Visa Classic Credit Card General Information

Initial Disclosure Statement - For new accounts

Full name and address of Creditor

TSB Bank Limited, TSB Centre, Devon Street, P O Box 240,New Plymouth, New Zealand ("the Bank") Fax: 06 968 3789. E-mail: email.support@tsbbank.co.nz

Continuing Disclosure

The Bank will provide you with monthly statements giving you information about your Card Account (e.g. any interest or fees charged during the statement period) and the amount and timing of your next payment.

Conditions of Use

By using your TSB Bank Visa Card, you are entering into a contract with the Bank, and by doing so you agree to the Bank's Conditions of Use and the Visa Rates and Fees schedule which you acknowledge that you have received. This statement is a general summary of your rights and obligations which are more fully set out in the Conditions of Use. Any capitalised terms in this statement shall have the same meaning as they have in the Conditions of Use.

Initial unpaid balance

At the date you receive this statement, you have a nil unpaid balance.

Time for payment

You must make payments no later than the payment date specified on your monthly statement. That payment date will be 25 days from the date of the monthly statement.

Minimum payment

Your monthly statement will state the minimum payment you must make each month. The minimum payment you must make each month will be calculated as follows:

  • if the statement closing balance is over $200, the minimum payment is 5% of that balance;
  • if the statement closing balance is between $10 and $200, the minimum payment is $10;
  • if the statement closing balance is less than $10, the minimum payment is the amount of that balance;
  • plus any overdue and/or over limit amount on your Card Account.

You may choose to pay more than the minimum payment. If you make only the minimum payment each month, you will pay more interest and it will take you longer to pay off your balance. Visit www.sorted.org.nz/creditcards to calculate how you can pay off your Credit Card balance and pay less in interest.

Annual interest rate

The current annual interest rate applying to your Card Account is 18.50% per annum. The Bank may vary this interest rate from time to time in accordance with the Conditions of Use and notification will be issued prior to any change.

Method of charging interest

  • Interest will be charged on any Cash Advance made to you on a daily basis from the date each advance is made until the date the Cash Advance is repaid in full to the Bank.
  • If you pay the whole of the amount shown on your current monthly statement as the 'closing balance' by the payment due date stated, you will pay no interest on Card Transactions which relate to the statement (other than Cash Advances and the residual balance from the previous statement).
  • If however you pay only the minimum payment due, or you pay an amount which is less than the whole of the 'closing balance', or if you fail to make any payment by the payment due date, you will pay interest on:
    • the 'closing balance' less any amount actually paid by the payment due date, from the closing date of  the current statement to the date the closing balance is paid in full; and
    • the value of new Card Transactions, including Cash Advances from the date on which they are incurred and Bank charges until the payment in full of the closing balance on any subsequent monthly statement.
  • Interest is calculated by multiplying the amount (if any) upon which interest is to be charged at the end of the day by a daily interest rate. The daily interest rate is calculated by dividing the annual interest rate by 365.
  • Interest charges (if any) are calculated and debited to your Card Account monthly.

Credit Limit

You will be advised of the credit limit that applies to your Card Account. This credit limit will apply to all TSB Bank Visa Cards issued by the Bank on this account. The Bank may reduce the credit limit in accordance with the Conditions of Use. The Bank may also increase the credit limit giving you a minimum of 14 days' notice in accordance with the Conditions of Use.

Credit Fees and Charges

The Visa Rates and Fees schedule specifies all the credit fees and charges applying to your Card Account. The Bank may vary these credit fees and charges from time to time in accordance with the Conditions Use.

What could happen if you fail to meet your commitments?

If you fail to meet your commitments to pay all amounts due in respect of your Card Account, the Bank may apply the credit balance of any account you may have with the Bank in payment of all amounts due in respect of your Card Account. The Bank may also be entitled to sell any assets which have been provided as security to the Bank for your obligations. If assets are sold by the Bank and there is money still owing after such sale, you will remain liable for the money then still owing.  

Default Fees

If you fail to pay the amount shown on your monthly statement as the minimum payment due by the date specified on that statement, the Bank is entitled to charge you a late payment default fee. The Visa Rates and Fees schedule specifies the current late payment default fee. The Bank may vary this late payment default fee from time to time. The Bank does not charge default interest.

Cancellation of your TSB Bank Visa Card/Closure of your Card Account

If you fail to pay the amount shown on your monthly statement as the minimum payment due by the date specified on that statement, the Bank may cancel your TSB Bank Visa Card and/or close your Card Account in accordance with the Conditions of Use.

Statement of right to cancel

If this statement relates to a consumer credit contract under the Credit Contracts and Consumer Finance Act 2003, you have the right for a short time after the terms of this statement have been disclosed to you to cancel. A credit contract is a consumer credit contract under the Credit Contracts and Consumer Finance Act 2003 if you are a natural person and you enter into the contract wholly or predominantly for personal, domestic or household purposes.

How to cancel

If you want to cancel your contract with us relating to your TSB Bank Visa Card, you must give written notice to the Bank. You must also repay the Bank any money that has been advanced to you under this contract and return any other property received by you under this contract.

What you may have to pay if you cancel

If you cancel, the Bank can charge you:

  • the amount of any reasonable expenses the Bank has had to pay in connection with this contract and its cancellation (including legal fees and fees for credit reports and the cost of any incentive provided by the Bank in connection with this contract) and
  • interest for the period from the day you received the advance or any portion of the advance until the day that the advance is repaid.

This statement only contains a summary of your rights and obligations in connection with the right to cancel. If there is anything about your rights or obligations under the Credit Contracts and Consumer Finance Act 2003 that you do not understand, if there is a dispute about your rights, or if you think the Bank is being unreasonable in any way, you should seek legal advice immediately.

Time limit for cancellation

If this statement is handed to you directly, you must give notice that you intend to cancel within five working days after you have received it. If this statement is sent to you by electronic means (e.g. email) you must give notice of intention to cancel within seven working days after the electronic communication has been sent. If this statement is mailed to you, you must give notice of intention to cancel within nine working days after the contract was posted. Saturdays, Sundays and national public holidays are not counted as working days.

What do you do if you suffer unforeseen hardship?

If you are unable reasonably to keep up your payments or other obligations relating to your Card Account because of illness, injury, loss of employment, the end of a relationship or other reasonable cause, you may be able to apply to the Bank for a hardship variation.

To apply for a hardship variation, you need to:

  • make an application in writing and
  • explain your reason(s) for the application
  • request one of the following:
    • an extension of the term of this contract (which will reduce the amount of each payment due under this contract); or
    • a postponement of the dates on which payments are due under this contract (specify the period for which you want this to apply); or
    • both of the above and
  • give the application to the Bank.

Do this as soon as possible. If you leave it for too long, the Bank may not have to consider your application.

Dispute resolution

The Bank is part of the Banking Ombudsman dispute resolution scheme.

If you have a complaint, you are encouraged to first discuss it with your local branch of the Bank and make use of the Bank's internal complaints processes. If your complaint is not resolved to your satisfaction you can then make use of the Banking Ombudsman dispute resolution scheme. It is an independent resolution scheme and it is free to make a complaint.

This scheme can help you to resolve any disagreements you have with the Bank.

Contact details of the scheme are as follows:

Phone: 0800 805 950 (freephone) or 0064 4 915 0400 (from overseas)

Website: www.bankomb.org.nz

Email: help@bankomb.org.nz

Business address: Level 5, Huddart Parker Building 1 Post Office Square Wellington 6011

Postal address: Freepost 218002 PO Box 25327 Featherston Street Wellington 6146

Registration on Financial Service Providers Register

The Bank is registered on the Financial Service Providers Register under the name of TSB Bank Limited, under registration number FSP22621. Sending notices to the Bank You may send notices to the Bank by writing to the Bank, by sending a fax to the Bank or by sending the Bank an email using the contact details at the top of this statement.

Rates and Fees

Lost/stolen Cards

Assistance within New Zealand

Phone our 24 hour toll free number, on 0800 406 406 (please be aware TSB Bank's Visa After Hours Cancellation Service is provided by a third party).

To order a replacement Card, please contact TSB Bank.

Assistance outside New Zealand

Call Collect (refer to local telecommunications directory for calling instructions):

Visa International 001 1 303 967 1090

New Zealand Assistance 0064 6 968 3700

Additional information can be found at www.visa.com

Daily limits

Visa Classic Credit

Maximum daily limits are based on New Zealand time.

