Due to modifications to the regulations governing credit cards, we must to make some modifications to the Agreement governing the use of your MasterCardTM credit card. These modifications will come into effect on September 1, 2010.
1. Which sections of the Agreement are affected by these new modifications?
The Checking Statements of Accounts and Application of payments sections have been modified. What’s more, we also added a section on complaint settlement, entitled For a better banking relationship. This information was previously communicated through other publications, and was also available on our site, at nbc.ca.
2. May I obtain an Agreement that includes all modifications discussed above?
Yes, you can obtain an amended copy of the Agreement by downloading it on this site or by calling us, toll free, at 1-888-9MY-CARD (1-888-969-2273), toll free, or 514-394-1427.
3. Why am I given an estimate of the number of years and months required to reimburse the entire unpaid balance?
New federal regulations on credit practices are making it mandatory for all financial institutions to provide this additional information to consumers. This information allows you to see how much time it would take to reimburse the entire balance if you only made the minimum required payment each month.
4. On what criteria did you base this estimate of the years and months required to pay off my account balance?
The calculation is based on the following criteria: you’ll make the minimum payment each month at the due date, your account balance is rounded to the next highest multiple of $100, and the regular interest rate applicable to purchases at the statement date is applied.
5. What about changes made to the application of payments?
New regulations aim to reduce the interest fees you pay, since payment application will be in your favour when you make a payment higher than the minimum payment indicated on your statement of account.
6. How will you apply my payment if I only make the minimum payment?
In this case, payment will be applied the same way as before, i.e. following this order:
- Miscellaneous fees (non-interest related), such as annual fees, cash advance fees, insurance premium, etc.
- Cash advances outstanding from the previous balance
- Purchases outstanding from the previous balance
- Cash advances and purchases appearing on your statement of account for the current period
If you benefit from a promotional interest rate, payment application will be as follows:
- Purchases or cash advances bearing interest at the lowest rate, no matter the order of their appearance on the statement of account.
7. In the case where I make a payment higher than the required minimum payment, how will you apply my payment?
The portion of your payment that corresponds to the required minimum payment will be applied as indicated above, the same way as the minimum amount. The surplus amount will be applied as follows: we will divide the remaining balance per segment of interest rate, without regard to the transaction type. For example, we will attribute to the same segment all transactions at X%, and all transactions at Y% to another segment, etc. We thus apply the amount above the minimum payment to the various segments, respecting the proportion of each segment within the remaining balance.
Example (note that amounts and percentages in the table are provided for your information only; they can vary following the account balance, the amount of payments made, etc.):
Minimum payment indicated on the statement of account: $95
Amount paid: $150
Exceeding the minimum: $55
Application of minimum payment
|Minimum payment ($95)
|Balance carried forward
Application of exceeding the minimum payment
|Balance after application
of minimum payment
|Exceeding the minimum
*Calculation example: $30/$1,910 = 1.570% and $55 X 1.570% = $0.86.
TM MasterCard is a trademark of MasterCard International Incorporated used under license