Safety and Soundness

Credit unions primarily engage in consumer loans and residential real estate lending to their members. Credit union performance is at a historically high level.  Currently, credit union capital nationwide is 10.28% and the equity ratio of the federal insurance fund, the National Credit Union Share Insurance Fund (NCUSIF), has operated above 1.25% for 11 consecutive years.

Regulation and Supervision

Metropolitan Service Federal Credit Union was chartered under federal law.  Federally chartered credit unions are regulated by the National Credit Union Administration (NCUA), an independent agency of the U.S. Government.  NCUA's three board members are nominated by the President and confirmed by the Senate.

State chartered credit unions are regulated by their state credit union department. NCUA administers the federal insurance fund, NCUSIF, which covers all federal credit unions, and most state chartered credit unions.  No taxpayer money is used for regulating and overseeing federal credit unions, as all activities of NCUA and the NCUSIF are funded by credit unions.

Equal Housing Lender Notices

UNDER THE FEDERAL FAIR HOUSING ACT IT IS ILLEGAL, ON THE BASIS OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, HANDICAP, OR FAMILIAL STATUS (HAVING CHILDREN UNDER THE AGE OF 18), TO:

Deny a loan for the purpose of purchasing, construction, improving, repairing or maintaining a dwelling, or deny any loan secured by a dwelling; or
Discriminate in fixing the amount, interest rate, duration, application procedures or other terms or conditions of such a loan, or in apprasing property.
IF YOU BELIEVE YOU HAVE BEEN DISCRIMINATED AGAINST, YOU SHOULD SEND A COMPLAINT TO:
Assistant Secretary for Fair Housing and Equal Opportunity
Department of Housing & Urban Development
Washington, DC 20410

For processing under the Federal Fair Housing Act
National Credit Union Administration
Office of Examination and Insurance
1775 Duke Street
Alexandria, VA 22314-3428

VISA Credit Card Agreement

 

VISA Gold

Annual Percentage Rate (APR) for Purchases	VISA Gold 10.49%
Other APRs	Cash Advance.................10.49%
Grace Period for Purchases	25 Days
Method of Computing the Balance for Purchases	Average Daily Balance (Including New Purchases)
Variable Rate Information	Does Not Apply
Annual Fee	None
Minimum Finance Charge	None
Transaction Fee for Purchase	None
Over-the-Credit-Limit Fee	$29.00
Late Payment Fee	$35.00
Minimum -  $5,000.00	Maximum - $10,000.00
Salary Requirements	Contact Credit Union

   VISA Classic

Annual Percentage Rate (APR) for Purchases	VISA Classic 14.99%
Other APRs	Cash Advance.................14.99%
Grace Period for Purchases	25 Days
Method of Computing the Balance for Purchases	Average Daily Balance (Including New Purchases)
Variable Rate Information	Does Not Apply
Annual Fee	None
Minimum Finance Charge	None
Transaction Fee for Purchase	None
Over-the-Credit-Limit-Fee	$29.00
Late Payment Fee	$35.00
Mimimum - $500.00	Maximum - $5,000.00

The information about the costs of the cards described is accurate as of 1/2006.  This information may have changed after that date.  To find out what may have changed, contact the credit union.

In This Agreement the words "you" and "your" mean each and all of those who agree to be bound by the Agreement; "Card" means the VISA credit card and any duplicates, renewals, or substitutions the Credit Union issues to you;  "Account" means your VISA credit card line of credit account with the Credit Union, and "Credit Union" means the Credit Union whose name appears on this Agreement or anyone to whom the Credit Union transfers this Agreement

1. Using Your Account.  If you are approved for an Account, the Credit Union will establish a line of credit for you and notify you of your credit limit.  You agree that your credit limit is the maximum amount (purchases, cash advances, finance charges, plus "other charges") that you will have outstanding on your Account at any time.  If you are over your credit limit, you must pay the amount you are over before payments will begin to restore your credit limit.  You may request an increase in your credit limit only by a method acceptable to the Credit Union.  The Credit Union has the right to reduce your credit limit, refuse to make an advance and/or terminate your Account at anytime for any reason not prohibited by law.
   
