Cardholder Agreement

AAA

DEFINITION of 'Cardholder Agreement'

A printed booklet a credit cardholder receives that contains all the "fine print" about the card's terms. The cardholder agreement ordinarily describes the annual percentage rate, how minimum payments are calculated, and the rights of the cardholder when disputes arise. It includes the terms for all the fees that the cardholder may be charged, including annual, balance transfer, closed account, late payment and over-the-limit fees, as well as any additional penalties that may be assessed.

INVESTOPEDIA EXPLAINS 'Cardholder Agreement'

The cardholder agreement is mandated by Federal law under the Truth-in-Lending Act (TILA). The credit card issuer is required to disclose the terms accurately and without misleading statements. Courts have ruled for consumers when the issuer made exaggerated claims in its advertising that it did not fulfill, even though the cardholder agreement stated the less-than-advantageous terms.

RELATED TERMS
  1. Cash Back

    Cash back can refer to two different kinds of card transactions: ...
  2. Consumer Liability

    The accountability put on consumers to not act in a negligent ...
  3. Credit History

    A record of a consumer's ability to repay debts and demonstrated ...
  4. Credit

    1. A contractual agreement in which a borrower receives something ...
  5. Credit Card

    A card issued by a financial company giving the holder an option ...
  6. FICO Score

    A type of credit score that makes up a substantial portion of ...
Related Articles
  1. Watch Out For Changes In Credit Card ...
    Credit & Loans

    Watch Out For Changes In Credit Card ...

  2. Take Control Of Your Credit Cards
    Credit & Loans

    Take Control Of Your Credit Cards

  3. How To Read Loan And Credit Card Agreements
    Credit & Loans

    How To Read Loan And Credit Card Agreements

  4. How Credit Cards Affect Your Credit ...
    Credit & Loans

    How Credit Cards Affect Your Credit ...

Hot Definitions
  1. Return On Sales - ROS

    A ratio widely used to evaluate a company's operational efficiency. ROS is also known as a firm's "operating profit margin". ...
  2. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  3. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  4. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  5. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  6. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
Trading Center