Please read this Klutch Demand Deposit Account and Debit Card Agreement (“Agreement”) carefully and retain it for your future reference. This Agreement describes your rights and obligations as a user of the non-interest-bearing demand deposit account (“Klutch Account”) and Klutch debit card (“Klutch Card”) as made available to eligible consumers through Stearns Bank N.A. (“Stearns Bank”), in partnership with Lambda Financial Technologies, Inc. (herein referred to as “Klutch”), the program partner responsible for administering the Klutch Account and Klutch Card program, including accessing the products via the Klutch website and mobile application (“the Klutch App”).
In this Agreement, the terms “we”, “us”, or “our'' refer to Stearns Bank, as well as any of its affiliates, successors, assignees, agents or service providers including but not limited to Klutch and Productfy, Inc. The terms “you”, or “yours” refer to you, the owner of the Klutch Account. When you click on the “Sign Up” button, you accept and agree to comply with the terms and conditions of this Agreement, including any amendments, supplements or changes to this Agreement made as provided in this Agreement. Your application for a Klutch Card may be accepted or declined by us and/or our service providers based on specific criteria. If you do not accept and agree to all of the terms and conditions, you will not be entitled to use the Klutch Card. By opening or continuing to hold an account with us, you agree to be bound by this Agreement as well as any other agreement or document we may provide to you from time to time in connection with the Klutch Card.
The Klutch Account is a non-interest bearing demand deposit account used to hold your deposits and make payments and transfers through the Klutch App between accounts you may hold at other financial institutions and to third parties through the use of your Klutch Card. Separate terms and conditions apply to the Klutch App and services offered by Klutch. Please see the Klutch Terms of Service at https://www.klutchcard.com/terms-of-service.
The Klutch Card is available to United States citizens or lawful permanent residents of the 50 United States (“U.S.”), the District of Columbia, American Samoa, Guam, Marshall Islands, Northern Mariana Islands, Palau and U.S. Virgin Islands who are at least 18 years of age, have a U.S. physical address or military address (e.g., APO or FPO), and have a valid Social Security Number or Tax Identification Number. The Klutch Card is only available to individuals for personal, family or household purposes and may not be opened by a business in any form or used for business purposes. The Klutch Account may not be transferred or assigned without our prior written consent.
In order to obtain a Klutch Card, you must also agree to go paperless. This means that you must (1) provide us with a valid email address, (2) verify you have the technical capability to transact with us electronically, (3) intend to transact with us electronically, and (4) agree to accept electronic delivery of all communications that we need or decide to send you in connection with your Klutch Card. Please refer to the Klutch Electronic Signatures in Global and National Commerce Act (ESign) Disclosure at https://www.klutchcard.com/esign-consent for additional details.
You may apply for a Klutch Card through the Klutch App by completing an application and submitting all the required information. A Klutch Card may only be in the name of an individual consumer and may not be opened for business account purposes. Klutch Accounts may not be owned or titled as joint accounts, trust accounts, Uniform Transfers to Minors (UTMA) or Payable on Death accounts.
Important information about procedures for opening a new Klutch Card: To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information identifying each person who opens a Klutch Card. This means that when you open a Klutch Card, we will ask for your name, street address, Social Security Number or other relevant form of identification, date of birth and other information that will allow us to identify you. We may also ask to see identifying documents, such as a driver’s license. During the account opening process or thereafter, we may ask for additional information as part of our customer due diligence review. We reserve the right to reject any application or to close any account based on our risk appetite.
Please see the Klutch App for all information regarding minimum deposits. There is no minimum balance requirement to maintain a Klutch account once open.
When you open a Klutch Card your deposits are held at Stearns Bank in a demand deposit account or omnibus custody account opened in the name of Stearns Bank for the benefit of Klutch customers. Records of your Klutch Card activity, including your deposits and withdrawals, are held and maintained by Productfy, Inc. (“Productfy”), a third-party service. Your Klutch Account and your deposits held at Stearns Bank are considered a single account for Bank record-keeping purposes, tax reporting, and FDIC deposit insurance coverage. Productfy will maintain a ledger to ensure that your individual deposits and withdrawals will be properly protected and appear as such on your Klutch Account statements and when you view your Klutch Account information through the Klutch App.
