Amendment of the Credit Card Terms and Conditions - HSBC

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Date：9 Dec 2011Amendment of the Credit Card Terms and Conditions

With the amendments to the law, HSBC has revised certain terms of the Credit Card Terms and Conditions and the new terms shall be effective from 10 Feb 2012. The amendments shall be binding on you if you continue to use or retain your card after effective date. If you do not accept the adjustment/change/add of the Credit Card Terms and Conditions, please refer your right of termination to clause 20 of Credit Card Terms and Conditions.

If you have any query for the amendments, you are welcomed to contact call center 02-8072-3000.

Noted: In case of discrepancies between the English and Chinese versions, the Chinese version shall apply and prevail.

Credit Card Terms and Condition
Original Terms and Conditions	Amended Terms and Conditions
Article 6. (Basic Obligations) Additional Terms	Article 6. (Basic Obligations) 8. Under the circumstances that (1) cardholders purchase high-liquidity goods or purchase at the restricted stores by National Credit Card Center of R.O.C. (2) the Card is used for payments of any online gambling or other illegal transactions (3) the card is used on suspected fraud transactions or conspiracy, HSBC may reserve the right to authorize the transaction and reject the cardholders’ right of using the card.
Article 21. (Restrictions on Card Usage) 2. Upon occurrence of any of the following events and in cases where HSBC has notified in advance and the cardholder is unable to provide a justifiable reason, HSBC may reduce the credit line of the cardholder, adjust the amount or minimum percentage of revolving credit payable, or, under severe circumstances, suspend the cardholder’s right to the credit card.	Article 21. (Restrictions on Card Usage) 2. Upon occurrence of any of the following events and in cases where HSBC has notified in advance via phone, SMS, electronic documents, fax, mail or any other ways subject to the prior consent of the cardholder and the cardholder is unable to provide a justifiable reason, HSBC may reduce the credit line of the cardholder, adjust the amount or minimum percentage of revolving credit payable, or, under severe circumstances, suspend the cardholder’s right to the credit card.
Article 21. (Restrictions on Card Usage) Additional Terms	Article 21. (Restrictions on Card Usage) 4. To protect the security of transactions and cardholder interest, HSBC may reserve the right to authorize transactions or take necessary safety control under the circumstances that the credit card is suspected forged, is reported by credit card international organizations or other card-issuing organizations.
Credit Card Terms and Conditions Additional Clause (1) – Credit Card Installment Plan Terms and Conditions
3. The monthly fee shall be 0.45%~0.90% of the approved installment amount. The annualized percentage rate (APR) shall be: 8.80%~16.13% for 3 tenors, 9.20%~18.29% for 6 tenors, 9.82%~19.37% for 12 tenors, 10.00%~19.57% for 18 tenors, and 9.82%~19.37% for 24 tenors. For example, if the approved installment amount is NT$100,000, for 12 tenors and with monthly fee rate 0.45%~0.90%, total fee charged shall be NT$5,400~NT$10,800 and the APR shall be 9.82%~19.37%. Remark: 1. The APR is calculated according to the method set out in the relevant guidelines referred to the Authority. HSBC's decision in all matters relating to the installment plan shall be at our absolute discretion and shall be final and binding on you. The precise APR binding on each customer shall be based on respective product and credit conditions. 2. The APR does not equal to the installment fee rate. 3. The APR is calculated on the basis of 2010/12/27.	3. A processing fee of NT$100 will be charged each time the cardholder applies for installment. The interest rate shall be 3.88%~18.88%, calculated by annuity method. For example, if the approved installment amount is NT$100,000, a total fee of NT$100 will be charged, and the APR shall be 4.48%~19.48% for 3 tenor, 4.22%~19.23% for 6 tenor, 4.06%~19.07% for 12 tenor, 4.01%~19.01% for 18 tenor, 3.98%~18.98% for 24 tenor. The one-time processing fee shall be charged on the first month of approved installment plan and will be included in monthly minimum payment. Remark: 1. The APR is calculated according to the method set out in the relevant guidelines referred to the Authority. HSBC's decision in all matters relating to the installment plan shall be at our absolute discretion and shall be final and binding on you. The precise APR binding on each customer shall be based on respective product and credit conditions. 2. The APR does not equal to the installment fee rate. 3. The APR is calculated on the basis of 2011/11/7.