Overseas banks and institutions operating ATM's may charge an additional fee to the Bank's standard Cash Advance fee (if applicable), and any overseas transaction will incur an Overseas Service fee. If the maximum daily limit imposed by the overseas bank or institution operating the ATM is less than the Bank's limits stated above, then the overseas bank's or institution's limit will take precedence.
Cash Advances within New Zealand at an ATM

$2,000

Cash Advances outside New Zealand at an ATM

NZD$2,000

Cash Advances across the counter

Up to your available credit

Purchases

Up to your available credit

General Rates & Fees

*This will be charged at the time the card is ordered. The Overseas Service Fee is charged to your account at the time the overseas transaction is charged to your account, and appears as a separate item.
**This fee will be charged monthly on the statement production date, 5 days after the payment due date.
***This fee is only charged to accounts that are not charged a Card fee, and is charged after 3 months of no Card activity.
#This fee will be charged on the day a Cash Advance is made.
##This commission charge comprises of two components; Issuer fee and Visa International Service Assessment, and is calculated as a percentage of the converted overseas transaction value. The Overseas Service Fee is charged to your account at the time the overseas transaction is charged to your account, and appears as a separate item.
Interest rate

18.50% p.a.

Card fee (Personal account)

Personal accounts: $15 per half year for the first card on the account. $2.50 per half year for each joint/ additional card on the account.

Card fee (Business account)

Business accounts: $17.50 per half year for the first card on the account. $2.50 per half year for each additional card on the account

Card replacement fee

$15 per card

Statement reprint fee

$4 per statement

Overseas card delivery*

Contact us for a quote

Late payment default fee**

$12

Inactivity fee***

$10

Cash advance fee #

$2 per advance (NZ) $5 per advance (overseas)

Overseas service fee ##

2.5% of the New Zealand Dollar value of each overseas card transaction

Fees for optional services

*This fee will be charged on the day a Cash Advance is made. This fee covers the cost of Branch staff or ATMs.
**This commission charge comprises of two components; Issuer fee and Visa International Service Assessment, and is calculated as a percentage of the converted overseas transaction value. The Overseas Service fee is charged to your account at the time the overseas transaction is charged to your account, and appears as a separate item. (A portion of this fee is used to reimburse the Bank for any Visa charges imposed on the Bank for that overseas Card transaction).
#This premium is charged monthly on the statement production date. Please refer to the Credit Card Insurance section
for further information.
Cash Advance fee (NZ)*

$2 per advance (NZ)

Cash Advance fee (Overseas)*

$5 per advance (overseas)

Overseas Service fee **

2.5% of the New Zealand Dollar value of each Overseas Card Transaction

Credit Card Insurance#

Calculated at the rate of 78 cents for every $100 (or part thereof) owing on your monthly statement for individual accounts, and $1.34 for every $100 (or part thereof) owing on your monthly statement for joint accounts. No fee is charged if the monthly statement balance is zero.

Conditions of Use

Acceptance of Conditions of Use

1.1. By using your Credit Card, you agree that these Conditions of Use are binding on:

a. you as the holder of the Credit Card (including joint and Additional Cardholders); and

b. the person in whose name(s) a Card Account has been opened.

Interpretation and definitions

Interpretation

2.1. In these Conditions of Use, unless inconsistent with the context:

a. the singular includes the plural and vice versa;

b. Statutes and Regulations - a reference to a Statute shall include references to Regulations made pursuant to such Statute and all Statutes or Regulations passed in substitution for such Statutes or Regulations;

c. headings - clause and other headings are for ease of reference only and do not form part of a clause or affect the interpretation;

d. gender - words importing one gender shall include all genders;

e. person - includes an individual, a company or other body corporate, a trust and a partnership.

Definitions

2.2. Definitions used in context to your Credit Card include:

Additional Card: means a Card issued to an Additional Cardholder.

Additional Cardholder: is a party nominated by the person in whose name the Bank has opened a Card Account, and to whom the Bank issues a Credit Card on that Card Account. 

ATM: means an Automatic Teller Machine within the Bank's approved network within New Zealand and internationally.

Bank: means TSB Bank Limited, TSB Centre, 120 Devon Street East, New Plymouth an associate member of Visa.

Card Account: means the credit account opened by the Bank for the purpose of recording Card Transactions and charges payable pursuant to these Conditions of Use.

Cardholder: means the holder of a Credit Card on a Card Account.

Card Transaction: means any transaction on the Card Account initiated with a Credit Card. This includes any of the following transactions:

  • a recurring payment or a series of payments;
  • a Cash Advance;
  • a mail order, telephone order or Internet order or payment;
  • an EFTPOS Transaction;
  • a voucher/manual transaction;
  • an electronic commerce transaction.

Cash Advance: means an advance of cash from a Card Account (including advances of cash by way of ATM transfers and withdrawals.

Contactless Transaction: means a transaction made by way of contactless technology.

Credit Card or Card: means any Visa Credit Card issued by the Bank, valid for use on the Card Account prior to the date of expiry stated on that Card.

EFTPOS Transaction: means an Electronic Funds Transfer at Point of Sale transaction by which a Merchant is paid by the electronic transfer of funds at the time of purchase.

EFTPOS Terminal: means the electronic device connected to an electronic banking system which permits you to use your Credit Card for a Card Transaction through an EFTPOS Transaction.

Merchant: means a person who has signed and remains bound by a Visa Card Merchant Agreement.

Overseas Card Transaction: means a Card Transaction made in a currency other than New Zealand dollars or made with a Merchant in a country other than New Zealand or the Cook Islands.

PIN: means the Personal Identification Number which you have selected for your Credit Card which allows you access to Card Transactions through an ATM or EFTPOS terminal.

Securities: means any mortgage, security under the Personal Property Securities Act 1999, lien, or other charge of any nature granted or that may be granted in the future by you or any other person from time to time in favour of the Bank securing any facilities provided to you by the Bank.

Visa: means Visa International Service Association.

Visa Card Merchant Agreement: means an agreement entered into by a Merchant with Visa governing Visa Card Transactions involving the Merchant.

Visa Rates and Fees schedule: means the schedule issued by the Bank from time to time which sets out applicable rates and fees.

Protection of your Credit Card

3.1 You must sign your Credit Card as soon as you receive it from the Bank.

3.2 You must not allow any other person to use your Credit Card. You must also take all reasonable steps to protect your Credit Card from theft or fraudulent use.

3.3 Where possible, you should retain the Credit Card in your possession when performing a transaction, i.e, insert, swipe or wave the Card yourself.

3.4 Your Credit Card belongs to the Bank. At the request of the Bank, you must give your Credit Card back to the Bank.

3.5 At the Card Account owner's request, the Bank may issue an Additional Card. However, the Bank is not obliged to issue any Additional Cards.

3.6 You must keep the Bank advised of any change in your address so long as your Card Account remains open, or maintains a balance with the Bank.

Use of your Credit Card - New Zealand & overseas

4.1 You may use your Credit Card throughout New Zealand and overseas with any Merchant, ATM or bank displaying the Visa symbol (see clause 5).

4.2 As long as you comply with these Conditions of Use, there are no restrictions on your access to the available credit on the Card Account for Card Transactions. There are however minimum and maximum daily limits which apply to using your Credit Card.

4.3 We may refuse to accept a transaction if:

a. you have exceeded a limit we have applied to your Card (such as daily cash withdrawals limits);

b. it seems unusual compared with the way you normally use your Card and we suspect misuse (it is therefore important to advise us when travelling overseas and provide your itinerary as well as contact phone numbers if available);

c. we reasonably consider it necessary to protect the security of your Card Account;

d. for any other reason set out in these Conditions of Use.

4.4 If your Card Account has a significant credit limit, failure to look after your Card and PIN could result in a substantial loss for which you personally could be held responsible.

Overseas Card Transactions

5.1 You may exercise an optional service of using your Credit Card for Overseas Card Transactions. Each of those Card Transactions (whether debit or credit):

a. will either first be converted from the currency in which the Card Transaction was made into US Dollars and then into New Zealand Dollars or converted directly from the currency in which the Card Transaction was made into New Zealand Dollars; and

b. will be converted at the exchange rate selected by Visa from a range of wholesale exchange rates in effect one day prior to the date on which Visa processes the Card Transaction (which processing may occur later than the actual date of the Card Transaction); and

c. you may be offered the opportunity to choose to pay for goods or services at a Merchant in a country other than New Zealand, in New Zealand dollars, or in the Merchant's local currency, at the time of purchase. This is called Dynamic Currency Conversion and can be applied only by agreement between you and the Merchant. The rate of conversion is applied at the time the purchase is made and is determined by the Merchant and the Merchant's bank. The Bank has no control over the conversion rate used or margins applied; and

d. will incur an Overseas Service fee (as set out in the Visa Rates and Fees schedule).

