Article 1. Purpose, subject and scope of application:
1. Purpose: It aims to specify the Terms and Conditions of the Installment Plan for transactions with Timo Mastercard Life and related matters upon the Client’s engagement.
2. Subject: It is applicable to the Primary Account Holder of Timo Mastercard Life.
3. Scope of application: This document is applicable to entire VPBank Timo system.
Article 2. Definitions and abbreviations:
1. Credit card/ Timo Mastercard Life: An unsecured Timo Mastercard Life is released under the Decision No. 302/2016/QD-TGD of the Chief Executive Officer dated 10 June 2016 on issuance of unsecured credit card, Timo Life, and its amendments, supplements and substitution (if any) from time to time.
2. VPBank: Vietnam Prosperity Joint Stock Commercial Bank.
3. Timo app/Application: Timo app helps the Timo cardholders to perform the banking transactions regarding the types of their accounts/ Cards opened at VPBank (through VPBank Timo) on smart phone or web browsers.
4. Timo/VPBank Timo: VPBank’s digital banking channel makes the Timo cardholders able to perform the banking transactions upon identification, opening of payment account and registration of using the e-banking services as regulated.
5. Client/Cardholder: Primary Account Holder of Timo Mastercard Life;
6. Plan: Installment plan for transactions with Timo Mastercard Life as prescribed hereunder;
7. Transaction: All in-store or online transactions with Credit Card (to purchase goods or services) and/or cash withdrawal transactions with Timo Mastercard Life have been successfully posted into VPBank system.
Article 3. Introduction about the Installment Plan with Timo Mastercard Life:
1. Upon participation, the concerned cardholders may register the payment or cash withdrawal transactions made by Timo Mastercard Life (eligible for the Plan’s conditions) as an outstanding installment balance.
2. The installment balance will be divided into the equal portions by the number of months registered by the Cardholders.
3. A monthly portion (the installment amount) is recorded into your Credit Card Statement and become a part of the minimum amount payable in that statement period. The remaining amount will be reflected in the next statement periods until the installment (including principal, interest, and fee) is fully paid by the Cardholders.
4. Outstanding credit card balance must be fully paid by the Cardholders, including the installment balance in accordance with VPBank’s applicable regulations on Credit Card Balance Payment.
Article 4. Eligibility for the Plan:
1. In order to join the Plan, the following conditions shall be simultaneously satisfied by the Cardholders:
a) To be the Primary Cardholder of Timo Mastercard Life.
b) To make the in-store or online credit card-based transactions to purchase goods or services and/or to withdraw cash with the value of VND 3,000,000/transaction or more. To make the registered cash withdrawal transactions, excluding the transaction fee. The withdrawal fee is applied when withdrawal is initiated by the Cardholder and such fee is recorded into the credit card statement of the corresponding month, not accounted to the outstanding installment balance.
c) Registered installation transaction must be successfully posted into VPBank system and not printed to the statement.
d) The credit card account is in delay status for minimum payment as prescribed by VPBank from time to time at which the Plan is registered by the Cardholder.
e) The cardholder’s credit card is active (status “Card OK” or similar status on VPBank system). The installments will be deducted from the available credit limit of the Card and total value of all next transactions shall not exceed the rest of available limit from time to time. With the rest of available limit, if the Cardholder wants to register for the next installment(s), it must be greater than or equal to the value of the registered transactions(s) and interest of the installments paid by the Cardholder in accordance with VPBank’s provisions from time to time at which the Cardholder registers for the Plan.
f) The remaining validity period of the Card must be greater than or equal to the term of registration.
g) Other conditions as regulated by VPBank from time to time.
2. The cardholders who are eligible for the conditions specified at Clause 1 of this Article may join various installment transactions at the same time.
3. VPBank has the right to cancel the unqualified Cardholders’ application for the Installment Plan on Timo Mastercard Life transactions as per the conditions specified in Clause 1 of this Article or terminate the services offered to such Cardholders.
Article 5. Procedure of Plan registration:
1. Installment payment may be registered for payment and cash withdrawal transactions made successfully with Timo Mastercard Life in the manner mentioned in Clause 2 of this Article.
2. After the transaction is successfully performed, the cardholder may apply for the Installment Plan with VPBank through Timo App as follows:
– The Cardholder signs up Timo App, registers the installment payment for the successful transactions with Timo Mastercard Life, accepts the terms and conditions of Timo Mastercard Life-based Installment Plan at the General Terms and Conditions on issuance and use of Timo Mastercard Life (hereinafter referred to as the Terms and Conditions of the Installment Plan) as detailed on the screen of Timo App and the Procedure of registration and settlement of the installments for transaction with Timo Mastercard Life on Timo App from time to time;
– After the Timo App registration is successfully initiated, the Cardholder will be delivered with VPBank Timo’s confirmation message via the App and email or otherwise from time to time and/or an email that specifies the terms and conditions of the Plan.
Article 6. Contents of the Plan:
1. Initial registered amount:
a) For the payment transaction: The amount is used to purchase goods and/or services via the in-store or online transactions with Timo Mastercard Life. The full installment payment (all payment transactions) is registered by the Cardholder, rather than partial registration.
b) For the cash withdrawal transaction: It refers to the amount to be withdrawn from Card’s Credit Limit, excluding the transaction’s fees and derivative interest. The full installment payment is registered for the transaction (all the single withdrawal transactions), rather than the partial registration.
2. Installment tenor: For each Plan-based transaction, the Cardholder is entitled to register the installment tenors of 3 months, 6 months and 12 months, provided that this tenor must not exceed the Card’s remaining validity. During the installment tenor, the Cardholder is not allowed to close the Credit Card unless the installment transaction is fully paid or initiated in accordance with the legal regulations. The Cardholder must close the Credit card or obtain VPBank’s approval on closing Credit Card.
