Article 15. Terms and conditions of Installment Plan for credit card transactions

During the credit card is used, the Cardholder can apply for the Installment Plan for Timo Life credit card transaction at VPBank (“Plan”), where VPBank and Cardholder determine and agree that the amount of interest payable plus the installment payment principal will be equally divided by the number of months that the Cardholder registers to make installment payment. When the Cardholder participates in the Installment Plan for credit card transactions, the Cardholder agrees to comply and is fully bound by the whole contents of the following terms and conditions:

1.     Conditions of the Plan:

a)     In order to participate in the Installment Plan for credit card transactions, the Cardholder must meet VPBank’s required conditions as of registration date and during the Installment Plan.

b)     VPBank reserves the right to refuse application to participate in the Installment Plan for credit card transactions when Cardholder fails to meet VPBank’s conditions and terminate the provision of the Installment Plan when the Plan conditions are no longer satisfied by the Cardholder.

2.     Contents of the Plan:

a)     Amount of initial installment payment:

–    For spending transaction: The amount that Cardholder uses Timo Life credit card to purchase goods and/or use services at the merchants or online transactions. The Cardholder registers full installment payment (the entire spending transaction), but for partial installment payment.

–    For cash withdrawal transaction: The amount that the Cardholder withdraws from the Card Credit Limit, excluding the fee and interest arising out of the transaction. The Cardholder registers full installment payment (the entire cash withdrawal transaction), but for partial installment payment

b)    Installment term: For each transaction of the Plan, the Cardholder is entitled to register 3-month, 6-month, 12-month installment terms or other period as stipulated by VPBank from time to time, provided that this period shall not exceed the remaining validity of the Card.

      In the Installment Term, the Cardholder is not allowed to close the Credit Card unless the Installment is fully paid or in case the Cardholder is required to close the credit card by the laws or approval on Card closing is obtained from VPBank.

c)     Installment interest rate, monthly installment amount, pre-mature payment fee and other fees:

i)   Installment interest rate:

–  Depending on each cooperation program with partners and/or other criteria, the installment interest rate for payment transactions of goods and services and the cash withdrawal transactions are regulated by VPBank and announced from time to time on Timo official website and Timo Application. The installment interest rate for each installment amount registered by the Cardholder is fixed during the Installment Term for such amount.

–  The installment interest rate for cash withdrawal transactions is calculated when VPBank approves the successful registration of installment payment by the Client and gives a notice to confirm that the installment payment has been successfully registered by the Cardholder as prescribed herein. Since the cash withdrawal transaction is successfully completed (by message or email or other methods from time to time for the Cardholder to successfully withdraw the cash from the Card) until before the Client is approved to successfully register the installment, the cash withdrawal transaction will still be charged with interest and fees in accordance with VPBank’s regulations on cash withdrawal transaction from time to time.

ii)   Interest calculation method: The installment interest is calculated by the following formula: Installment interest by (=) Amount of registered transaction multiplied with (×) Interest rate multiplied with (×) Installment Term.

   Where:

      Amount of registered transaction: The amount that the Cardholder registers the installment for each spending, payment, and cash withdrawal transaction.

      Interest rate: Calculated by %/ month by the method of “calculating the first day, leaving the last day of the interest period”.

      Installment Term: The term that the Cardholder registers the installment payment to the transaction.

iii)  The installment interest rate described in Point i) of this Item shall be applied to calculate the interest in accordance with the interest calculation method as prescribed in Point ii) of this Item. In order to clarify, the interest rate of the corresponding year in accordance with the interest calculation method as stipulated in Clause 1, Article 5, Circular No. 14/2017/TT-NHNN dated 29/9/2017 on defining the interest calculation method on depositing and credit extension transaction between credit institution and Client, calculated and announced by VPBank corresponding to each installment interest rate and publicly available on Timo’s official website.

iv)   Monthly installment amount

Monthly installment amount = (Initial registered amount + (Interest rate x Installment Term x Initial registered amount)/ Installment Term

v)      Pre-mature payment fee for installment amount and other fees, if any: complied with VPBank regulations from time to time.

d)     Repayment of monthly installment amount:

i)    Payment date: The monthly installment amount is recorded on the Statement along with the regular spending transactions in the statement period. The monthly installment amount is a part of the Minimum Payment amount that the Cardholder must pay for such Statement. The date of installment payment is the Minimum payment date as prescribed in the Credit Card Statement.