5.2 The exercise of the optional service of using your Credit Card for Overseas Card Transactions:

a. may be subject to exchange controls or other government requirements;

b. may result in your purchases being subject to customs duties and/or taxes;

c. may result in charges being made by third parties (for example, if you use an overseas ATM machine or Bank branch to obtain a Cash Advance). Such charges are your responsibility and may be added to the Card Transaction amount and so be part of the amount converted in accordance with clause 5.1.

Cash Advances

6.1 You may exercise an optional service of obtaining Cash Advances with your Credit Card.

6.2 There are however limits on the Cash Advances which you may obtain from ATMs (as set out in the Visa Rates and Fees schedule):

a. in the case of withdrawals from any ATM in New Zealand using your PIN, the minimum advance is $20 with such maximum daily limit as may from time to time be in place;

b. you may also use your Credit Card with your PIN overseas at ATMs displaying the Visa logo to obtain local currency Cash Advances within the limits and at the discretion of the bank or institution operating the ATM.

6.3 You may be charged a Cash Advance fee for Cash Advances (as set out in the Visa Rates and Fees schedule).

6.4 The Bank accepts no liability or responsibility if you are unable to access ATMs in New Zealand or overseas or if you are unable to withdraw funds.

6.5 Overseas Cash Advances will be converted to New Zealand Dollars in accordance with clause 5.

Contactless Transactions

7.1 If your card has contactless technology as indicated by the payWave logo on the front of your card, you may choose to use your Card to make Contactless Transactions in New Zealand or overseas with any Merchant or bank displaying the Visa and symbol. You can continue to insert or swipe your card if you prefer.

7.2 In New Zealand a Contactless Transaction of NZ$80.00 or less may be completed without entering a PIN. A receipt will not be automatically provided, but one may be requested. A Contactless Transaction in New Zealand of over NZ$80.00 will require a PIN. If you use your Card to make a Contactless Transaction overseas, different limits may apply. We have no control over these limits. You will be prompted with instructions by the contactless terminal as you proceed with a transaction.

Pre-authorisation of Transactions

8.1 A bank or Merchant may obtain an authorisation to complete a Card Transaction. The purpose of an authorisation is to establish that there are no restrictions on the Card and there are sufficient funds in the Card Account for the Card Transaction.

8.2 If the actual value of a Card Transaction is not known (e.g. petrol at pump, hotel/motel accommodation) a bank or a Merchant may obtain an authorisation for an estimated value of the Card Transaction. Once authorisation is obtained, the available funds in your Card Account will be reduced by that authorised amount. This authorised amount will remain on your Card Account until a Card Transaction that matches the authorisation is processed, or if no matching Card Transaction is processed, for up to three days. This means that in some circumstances your available funds will be reduced by the amount of both the authorised estimated amount and the actual Card Transaction amount for a period of time.

Use of a PIN

9.1 The PIN is to be used in conjunction with your Credit Card. The PIN must be a random number which will not be easily guessed by anyone else.

Examples of numbers easily guessed:

  • Birthday (eg. 2803) or year of birth (eg. 1978)
  • Sequential or combination numbers (eg. 1234, 1111)
  • Spouse or child birthday, anniversary, etc
  • One of the sets of numbers embossed on the card
  • Parts of telephone/cellphone number
  • Your age, twice (eg. 3838)
  • Drivers licence number or expiry date
  • Locker or alarm code

9.2 You must safeguard your PIN. For example:

a. do not write down your PIN;

b. do not disclose your PIN to anyone including the Police, Bank staff, Merchants or your family;

c. take care to ensure no-one can see you enter your PIN at ATMs or when using EFTPOS;

d. report the disclosure or possible disclosure of your PIN as soon as you are aware or suspect your PIN has been disclosed; and

e. consider using a different PIN for different cards or equipment.

Lost or stolen Credit Cards

10.1 If you lose or mislay your Credit Card, or if it is stolen, or if you know that your Credit Card is in the possession of another person or Merchant, or you believe that another person has used your Credit Card or gained knowledge of your PIN, you must:

a. if you are in New Zealand - immediately notify the Bank and give all relevant information by phoning and advising the Bank;

b. if you are overseas - immediately notify the Bank's Visa Centre in New Zealand by telephoning New Zealand 0064 6 968 3700 collect through an operator. If you are unable to contact the Bank's Visa Centre, you must notify the nearest office of Visa International and give all the relevant information. Contact details for Visa offices can be found at www.visa.com.

10.2 Upon receipt of advice of loss of your Credit Card or disclosure of the PIN, the Bank may pass on all relevant information to the Police, Visa or Merchants. If the Bank requests that you lodge a formal complaint with the Police and you choose not to do so, the Bank may decline any liability for any loss you may suffer.

10.3 At your request, and on payment of the Card replacement fee charged (refer to the Visa Rates & Fees schedule) at that time, the Bank will replace any lost or stolen or damaged Credit Card. Replacement cards sent overseas will incur a courier charge which will be debited against your Visa account.

10.4 These Conditions of Use will apply to your use of any replacement Credit Card as if it were your original Credit Card.

Disputes with Merchants

11.1 The Bank has no liability to you for:

a. any refusal by a Merchant to accept your Credit Card; or

b. any defect or deficiency in the provision of goods or services acquired through the use of your Credit Card.

11.2 Any such claim or dispute must be resolved by you direct with the Merchant and will not relieve you of liability for payment of the amount due to the Bank in accordance with the terms of payment set out in these Conditions of Use. You should, therefore exercise care and be aware of the risks of using your Credit Card to pay for goods or services in advance of receiving them. You should consider the standing of the Merchant you are doing business with.

Unauthorised/disputed transactions

12.1 If you consider that:

a. details of a Card Transaction have been incorrectly recorded to the Card Account; or

b. a charge has been made to the Card Account which is not a valid or authorised charge on the Card Account;

YOU MUST notify the Bank in writing within 60 days of the closing date of the statement on which the transaction is charged, giving full particulars of the alleged error. Failure to do so within the time limit will mean that the Bank cannot reverse the transaction and you will remain liable for that Card Transaction.

12.2 There are limited circumstances under which the Bank can reverse a Card Transaction which will be subject to the rules of Visa. For example, the Bank cannot reverse a Card Transaction where there is a dispute with the Merchant as to the quality of goods or services or if you have changed your mind about the goods or services. Within 30 days of receiving your notice disputing a Card Transaction, the Bank will acknowledge that it has received your notice and it will report back to you with the result of its investigation into the disputed Card Transaction as soon as practicable.

If the Bank agrees with you that an error has occurred, the Bank will correct the Card Account and reimburse any fees or charges levied as a result. If you are not satisfied with the Bank's findings, you may request the matter be reviewed under the Bank's Complaints Procedures. Brochures relating to the Complaints Procedures are available upon request and are on display in all branches of the Bank and on the Bank's website www.tsbbank.co.nz.

Your Credit Card Limit

13.1 Your credit limit is approved on the issue of your Credit Card and is shown on your monthly Credit Card statement.

13.2 As a service to you, we may authorise transactions up to 10% above your credit limit.

13.3 You may apply at any time to the Bank for your credit limit to be changed. If you are the holder of an Additional Card, the application must be made by the person in whose name the Card Account on which your Credit Card is issued is held. The Bank has the right to decide not to provide credit to you.

13.4 The Bank may, at any time, at its discretion, reduce the credit limit which applies to the Card Account. The Bank may also increase the credit limit which applies to the Card Account giving you a minimum of 14 days' notice.

13.5 The Bank will, upon request, provide the Card Account owner with confirmation of the balance outstanding on the Card Account and the current credit limit allocation as it applies to the Card Account.

13.6 If the credit limit which applies to the Card Account is exceeded, the Bank has the right to:

a. demand that you pay to the Bank the amount of the excess immediately;

b. charge you the Credit Limit Excess fee (as set out in the Visa Rates and Fees schedule);

c. refuse to provide any authorisation which may be required for a Card Transaction; and

d. cancel your Credit Card and demand payment of all outstanding amounts owing in respect of your Card Account.