2. Using Your Card.  You may use your Card to make purchase from merchants and others who accept Visa Cards.  However, you may not use your Card to initiate any type of gambling transaction.  If you wish to pay for goods or services over the Internet, you may be required to provide card number security information before you will be permitted to complete the transation.  In addition, you may obtain cash advances from the Credit Union and from other financial institutions that accept VISA Cards, and from some automated teller machines (ATMs).  (Not all ATMs accept VISA Cards).  To obtain cash advances from an ATM, you must use the Personal Identification Number (PIN) that is issued to you for use with your Card.  You agree that you will not use your Card for any transaction that is illegal under applicable federal, state or local law.
   
3. Responsibility.   You agree to pay all charges (purchases and cash advances) to your Account that are made by you or anyone whom you authorize to use your Account.  You also agree to pay all finance charges and other charges added to your Account.  You also agree to pay all finance charges and other charges added to your Account under the terms of this Agreement or another agreement you made with the Credit Union.  If this is a joint Acount, Section 17 below also applies to your Account.
   
4. Finance Charges.   New purchases posted to your account during a billing cycle will not incur a finance charge for that billing cycle if you had a zero or credit balance at the beginning of that billing cycle or you paid the entire New Balance on the previous cycle's billing statement by the Payment Due Date of that statement; otherwise a finance charge will accrue from the date a purchase is posted to your account.  To avoid an additional finance charge on the balance of purchases, you must pay the entire new Balance on the billing statement by the Payment Due Date of that statement.  A finance charge begins to accrue on cash advances from  the date you get the cash advance or from the first day of the billing cycle in which the cash advance is posted to your account, whichever is later.
   
   The finance charge is calculated separately for purchases and cash advances.  For purchases, the finance charge is computed by applying the daily periodic rate to the average daily balance of purchases.  To get the average daily balance of purchases, we take the beginning outstanding balance of purchases each day, add in any new cash advances, and subtract any payments and/or credits that we apply to the cash advance balance.  This gives us the daily balance of cash advances.  Then, we add all the daily balances of cash advances for the billing cycle together and divide the total by the number of days in the billing cycle.  This gives us the average daily balance of cash advances.
   
   The daily periodic rate for purchases and cash advances for a VISA Gold Card is 0.028740% which is an ANNUAL PERCENTAGE RATE of 10.49%.
   
5. Other Charges.   The following other charges (fees) will be added to your Account, as applicable:
   
   Over-the-Credit-Limit-Fee:  You may be charged a fee of $29.00 on a statement date if your New Balance on that date, less any fees imposed during the cycle, is over your credit limit.  You will be charged the fee each subsequent month until your New Balance on the statement date, less any fees imposed during the cycle, is BELOW your credit limit.
   
   Late Payment Fee:  A late charge of $35.00 will be added to your account if you are late in making a payment.
   
   Return Check Fee:  If a check or share draft used to make a payment on your account is returned unpaid, you will be charged a fee of $35.00 for each item returned.
   
   Rush Fee:  $30.00.
   
6. Payments.  Each month you must pay at least the minimum payment shown on your statement by the date specified on the statement or no later than twenty-five (25) days from the statement closing date, whichever is later.  If your statment says the payment is "Now Due", your payment is due no later than twenty-five (25) days from the statement closing date.  You may pay more frequently, pay more than the minimum payment or pay the Total New Balance in full.  If you make extra or larger payments, you are still required to make at least the minimum payment each month your Account has a balance (other than a credit balance).  The minimum payment is 2% of your Total New Balance, or $15.00, whichever is greater, plus the amount of any prior minimum payments that you have not made, and any amount you are over your credit limit.  The Credit Union also has the right to demand immediate payment of any amount by which you are over  your credit limit.
   
7. Payment Allocation.  Subject to applicable law, your payments may be applied to what you owe the Credit Union in any manner the Credit Union chooses.  We may accept checks, marked "payment in full" or with words of similar effect without losing any of our rights to collect the full balance of your account with us.
   
8. Security Interest.   If you give the Credit Union a specific pledge of shares by signing a separate pledge of shares, your pledged shares will secure your Account.  You may not withdraw amounts that have been specifically pledged to secure your Account until the Credit Union agrees to release all or part of the pledged amount.  In addition, your Account is secured by all other shares you have in any individual or joint account with the Credit Union, except for shares in an Individual Retirement Account or in any other account that would lose special tax treatment under state or federal law if given as security.  These other shares may not be withdrawn unless you are in default under this agreement.  You authorize the Credit Union to apply the balance in your individual or joint share accounts to pay any amounts due on your Account if you should default.  Collateral securing other loans you have with the Credit Union may also secure this loan, except that a dwelling will never be considered as security for this Account, notwithstanding anything to the contrary in any other agreement.
   