ii)   Debt collection order: When the Minimum payment is made by the Cardholder, VPBank system will collect the following debts: installment payment for cash withdrawal transactions, installment payment for payment transactions of goods and services, cash withdrawal transactions, normal payment transactions of goods and services. This order can be changed according to the provisions of VPBank from time to time

iii)  Where the Cardholder fails to pay all monthly installment amounts:

–  In the event that the Cardholder fails to make or partially make the monthly installment payment on final due date of the Statement Period, the remaining of such installment in  such statement period will be categorized as overdue debts and incurred with the following fees and interest:

–  Overdue interest rate for overdue principal: equal to the applicable interest rate for regular transactions using Timo Life credit card (Transactions are not subject to the Installment Plan);

–  Fee for delayed interest payment: equal to the applicable interest rate to transactions not involving in the Installment payment transactions calculated on basis of the balance of delayed interest corresponding to the delayed payment time

–  Other fees as prescribed by the Contract.

iv)  The principal, interest, and overdue interest, delayed payment fees will be shown in the next statement periods until full payment is made by the Cardholder.

v)   The installment amounts in next months are still paid under registered payment schedule.

e)     Pre-mature settlement by the Cardholder:

i)  The Cardholder makes settlement of installment payments on the Timo Application under the detailed instructions on the Application screen

ii) The Cardholder can only make pre-mature repayment of the whole amount of the installment payments. In this case, the Cardholder is responsible for paying all outstanding principal and interest of the installment payment on the Statement, but not yet paid up (if any) and the outstanding principal without Statement together with the pre-mature repayment fee (settlement) as prescribed by VPBank from time to time.

iii) The pre-mature installment payments must be transaction qualified with pre-mature settlement in accordance with VPBank’s regulations from time to time.

iv) After the Cardholder has settled the successful/unsuccessful installment payments at VPBank, a phone message or notice by other forms may be delivered to the Cardholder as agreed in the Contract to confirm the successfully/unsuccessful settlement by Timo channel.

f)      Termination of the Plan application

i)  VPBank reserves the right to cancel or terminate the Installation Plan by notifying the Cardholder and requesting the Cardholder to immediately pay all outstanding balance of the Installment in the following circumstances:

      The Cardholder violates the payment obligations of installment payments or breaches of obligations under the Agreement

      The Cardholder no longer meet conditions as stipulated at Item a) Clause 1 of this Article.

      The Cardholder’s credit card is closed, locked, temporarily locked, cancelled, etc.

      Other cases VPBank deems to be necessary.

ii)  Upon the Plan termination, the entire remaining balance of the Installment (including interest and fees (if any) of the remaining periods) shall be immediately due, payable and automatically debited to the Cardholder’s Credit Card Account. Such payment of credit card is implemented in accordance with VPBank regulations. The Cardholder may have to pay fees and expenses related to the Plan termination determined by VPBank as the case may be.

3.      Method of Installation Plan subscription:

a)     The Client can apply for installment payment for successfully spending transactions, cash withdrawal transactions using Timo Life credit card under the method as specified in Item b, Clause 3.

b)     After successful transaction, the Client subscribes the Installment Plan with VPBank via Timo Application by the following methods:

–     The Cardholder should log in Timo Application, initialize the Application to subscribe installment payment for Timo Life credit card transaction, accept the General Terms and Conditions of Installment Plan for use of Timo credit card as instructed on the Application screen and the process of subscribing and handling installment payments for Timo Life credit card transaction on the Timo Application from time to time;

–     After the conditions for the Plan engagement are successfully satisfied by the Client and agreed by VPBank, the Cardholder shall comply with all terms and conditions of the Plan as prescribed herein and other relevant regulations of VPBank;

–     Once the Cardholder successfully registers via the Timo Application, Timo will send a notification on Application and email or by others according to the provisions of these General conditions to the Cardholder to confirm the successful registration by the Cardholder and/or an email stating the terms and conditions of the Plan.

4.     Other provisions of the Plan:

a)     VPBank is exempted from responsibility for force majeure events during the Plan that causes the Cardholder’s transactions to be wrong from leading to the unsuccessful registration of installment payment by the Cardholder.

b)     In case of any changes related to the Plan, VPBank Timo will notify the Cardholder via email or SMS or notice on Timo’s website or others according to VPBank’s regulations from time to time

c)     At VPBank’s discretion, VPBank reserves the right to refuse the Cardholder’s request to participate in the Installment Plan.