Through this agreement, pursuant to Stearns Bank’s standard practice, you agree to appoint Stearns Bank as your agent and custodian so that we may open the sub-deposit account, hold deposits on your behalf and for your benefit, and transfer, as your agent and at our discretion, funds you have deposited with Stearns Bank.
You will not receive any written confirmation of the Stearns Bank deposit account, nor will you receive any statements, receipts or other documentation concerning the Stearns Bank deposit account. Also, you acknowledge and agree that Stearns Bank may, in the usual course of business, transfer the deposit account to another insured depository institution at any time without notice to you, provided Productfy continues to maintain accurate books and records for such account as contemplated by this Agreement.
Your privacy is very important to us. Under this Agreement, we will generally only disclose information to third parties about your Klutch Account or the transactions you make using your Klutch Card:
- To verify your identity and determine if we should open a Klutch Account for you or issue you a Klutch Card using third party services;
- To comply with the Bank Secrecy Act, anti-money laundering regulations and U.S. Department of Treasury, Office of Foreign Assets Control sanctions programs;
- Where it is necessary for completing a transaction;
- To verify the existence and condition of your Klutch Account for a third party such as a credit bureau or merchant;
- To comply with government agency or court orders; and
These collective policies will outline our commitment to you, your privacy rights and who we share data and information with.
Please call us at 1-877-351-2925 or email us at email@example.com to (1) report that your Klutch Card has been lost or stolen, (2) report unauthorized activity on your Klutch Account, or (3) notify us of an error involving a transaction on your Klutch Account.
For all other questions or concerns, please contact Klutch using the support chat in the Klutch App.
Your Klutch Account and the Klutch Card allow you to withdraw funds up to the Available Balance (defined in the “Determining Available Balance” section below) or make deposits through Electronic Fund Transfers (“EFTs”) in accordance with the Electronic Funds Transfers Disclosure. EFTs are transactions that are processed by electronic means and include, among others, Automated Clearing House (“ACH”) transfers and debit card transactions. This Section provides you with information and important disclosures and terms about the EFTs that are permitted on your Klutch Account or in connection with your Klutch Card.
Your Klutch Account allows the following types of EFTs:
- Transfers to or from your Klutch Account to a linked bank account through the Klutch App.
- Purchases or other transactions using your Klutch Card at merchants that have agreed to accept the Klutch Card.
Deposits may only be made by ACH transfers from a linked bank account in your name. You may initiate this transfer via the Klutch App. You understand that any payment instructions or activity performed using the Klutch App shall be deemed authorized and valid and we are under no obligation to investigate the instruction or activity. You may only deposit with us funds that are available to you, which under applicable law are irreversible and are not subject to any lien, claim or encumbrance. We do not accept the following deposit methods:
- Wire Transfers: We do not accept wire transfers. If you attempt a wire transfer, the transaction will be rejected.
- Cash: We do not accept deposits made in cash. If you mail us a cash deposit, we will send the cash back to you.
- Foreign Currency: We do not accept any deposits in foreign currency. Any deposits received in foreign currency, whether in the form of cash or check, will be sent back to you.
If you attempt to deposit funds using any of the above-described methods, we will send all items back to the address we have for you on file or reject and return any wire or foreign funds to the originating bank, without notice to you. We will not be liable if you do not receive the funds. We are not liable for wire transfers that you may attempt using your Klutch Card or deposits of any kind that you mail to us, including if it is lost in transit, lost in the mail, or otherwise not received by us.
ACH deposits will be limited to $5,000 per day and $10,000 per rolling 30 days. You may also be restricted by the number of transactions allowed on your Klutch Account. Additional limits may be applied to your Klutch Account, and we may not disclose these limits to you for fraud and security purposes. We reserve the right to change these limits at any time without notice to you, except as prohibited by law. Special limitations may apply to accounts open less than 30 calendar days from the date you first use your Klutch Card to conduct at least one transaction ("New Accounts"). Please check the Klutch App for information on these limits before initiating a deposit or transfer.