Liability for Card Transactions, fees, interests and costs

14.1 You must repay all credit given to you by the Bank for all Card Transactions incurred with your Credit Card in accordance with these Conditions of Use and all credit, interest and charges debited to the Card Account whether or not arising from the use of your Credit Card. You must also pay:

a. interest and any Late Payment Default fees (as set out in the Visa Rates and Fees schedule);

b. any Credit Limit Excess fee incurred for exceeding your credit limit;

c. any other fees and costs arising from the issue or use of or lack of use of your Credit Card, Additional Card or any replacement Credit Card;

d. any costs associated with the collection of amounts overdue for payment on the Card Account (including tolls, collection agent's costs or legal fees on a solicitor/client basis);

e. any dishonour fees charged by the Bank from time to time in relation to payments made by cheque, Automatic Payment or Direct Debit to the Card Account which are dishonoured;

f. any Stamp Duty or other statutory duty, levy or charge incurred in relation to Card Transactions; 24

g. any direct costs incurred by the Bank in investigating an unauthorised/disputed transaction pursuant to clause 12, if that unauthorised/disputed transaction, after investigation by the Bank, is regarded by the Bank as being a valid transaction.

14.2 The Bank cannot stop a transaction once you have initiated it.

14.3 If you have set up a recurring payment, the Bank cannot cancel it. You must give the Merchant 15 days notice in writing of cancellation prior to the next scheduled transaction date. Until you cancel the authority, the Merchant is entitled to request us to charge your account and we are obliged to process the request.

Monthly payments

15.1 Each month you must pay to the Bank, at least the amount shown on the monthly statement of the Card Account as the minimum payment due, no later than the payment due date specified on that statement.

15.2 The minimum payment you must pay each month will be calculated in each case as follows:

a. if the statement closing balance is over $200, the minimum payment is 5% of that balance;

b. if the statement closing balance is between $10 and $200, the minimum payment is $10;

c. if the statement closing balance is less than $10, the minimum payment is the amount of that balance,

d. plus any overdue and/or over limit amount on your Card Account.

15.3 You may choose to pay more than the minimum payment. You will still be required to pay the minimum payment due on the following monthly statement. You must meet this minimum payment obligation even if you have not received a monthly statement. If the full 'closing balance' shown on the monthly statement is not paid by the payment due date, interest will be payable as set out in clauses 16.2 - 16.6.

15.4 You may make your payments at any branch of the Bank, by mailing your cheque to the Bank at, PO Box 240 New Plymouth 4340, or by way of Direct Debit, or by any other electronic means of payment offered by the Bank.

15.5 If you fail to pay the amount shown on your monthly statement as the minimum payment due by the payment due date specified on that statement, the Bank is entitled to charge you a Late Payment Default fee, (refer to the Visa Rates & Fees schedule). The Late Payment Default fee is charged by the Bank on all payments overdue in excess of 5 days from the payment due date shown on that monthly statement. After this 5 day period, the Bank may suspend your ability to use your Credit Card for any Card Transactions.

Liability for interest

16.1 You will be advised of your interest rate when your Card is first issued to you. The interest rate is subject to change by the Bank at any time in accordance with these Conditions of Use.

16.2 Interest will be charged on Cash Advances on a daily basis from the date the Cash Advance is made, until the date it is repaid in full. A monthly statement will only include interest charged on a Cash Advance until the date of the statement. If you want interest to cease on the Cash Advance you will need to pay the 'closing balance' of your statement plus sufficient to cover the interest charged from the period of the closing date of the statement to the actual date of the payment, and associated fees.

16.3 Interest will be charged on dishonoured payments in the same way as interest is charged on Cash Advances.

16.4 If your statement closing balance only includes Card Transactions from this statement and the statement from one month earlier and you pay the full amount of your statement closing balance by the payment due date, no interest will be charged on these Transactions (other than Cash Advances and dishonoured payments).

16.5 If your statement closing balance includes an amount charged to the statement more than one month before and you now pay the full amount of your statement closing balance by the payment due date, interest will be charged on the daily balance on the amount (on Card Transactions other than Cash Advances and dishonoured payments) from the statement of more than one month ago, from the date of the opening balance of your next statement until the date this balance is paid in full. 16.6 If you do not pay the full amount of your statement closing balance by the payment due date, interest will be charged on the daily balance (excluding charges and interest but including Overseas Card Transaction margins) from the date of the opening balance of your next statement until the closing date of the statement. Interest will be applied to your Card Account on the closing date of this next monthly statement. The daily balance compromises the outstanding balance carried forward from the previous day plus the value of any new Transactions (including Overseas Card Transaction margins, Cash Advances, charges and interest) less any payments and credits.

Application of payments by the Bank

17.1 Any payments which are made to the Card Account in reduction of the amount outstanding will be applied by the Bank at its discretion. Generally payments will be applied in the following order:

a. Cash Advances from your previous statement;

b. Card Transactions, fees and charges from your previous statement;

c. Cash Advances which remain unbilled; and

d. other Card Transactions which remain unbilled.

Liability of Cardholder for unauthorised transactions

18.1 If you notify the Bank immediately when any of the events listed below have occurred, you will have no liability to the Bank arising from any unauthorised use of your Credit Card or recording or disclosure of your PIN subsequent to that notification, other than as provided for in clauses 19.2 and 19.3. The events referred to are:

a. you lose or mislay your Credit Card; or

b. your Credit Card is stolen; or

c. you know that your Credit Card is in the possession of another person or a Merchant; or

d. you believe that another person has used your Credit Card or gained knowledge of your PIN.

Liability for loss

19.1 You will not incur any liability if you have NOT:

a. acted fraudulently or negligently; or

b. breached these Conditions of Use; or

c. contributed to or caused losses from the unauthorised use of your Credit Card or recording or disclosure of your PIN.

19.2 If any loss arises from the unauthorised use of your Credit Card which you caused or contributed to (as set out in clause 19.4) your liability will be the lesser of:

a. the actual loss when the Bank was notified; and

b. the maximum amount that you would have been entitled to withdraw from your Card Account between the time your Credit Card is lost or stolen and the time you notified the Bank.

19.3 You are liable to the Bank for all losses arising from the unauthorised use of your Credit Card or PIN which results from your fraud or negligence.

19.4 You will be treated as having caused or contributed to the loss arising from the unauthorised use of your Credit Card if, for example (but not limited to), you:

a. fail to immediately sign your Credit Card upon receipt from the Bank; or

b. select unsuitable PINs (see clause 9.1); or

c. fail to reasonably safeguard your Credit Card; or

d. keep written records of your PIN(s); or 28

e. part with your Credit Card and/or disclose PINs to any other person; or

f. fail to take all reasonable steps to prevent disclosure to any person while keying in your PIN; or

g. unreasonably delay notification to the Bank of the loss or theft of your Credit Card, or of the actual or possible disclosure to any other person of your PIN.

The amount of the potential liability is as set out in clause 19.2.

19.5 You will not be liable to the Bank for any loss suffered by the Bank caused by:

a. fraudulent or negligent conduct by employees or agents of the Bank or parties involved in the provision of electronic banking services;

b. faults that occur in the machines, cards or systems used, unless the faults are obvious or advised by message or notice on display;

c. unauthorised transactions occurring before you have received your Credit Card;

d. any other unauthorised transaction where it is clear that you could not have contributed to the loss.

Joint and several liability/application and combination of accounts

20.1 The person in whose name a Card Account is held is liable for all amounts debited to the Card Account, including any amounts debited to the Card Account by an Additional Cardholder and all amounts payable to the Bank pursuant to these Conditions of Use whether or not the amounts arise from that person's use of a Credit Card. If the Card Account is held in the name of more than one person, all of those persons are jointly and severally liable to the Bank for those amounts.

20.2 The Bank may at any time, without prior notice to you:

a. apply an amount, up to the amount which is owing on the Card Account from any account which you hold with the Bank;  

b. combine the Card Account with any or all other accounts held by you with the Bank whether alone or together with any other person and set-off any credit balances or include any debit balances in those accounts against any balance which is owing on the Card Account;

c. add any amount owing on the Card Account to the amount owing under any loan account or other loan facility provided to you by the Bank.

20.3 The Bank's right of application and combination set out in clause 20.2 applies also to any account held by the person who has a liability to the Bank under clauses 20.1 - 20.2 (inclusive) in respect of any amounts due to the Bank in relation to these Conditions of Use.

The Bank's obligations to you

21.1 The Bank acknowledges that regardless of what is set out in these Conditions of Use, the Bank is bound by the guarantees as to service imposed by the Consumer Guarantees Act 1993.

21.2 If, however, you use your Credit Card or any other financial service provided by the Bank for the purposes of a business, the provisions of the Consumer Guarantees Act 1993 will not apply.