9. Default.   You will be in default if you fail to make any minimum payment or other required payment by the date that it is due.  You will be in default if you break any promises you make under this Agreement.  You will be in default it you die, file for bankruptcy, or insolvent, that is, unable to pay your obligations when they become due.  You will be in default if you make any false or misleading statements in any credit application or credit update.  You will also be in default if something happens that the Credit Union believes may substantially reduce your ability to repay what you owe.
   
   When you are in default, the Credit Union has the right to demand immediate payment of your full Account balance without giving you notice.  If immediate payment is demanded, you agree to continue paying finance charges, at the periodic rate charged before default, until what you owe has been paid, and any shares that were given as security for your Account may be applied towards what you owe.
   
10. Liability for Unauthorized Use-Lost/Stolen Card Notification.    You agree to notify us immediately, orally or in writing at 700 Robbins Avenue, Philadelphia, PA 19111 or telephone (800) 991-4961 twenty four (24) hours a day, seven (7) days a week, of the loss, theft, or unauthorized use of your Credit Card.  You may be liable for the unauthorized use of your Credit Card. You will not be liable for unauthorized use that occurs after you notify us of the loss, theft, or possible unauthorized use.  You will nave no liability for unauthorized purchases made with your credit card, unless you are grossly negligent in the handling of your card.  In any case, your liability will not exceed $50.
    
11. Changing or Terminating your Account.  The Credit union may change the terms of this Agreement from time to time.  Notice of any change will be given in accordance with applicable law.  If permitted by law and specified in the notice to you, the change will apply to your existing Account balance as well as to future transactions.
    
    Either you or the Credit Union may terminate this Agreement at any time, but termination by you or the Credit union will not affect your obligation to pay the Account balance plus any finance and other charges you owe under this Agreement. You are also responsible for all transactions made to your Account after termination, unless the transactions were unauthorized.
    
    The Card or Cards you receive remain the property of the Credit Union and you must recover and surrender to the Credit Union all Cards upon request or upon termination of this Agreement whether by you or the Credit Union.  The Credit Union has the right to require you to pay your full Account balance at any time after your Account is terminated, whether it is terminated by you or the Credit Union.  If this is a joint Account, Section 17 of this Agreement also applies to termination of the Account.
    
12. Credit Review and Release of Information.   You authorize the Credit Union to investigate your credit standing when opening or reviewing your Account.  You authorize the Credit Union to disclose information regarding your Account to credit bureaus and creditors who inquire about your credit standing.  If your account is eligible for emergency cash and/or emergency card replacement services, and you request such services, you agree that we may provide personal information about you and your account that is necessary to provide you with the requested service(s).
    
13. Returns and Adjustments.   Merchants and others who honor your Card may give credit for returns or adjustments, and they will do so by sending the Credit Union a credit slip which will be posted to your Account.  If your credits and payments exceed what you owe the Credit Union, the amount will be applied against future purchases and cash advances.  If the credit balance amount is $1 or more, it will be refunded upon your written request or automatically after six (6) months.
    
14. Additional Benefits/Card Enhancements.   The Credit Union may from time to time offer additional services to your Account, such as travel accident insurance, at no additional cost to you.  You understand that the Credit Union is not obligated to offer such services and may withdraw or change them at any time.
    
15. Foreign Transactions.   Purchases and cash advances made in foreign currencies will be debited from your account in U.S. dollars.  The exchange rate between the transaction currency and the billing currency used for processing international transactions is a rate selected by Visa from a range of rates available in wholesale currency markets for the applicable central processing date, which rate may vary from the rate Visa itself receives, or the government-mandated rate in effect for the applicable central processing date.  The exhange rate used on the processing date may differ from the rate that would have been used on the purchase daate or cardholder statement posting date.
    
16. Merchant Disputes.   The Credit Union is not responsible for the refusal of any merchant or financial institution to honor your Card.  The Credit Union is subject to claims and defenses (other than tort claims) arising out of goods or services you purchase with the Card if you have made a good faith attempt but have been unable to obtain satisfaction from the merchant or service provider, and (a) your purchase was made in response to an advertisement the Credit Union sent or participated in sending to you; or (b) your purchase cost more than $50 and was made in your state or within one hundred (100) miles of your home.
    