Deposits received by us on a business day before 2:00 PM Pacific Time will be considered received that day. Deposits received on a business day after 2:00 PM Pacific Time, or at any time on a non-business day, will be considered received the following business day. Once an ACH has been initiated, it may take up to three (3) business days for those funds to be made available. You should check within the Klutch app frequently to confirm the deposit has been posted to your account and the funds are available. For purposes of your Klutch Account, “business day” means any day that Stearns Bank is open for business and excludes any federal bank holidays.
If a deposit or transfer to your Klutch Account is returned or rejected by the paying financial institution for any reason, or if there is an error or mistake involving a deposit or transfer, we may deduct the amount of the deposit, transfer or error without prior notice to you. If there are insufficient funds in your Klutch Account at the time, your Klutch Account may be suspended and further transactions prevented.
You may withdraw funds up to the amount of your Available Balance (described below) in your Klutch Account by EFT using any of the following methods. Using the Klutch App, you may withdraw money from your Klutch Account through EFTs in either of the following ways: (i) an ACH transfer to a linked bank account in your name or (ii) a point of sale purchase made with your Klutch Card.
You cannot withdraw funds by check, and we do not permit you to create checks drawn on your Klutch Account. ATM withdrawals are not supported at this time. You may not withdraw funds or initiate funds transfers by telephone instruction.
Withdrawals by ACH transfer will be limited to $5,000 per day and $10,000 per rolling 30 days. Withdrawals via point of sale purchases will be limited to $2,500 per day. You may also be restricted by the number of withdrawals allowed on your Klutch Account. Withdrawals will further be limited to the amount of your Available Balance (described below) in your Klutch Account. Additional limits that may be applied to your Klutch Account, and we may not disclose these limits to you for fraud and security purposes. We reserve the right to change these limits at any time without notice to you, except as prohibited by law. Special limitations may apply to withdrawals for New Accounts. Please check the Klutch App for information on these limits before initiating a withdrawal or point of sale transaction.
Before permitting a withdrawal or other transaction, we may request that you provide us with additional information or documentation that we deem necessary to confirm your identity or to prevent illegal activity. We may refuse the transaction if you do not comply with our request.
You may link another bank account you have to your Klutch Card in order to transfer funds between the linked bank account and your Klutch Card using the Klutch App. You represent and warrant: (1) that you have the right to authorize any and all charges and debits to the linked account; (2) the linked account is held at a depository institution located in the U.S.; and (3) you are individually the owner of the linked account. By linking a bank account, you agree to indemnify and hold us harmless from any claims by any person related to the linked bank account, including any other owner of the linked bank account. You may only link a bank account that is a deposit account, such as a checking, savings or money market account.
By opening your Klutch Account you agree that you will not use the Klutch Card for online gambling or for any other illegal activity or transactions. We will block all purchases made to merchants who provide car rentals or other vehicle rentals. We may deny any transaction or refuse to accept any deposit that we believe is related to such activity or for any other reason at our discretion.
We use your Available Balance to authorize your transactions throughout the day and determine whether you have sufficient funds to pay your transactions. To determine your Available Balance, we start with your ledger balance at the beginning of the business day and subtract any card authorizations and pending debits presented to us throughout the day. We may not receive and may not process transactions in the order in which they occurred.
When you use your Klutch Card to make a purchase, an authorization hold may be placed on your account to ensure there are sufficient funds to cover that transaction. This may show up on your account as a pending transaction. We typically reduce your Available Balance at the time you make a debit card transaction, rather than waiting for the transaction to be posted to your Klutch Account. Card authorizations are removed when the transaction is posted or after a certain number of days have passed, whichever is sooner. The amount of the card authorization and the final transaction amount that posts to your Klutch Account may not be the same.
You may check your Available Balance at any time through the Klutch App. Keep in mind that your Available Balance may not reflect every transaction you have initiated or previously authorized, and so may not reflect the balance that is immediately available. For example, your Available Balance may not include (1) transactions you have authorized that we have not received, (2) Klutch Card transactions where the card authorization has been removed before the transaction is settled due to a merchant’s delay in settlement, or (3) the full amount of a Klutch Card transaction where the settlement amount is greater than the card authorization amount.
