Balance Calculation Method-Average Daily Balance: Including Cur–
rent Transactions in all states except Excluding Current Purchases in ME,
MA, MN, MT, NE, and NM.
• We figure the finance charge on your account by applying the periodic
rate to the Average Daily Balance of your account.
• To get the Average Daily Balance, we take the beginning balance of your
account each day, add new purchases, and subtract payments and
credits. In ME, MA, MN, MT, NE, and NM, current purchases are not
included during the billing period in which they were made. In AR, CA, HI,
LA, MS, ND, and PA, unpaid finance charges from a previous billing
period are not included.
• We then add all the daily balances for the billing period and divide the
total by the number of days in the billing period. This gives us the Average
Daily Balance.
If you have a Regular Charge balance, a Major Purchase balance, or both,
we figure the Average Daily Balance for each. Then we combine them to
determine your finance charge. We multiply the combined Average Daily
Balance by the periodic rate to get your finance charge for the billing
period.
Finance Charge Rates-The periodic rates throughout the United States
are listed below:
Periodic
ANNUAL
Portion of Average Minimum Monthly
Residence
Rate
PERCENTAGE
Daily Balance
FINANCE
RATE
to Which Applied
CHARGE
AL
1.75%
21%
$750or less
50¢
1.5%
18%
over$750
AK
1.5%
18%
$1,000 or less
50¢
.87%
10.44%
over$1,000
AR
1.0%
12.0%
Entire
None
CA.IA1:65%
19.8%
Entire
50¢
CT, HI, NC, ND,
RI
1.5%
18%
Entire
None
DC
1.75%
21%
Entire
None
FL LA
Ml\
ME, MN,
1.5%
18"A.
Entire
50¢
PA, TX, WA, WI
KS
1.75%
21%
$1,000 or less
50¢
1.2%
14.4%
over$1,000
Ml
1.7%
20.4%
Entire
50¢
MO
1.67%
20.04%
Entire
50¢
NE
1.75%
21%
$500or less
None
1.5%
18%
over$500
WV
1.5%
18%
$750orless
50¢
1.Cl%12%
over$750
All Other States
&
Outside U.S.-
1.75%
21%
Entire
50¢
50States
There is no minimum monthly finance charge if you have only a Major Pur–
chase balance.
In Texas-The finance charge rates may change on an annual basis
(November 1 of each year). The current rate will be automatically renewed
for the next year if permitted by law. Any change in the rate may apply to
your entire balance. The rate may not exceed the maximum rate estab–
lished by the Texas Consumer Credit Commissioner. The ANNUAL PER–
CENTAGE RATE may not be greater than 21%.
In Arkansas-Any finance charge added to your account for a billing
period will be computed by applying a variable rate to your average daily
balance. The monthly finance charge rate is 1/12 of an annual percentage
rate equal to five percentage points above the Federal Reserve Board's
Discount Rate on 90-day commercial paper in Arkansas. This rate will not
exceed the maximum monthly rate of 1.41
%
(annual percentage rate
17%).
The MONTHLY FINANCE CHARGE RATE resulting from this variable rate
formula is now 1.0%(ANNUAL PERCENTAGE RATE 12.0%).The variable
finance charge rate is subject to change as of the effective date of any
increase or decrease in the discount rate described above. Any increase in
the finance charge rate will apply only to purchases made on and after the
effective date of the change. Any decrease in the rate will apply to the vari–
able rate balance on your account as of the effective date of the change.
No advance notice of any change will be given.
Returned Check Fee-If any check sent to us as payment on your
account and/or for insurance premiums is returned unpaid by your bank,
we may charge you a reasonable returned check fee.
Late Payment Charge- This applies to you if you live in AL, AR,
AZ.,
CA,
FL, GA, HI, ID, KY, MD, MS; MT, NV, NH, NY, OH, OR, SD, TN, VA, WA, WV,
or outside the U.S. If we do not receive your required payment within two
consecutive billing periods, we may assess a late payment charge. This
charge is 5% of the late payment (excluding any insurance premiums and
returned check fees). but not more than $5.00 ($3.00 in Ohio).