21.3 The Bank is liable to you for any direct losses which you may suffer as a consequence of the failure of your Credit Card, or any ATM belonging to the Bank or associated electronic systems which are attributed to the Bank's gross negligence or wilful default or the fraudulent conduct by employees or agents of the Bank. The Bank has no liability for indirect loss (or consequential loss) which you may suffer in those circumstances.

Fees

22.1 The Bank may from time to time debit your Card Account with:

a. fees relating to the issue and use of your Credit Card and any related service at the rate charged by the Bank; and

b. any Stamp Duty, or other statutory duty, levy or charge payable on Card Transactions.

22.2 The current Visa Rates and Fees schedule is available upon request or may be obtained from any branch of the Bank or online on www.tsbbank.co.nz

Cancellation of your Credit Card/ closure of your Card Account

23.1 The Bank may at any time without notice:

a. cancel your Credit Card and/or any Additional Card;

b. close the Card Account.

Following cancellation of your Credit Card or closure of the Card Account, you must not use your Credit Card and you must return it to the Bank.

23.2 You may also cancel your Credit Card. At the Card Account owner's request, the Bank may also cancel any Additional Cards. To do this, you must notify the Bank in writing of the cancellation and return your Credit Card and/or Additional Card (as applicable) to the Bank (cut in half).

23.3 Cancellation of your Credit Card does not result in the closure of the Card Account. If the Card Account is in your name alone:

a. you may cancel any Additional Card; or

b. you may close the Card Account by notice in writing to the Bank subject to clause 23.7.

23.4 If the Card Account is held in your name jointly with another person, you may close the Card Account by giving notice in writing to the Bank. In such a circumstance, the Bank will endeavour to give reasonable notice in writing of the closure of the Card Account to the other joint holders of the Card Account unless it is impracticable to do so.

23.5 The closure of a Card Account will have the effect of cancelling any Credit Card issued on the Card Account including any Additional Card.

23.6 An Additional Cardholder has no right to cancel any Credit Card issued on the Card Account other than the Additional Card itself.

23.7 Following cancellation of a Credit Card or closure of the Card Account, you have a continuing liability to pay to the Bank:

a. on the date of cancellation or closure, the amount outstanding on the Card Account; and

b. any recurring Card Transactions subsequently debited to the Card Account. It is your responsibility to contact the initiator of any Card Transactions that are regularly billed to your Card Account and advise that your Card Account is closed; and

c. when notified to you, any amount debited to the Card Account in respect of any Card Transaction incurred which had not been charged to the Card Account at the date of cancellation or closure; and

d. any fees, interest and charges payable in terms of clauses 14, 15 and 16 until all monies due to the Bank have been paid in full.

23.8 Following cancellation of an Additional Card, the Card Account owner is responsible for obtaining possession and destroying that Additional Card. Failure to do so will result in the Card Account owner remaining liable for any transactions debited to the Card Account by that Additional Card.

Changes to Conditions of Use, interest rate, fees and charges

24.1 The Bank may vary any or all of these Conditions of Use and the applicable interest rate, fees and charges at any time. When informing you of these variations, the Bank will:

a. give at least 14 days' notice of such variation; and

b. communicate such changes, either by direct communication or by display in all the Bank's branches and also by notice in the media (including public notices). No prior notice of a variation will be given where the variation is to protect you or the security of the Credit Card system.

24.2 The Bank may at any time add to, modify or withdraw any or all of the services available in respect of your Credit Card.

Relationship between your Card Account, other accounts and securities

25.1 These Conditions of Use must be read with the Terms and Conditions applying to any other account or facility which you have with the Bank. If those Terms and Conditions conflict with these Conditions of Use, these Conditions of Use will take priority unless the other Terms and Conditions are specifically expressed to take priority over these Conditions of Use.

25.2 Any 'all obligations mortgage' that the Bank holds, whether now or in the future, in respect of your property provides security for all indebtedness you incur with your Credit Card and any indebtedness the Bank incurs on your behalf.

Business Credit Cards

26.1 A Business Credit Card may be issued to you at the request of an Entity who holds a Visa Classic account with the Bank. The Entity and all Business Credit Card holders are bound by these Conditions of Use.

26.2 All transactions made on the Card Account are to be authorised by you, the Entity. The Bank will not be liable for any losses arising from unauthorised transactions made by a Business Credit Card holder.

26.3 You, the Entity is liable for all amounts owing to the Bank of the Card Account. Except in circumstances where a Sole Trader has a Card Account (Sole Trader is personally liable for all amounts owing to the Bank).

26.4 You, the Entity are responsible for all breaches of these Conditions of Use. It is your responsibility to ensure all Business Credit Card users are aware of their obligations, and that they comply with these obligations.

Additional benefits

27.1 The Bank may from time to time offer additional benefits to the Cardholder. Details of such additional benefits will be advised when the additional benefits are made available.

Security of your Credit Card Using your Visa card

28.1 The card should be signed immediately when it is received and must be used only by the cardholder.

Do not give your card to anyone, let anyone else use your card, or disclose your PIN (including to Police, Bank staff or your family). Even during an investigation by Bank staff or Police, your PIN is not required.

Make sure no one can see you enter your PIN at ATMs or when using EFTPOS.

Take care of your card. Do not leave your card in an unattended wallet, purse, vehicle or anywhere a thief could remove a card without being noticed.

When using your card, never let it out of your sight, and where possible, you should retain the card in your possession when performing a transaction, i.e., insert, swipe or wave the card yourself, instead of handing to the merchant to perform for you.

Tell us if you change your address, to ensure statements and other correspondence is received.

Report loss or theft of your card as soon as you are aware of it.

Credit Card Insurance

Credit Card Insurance arranged by TSB Bank can help repay your TSB Bank Credit Card when you can't due to redundancy, bankruptcy, critical illness, disablement, terminal illness or death.

Why Credit Card Insurance?

  • Provides assistance with your Credit Card repayments should the unexpected happen to you.
  • You're covered 24 hours a day anywhere in the world.
  • The premium is only 78 cents (joint cover $1.34) per $100 (or part thereof) of the debit balance of your Credit Card monthly statement. If there's no debit balance your cover is free for that month.
  • You don't pay extra because of your age, health, job or other factors.
  • Premiums are automatically charged to your Credit Card account each month.
  • You get a free-look period. If you're not satisfied with your cover, you can cancel it within 30 days of the cover commencement date or five working days of receiving this policy document. If you cancel your cover during this free-look period, we'll refund any premiums that you've paid but you can't make any claim.

Who underwrites the policy?

The policy is underwritten by Sovereign Assurance Company Limited ("Sovereign"), Sovereign House, 74 Taharoto Road, Takapuna, Auckland 0622, New Zealand.

Sovereign has earned an A+ (Superior) rating from A.M. Best Company Inc of New Jersey, United States of America. A.M. Best is an approved insurance rating agency in terms of the Insurance (Prudential Supervision) Act 2010. The rating scale is:

 

SECURE

VULNERABLE

A++, A+ (Superior)

B, B- (Fair)

A, A- (Excellent)

C++, C+ (Marginal)

B++, B+ (Good)

C, C- (Weak)

D (Poor)

E (Under Regulatory Supervision)

F (In Liquidation)

S (Suspended)

Part A: About the policy

Please read the policy carefully to ensure it meets your requirements and then file it away in a safe place. If you have any questions regarding the terms and conditions, please call our toll free helpline on 0800 872 274.

The Credit Card Insurance policy is issued by Sovereign Assurance Company Limited ('we', 'us', 'our') to TSB Bank and insures eligible TSB Bank Credit Card holders ('you', 'your') who have accepted the terms and conditions of the insurance cover and agreed to pay the premium.

Under the policy "Credit Card Account" means the TSB Bank Credit Card Account as defined in the schedule provided.

When does your cover start?

Your cover starts on the commencement date in the schedule.

Who is covered?

You are covered if you are named in the schedule.

What is covered?

Subject to meeting the terms and conditions, you are covered and we will pay a benefit if you:

  • become temporarily disabled
  • become permanently disabled
  • suffer a critical illness
  • die or become terminally ill
  • are made redundant from employment
  • become bankrupt while self-employed.

Benefits table

*The balance immediately before the event that you are claiming for.