Given the difference in timing between debit card authorization and settlement, you should maintain sufficient funds in your account to avoid a transaction being declined. You should also check your balance to determine if you have sufficient funds to execute a transaction.
Statements will periodically be provided to you electronically as long as your Klutch Account is active. You will receive a statement monthly as long as you have transactions on your Klutch Account during the statement period. You will not receive paper statements.
Transactions that overdraw your Klutch Account are not permitted. If the Available Balance in your Klutch Account is not sufficient to cover any transaction you have authorized, we can refuse to process the transaction. However, there may be instances where your Klutch Account can still become overdrawn. For example, if a deposit is returned or if a merchant settles a Klutch Card transaction for an amount greater than the card authorization. In such an instance, we will not charge you an overdraft or insufficient funds fee, but you must make a deposit immediately to cover any negative balance. If your Klutch Account has a negative balance at any time, we may suspend your Klutch Card and close your Klutch Account.
You can close your Klutch Card at any time and for any reason by submitting a request through the Klutch App or by contacting Klutch by email at firstname.lastname@example.org. It is important to understand that simply reducing your Available Balance to zero ($0) is not sufficient to close your Klutch Account. We reserve the right to refuse your request if you have a negative balance on your Klutch Account.
We may also suspend or freeze your Klutch Card or close your Klutch Account at our discretion and for any reason with or without notice. This includes if we believe you are using your Klutch Account or Klutch Card for fraudulent or illegal purposes or in violation of law or regulation, this Agreement, any other agreement you may have with us or Klutch, or if you otherwise present undue risk to us or Klutch. We are not responsible to you for any damages you may suffer as a result of the closure or suspension of your Klutch Card or your Klutch Account.
Subject to federal law, if your Klutch Account is closed, we will return your funds to you by ACH transfer to a linked bank account. We reserve the right not to return funds to you if your account balance is one dollar ($1) or less. The closure of your Klutch Account or termination of this Agreement does not impact any right or obligation that arose prior to closure or termination, or any right or obligation that, by its nature, should survive termination (including, but not limited to, any indemnification obligation by you, our limitations of liability, and any terms governing arbitration).
You agree to pay all fees and charges applicable to your Klutch Account and Klutch Card. All fee amounts will be withdrawn from your Klutch Account and will be assessed as long as there is a remaining balance in your Klutch Account, except where prohibited by law. Any time your remaining balance is less than the fee amount being assessed, the balance of your Klutch Account will be applied to the fee amount resulting in a zero balance on your Klutch Account. Please see the fee schedules for all fees related to your Klutch Account and Klutch Card. Fees are subject to change at any time. We will provide you advance notice of any changes where required by law.
You are liable for any account shortage resulting from charges, overdrafts or returns, whether caused by you or another with access to your Klutch Account. If you claim a credit or refund because of a forgery, alteration, or any other unauthorized withdrawal, you agree to cooperate with us in the investigation of the loss, including giving us an affidavit containing whatever reasonable information we require concerning your account, the transaction, and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of unauthorized transactions. Unless we have acted in bad faith, we will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys' fees incurred by you. You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources.
You will receive a Klutch Card with your Klutch Account. The Klutch Card is a debit card that allows you to access funds in your Klutch Account up to your Available Balance. The Klutch Card will expire on the expiration date printed on the back of the Klutch Card. As long as your Klutch Account is in good standing, we will send you a replacement Klutch Card as your expiration date nears.
You may use your Klutch Card to make purchases at any merchant that accepts Mastercard, Maestro or Pulse. You may make purchases with your Klutch Card with or without your Personal Identification Number (“PIN”), which will be assigned to you initially. If using a PIN, do not write down your PIN or give your PIN to anyone.
