Summary of Terms | HSBC

HSBC Select Credit® for Overdraft Protection Account
Summary of Terms

See below for a summary of the rates, fees and other costs of this credit offer. The Select Credit for Overdraft Protection Agreement contains all Account terms and will be sent once you become a customer. We may change the terms on your Account. This may include changing, adding, or removing terms. We may do this in response to the legal, business, competitive environment or other reasons not listed here. Changes to some terms may require at least 45 days advance notice, and we will tell you in the notice if you have the right to reject a change. We cannot change certain terms during the first year of your Account.

Select Credit for Overdraft Protection ("Account") is an overdraft product and is only available for customers who hold a checking account relationship with HSBC Bank USA, N.A. The Select Credit for Overdraft Protection Account will be closed if the checking account linked to the Select Credit Account is closed. Any outstanding balance will be paid in accordance with your Agreement and applicable law.

Interest Rates and Interest Charges
Annual Percentage Rate
(APR) for Cash Advances

17.99%

This APR will vary with the market based on the Prime Rate.

APR for Checks

21.99%

This APR will vary with the market based on the Prime Rate.

Payment Interest

We will begin charging interest on Checks as of the date the transaction posts to the Account, and on Cash Advances on the actual date of the transaction.

Fees
Annual Fee

$0

Transaction Fees  
Overdraft

$10 maximum per day. This fee may be charged each day an advance is made to pay overdrafts to your checking account with a minimum fee equal to the amount transferred to cover your overdraft(s) up to a maximum fee of $10 per day. Waived for Accountholders with a U.S. HSBC Premier relationship, so long as eligibility requirements are met.

Select Credit Check

Either $5 or 3% of the amount of each transaction, whichever is greater.

Penalty Fees  
Late Payment

$35

Over The Credit Limit

$35

Returned Payment

$35

How We Will Calculate Your Balance: We use a method called "average daily balance (including new transactions)." See your Select Credit for Overdraft Protection Agreement for more details.

Billing Rights: Information on your rights to dispute transactions and how to exercise those rights is provided below and in your Select Credit for Overdraft Protection Agreement.

You may pay the entire New Balance on your Account at any time.

 

IMPORTANT INFORMATION ABOUT
PROCEDURES FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account.

What this means for you: When you open an Account, we will ask you for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. Similar identification requirements apply to non-personal accounts such as corporations and partnerships. Be assured that we recognize the importance of protecting your privacy and safeguarding the confidentiality of the information you provide to us.

Application for Credit:

You certify to the truth of your statements in your credit application and authorize HSBC Bank USA, N.A. to obtain credit reports in connection with this application and any account established hereby, as well as any update, renewal, extension, review or collection thereof. If it does, you will, upon request, be informed of that fact and each credit bureau’s name and address. You also authorize the Bank to verify with others any information contained in your application and to report its transactions with you. Your use of the Select Credit account constitutes your agreement to the terms of the Select Credit for Overdraft Protection Agreement that you will receive.



Premier Pricing:

If you are or become a customer with a U.S. HSBC Premier relationship and you are not in default under your Account Agreement, we will waive the Overdraft Transaction Fee Finance Charge while you maintain the U.S. HSBC Premier relationship.


If you are no longer a U.S. HSBC Premier relationship customer, you will become subject to the then applicable Overdraft Transaction Fee. Written notice will be provided to you when required by applicable law, unless otherwise stated.


Notice for California Residents: California law requires that we inform customers that should they fail to fulfill the terms of their credit obligation, a negative report reflecting on their credit record may be submitted to a credit reporting agency. If you are married, you may apply for credit in your own name.

Notice for Delaware Residents: Service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month.

Notice for Florida Residents: You (borrower) agree that, should we obtain a judgment against you, a portion of your disposable earnings may be attached or garnished (paid to us by your employer), as provided by Florida and Federal law.

Notice for Hawaii Residents: An increase in the Prime Rate will increase the Interest Charge due on the Account and may increase the Minimum Payment Due. Interest begins to accrue as of the transaction date, subject to any grace period disclosed.

Notice for Maine Residents: We may request a consumer report in connection with your application for credit. You may ask whether a consumer report was obtained by us and we will tell you the name and address of the consumer reporting agency, if a report was obtained.

Notice for New York Residents: A consumer credit report may be requested in connection with this application or in connection with updates, renewals or extensions of any credit granted as a result of this application. Upon your request, you will be informed whether or not such a report was requested and, if so, the name and address of the agency that furnished the report.

Notice for Ohio Residents: The Ohio Laws against discrimination require that all creditors make credit equally available to all creditworthy customers and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law.

Notice for Vermont Residents: A consumer credit report may be requested in connection with this application or in connection with updates, renewals or extensions of any credit granted as a result of this application. Upon your request, you will be informed whether or not such a report was requested and, if so, the name and address of the agency that furnished the report.

Notice for Wisconsin Residents: This offer is void in Wisconsin.

Applicable Law: The above rates and fees are governed, as are your Select Credit for Overdraft Protection Agreement and Account, by the laws and regulations of the State of Virginia, as well as the applicable laws and regulations of the United States of America.