The information above is a summary of benefits only. Please refer to the applicable benefit wording (Parts E-J) for full terms and conditions
Benefit Employment conditions Payment Refer to
Temporary Disablement Different definitions of disablement apply, depending on your employment status. A monthly payment equal to 15% of your Credit Card Account debit balance*. Maximum of 24 months or $50,000 (whichever happens first). Part E, page 43
Permanent Disablement Must be working for financial gain for at least 20 hours per week. A lump sum payment of the total debit balance* of your Credit Card Account. Maximum of $50,000. An additional 15% of this payment as a Cash Assistance benefit. Part F, page 46
Critical Illness No employment conditions. A lump sum payment of the total debit balance* of your Credit Card Account. Maximum of $25,000. Part G, page 48
Death or Terminal Illness No employment conditions. A lump sum payment of the total debit balance* of your Credit Card Account. Maximum of $50,000. An additional 15% of this payment as a Cash Assistance benefit. Part H, page 53
Redundancy Must be working for financial gain in a permanent job for at least 20 hours per week. A monthly payment equal to 15% of your Credit Card Account debit balance*. Maximum of 6 months or $25,000 (whichever happens first). Part I, page 55
Bankruptcy Must be self-employed for financial gain for at least 20 hours per week. A lump sum payment of the total debit balance* of your Credit Card Account. Maximum of $25,000. Part J, page 58

What is not covered?

There are certain circumstances (called 'exclusions') when we will not pay a benefit under your cover. Each benefit has its own set of exclusions. Please refer to the benefit wording (Parts E-J).

Part B: How to make a claim

The information below also applies to your representative if applicable.

To make a claim, simply:

  • Call 0800 872 274 and we will send you a claim form, or
  • Download a claim form directly from www.sovereign. co.nz (search Credit Card Insurance Claim Form).

Complete this form and along with any supporting information either scan and email it to enquire@sovereign. co.nz or post it to:

Freepost Sovereign
Private Bag Sovereign
Victoria Street West
Auckland 1142
New Zealand

To avoid any delay in payment it is important that you let us know about a claim as soon as reasonably possible.

We will let you know if any further information is required once we have received notice of the claim. You are responsible for the cost of providing this.

We may request that you have further medical examinations, at our expense. Additionally, we may write to your doctor to obtain further medical history, also at our expense.

We can only consider a claim once we have all the necessary information. All information provided to us is kept strictly confidential and will not be disclosed to any other parties without your authority.

If we have not received the required documentation within 30 days of you receiving the claim form and your delay disadvantages our management of the claim, we may not have to pay your claim, or we may pay a reduced amount.

We may cancel your cover and keep all premiums you have paid if you or anyone else provides incorrect information or leaves important information out of any claim or declaration made by you.

Part C: Premiums

The premium cost is calculated on the closing debit balance of your Credit Card Account monthly statement but before Late Payment Fees (if any) are charged. The premium is charged to the Credit Card Account on the date that the statement is produced.

 

Single premium rate (if only one person is named in the schedule)

$0.78 per $100 (or part thereof) of the monthly closing debit balance

Joint premium rate (if two people are named in the schedule)

$1.34 per $100 (or part thereof) of the monthly closing debit balance

For example, if the closing debit balance of your Credit Card Account monthly statement is $3,000, the cost of single cover for that month is $23.40 ($3,000/$100 x $0.78).

We reserve the right to change the premium rate in accordance with the terms and conditions of your cover (see page 42, 'Can your cover change?').

Your monthly premium ensures cover for the month up to the closing date of the statement. The premium will be automatically charged to your Credit Card Account each month. If you have a zero or credit balance at any monthly statement date, then you will pay no premium for that month.

In the case of joint cover, if one person named in the schedule reaches their 100th birthday, cover will continue for the remaining person named in the schedule, provided premium payments (at the single rate) continue to be paid.

Part D: Important information

Benefit payments

All benefits, except the Cash Assistance benefit, will be paid to TSB Bank for credit to your Credit Card Account. The Cash Assistance benefit will be paid directly to you or your estate.

Single benefit limit

We will only cover and pay for one event at any one time. This also applies to joint cover. For example, if while we are paying you a Temporary Disablement benefit you (or the other person named in the schedule if applicable) are made redundant, we will not also pay a Redundancy benefit.

No surrender value

Your cover is term life insurance. It does not participate in our profits and it does not acquire a surrender value or cash value if cancelled.

No cover transfer

You cannot assign your cover or any of your rights under it to anyone.

When does your cover end?

Your cover will end if:

  • Your Credit Card Account is closed for any reason; or
  • You notify us in writing that your cover is to be cancelled or is not to be renewed*; or
  • We pay any lump sum benefit under your cover; or
  • You stop paying your premium; or
  • You reach your 100th birthday, or in the case of joint cover both people named in the schedule have reached their 100th birthday; or
  • All Credit Card Insurance cover is cancelled by us, for example because of law or tax changes affecting the product or the sale of the product, and/or the product becoming unprofitable, and/or the end of the commercial relationship between Sovereign and TSB Bank. In that case, we will give TSB Bank at least 90 days' written notice of cancellation and you will be given at least 30 days' notice and offered the option of alternative cover.

*In the case of joint cover then both people named in the schedule must sign any notification to us. However, we will not be liable if we act on notification signed by only one person named in the schedule. We are not bound by anything contained in notification you send unless we actually receive it at the relevant address.

What happens when you turn 65?

From the date of your 65th birthday your cover will have a term of one year and will be renewed automatically at the end of that year and each succeeding year until your 100th birthday on the same terms, unless you notify us in writing that your cover is not to be renewed.

How do you contact us?

Postal Address

Sovereign Assurance Company Limited
Private Bag Sovereign
Victoria Street West
Auckland 1142
New Zealand

Street Address
Sovereign House
74 Taharoto Road
Takapuna
Auckland 0622
New Zealand

Email enquire@sovereign.co.nz

Phone 0800 872 274

Website www.sovereign.co.nz

Can your cover change?

Yes. It is our normal business practice to review the terms and conditions of the product on a regular basis and in response to circumstances affecting the product such as law changes, an unexpected increase in claims or a public health threat such as a pandemic. Such a review may result in changes to the premium rate or benefit amounts, exclusions or limitations, for example. Any change will apply to all TSB Bank Credit Card Insurance holders. We will give TSB Bank written notice of any change at least 90 days before the change takes effect and you will be given at least 30 days' notice including an updated policy document. You may cancel your cover at any time (see page 41, 'When does your cover end?').

Can you still use your Credit Card Account if you are receiving a claim payment?

Yes you can still use your Credit Card Account, but any transactions, charges and interest incurred after the date of the event you are claiming for will not be included as part of your existing claim. You will be responsible for the payment of these amounts.

Commission

TSB Bank receives remuneration for their involvement in the promotion and servicing of Credit Card Insurance.

Sovereign Statutory Fund

The Credit Card Insurance policy is part of the 'Sovereign Statutory Fund Number 1', effective 1 July 2013. This is a requirement under the Insurance (Prudential Supervision) Act 2010, for policy holder protection.

Policy subject to laws of New Zealand

The Credit Card Insurance policy is governed by, and will be interpreted in accordance with, the laws of New Zealand.

Part E: Temporary Disablement

How does Temporary Disablement cover work?

  • Subject to the terms of your cover, if you become temporarily disabled we will pay your Credit Card Account, 15% of your Credit Card Account debit balance as at the time of your disablement for each month you remain disabled. Payments will be made for up to 24 months or a maximum of $50,000 for any one claim.
  • For part months, this amount will be pro-rated for the number of days in the month that you are disabled.
  • Your debit balance at the time of your disablement includes all transactions, charges and interest incurred immediately before your disablement began.
  • If the monthly benefit amount calculated is less than $20 then the minimum amount of $20 will be paid for that month. However there is no benefit payable if your Credit Card Account is not in debit at the time of your disablement.

What does "temporary disablement"/"temporarily disabled" mean?

  • If you are in "full-time employment" (meaning you are working for financial gain for at least 20 hours per week), this means you are entirely prevented from working in what we consider to be your usual occupation for 30 consecutive days or more.
  • If you are not in full-time employment as defined above, this means you are confined to a hospital (including a mental or rehabilitation hospital) or bed at home for 30 consecutive days or more on medical advice acceptable to us.

If within 3 months of a temporary disablement benefit ending you become temporarily disabled again from the same or a related cause, the 30 consecutive day requirement will not apply. We will consider your current temporary disablement to be a continuation of your previous temporary disablement and therefore the maximum amount payable and benefit payment periods of any one claim will apply to the periods you are temporarily disabled. No benefit will be payable for any period you are not temporarily disabled.

We will not consider you to be in full-time employment if you are on any type of unpaid leave for longer than 30 days when you become temporarily disabled.

Your temporary disablement must be caused by either:

  • An accident (bodily injury caused directly by violent, accidental, external and visible means); or
  • Any illness.