You may make purchases without presenting your Klutch Card by providing information from your Klutch Card, such as transactions made online or by phone. Conducting transactions in this way has the same legal effect as if you used the physical Klutch Card itself. For security reasons, the amount or number of such transactions you may make may be limited. The Klutch Card is the property of Stearns Bank and must be surrendered upon demand. The Klutch Card is non-transferable, and it may be cancelled, repossessed or revoked at any time without prior notice except where required by law.
Not all services or features of your Klutch Card described in this Agreement are available to all persons or at all locations. Any offer of a service or feature of your Klutch Card in this Agreement will be deemed void where prohibited. Use of the Klutch Card is also subject to all applicable rules and customs of any payment network, clearing house or other association involved in transactions in addition to this Agreement.
You must activate your Klutch Card by following the instructions that come with the Klutch Card before it can be used. You may be required to provide personal information to verify your identity to complete the activation process. The Klutch Card is solely for your use and you may not request an additional card for another person. If you give anyone else access to your Klutch Card, we will treat any transaction they initiate as authorized by you and you will be responsible for all transactions and fees that occur.
When you open a Klutch Card, you will also receive access to virtual cards (“Virtual Klutch Card”), each represented by a 16-digit card number, a 3-digit card verification value (“CVV”) number and an expiration date. A Virtual Klutch Card is separate from your physical Klutch Card and can be managed through the Klutch App. So long as your Klutch Account is in good standing, we will issue you a replacement Virtual Klutch Card when it expires. The Virtual Klutch Card accesses the available funds in your Klutch Account to make transactions anywhere your physical Klutch Card is accepted. Your use of the Virtual Klutch Card is subject to the terms of this Agreement, including transaction limitations, to the same extent as your physical Klutch Card.
When you use your Klutch Card to purchase goods or services, the merchant may request preauthorization (“Card Authorization”) for the transaction. If the merchant makes such a request and there are sufficient available funds in your Klutch Account, we will approve the transaction and place a temporary hold on the funds in your Klutch Account. This hold will reduce the Available Balance in your Klutch Account. The amount of this temporary hold will usually be the amount of the Card Authorization. However, we will apply a hold for a different amount predetermined by us for transactions at certain types of merchants. For example, if you use your Klutch Card at an automated fuel dispenser ("pay at the pump"), the transaction may be preauthorized for an amount up to $75 or more.
The temporary hold will remain on your Klutch Account until the merchant sends the final amount of the transaction to us and requests payment (“Settlement”). If the merchant does not request Settlement or is delayed in requesting Settlement, it may take up to 7 calendar days for the hold to be removed for most transactions. For transactions at hotels, it may take up to 30 days for the hold to be removed. For transactions at rental car companies, it may take up to 60 days for the hold to be removed.
Please note that the merchant controls the timing of both the Card Authorization and Settlement. This means that a merchant may initiate Settlement after the Card Authorization hold has already been removed. If the hold is removed and you spend the funds in your Klutch Account before Settlement, it may cause your Klutch Account to overdraw. In addition, the Card Authorization amount that the merchant requests may be different than the Settlement amount. It is therefore very important that you keep track of your transactions and your Klutch Account. We cannot stop a Settlement once we have approved a Card Authorization and you will be responsible for repaying any negative balance that may occur in your Klutch Account.
Please be aware of the merchant’s return policies before using your Klutch Card to make a purchase. We are not responsible for the delivery, quality, safety, legality or any other aspect of the goods or services you purchase using your Klutch Card. If you have a problem with a purchase that you made with your Klutch Card or if you have a dispute with the merchant, you must handle it directly with the merchant. If you are entitled to a refund for any reason for goods or services obtained using your Klutch Card, you agree to accept credits to your Klutch Card for the refund and agree to the refund policy of the merchant. The amounts credited to your Klutch Card for refunds may not be available for up to 5 days from the date the refund transaction occurs.
You will receive information and documentation concerning any EFTs that debit or credit your Klutch Account in the following ways:
- Statements: We will provide you information about each transaction that debits or credits your Klutch Account on your statements. You may also view your transaction history at any time through the Klutch App.
- Receipts: You can get a receipt at the time you make a purchase at a point-of-sale terminal using your Klutch Card.