Taxes on Finance Charge-If you live in HI, you agree to pay the 4% state
excise tax on your finance charge. If you live in MS any finance charge
assessed on your account is subject to the MS state sales tax. The current
rate of that tax is 6%.
Monthly Payments quoted elsewhere in this catalog do not _include
sales tax or the transportation-and-handling charge.
Payment Terms-The following repayment terms do not apply to you if
you live in
AZ.,
Ml, MO, NC, NJ, or OR. If you live in one of these states, sub–
mit the application on page 381, and terms will be sent to you upon
approval of your aoplication.
·
Regular Charges-If you have a Regular Charge balance, you agree to
make at least a minimum payment each month as listed below:
IF YOUR REGULAR
CHARGE BALANCE IS:
THEN YOUR MINIMUM
MONTHLY PAYMENT IS:
$ 15.00 or less ............ ... , ................... ..Balance
15.01 -
100 ............ . .. ........... ................$15
100.01 -
200 .......... . ., .. . ......... ·· •·· ............. .25
200.01 -
250 .. ....... .. ,... .. .• ..... ........ . , ..........30
250.01 -
300 ............, .. •.. ...........................35
300.01 -
350 .............. ,. , ,......... . .... ........ ... .40
350.01 -
400 ................ . ............ , .. ........... .45
400.01 -
450 ............ .. ' .................... ....... ..50
450.01 -
550 ............. ... , ....... ..... .. .. ., ..........55
Over
$550 ..... . ... ...................... . ..... ... .... 10.5%
Major Purchase Charges-If you have a Major Purchase balance, you
agree to pay at least a fixed amount each month. This amount is based on
your highest Major Purchase balance. Even if you reduce your balance,
your monthly payment will remain the same until that balance is paid. The
portion of any payment over the required amount will reduce the payment
amount due in the following month(s).
IF YOUR HIGHEST MAJOR
THEN YOUR
PURCHASE BALANCE IS:
MONTHLY PAYMENT IS:
$200.01 -
210 .... ..... . ...... ... ............ ....... .$ 9.00
210.01 -
225 ...... " ·... ........ .. . .. ..... ... ..... . 9.50
225.01 -
240 . ... .................. .
10.00
240.01 -
255 . ........... .. .................... ..... 10.50
For balances between $255.01 and $375, the monthly payment
is increased by 50¢ for each additional $15 or less.
$375.01 -
405 .................................... . ..$15.00
405.01 -
420 ....... . .. ..... : ..
:.
.. •., .............. 15.50
420.01 -
435 ....................,.. .. .. . .. .. .. .. .. .. 16.00
435.01 -450 .......... ... •........ •.•............ ... 16.50
450.01 -
4135 ............. .......... . ..... .. .......... 17.00
465.01 -
495 ............. . ... .. ........ ......... .. . 17.50
495.01 -
510 .......................... .. ............ 17.75
510.01 -
525 ............... ........................ 18.25
For balances over $525, the monthly payment is increased by
50¢ for each additional $15 or less.
Our Rights-Warning: We can change our credit terms at any time. We
will notify you in advance of any such changes as required by law. Our new
terms may be applied to the existing balance on your account unless pro–
hibited by law. We can limit or cancel your credit privileges. All JCPenney
credit cards belong to us, and you must return them at our request.
We give up any lien the law gives us automatically for work performed by us
or materials installed by us on real pror€rty used or expected to be used as
your principal residence. If you live in Florida, we will keep a security inter–
est in any items charged to your account, except for those items that are
considered real property under state law.
If You Move-You must notify us promptly if you move. If your new resi–
dence is in another state, our terms in that state will apply. If you move out–
side the U.S. (50 states), our standard credit account terms will apply.
Use of Information About You and Your Account-We may share infor–
mation about you with others in JCPenney activities or with a member of
JCPenney's family of companies. We may give information about you and
your account to others when required or permitted by law. For business
purposes, we may give information about your account to credit bureaus
and others.
Advertisements and Solicitations-We send advertisements with billing
statements, in separate mailings, and by telephone solicitation, which you
agree to receive. However, you can tell us at the credit desk in any JCPen–
ney store or by sending a note to the Credit Service Center address shown
on your billing statement, that you do not want to receive these advertise–
ments and telephone solicitations.
continued on next page
JCPenney
379