We will pay ongoing claims if you provide proof acceptable to us of your continuing temporary disablement and you seek and follow ongoing medical advice for your condition at your expense.

Payments will continue until the earliest of the following:

  • You are no longer temporarily disabled; or
  • You do not comply with any treatment programme recommended by the attending treatment providers; or
  • You do not provide acceptable proof of your continuing temporary disablement; or
  • The maximum benefit payment period of 24 months is reached for any one claim; or
  • The maximum of $50,000 has been paid for any one claim; or
  • Your cover ends.

If while receiving a Temporary Disablement benefit you become eligible for a Permanent Disablement benefit, Critical Illness benefit, Death or Terminal Illness benefit or Bankruptcy benefit, we will pay the relevant lump sum and your cover will end. In that case you must have met any relevant employment criteria immediately before your existing disability.

When we won't pay a Temporary Disablement benefit

We will not pay a Temporary Disablement benefit if your temporary disablement:

  • 14-day stand-down: is caused or contributed to by any illness occurring within the first 14 days after your cover starts; or
  • Pre-existing condition: occurs within 6 months after your cover starts and is caused or contributed to by any injury or illness or degenerative condition existing or diagnosed, or for which advice or treatment should have reasonably been received at or prior to, the start of your cover or the cover which this replaces; or
  • Deliberate injury: is caused or contributed to by you deliberately injuring yourself or attempting to do so; or
  • Excess blood alcohol: is caused or contributed to by you driving a vehicle with a blood alcohol level in excess of the legal limit; or
  • Non-prescribed drugs: is caused or contributed to by you deliberately taking or using non-prescribed drugs, other than for proper therapeutic or medical purpose and in accordance with the manufacturer's directions for use or the deliberate misuse by you of prescribed drugs; or
  • Non-compliance with medical treatment: is caused or contributed to by you not complying with the treatment prescribed by the attending treatment providers; or
  • Pregnancy: is caused or contributed to by your pregnancy or childbirth, unless the disability lasts for more than 90 days after the end of the pregnancy in which case you must be temporarily disabled as defined for 30 consecutive days or more after the 90th day; or
  • Criminal conduct: is caused or contributed to by you engaging in or being part of any conduct that is criminal.

Part F: Permanent Disablement

How does Permanent Disablement cover work?

  • Subject to the terms of your cover, if you are in full-time employment and then become permanently disabled, we will pay the total amount owing on your Credit Card Account as a lump sum. This includes transactions, charges and interest incurred immediately before your disablement began, up to a maximum of $50,000.
  • Any amount already paid to your Credit Card Account during any preceding period of temporary disablement (see Part E above) from the same or related cause will be deducted from the Permanent Disablement benefit payable. You must have been in full-time employment immediately before your existing disability.
  • Once the Permanent Disablement benefit is paid, your cover will end.

What does "permanent disablement"/"permanently disabled" mean?

  • This means you have had a disability during the period of cover for at least 6 consecutive months which, in our opinion (after considering all reasonable evidence), will prevent you from ever again engaging in all of the duties relating to what we consider to be your usual occupation.
  • A "disability" means bodily injury caused directly by violent, accidental, external and visible means; or any illness.

What does "full-time employment" mean?

Full-time employment means you are working for financial gain for at least 20 hours per week.

We will not consider you to be in full-time employment if you are on any type of unpaid leave for longer than 30 days when you become permanently disabled.

What is the Cash Assistance benefit?

If we pay the Permanent Disablement benefit to your Credit Card Account, we will also pay directly to you an additional amount equal to 15% of this payment as a Cash Assistance benefit.

When we won't pay a Permanent Disablement benefit

We will not pay a Permanent Disablement benefit if your permanent disablement:

  • 14-day stand-down: is caused or contributed to by any illness occurring within the first 14 days after your cover starts; or
  • Pre-existing condition: occurs within 6 months after your cover starts and is caused or contributed to by any injury or illness or degenerative condition existing or diagnosed, or for which advice or treatment should have reasonably been received at or prior to, the start of your cover or the cover which this replaces; or
  • Deliberate injury: is caused or contributed to by you deliberately injuring yourself or attempting to do so; or
  • Excess blood alcohol: is caused or contributed to by you driving a vehicle with a blood alcohol level in excess of the legal limit; or
  • Non-prescribed drugs: is caused or contributed to by you deliberately taking or using non-prescribed drugs, other than for proper therapeutic or medical purpose and in accordance with the manufacturer's directions for use or the deliberate misuse by you of prescribed drugs; or
  • Non-compliance with medical treatment: is caused or contributed to by you not complying with the treatment prescribed by the attending treatment providers; or
  • Pregnancy: is caused or contributed to by your pregnancy or after the end of the pregnancy in which case you must be permanently disabled as defined for 6 consecutive months or more after the 90th day; or
  • Criminal conduct: is caused or contributed to by you engaging in or being part of any conduct that is criminal.

Part G: Critical Illness

How does Critical Illness cover work?

  • Subject to the terms of your cover, if you are diagnosed with a defined condition (exactly as detailed below), we will pay the total amount owing on your Credit Card Account as a lump sum. This includes transactions, charges and interest incurred immediately before you were diagnosed with the condition, up to a maximum of $25,000.
  • Once the Critical Illness benefit is paid, your cover will end.

 

Critical Illness conditions included:

Heart Attack

The death of a portion of the heart muscle arising from the inadequate blood supply to the relevant area. The diagnosis shall be based on the following criteria being present and consistent with a severe heart attack:

  • Confirmatory new electrocardiogram (ECG) changes; and
  • A diagnostic rise and fall (other than as a result of cardiac or coronary intervention) in either Troponin I in excess of 2.0microgram/L (equivalent to 2,000nanogram/L) or Troponin T in excess of 0.6microgram/L (equivalent to 600 nanogram/L) or cardiac enzyme CK-MB.

If any of the above criteria is not met, then we will consider a claim based on evidence that the event produced a permanent reduction in the Ejection Fraction to 50% or less (as measured at three months after the event).

Coronary Artery Bypass

Medically necessary surgery to correct the narrowing of, or blockage to, one or more coronary arteries by means of a bypass graft.

Cancer

Malignant tumours

The presence of one or more malignant tumours, characterised by uncontrolled growth and spread of malignant cells, with the invasion and destruction of normal tissue for which major interventionist treatment or surgery is considered medically necessary by an appropriate specialist*.

The following tumours are excluded:

  • Tumours classified as carcinoma-insitu (including intraepithelial neoplasia)
  • Prostate tumours with a Gleason score of less than 6. (If the Gleason score is unavailable, we will use the TNM classification and tumours classified as T1 or its equivalent will be excluded).
  • All malignant melanomas unless they:
    • Are of at least 1.5mm thickness as measured using the Breslow histological classification; or
    • Are at least Clark level 3; or
    • Show evidence of ulceration as determined by histological examination.
  • Skin cancers unless they have spread to other organs.
  • Chronic lymphocytic leukaemia less than RAI Stage 1.
Cancer

Carcinoma-in-situ radical surgery

As a result of a carcinoma-in-situ, an operation to arrest spread of the malignancy is performed which involves the removal of the entire organ (which includes: breast, cervix, ovary, fallopian tube, vagina, vulva, prostate, colon/rectal, bladder) affected that is considered medically necessary by an appropriate specialist*.

The carcinoma-in-situ must be positively diagnosed by biopsy and be classified as TIS according to the TNM staging method or FIGO Stage 0.

*A specialist is a registered medical practitioner** who has an approved fellowship in one of the approved surgical, anaesthetic or traditional non-surgical colleges and who is registered with the New Zealand Medical Council. These include, but are not limited to, the following disciplines: general surgery, orthopaedic surgery, urology, neurosurgery, anaesthesiology, cardiology, endocrinology, gastroenterology, haematology, paediatrics, gynaecology, obstetrics, neurology, oncology, renal specialists and rheumatology.

**A person, acceptable to us, who is registered and practising as a medical practitioner in New Zealand or Australia, other than you, a member of your immediate family, or your business partner or associate.

Stroke

A cerebrovascular event producing neurological deficit. This requires clear evidence on CT, MRI or similar appropriate scan or investigation that a stroke has occurred. This requires evidence of:

  • infarction of brain tissue; or
  • intracranial or subarachnoid haemorrhage.

Excluded from this definition are transient ischaemic attacks (TIA), cerebral symptoms due to migraine, cerebral injury from trauma or hypoxia and vascular disease affecting the eye, optic nerve or vestibular functions.