If you authorize us or another company or person to withdraw from your Klutch Account or charge your Klutch Card on a regular basis (such as when you sign up for “autopay” to pay a monthly bill), it is called a Preauthorized Transfer. You have the right to place a stop payment on Preauthorized Transfers, as well as get notification when the amount of a particular withdrawal will be different from the amount of the last withdrawal.
If you authorize a company or person to take payments from your Klutch Account or charge your Klutch Card on a regular basis through a Preauthorized Transfer, you can stop any of these payments by emailing us at email@example.com with the subject line “STOP PAYMENT” at least 3 business days before the next payment is scheduled to be made. Make sure to provide Klutch with (1) your name, (2) your Klutch Account number, (3) the company or person taking the payments, and (4) the date and amount of the scheduled payment you wish to stop. If you want all future payments from that company or person stopped, be sure to tell us that as well. If you do not provide us with the correct information, such as the correct payee or the correct amount of the payment you wish to stop, we may not be able to stop the payment.
If you order us to stop one of these payments three (3) business days or more before the payment is scheduled and provide us with all information requested, and we do not do so, we will be liable for your losses or damages. However, neither we nor Klutch will be liable if the company or person initiating the payments changes the dollar amount of the payment or makes other changes that cause us not to recognize it as the payment you requested be stopped. See the fee schedule for any fees applicable to a stop payment request.
If these regular payments vary in amount, the person or company you are paying will tell you ten (10) days before each payment when it will be made and how much it will be. You may be given the option to only get this notice when the payment will differ by more than a certain amount from the previous payment, or when the amount will fall outside certain limits that you set.
If we fail to complete a transaction on time or in the correct amount when properly instructed by you in accordance with this Agreement, we will be liable for your losses or damages. However, there are some exceptions. We are not liable, for instance:
- If the Available Balance in your Klutch Account is not sufficient to complete the transaction through no fault of ours.
- If the failure is due to an equipment or system breakdown that you knew about before you began a transaction.
- If a third party’s Application or other system, such as Apple Pay or Google Pay, breaks down or does not work properly.
- The failure was caused by an Act of God, fire or other catastrophe, or any other cause beyond our control despite reasonable precautions we have taken.
- If your funds are not available due to a hold or if your funds are subject to legal process.
- If we do not complete a transaction because we or Klutch have reason to believe the transaction is unauthorized or illegal.
- Your Klutch Account is closed or inactive.
- Your Klutch Card has been frozen, revoked, canceled or suspended.
Contact us immediately at 1-877-351-2925 or firstname.lastname@example.org if you believe that an unauthorized EFT has occurred or may occur concerning your Klutch Account, or if your Klutch Card, PIN, App login credentials or device used to access the Klutch App has been lost, stolen or compromised.
You could lose all the money in your Klutch Account (and any bank accounts you have linked through the Klutch App) if you take no action to notify us of the unauthorized EFT or the loss or theft of your Klutch Card, PIN App login credentials or device.
For unauthorized EFTs involving your Klutch Card, you will not be held responsible for unauthorized transactions if you have used reasonable care in protecting your Klutch Card, PIN and card number from loss or theft and you promptly report the loss or theft to us when you discover it. For all other unauthorized EFTs your liability will be as follows if you notify us of the loss:
- If you tell us within 2 business days after learning of the loss, theft or compromise of your Klutch Card, PIN, App login credentials or device, you can lose no more than $50.
- If you do NOT tell us within 2 business days and we can prove that we could have prevented the loss had you contacted us, you can lose no more than $500.
- If your statement or electronic transaction history shows EFTs that you did not make and you do NOT contact us within 60 days after the statement was made available to you (or for a prepaid account where no statement is provided 60 days after the earlier of the date you electronically access your account, if the error could be viewed in your electronic history, or the date we sent the FIRST written history on which the error appeared), you can lose any money lost during the period starting 60 days from the date the statement was made available to you and ending on the date you contact us if we can prove that your contacting us would have prevent those losses.
We can extend these time periods if extenuating circumstances (such as a long trip or hospital stay) kept you from notifying us.