17. Joint Accounts.   If this is a joint Account, each person on the Account must sign the Agreement (by signing on the application).  Each of you will be individually and jointly responsible for paying all amounts owed under this Agreement.  This means that the Credit union can require any one of you individually to repay the entire amount owed under this Agreement.  Each of you authorizes the other(s) to make purchases or cash advances individually.  Any one of you may terminate the Account and the termination will be effective as to all of you.
    
18. Effect of Agreement.   This Agreement is the contract which applies to all transactions on your Account even though the sales, cash advances, credit or other slips you sign or receive may contain different terms.
    
19. No Waiver.   The Credit Union can delay enforcing any of its rights any number of times without losing them.
    
20. Statements and Notices.   Statements and notices will be mailed to you at the most recent address you have given the Credit Union.  Notice sent to any one of you will be considered notice to all.
    
21. Final Expression.   This Agreement is the final expression of the terms and conditions of this VISA line of credit between you and the Credit Union.  This written Agreement may not be contradicted by evidence of any alleged oral agreement.
    
22. Copy Received.   You acknowledge that you have received a copy of this Agreement.
    
23. Signatures.   By signing in the Signature area of the application form that was attached to this Agreement when you received it, you agree to the terms of this Agreement.  You should detach this Agreement from the application and retain it for your records.
    
    The daily periodic rate for purchases and cash advances for a VISA Classic Card is 1.2492% which is an ANNUAL PERCENTAGE RATE of 14.99%.
     

 YOUR BILLING RIGHTS
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.  Write to us as soon as possible.  We must hear from you no later than sixty (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, give us the following information:

• Your name and 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 not sure about.

If you have authorized us to pay your credit card bill automatically from your savings or share draft account, you can stop the payment on any amount you think is wrong.  To stop the payment your letter must reach us three (3) business days before the automatic payment is scheduled to occur.

Your Rights and Our Responsibilities After We Receive Your Written Notice

We must acknowledge your letter within thirty (30) days, unless we have corrected the error by then.  Within ninety (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 you question, including finance charges, and we can apply an unpaid amount against your credit limit.  You do not have to pay any questioned amount while we are investigating, but you are still 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 didn't 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 to us within ten (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 reported 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 can't collect the first $50 of the questioned amount, even if your bill was correct.

Special Rule for Credit Card Purchases

If you have a problem with the quality of property or services that you purchased with a credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services.  There are two (2) limitations on this right.

1. You must have made the purchase in your home state or, if not within your home state, within one hundred (100) miles of your current mailing address; and
2. The purchase price must have been more than $50.

These limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services.

 

Home Equity Early Disclosure

 IMPORTANT TERMS OF OUR HOME EQUITY LINE OF CREDIT PLAN

This disclosure contains important information about our Home Equity Line of Credit Plan.  You should read it carefully and keep a copy for your records.

AVAILABILITY OF TERMS:  All of the terms described below are subject to change.  If these terms change (other than the annal percentage rate) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees that you pay to us or anyone else in connection with your application.

SECURITY INTEREST:  We will take a security interest in your home.  You could lose your home if you do not meet the obligations in your agreement with us.

POSSIBLE ACTIONS:  We can terminate your line, require you to pay us the entire outstanding balance in one payment, and charge you certain fees, if (1) you engage in fraud or material misrepresentation in connection with the plan; (2) you do not meet the repayment terms of this plan, or (3) your action or inaction adversely affects the collateral or our rights in the collateral.

We can refuse to make additional extensions of credit or reduce your credit limit if (1) any reasons mentioned above exist; (2) the value of the dwelling securing the line declines significantly below its appraised value for purposes of the line; (3) we reasonably believe that you will not be able to meet the repayment requirements due to a material change in your financial circumstances; (4) you are in default of a material obligation of the agreement; (5) government action prevents us from imposing the annual percentage rate provided for in the agreement; (6) the priority of our security interest is adversely affected by government action to the extent that the value of the security interest is less that 120 percent of the credit line; (7) a regulatory agency has notified us that continued advances would constitute an unsafe and unsound business practice, or (8) the maximum annual percentage rate is reached.

