Kay Jewelers: Retail Repayment Credit Agreement Paper Example

Introduction

Kay cardholders are subject to an Annual Percentage Rat (APR) between 5%-24.99% for purchases that are not paid within 25 calendar days of the close of each billing cycle. Each month's billing cycles are after the close of each billing cycle. There are a variety of charges. Arkansas charged the lowest (at 5%), while New York, Ohio and Florida charged the highest (24.99%). The APR stands for charges imposed on purchases that are not paid within the specified timeframe. This means that payments will be preferred within 25 days of the close of each billing cycle (Kay Jewelers Inc. The company charges a minimum interest rate of 0-1%, depending on the state.

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Kay Jewelers does not charge an annual fee for a card, regardless of its use. However, they have strict penalties to discourage late payments or return payments. These penalties are in addition to the APRs that are charged for unpaid purchases. Late payments can result in penalties ranging from 0-35%, depending on where you live. These charges are imposed on account of inability to pay the due amount within the agreed time. Returned payments can attract fees up to 30%, depending on the account holder's state. The cardholder's payment method (electronic authorizations, checks or other instruments) is not accepted on the return payment. Kay Jewelers can impose a 30% penalty on the amount in question. It is recommended to use reliable payment methods. These are the most common dishonored payments. The company uses a method called "average daily balance" to calculate the cardholder's balance, including purchases. This applies to all US states, except Minnesota and New Mexico. These states are excluded from the above. The company's average daily balance does not include new purchases. All charges incurred on the card by the company are subject to the cardholder's right of appeal as per the terms.

Retail Repayment Credit Agreement

The company assumes that the cardholder will pay all costs associated with the card, as agreed upon the application. This includes any charges such as penalties and purchases. The cardholder is responsible to all transactions made with the card, regardless of who made them. Cardholders can apply for multiple cards under the same account. However, they will still be responsible for all transactions and charges on the provided cards (Kay Jewelers Inc. The applicant signs the application form and agrees to the terms of use. The cardholder will be responsible for the full amount of any purchases made by the account holder and other card users under the same account name. The card company will impose charges in a way that is profitable to them.

APR, as mentioned before, is the charge incurred if you fail to pay 25 days after the close of the billing cycle. This happens on a monthly basis. To avoid these charges, the cardholder must pay on time. To avoid any inconveniences or unnecessary charges, it is essential to pay promptly (Leonard 39). These charges can also calculated monthly, but this will depend on where you live and how much you spend. The annual charges are not subject to change, but they are determined based on the state in which you live.

All states except MN andNM are exempted from interest charges calculation. The average daily balance is subtracted from the current transactions to calculate the interest charges. Each balance on an account is subject to interest charges. Calculating the average daily balance involves adding up all charges within a billing period, and then dividing that sum by the number days in the relevant billing cycle. These are the average daily charges as a result. If the average daily charge is negative, the minimum finance charge will be $1. Some states do not have a minimum interest rate. It is important that the applicant carefully considers the conditions in each state regarding Kay card usage.

Cardholders must pay the minimum amount shown on their bills. To avoid accruing additional charges, this should be done on time. Minimum payments are calculated based on account balance. Minimum payments of 25% are due for a regular balance of $0-265.00. Minimum balances for regular balances with higher values are based on percentages. As the regular balance rises, this percentage decreases. For US$2500 or more, a minimum payment is 5%. The company also offers promotional terms for existing or new purchases. This is to encourage card usage. Promotional offers are subject to promotional terms. These promotions may be offered at the discretion and sometimes applicable to card companies. These promotions include "no interest plans", reduced rates and an eighteen-month program (no interest charged for the first twelve months).

The company demands that all payments be made on time. Additionally, the payment slip must be mailed to the billing address. All payments are made in US$ via honorable checks, electronic devices and other forms. Return payment fees will not be charged. For proper action, legal notices must be sent to the company. This includes the bankruptcy declaration and many other important legal provisions (Kay Jewelers Inc. The company also recognizes that any disputes relating to card use will be settled amicably (arbitrations), as stated in the contract (Leonard 38). The company charges a significant fee for late payments, as per the rates previously mentioned. This is done to make cardholders accountable and ensure that they pay their dues on time. As indicated previously, late payment fees vary by state. The maximum amount is $35. Other significant charges include security interests, return payment fees and default/collection cost.

The cardholder and the company have the right of limiting or terminating the card's use. If the company deems it necessary, it can terminate or limit the card's use without notifying the user. Kay Jewelers has the authority to review the credit history, monitor and record calls, as well as to not waive any balance. These agreements are also governed by federal law. The cardholder must inform the company of any change in address. The user can deny payment if payments are not made according to certain conditions. Kay Jewelers may use applicant's personal data when necessary.

Works Cited

Kay Jewelers Inc. Summary of Kay Jewelers Charge Account Terms. Ohio, OH: Sterling Jewelers Inc., 2010. Print.

Leonard, Barry. Use of Credit Cards by Small Businesses and the Credit Card Market for Small Businesses: Congressional Report. California, CA: DIANE Publishing, 2011. Print.