3. Installation interest, interest method, monthly installment amount, prepayment penalty for installment and others:
a) Installation interest: Installation interest will be fixed for such installment during the installment tenor, in which:
i) Installment interest for goods/services sales: 1%/month or in accordance with the regulations of VPBank from time to time.
ii) Installation interest for cash withdrawal transactions: 1.69%/month or in accordance with the regulations of VPBank from time to time. This interest rate is calculated since the Plan registration is successfully approved by VPBank and a confirmation notice is delivered by VPBank Timo in the manner specified in Clause 2 of Article 5 hereof. Since the successful cash withdrawal transaction (as specified in the message or email notification or otherwise on cash withdrawal sent to the Cardholder) till the time prior to VPBank’s approval on registration of installment plan, the interest and related fees have been still applied for each transaction in accordance with VPBank’s regulations on cash withdrawal transactions from time to time.
b) Interest method: It is complied with the interest method specified in the Decision No. 96/2018/QD-TGD dated 01 January 2018 on amending and supplementing the Installment Plan for VPBank credit card transaction and Installment Plan for VPBank credit card-based withdrawal transactions.
c) Monthly installment amount:
Monthly installment amount = (Initial registered amount + (Interest on installment x Installment tenor x Initial registered amount))/ Installment tenor.
d) Prepayment penalty for installment is equal to 2% multiplied (x) by the remaining installment balance unbilled. Such penalty will be governed by VPBank regulations from time to time.
The Cardholder is obligated to make payment for such penalty to VPBank at the nearest statement period after the prepayment transaction.
e) Other fees if applicable: it is complied with VPBank regulations from time to time as prescribed by the laws.
4. Payment of monthly installment amount:
a) Payment time: Monthly installment amount is recorded in the bank statement with the normal spending transactions in the statement period. Installment amount is a part of Minimum Payment payable by the Cardholder in such statement period. Installation payment time refers to the time to pay the minimum payment as specified in the bank statement.
b) Order for debt collection: When the minimum payment is successfully made by the Cardholder, the debt will be collected by VPBank in accordance with the following order: the installments for cash withdrawal, goods and services transactions, expenditures for cash withdrawal and normal goods and services transactions.
c) If the Cardholder fails to make any payment or full payment the monthly installment on final due date of such statement period, the portion payable/the remaining of installment in such statement period will be overdue and incurred with the following fees and interests:
– Overdue interest on the installment’s principal repayment: equal to the interest applicable for the normal transactions (uncovered by the Plan) with Life Timo credit card;
– Default fee for late installment interest: equal to the interest applicable for the transactions uncovered by the Plan; it is calculated on the balance of overdue interest corresponding to the delay period.
– Other fees as specified in the Agreement on Issuance and Use of Timo Mastercard Life.
d) The installment’s principal, interest and overdue interests, default fees will be reflected in the next statement periods until full payment is made by the Cardholder.
e) Installment amount of the next months will be assumed to be paid in accordance with registered schedule.
5. If the premature payment of installment is made by the Cardholder:
a) The Cardholder makes full payment via Timo App under the detailed instructions on the App screen and the Procedure of Registering and Settling Transaction Installments with Timo Mastercard Life on Timo App from time to time.
b) The remaining of the installment may be early paid by the Cardholder, rather than making the partial prepayment. The Cardholder will make full payment for the concerned outstanding principal and interests which are have not been settled (if any) yet and the off-statement sums together with prepayment (settlement) fees as per the level prescribed in Point d, Clause 3 of Article 5 hereof.
c) The remaining of the installment can be fully paid by the Cardholder at any time, except for settlement of final installment period. Where the Cardholder has successfully settled but received no notice on transaction result from VPBank while the installment amount of such transaction has been listed on the statement already, his request on installment prepayment will be rejected.
d) After the transaction is successfully settled at VPBank, VPBank Timo may, at VPBank’s own discretion, deliver a telephone-based text message or other manners to the Cardholder to confirm the successfully settlement as specified in the Agreement on Issuance and Use of Timo Mastercard Life for confirmation.
6. Termination of the Plan
a) The Plan may be cancelled or terminated by sending a notice to request the Cardholder to immediately settle all outstanding balances of the Installment when one of the following cases occurs:
– The Cardholder fails to pay the installment or breaches the obligations under the Agreement on Issuance and Use of Timo Mastercard Life signed with VPBank.
– The Cardholder has no longer satisfied the conditions as stipulated at Article 4 hereof.
– The Cardholder’s credit card is closed, blocked, temporarily locked, invalidated, etc., or under other circumstances as VPBank shall deem appropriate.
b) Upon termination of the Plan, all outstanding balances of the Installment (including related interest and fees (if any) in the remaining periods) will be automatically debited to the Cardholder’s credit card and recorded on the statement together with normal spending transactions in the nearest period. Deb payment is complied with VPBank’s regulations. The Plan termination-related fees and costs may be covered by the Cardholder as decided by VPBank as the case may be.
Article 7. Miscellaneous
1. At its sole discretion, VPBank has a right to cancel the Cardholder’s application for Installment Plan;
2. During the Plan, VPBank is exempted from any responsibilities for the failed transactions caused by Force Majeure, leading to the Cardholder’s unsuccessful registration.
3. By involving in this Plan, the Cardholder accepts all the signed or verified Terms and Conditions of the Installment Plan by the method agreed by the Client and VPBank.
4. Any changes in the Plan or VPBank Timo shall be sent to the Cardholder via email or SMS or posted in VPBank Timo website or other ways at sole discretion of VPBank Timo from time to time.