MINIMUM PAYMENT REQUIREMENTS:  You can obtain credit advances for 5 years.  This period is called the "draw period."  At our option, we may renew or extend the draw period.  After the draw period ends the repayment period will begin.  The length of the repayment period will depend on the balance at the time of the last advance you obtain before the draw period ends.  You will be required to make monthly payments during both the draw and repayment periods.  At the time you obtain a credit advance a payoff period of 240 monthly payments will be used to calculate your payment.

The payoff period will always be the shorter of the payoff period for your outstanding balance or the time remaining to the maturity date.  Your payment will be set to repay the balance after the advance, at the current annual percentage rate, within the payoff period.  Your payment will be rounded up to the nearest dollar.  Your payment will remain the same unless you obtain another credit advance.  Your payment may also change if the annual percentage rate increases or decreases.  Each time the annual percentage rate changes, we will adjust your payment to repay the balance within the original payoff period.  Your payment will include any amounts past due and any amount by which you have exceeded your credit limit, and all other charges.

MINIMUM PAYMENT EXAMPLE:  If you made only the minimum monthly payment and took no orther credit advances it would take 20 years to pay of a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 9.75%.  During that period, you would make 240 payments of $95.00.

FEES AND CHARGES:  You must pay certain fees to third parties to open the plan.  These fees generally total between $250.00 and $440.00.  If you ask, we will provide you with an itemization of the fees you will have to pay third parties.

PROPERTY INSURANCE:  You must carry insurance on the property that secures this plan.  If the property is located in a Special Flood Hazard Area we will require you to obtain flood insurance if it is available.

REFUNDABILITY OF FEES:  If you decide not to enter into this plan within three business days of receiving this disclosure and the home equity brochure, you are entitled to a refund of any fee you may have already paid.

TRANSACTION REQUIREMENTS:  The minimum credit advance that you can receive is $1,000.00 for the first advance and $100.00 for each subsequent advance.

TAX DEDUCTIBILITY:  You should consult a tax advisor regarding the deductibility of interest and charges for the plan.

VARIABLE RATE FEATURE:  This plan has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum payment may change as a result.  The annual percentage rate includes only interest and no other costs.

The annual percentage rate is based on the value of an index.  The index is the Prime Rate plublished in the Money Rates column of the Wall Street Journal.  When a range of rates has been published the highest rate will be used.  We will use the most recent index value avaiable to us as of 30 days before the date of any annual percentage rate adjustment.

To determine the annual percentage rate that will apply to your account, we add a margin to the value of the Index.  Ask us for the current index value, margin and annual percentage rate.  After you open a plan, rate information will be provided on periodic statements that we send you.

RATE CHANGES:  The annual percentage rate can change on the first day of each month.  There is no limit on the amount by which the annual percentage rate can change during any one year period.  The maximum ANNUAL PERCENTAGE RATE that can apply is 16.0% or the maximum permitted by law, whichever is less.

MAXIMUM RATE AND PAYMENT EXAMPLES:  If you had an outstanding balance of $10,000, the minimum payment at the maximum ANNUAL PERCENTAGE RATEof 16.0% would be $140.00.  This annual percentage rate could be reached at the time of the 1st payment.

WALL STREET JOURNAL PRIME RATE INDEX TABLE

Year (as of the last business day of January)	Index (Percent)	Margin (Percent)	ANNUAL PERCENTAGE RATE	Monthly Payment (Dollars)
1994..............................................................	6.000	1.50	7.500	81.00
1995..............................................................	8.500	1.50	10.000	96.00
1996..............................................................	8.500	1.50	10.000	96.00
1997..............................................................	8.250	1.50	9.750	94.00
1998..............................................................	8.500	1.50	10.000	95.00
1999..............................................................	7.750	1.50	9.250	92.00
2000..............................................................	8.500	1.50	10.000	95.00
2001..............................................................	9.000	1.50	10.500	97.00
2002..............................................................	4.750	1.50	6.250	80.00
2003..............................................................	4.250	1.50	5.750	78.00
2004..............................................................	4.000	1.50	5.500	77.00
2005..............................................................	5.250	1.50	6.750	81.00
2006..............................................................	7.500	1.50	9.000	86.00
2007..............................................................	8.250	1.50	9.750	88.00
2008 .................................................................................	6.000	1.50	7.500	84.00

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