptions, imposed by the lender as a condition of receiving the credit.

Regulation Z divides consumer credit into two categories, open-end credit and closed-end credit, and assigns different rules and disclosure requirements to each.  Open-ended credit is credit that is extended under a credit plan that involves repeated transactions, that imposes a finance charge from time to time on the outstanding unpaid balance, and that extends credit on a self-replenishing basis.  Home equity lines of credit, pesonal lines of credit, and credit cards are examples of open-end credit.  Closed-end credit is defined as all credit that is not open-ended.

Members obtaining credit under an open-end plan must receive an initial disclosure before making the first transaction or before any fees are assessed.  This disclosure must include information about the finance charge, any other charges, any security interest the credit union is acquiring, and a statement of the member´s billing rights.  Credit unions must provide members with a periodic statement that itemizes additional information about the actual transactions and charges occurring on the account.  Members applying for a home equity line of credit plan must also receive an additional disclosure at the time of application that provides information specific to the home equity plan, such as payment terms and repayment examples, limitations on advances, and any annual notices about their billing rights and must send a change in terms notice 15 days prior to the effective date of any change to the terms originally disclosed or if the minimum payment is increased.

Members obtaining closed-end credit must receive a disclosure prior to the consummation of the loan or before the member becomes legally liable for the loan.  This disclosure must prominently state the annual percentage rate, the finance charge, the amount financed, the total of payments, and the total sales cost (if applicable).  The disclosure must also state the payment schedule, the amount of any recording fees, information about prepayment penalties and late fees, and an itemization of the amount financed or a place for the member to initial whether an itemization of the amount financed is desired.

Additional disclosures, including information about the index, margin, and the timing of rate adjustments, must be made when the transaction involves a varialbe or adjustable rate.  The disclosure for residential mortgage transactions must be provided within three business days of receipt of the member´s loan application.

Platinum MasterCard:

A finance charge will be imposed o Credit Purchases only if you elect not to pay the entire New Balance shown on your monthly statement for the previous billing cycle with 25 days from the closing date of that statement.  If you elect not to pay the entire New Balance shown on your previous monthly statement within that 25-day period, a Finance Charge will be imposed on the unpaid average daily balance of such Credit Purchases from the previous statement closing date and on new Credit Purchases from the date of posting to your account during the current billing cycle, and will continue to accrue until the closing date of the billing cycle preceding the date on which the entire New Balance is paid in full or until the date of payment if more than 25 days from the closing date.

The Finance Charge for a billing cycle is computed by applying the monthly Periodic Rate to the average daily balance of Credit Purchases, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle.  Each daily balance of Credit Purchases is determined by adding to the outstanding unpaid balance of Credit Purchases at the beginning of the billing cycle any new Credit Purchases posted to your account, and subtracting any payments as received and credits as posted to your account, but excluding any unpaid Finance Charges.

A finance charge will be assessed on cash advances from the date of the cash advance, or the first day of the billing cycle in which the cash advance is posted, whichever is later, and will continue to accrue until payment in full is made.

CREDIT DISCLOSURES:
Annual Percentage Rate For Purchases     9.9%
Annual Membership Fee                              None
Grace Period for Purchases                         25 Days
Late Payment Fee                                        $20.00
Over The Limit Fee                                       $10.00
Cash Advance Fee                                        None

The Guide to Benefits contains detailed information about extensive travel, insurance, and retail protection services you can access as a preferred cardholder.  These programs and coverages apply to travel and retail purchases made on or after February 1, 2002.  The basic programs are Purchase Assurance, Extended Warranty, MasterRental Insurance Coverage, Master RoadAssist Roadside Service, Travel Assistance Services, MasterCard Global Service and Travel Accident Insurance.  To file a claim or for more information on any of these services, call the MasterCard Assistance Center at (800)-633-4466 or you can pick up a complete Platinum MasterCard Cardholder Benefits pamplet at our main office.

Classic MasterCard:

A finance charge will be imposed o Credit Purchases only if you elect not to pay the entire New Balance shown on your monthly statement for the previous billing cycle with 25 days from the closing date of that statement.  If you elect not to pay the entire New Balance shown on your previous monthly statement within that 25-day period, a Finance Charge will be imposed on the unpaid average daily balance of such Credit Purchases from the previous statement closing date and on new Credit Purchases from the date of posting to your account during the current billing cycle, and will continue to accrue until the closing date of the billing cycle preceding the date on which the entire New Balance is paid in full or until the date of payment if more than 25 days from the closing date.

The Finance Charge for a billing cycle is computed by applying the monthly Periodic Rate to the average daily balance of Credit Purchases, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle.  Each daily balance of Credit Purchases is determined by adding to the outstanding unpaid balance of Credit Purchases at the beginning of the billing cycle any new Credit Purchases posted to your account, and subtracting any payments as received and credits as posted to your account, but excluding any unpaid Finance Charges.

A finance charge will be assessed on cash advances from the date of the cash advance, or the first day of the billing cycle in which the cash advance is posted, whichever is later, and will continue to accrue until payment in full is made.

CREDIT DISCLOSURES:
Annual Percentage Rate For Purchases:
Basic     13.99%
Secured 19.96%
Annual Membership Fee                              None
Grace Period for Purchases                         25 Days
Late Payment Fee                                        $15.00
Over The Limit Fee                                       $15.00
Cash Advance Fee                                        None

ATM Surcharge:

An ATM surcharge is a special fee added to your ATM withdrawal request, (also known as an ATM "access charge") which may appear on an ATM screen as you make your selection.  This surcharge is a new fee which regional and national ATM networks allow the owner of an ATM to levy on transactions.  However, you will always have the opportunity to cancel your transaction to avoid this fee.

"How will you know if an ATM surcharge wil be assessed?

You should see a sign posted on or near the ATM that an "access charge" will be applied, and/or you should see a notice on the ATM screen itself.  The screen will permit an opportunity to cancel the transaction an it will disclose to whon the surcharge is being paid.  When you complete the transaction, your receipt will identify the surcharge as an "access charge" and it will be added to the total that will be withdrawan from your account.

If you see no surcharge (or "access charge") sign on or near the ATM, or if the ATM screen does not notify you of an ATM "access charge", then there is no surcharge at this machine.

Better yet, look for the SC24 logo!  These represent over 300 SC24 credit union sponsored ATMs, and they do not levy surcharges.

Here at Motown, we are making every attempt to hold our operating expenses down so we won´t have to raise our fees. There has been a few instances where we had to slightly increase our fees in order to continue providing you with the customer service and products that you have become accustomed to receiving from us.