CARDHOLDER AGREEMENT

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

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