For Kay cardholders, the company charges an Annual Percentage Rate (APR) of 5%-24.99% on purchases not paid within 25 days after the closure of each billing cycle. Billing cycles occur after every month. The charges vary remarkably from one state to the next with Arkansas charged the least (at 5%) while New York, Ohio, Florida, and other states charged the maximum rate (24.99%). Precisely, APR refers to charges bestowed on purchases not paid within the scheduled timeframe. This means payments are preferred within 25 days after the closure of each billing cycle mentioned earlier (Kay Jewelers Inc. 1). The company also imposes a minimum interest rate charge of 0-1% depending on the concerned state.
Kay Jewelers charges no annual fee on a card regardless of the use; however, there are stringent penalties set to discourage late payments and return payments. These penalties occur besides the APRs charged on unpaid purchases. Late payments incur charges ranging from 0-35% depending on the state of residence. In ability to pay the amount due in time contributes to these charges. Additionally, returned payments attract charges of up to 30% depending on the state of the account holder. In this context, the returned payment refers to a situation where the payment method used by the cardholder (be it checks, electronic authorizations, or other instruments) is not honored on its presentation for cashing. In such cases, Kay Jewelers will impose a fine of up to 30% on the concerned amount. Hence, it is advisable to use reliable payment methods. These constitute the dishonored payments witnessed in some circumstances. The company calculates the balance of the cardholder including purchases using a method named “average daily balance”. This applies to all states except Minnesota and New Mexico. In these states, the company uses an average daily balance, which does not consider new purchases. The cardholder has the right to dispute all the charges bestowed on the card as stipulated in the terms of use.
Retail repayment Credit Agreement
The company assumes that the cardholder promises to pay all the costs incurred on the card as agreed on the application. This includes the cost of purchases, penalties, and other relevant charges that the card might attract. Additionally, the cardholder is responsible for the entire transactions made using the card regardless of who did it. The cardholder can also apply for more than one card under the same account name; nonetheless, he or she will be responsible for all the transactions and charges incurred on the supplied cards (Kay Jewelers Inc. 1). Upon signing the application form, the applicant is agreeing with the written stipulations guiding the use of the card. Purchases executed by the account holder or other card users in the same account name (plus other charges) will constitute the exact balance to be paid by the cardholder. The card company imposes charges in a manner that is beneficial to it.
As indicated before, APR is the charges incurred on failure to pay for purchases 25 days after the closure of the billing cycle. This occurs on a monthly basis. The cardholder is expected to pay in time to avoid such charges. It is important to do it promptly in order to avoid probable inconveniences and unnecessary charges (Leonard 39). These charges can also be calculated on a monthly basis; however, this depends on the state of residence and the limit of the purchases. Annual charges do not change; however, they are fixed depending on the state of residence.
The calculation of interest charges occurs uniformly in all states with the exemption of MN and NM as indicated before. The formula used is the average daily balance minus the current transactions. The interest charges are imposed separately for every balance on the account. The average daily balance is calculated by summing up the entire charges on the account within a billing period and dividing the total sum by the number of days in the concerned billing cycle. This gives the average daily charges mentioned in this context. If the average charge is negative, the minimum average daily charge will be $1 named as the finance charge. Other states have no minimum interest charge. So, it is advisable for the applicant to consider the terms that apply in his or her state with respect to Kay card utilization.
Cardholders are expected to pay a minimum balance shown on their billing statements. This should occur in time to avoid cumulative charges. The minimum payments are based on the regular balance of an account holder. A regular balance of $0-265.00 attracts a minimum payment of 25%. Higher values of regular balances have their minimum balances based on percentages. This percentage reduces as the regular balance increases. US$2500 and above attracts a minimum payment of 5% of the concerned amount. Additionally, the company offers promotional terms on fresh purchases or existing balances. This is meant to increase the utilization of the card. However, promotional offers are subjected to the aspects of promotional terms. Such promotions are offered at the discretion of the card company and are occasionally applicable. The promotions incorporate “no interest plans, reduced rates, and eighteen-month plan “(no interest is charged for the first 12 months).
On payments, the company requires all the payments to be made in time and the payment slip mailed to the address provided on the billing statement. Payments are done in US$ through honorable checks, electronic devices, and other forms that will not incur return payment fees. Legal notices should also be mailed to the company for proper action. This incorporates the aspects of bankruptcy declaration and other considerable legal provisions (Kay Jewelers Inc. 1). Additionally, the company recognizes that all disputes related to card use will be resolved amicably (arbitrations) as stipulated in the contract (Leonard 39). As indicated before, the company charges a considerable fee on the aspects of late payments as stipulated in the previous rates. This is to make cardholders responsible and pay their dues in time. Late payment charges vary from one state to the next as indicated earlier. However, the maximum figure is $35. Other considerable charges include return payment fees, security interests, and default/collection costs.
Both the company and the cardholder have the right to terminate or limit the use of the card. The company can do this even without prior notice to the user-provided it deems it fit to do so. Kay Jewelers is authorized to investigate the credit history of the applicant, monitor and record calls as well as not waiver any balance to the cardholder. The federal law equally governs such agreements. Additionally, the cardholder should inform the company appropriately of the change of address. There are stipulations governing the disputation of purchases, which allow the user to deny payments. Conclusively, Kay Jewelers can use the applicant’s personal information when required to do so.
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.