Problem
Analyze the terms of any credit card contract and answer the following questions.
1) Who are the parties to the contract?
2) Who is the cardholder(s)?
3) Who is the financial institution that is issuing the credit?
4) What state is financial institution organized in?
5) Is there an additional authorized user?
A. What state law governs the interpretation and enforcement of the contract?
B. What is the APR (Annual Percentage Rate)?
a. How is it calculated?
C. What is the credit limit?
D. If the purchaser identifies a problem on the bill, what process does the purchaser needs to take?
E. How is the minimum payment amount determined?
F. How are balances calculated? Daily, weekly, monthly?
G. How soon does a cardholder have to pay the minimum payment after being billed (the grace period)?
H. Is the cardholder charged:
a. a foreign transaction fee? If so, how much is it?
b. a cash advance fee? If so, how much is it?
c. a late fee if payments are not made on time? If so, how much is it?
d. for going over the credit limit? If so, how much is it?
I. How is the term "default" defined?
J. How are billing and payment disputes resolved?
K. Is there an arbitration clause? What does it say?
L. If there is a default or if the credit card company has to collect a judgment, is there an attorney fees provision? What does it say?