In case of errors or questions about your EFTs, contact us at 1-877-351-2925 or email@example.com as soon as you can if you think your statement or receipt is wrong or if you need more information about a transfer listed on a statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. You must provide us with the following information:
- Tell us your name and Klutch Account number.
- Describe the error or the EFT you are unsure about and explain as clearly as you can why you believe it is an error or why you need more information.
- Tell us the dollar amount of the suspected error.
If you tell us orally, we may require that you send us your complaint or question in writing by email within 10 business days (If applicable, 5 business days involving a Visa point-of-sale transaction, other than an anonymous Visa prepaid card transaction, processed by Visa or 20 days if the transfer involved a new account). We will determine whether an error occurred within 10 business days after we hear from you and will tell you the results and correct any error promptly. If we need more time, we may take up to 45 days—or 90 days for New Accounts or point-of-sale transactions— to investigate your complaint or question. If the investigation takes more than 10 days to complete, we will credit your Klutch Account within 10 business days (if applicable, 5 business days involving a Visa point-of-sale transaction, other than an anonymous Visa prepaid card transaction, processed by Visa or 20 days if the transfer involved a new account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. For New Accounts, we may take up to 20 business days to credit your Klutch Account for the amount you think is in error. These times may change for fraud or other security reasons.
We will tell you the results within 3 business days after completing our investigation. If we decide that there was no error, we will send you a written explanation by email. You may ask for copies of the documents that we used in our investigation.
In case of errors or questions about your prepaid (Klutch) account, contact us at 1-877-351-2925 or firstname.lastname@example.org as soon as you can, if you think an error has occurred in your prepaid (Klutch) account. We must allow you to report an error until 60 days after the earlier of the date you electronically access your account, if the error could be viewed in your electronic history, or the date we sent the FIRST written history on which the error appeared. You may request a written history of your transactions at any time by contacting us at 1-877-351-2925 or email@example.com. You will need to tell us:
- Your name and prepaid (Klutch) account number.
- Why you believe there is an error, and the dollar amount involved.
- Approximately when the error took place.
If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days. We will determine whether an error occurred within 10 business days (if applicable, 4 business days involving a Visa point-of-sale transaction, other than an anonymous Visa prepaid card transaction, processed by Visa) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, and your account is registered with us, we will credit your account within 10 business days (if applicable, 5 business days involving a Visa point-of-sale transaction, other than an anonymous Visa prepaid card transaction, processed by Visa) for the amount you think is in error, so that you will have the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. For errors involving new accounts, point-of-sale, or foreign-initiated transactions (if available), we may take up to 90 days to investigate your complaint or question. For New Accounts, we may take up to 20 business days to credit your account for the amount you think is in error.
We will tell you the results within 3 business days after completing our investigation. If we decide that there was no error, we will provide you a written explanation. You may ask for copies of the documents that we used in our investigation.
If you need more information about our error-resolution procedures, call us at 1-877-351-2925 or email us at firstname.lastname@example.org.
Your funds are eligible for FDIC insurance. Your funds will be held at or transferred to us, an FDIC insured institution. Once here, your funds are insured up to $250,000 by the FDIC in the event we fail, if specific deposit insurance requirements are met and your card is registered. This registration occurs when you have been approved for a Klutch card. See fdic.gov/deposit/deposits/prepaid.html for details.
No overdraft/credit feature. There is no overdraft/credit feature associated with your prepaid (Klutch) card.
Prepaid account information or complaints. For general information about prepaid accounts, visit cfpb.gov/prepaid. If you have a complaint about a prepaid account, call the Consumer Financial Protection Bureau at 1-855-411-2372 or visit cfpb.gov/complaint.
Our contact information. You can use the contact information listed in this disclosure to get more information about your prepaid (Klutch) card. Contact us by email at email@example.com.