5. A one-time processing fee shall be charged on the first month of approved installment plan. The processing fee may also, under HSBC’s discretion, be charged by installments and will be regarded as monthly minimum payment. In the event that the cardholder chooses to pay the processing fee by installments, the cardholder may at any time during the installment period repay the full installment amount, subject to payment of an early settlement fee of NT$300.	5. In the event that the cardholder chooses an early repayment, there will be an early settlement fee. This fee is determined by the tenor of the cardholder: TWD700 when the cardholder has repaid less than 3 tenors (not including 3 tenors); TWD 500 when the cardholder has repaid more than 3 tenors but below 6 tenors (not including 6 tenors); TWD300 when the cardholder has paid more than 6 tenors. The early settlement fee should be included in the minimum payment of the card.
8. HSBC will pay to the merchants at a time based on the applied amount. The cardholder shall pay the approved amount by installments (If the installment amount cannot be divided into equal monthly installments, you agree to pay the difference together with the first Installment.) The monthly installment amount and the monthly fee shall be listed as credit card minimum payment and shall be paid before the payment due date.	8. HSBC will advance the merchants at a time based on the applied amount. The cardholder shall pay the approved amount by installments(If the installment amount cannot be divided into equal monthly installments, the difference together with should be added to the last installment.)The monthly installment amount and the monthly fee shall be listed as credit card minimum payment and shall be paid before the payment due date.
9. In the event the monthly installment amount is not paid in full before the payment due date, or the credit card is suspended during installment period, HSBC may, without prior notice or warning, terminate the installment plan and charge revolving interest and penalty fee of the remained principal in accordance with Credit Card Terms and Conditions.	9. In the event the monthly installment amount is not paid in full before the payment due date, or the credit card is suspended during installment period, HSBC may, without prior notice or warning, terminate the installment plan and charge revolving interest by revolving interest rate and penalty fee of the remained principal in accordance with Credit Card Terms and Conditions.
10. Payments made to the credit card account are applied in the following order of priority, namely, annual fee, fees (including default penalty fee), interest charges (including but not limited to revolving interest), monthly installment amount, Cash Advance, and general transactions. If the credit card statement is overpaid, the overpaid amount will be listed as premium in the statement of next month and will not offset the remained principal in advance.	10. Payments made to the credit card account are applied in the following order of priority, namely, annual fee, fees (including default penalty fee), interest charges (including but not limited to revolving interest and installment interest), monthly installment amount, Cash Advance, and general transactions. If the credit card statement is overpaid, the overpaid amount will be listed as premium in the statement of next month and will not offset the remained principal in advance.
12. HSBC reserves the right to approve or reject the application, and has the final decision on the installment amount, tenor, processing fee, and the eligible criteria. In the event of any inconsistency between these Terms and Conditions and the Credit Card Terms and Conditions, the Credit Card Terms and Conditions shall prevail.	12. HSBC reserves the right to approve or reject the application, and has the final decision on the installment amount, tenor, processing fee, interest rate and the eligible criteria. In the event of any inconsistency between these Terms and Conditions and the Credit Card Terms and Conditions, the Credit Card Terms and Conditions shall prevail.

Credit Card Terms and Conditions Additional Clause (2)
–Credit Card Zero Fee Installment Purchase Terms and Conditions