When we won't pay a Critical Illness benefit

We will not pay a Critical Illness benefit if your critical illness:

  • 3-month stand-down: occurs, or symptoms or signs which lead to any of the defined conditions (whether or not a registered medical practitioner has been consulted) occur within 3 months after your cover starts; or
  • Pre-existing condition: occurs within 6 months after your cover starts and is caused or contributed to by any injury or illness or degenerative condition existing or diagnosed, or for which advice or treatment should have reasonably been received at or prior to, the start of your cover or the cover which this replaces; or
  • Deliberate injury: is caused or contributed to by you deliberately injuring yourself or attempting to do so; or
  • Excess blood alcohol: is caused or contributed to by you driving a vehicle with a blood alcohol level in excess of the legal limit; or
  • Non-prescribed drugs: is caused or contributed to by you deliberately taking or using non-prescribed drugs, other than for proper therapeutic or medical purpose and in accordance with the manufacturer's directions for use or the deliberate misuse by you of prescribed drugs; or
  • Non-compliance with medical treatment: is caused or contributed to by you not complying with the treatment prescribed by the attending treatment providers; or
  • Criminal conduct: is caused or contributed to by you engaging in or being part of any conduct that is criminal.

Part H: Death or Terminal Illness

How does Death or Terminal Illness cover work?

  • Subject to the terms of your cover, if you die or are diagnosed with a terminal illness, we will pay the total amount owing on your Credit Card Account as a lump sum. This includes transactions, charges and interest incurred immediately before death or diagnosis of terminal illness, up to a maximum of $50,000.
  • The Death benefit will be payable:
    • upon presentation of a full death certificate, and a coroner's report if applicable; or
    • if your body is still missing 12 months after your officially reported disappearance, and your estate agrees in writing that the benefit will be refunded if it is later found that you did not die.
  • Once the Death or Terminal Illness benefit is paid, your cover will end.
  • Once the Terminal Illness benefit is paid, you will no longer be eligible to be covered under a new Credit Card Insurance policy.

What does "terminal illness" mean?

Terminal illness means that you have been diagnosed as having an illness, which we have reason to believe, after considering medical evidence provided by your own registered medical practitioner* and any other evidence we may reasonably require, will result in your death within 12 months, irrespective of any treatment you may receive.

*A person, acceptable to us, who is registered and practising as a medical practitioner in New Zealand or Australia, other than you, a member of your immediate family, or your business partner or associate.

What is the Cash Assistance benefit?

If we pay the Death or Terminal Illness benefit to your Credit Card Account, we will also pay directly to you or your estate an additional amount equal to 15% of this payment as a Cash Assistance benefit.

When we won't pay a Death or Terminal Illness benefit

We will not pay a Death or Terminal Illness benefit if your death or terminal illness:

  • 14-day stand-down: is caused or contributed to by any illness occurring within the first 14 days after your cover starts; or
  • Pre-existing condition: occurs within 6 months after your cover starts and is caused or contributed to by any injury or illness or degenerative condition existing or diagnosed, or for which advice or treatment should have reasonably been received at or prior to, the start of your cover or the cover which this replaces; or
  • Suicide or deliberate injury is a direct or indirect result of:
    • suicide, or
    • attempted suicide, or
    • a self-inflicted injury or illness; or
  • Excess blood alcohol: is caused or contributed to by you driving a vehicle with a blood alcohol level in excess of the legal limit; or
  • Non-prescribed drugs: is caused or contributed to by you deliberately taking or using non-prescribed drugs, other than for proper therapeutic or medical purpose and in accordance with the manufacturer's directions for use or the deliberate misuse by you of prescribed drugs; or
  • Non-compliance with medical treatment: is caused or contributed to by you not complying with the treatment prescribed by the attending treatment providers; or
  • Criminal conduct is caused or contributed to by you engaging in or being part of any conduct that is criminal.

Part I: Redundancy

How does Redundancy cover work?

  • This cover applies if you are in full-time employment and you are made redundant, but does not apply to any self-employed person.
  • Subject to the terms of your cover, if you have not worked for at least 30 consecutive days as a result of redundancy, we will pay your Credit Card Account, 15% of your Credit Card Account debit balance as at the time of your redundancy for each month that you are not in full-time employment due to redundancy. Payments will be made for up to 6 months or a maximum of $25,000 for any one claim.
  • For part months, this amount will be pro-rated for the number of days in the month that you are not in full-time employment due to redundancy.
  • Your debit balance at the time of your redundancy includes all transactions, charges and interest incurred immediately before you become redundant.
  • If the monthly benefit amount calculated is less than $20 then the minimum amount of $20 will be paid for that month. However there is no benefit payable if your Credit Card Account is not in debit at the time of your redundancy.

What does "redundancy"/"redundant" mean?

This is a situation where an employer ends your employment wholly or mainly because the position filled by you has become surplus to the needs of the employer (including where the employer is going into liquidation). It does not include a situation where you voluntarily elect redundancy or where the employer is owned or controlled by you or a relative of yours.

We will pay ongoing claims if you provide proof acceptable to us of your continuing unemployment and make reasonable efforts in your circumstances to obtain employment.

What does "full-time employment" mean?

For the first Redundancy claim under your cover, full-time employment means that you are working for financial gain in a permanent job for at least 20 hours per week.

For second and subsequent Redundancy claims under your cover, full-time employment means that you are working for financial gain in a permanent job for at least 20 hours per week and you have been so working for at least the last 6 months.

We will not consider you to be in full-time employment if you are on any type of unpaid leave for longer than 30 days when you become redundant.

What does "self-employed" mean?

Self-employed means you are employed by a company of which you have direct or indirect control, or you work for yourself or in partnership for remuneration, for at least 20 hours per week.

What does "relative" mean?

A relative is one or more of the following:

  • spouse by marriage or civil union;
  • a person you are living with in the nature of marriage;
  • parent;
  • step-parent;
  • child;
  • step-child; or
  • sibling.

Payments will continue until the earliest of the following:

  • You return to full-time employment; or
  • You do not provide acceptable proof of your continuing redundancy; or
  • You do not, in our opinion, make reasonable efforts to obtain employment - this includes but is not limited to registering with a recruitment agency, WINZ or any equivalent government agency; or
  • The maximum benefit payment period of 6 months is reached for any one claim; or
  • The maximum of $25,000 has been paid for any one claim; or
  • Your cover ends.

If while receiving a Redundancy benefit you become eligible for a Permanent Disablement benefit, Critical Illness benefit, Death or Terminal Illness benefit or Bankruptcy benefit, we will pay the relevant lump sum and your cover will end. In that case you must have met any relevant employment criteria immediately before your redundancy began.

When we won't pay a Redundancy benefit

We will not pay a Redundancy benefit if your redundancy:

  • occurs within the first 30 days after your cover starts; or
  • occurs and you knew or ought to have known at the start of your cover that you could be made redundant; or
  • results from a strike or labour dispute involving you or your employer; or
  • relates to seasonal, part-time, contract, or relief work; or
  • is caused by the closing down, sale, or other transfer of a business owned or controlled by you; or
  • results from your voluntary resignation, dismissal, or retirement.

Part J: Bankruptcy for the self-employed

How does Bankruptcy cover work?

  • This cover applies if you are self-employed and become bankrupt.
  • Subject to the terms of your cover, if you become bankrupt we will pay the total amount owing on your Credit Card Account as a lump sum. This includes transactions, charges and interest incurred immediately before you become bankrupt, up to a maximum of $25,000.
  • Once the Bankruptcy benefit is paid, your cover will end.

What does "bankruptcy"/"bankrupt" mean

Bankruptcy means the Court has declared you bankrupt as a result of your creditors asking the Court to do so. Bankruptcy does not include a situation where you voluntarily elect bankruptcy.

What does "self-employed" mean?

Self-employed means you are employed by a company of which you have direct or indirect control, or you work for yourself or in partnership for remuneration, for at least 20 hours per week.

When we won't pay a Bankruptcy benefit

We will not pay a Bankruptcy benefit if your bankruptcy:

  • occurs within the first 30 days after your cover starts; or
  • occurs and you knew or ought to have known at the start of your cover that you could be made bankrupt.

Sovereign is part of the Commonwealth Bank of Australia Group and is a related company of ASB Bank Limited and its subsidiaries (the "Banking Group"). None of the Banking Group, the Commonwealth Bank of Australia, or any other company in the Commonwealth Bank of Australia Group, or any of their directors, or officers, or any other person, guarantees Sovereign or its subsidiaries, or any of the products issued by Sovereign or its subsidiaries.

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