Privacy Statement: We respect your right to privacy. At the same time, we want to give you access to products and services that we believe you will find beneficial. Please refer to our Privacy Statement for information about our privacy practices, and how to request that your name be removed from our marketing and promotional lists.


INTEREST RATES AND FINANCE CHARGES

Interest Rates

The APRs on your Account are variable rates and are determined by adding a specified amount ("Spread") to an Index (described below). The APRs are divided by 365 and rounded to the next highest hundred thousandth of a percentage point to determine your Daily Periodic Rate. The Daily Periodic Rate is used to determine the amount of periodic Interest Charge.


Index for Variable Rate Accounts

Monthly Index Information. For each billing cycle, variable APRs are calculated by adding a specified amount ("Spread") to the U.S. prime rate published in the Money Rates table of The Wall Street Journal that is in effect on the last day of the month ("Prime Rate").

If the Prime Rate changes, the new APRs will take effect on the first day of your billing cycle beginning in the next month. An increase in the Prime Rate will increase your applicable Daily Periodic Rates which may increase the Interest Charge due on your Account and may increase the Minimum Payment Due. Each time any APR changes, we will apply it to any applicable balances.


Cash Advance APR

The variable Cash Advance APR applies to overdraft transactions and any electronic/telephonic method. The APR is the sum of the Prime Rate plus 14.74% ("Spread"). For example, as of 11/15/13 the ANNUAL PERCENTAGE RATE would have been 17.99% (corresponding Daily Periodic Rate of .04929%).


Checks APR

The variable Checks APR applies to Select Credit Checks and counter checks, if available. The APR is the sum of the Prime Rate plus 18.74% ("Spread"). For example, as of 11/15/13 the ANNUAL PERCENTAGE RATE would have been 21.99% (corresponding Daily Periodic Rate of .06025%).


Interest and Finance Charges

All Interest and Finance Charges will be added to the applicable Cash or Checks balance, unless otherwise specified.


How Periodic Interest Charges are Calculated

Periodic Interest Charges are added to the Account when we apply the applicable APR to the balances on the billing statement. We do this by multiplying the Average Daily Balance for each type of transaction shown on your billing statement (for example, overdrafts, Select Credit Checks) by the applicable Daily Periodic Rate. We then multiply the result by the number of days in the billing cycle. Periodic Interest Charges will be calculated using the Daily Periodic Rate in effect on the billing statement closing date.


How Average Daily Balance is Determined

To calculate the Daily Balances, we take the beginning balance for each type of transaction every day, add any new transactions, any Periodic Interest and Finance Charges, any assessed fees and charges, and subtract any payments and/or credits and make any necessary adjustments. If a transaction posts after the beginning of a billing cycle, but the transaction occurred prior to the beginning of that billing cycle, the applicable Daily Balance and any related Interest Charge calculated may be adjusted to include the transaction amount as of the first day of the billing cycle in which it posts. In addition, if a transaction for a returned payment or a dispute resolved in our favor posts after the beginning of the billing cycle, the applicable Daily Balance(s) and any related Interest Charge calculation will be adjusted retroactively to include the transaction amount as of the date of the original payment or transaction. To calculate the Average Daily Balance, we add the Daily Balances for each day of the billing cycle and divide the total by the number of days in the billing cycle.


Paying Interest (No Grace Period)

There is no grace period for any type of transaction on your Account. Periodic Interest Charges begin to accrue for Checks transactions when posted to your Account, and for Cash Advances as of the actual date of the transaction, and continue to accrue until payment in full is credited to your Account.


Overdraft Transaction Fee Finance Charge

This fee may be charged each day an advance is made to pay overdrafts to your checking account with a minimum fee equal to the amount transferred to cover your overdraft(s) up to a maximum fee of $10 per day. Waived for Accountholders with a U.S. HSBC Premier relationship, so long as eligibility requirements are met.


Select Credit Check Fee Finance Charges

A Select Credit Check Fee Finance Charge will be assessed on the amount of each Select Credit Check and counter check as of the date the transaction posts to your Account and will be added to that transaction balance. The Select Credit Check Fee FINANCE CHARGE is either $5 or 3% of the amount of each transaction, whichever is greater.


ACCOUNT FEES AND OTHER CHARGES

Late Payment Fee

A Late Payment Fee may be assessed for each billing cycle in which at least the Minimum Payment Due, including any amount past due, is not paid in time to be credited to the Account by the Payment Due Date. This fee is $35.


Over the Credit Limit Fee

An Over the Credit Limit Fee may be assessed if the Account balance exceeds the total credit limit at any time during a billing cycle. This fee is $35.


Returned Payment Fee

A Returned Payment Fee may be assessed to the Account each time a payment check, automatic payment deduction, or other payment method is not honored or is returned unsatisfied by your bank or other financial institution. This fee is $35.


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:

HSBC Bank USA, N.A.
PO Box 9, Buffalo, NY 14240 or at the address shown on your billing statement.

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 you 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 you letter, we must either correct the error or explain.

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 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 with 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.


Select Credit® for Overdraft Protection Accounts are issued by HSBC Bank USA, N.A.


BR 267 SF (5/14)


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