The Hong Kong and Shanghai Banking (Taiwan) Corporation is short for “HSBC” and the HSBC Credit Cards is short for “Card” in the Credit Card Zero Fee Installment Policy.
The HSBC Zero Fee Installment Purchase Policy (“Policy”) shall apply to only HSBC Credit Cards (“Card”) issued by the Hong Kong and Shanghai Banking (Taiwan) Corporation (“HSBC”). The “Card” shall not include corporate cards or business cards.
The Policy shall be valid for the available balance of the Card, and the maximum amount shall not exceed the credit limit of the Card. When the amount exceeds the credit limit, the excess amount shall be added to the card’s minimum payment of the month. The cardholder may make multiple applications for payment by installment, on the condition that the accumulative total amount of payments shall not exceed the available balance of the Card.
Under the Policy, HSBC will advance the total amount of purchase to contract stores, and cardholders shall return the amount to HSBC by installment.
Cardholders shall return the principal to HSBC by installment on a monthly basis (“Monthly Payable Amount of Installment”) according to the installment plan selected by cardholders from the day of approval of the Policy.The Monthly Payable Amount of Installment shall be included in the card’s minimum payment for each month and cardholders shall pay accordingly.
The product, price, applicable period and the tenor (maximum shall not exceed 30 months) of the Policy shall subject to the announcement of contract stores
The calculation of Monthly Installment is as follows:
Amount of Monthly Payable Amount = Amount of Purchase selected for Payment by Installment ÷
Installment Plan Tenor
When the Monthly Payable Amount cannot be evenly divided by the Installment Plan, the remaining balance shall be added to the Monthly Payable Amount of the first installment. When there are discrepancies in the Monthly Payable Amount and Total Amount of Payment by Installment between the card payment receipt and the bank statement as a result of the difference in the payment calculation settings of the terminal card reader, the exact monthly principal shall be subject to the amount in the bank statement.
All unpaid installments and service charges (if any) shall be deemed as mature without prior notice or summons for cardholders when (1) any installment is delayed or (2) cardholders revoke the Card during the period that an installment contract is in effect. HSBC shall include this sum in the general card account payable in the following month and charges interests and late fee accordingly.
The Monthly Payable Amount shall be included in the HSBC Privilege Bonus Plan.
Cardholders should retain the “Payment by Installment Receipt” and the “Card Payment Receipt” for future enquiries.
Under no circumstances shall cardholders revoke the installment contract or alter the installment plan after the transaction has been completed. Unless otherwise approved by HSBC, cardholders shall not request an advance reimbursement.
Pursuant to Article 19, Consumer Protection Act, cardholders shall enjoy a seven-day grace period when purchasing from a mail order service. Therefore, cardholders may return the product or revoke a trading contract with the contract store with a written notice during the grace period. When cardholders purchase multiple items from a mail order with the Policy, they shall return all items in the same purchase order without requesting the return of a particular item. When the grace period granted by contract stores is longer than that prescribed in the Consumer Protection Act, and cardholders wish to return the item after seven days from purchase, cardholders shall contact the contract stores to apply for a refund. Cardholders shall enquire with sellers concerning the refund procedure for product return or service revocation.
Under the Policy, HSBC shall advance the contract store, at one time, the lump sum of the purchase, including the total amount of product/service purchased and the service charge. Cardholders shall pay the monthly payable amount to HSBC every month.HSBC shall only advance the payment for purchases and shall assume no responsibility for entity relationship of trade, including, but not limited, to the delivery of product or product defects. Cardholders shall contact contract stores to settle disputes arising from or in connection with the refund for a product return or service revocation, or the quality, quantity, and amount of the product/service purchased. In no circumstance shall cardholders reject the payment payable to HSBC with such context. Cardholders may request HSBC to handle such disputes according to the Account Payment Dispute Management Procedure specified in the card holding terms when they cannot settle a dispute with the contract store.
Matters not provided in the Policy shall be subject to the terms prescribed in the HSBC Credit Card Terms and Conditions Additional Clause.
HSBC reserves the right of final approval of the Policy.
The specification and accessories of promotional products, actual price, promotion contents, duration of promotional activities, and actual prizes shall be subject to the announcements made by contract stores. Each contract store shall reserve the right of altering such activities without prior notice.
Payments made to the credit card account are applied in the following order of priority, namely, annual fee, fees (including default penalty fee), interest charges (including but not limited to revolving interest and installment interest), monthly installment amount, Cash Advance, and general transactions. If the credit card statement is overpaid, the overpaid amount will be listed as premium in the statement of next month and will not offset the remained principal in advance.

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