EXCEPT AS REQUIRED BY LAW, WE ARE NOT LIABLE FOR ANY CLAIMS, COSTS, LOSSES, OR DAMAGES RESULTING DIRECTLY OR INDIRECTLY FROM OUR FAILURE TO ACT, OR ANY DELAY BEYOND TIME LIMITS PRESCRIBED BY LAW OR PERMITTED BY THIS AGREEMENT IF SUCH FAILURE OR DELAY IS CAUSED BY MAINTENANCE OR INTERRUPTION OR MALFUNCTION OF EQUIPMENT OR COMMUNICATION FACILITIES, UNUSUAL TRANSACTION VOLUME, SUSPENSION OF PAYMENTS BY ANOTHER FINANCIAL INSTITUTION, FIRE, NATURAL DISASTERS, ELEMENTS OF NATURE, GOVERNMENT ACTION, ACTS OF WAR, TERRORISM OR CIVIL STRIFE, EMERGENCY CONDITIONS, OR OTHER CIRCUMSTANCES BEYOND THE REASONABLE CONTROL OF STEARNS BANK. EXCEPT AS REQUIRED BY LAW, OUR LIABILITY TO YOU FOR A CLAIM IS LIMITED TO THE FACE VALUE OF THE ITEM OR TRANSACTION, OR THE ACTUAL VALUE OF ANY FUNDS NOT PROPERLY CREDITED OR DEBITED. IN NO EVENT WILL WE OR KLUTCH BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES EVEN IF YOU ADVISE US OF THE POSSIBILITY OF SUCH DAMAGES.
EXCEPT AS REQUIRED BY LAW AND NOTWITHSTANDING ANYTHING TO THE CONTRARY, WE SHALL ONLY BE RESPONSIBLE AND LIABLE FOR OUR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT IN PERFORMING OUR OBLIGATIONS UNDER THIS AGREEMENT. WE SHALL NOT BE LIABLE TO ANY THIRD PARTY OR FOR ANY ACT OR OMISSION OF YOURS OR ANY THIRD PARTY, INCLUDING, BUT NOT LIMITED TO, THIRD PARTIES USED BY US IN EXECUTING ANY TRANSACTION CONTEMPLATED BY THIS AGREEMENT OR PERFORMING A RELATED ACT AND NO SUCH THIRD PARTY SHALL BE DEEMED TO BE OUR AGENT.
IN ADDITION, EXCEPT AS REQUIRED BY LAW, WE ARE NOT LIABLE OR RESPONSIBLE FOR ANY SERVICES OR FEATURES OF THE KLUTCH APP PROVIDED TO YOU BY KLUTCH. WE ARE ALSO NOT LIABLE FOR ANY UNAUTHORIZED ACCESS OF YOUR INFORMATION OR DATA BY A THIRD PARTY DUE TO YOUR USE OF THIRD-PARTY COMMUNICATION CHANNELS NOT OFFERED BY US.
ALL BANK SERVICES AND KLUTCH ACCOUNT OR KLUTCH CARD FEATURES ARE PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE. WE DO NOT WARRANT THE BANK’S SERVICES OR KLUTCH ACCOUNT OR KLUTCH CARD FEATURES WILL MEET YOUR REQUIREMENTS, BE CONTINUOUS, UNINTERRUPTED, SECURE, TIMELY, OR ERROR-FREE, OR THAT DEFECTS WILL BE CORRECTED.
You agree to indemnify and hold us and our officers, directors, shareholders, employees, successors, predecessors, representatives, principals, agents, assigns, parents, subsidiaries and/or insurers harmless for any losses, damages, suits and expenses, including reasonable attorneys’ fees, that we may incur, without regard to the merit or lack thereof, arising out of, or related in any way to (1) the matters set forth herein; (2) our taking any action or not taking any action that we are entitled to take pursuant to this Agreement; (3) any action or omission by you; or (4) our action or inaction in reliance upon oral, written or electronic instructions or information from you.
We have the right to set-off any liability, direct or contingent, past, present or future that you owe against any account you have with us. This means that we can take any funds in your Klutch Account or any other account you have with us to pay any debt or liability you owe us. You also agree to grant us a security interest in your Klutch Account to secure payment of any money that you owe to us or will owe us arising under this Agreement or any other agreements with us. You acknowledge that this security interest is consensual and in addition to any right of set-off. We may exercise our security interest or right of set-off without regard to the source of the funds in your Klutch Account or prior recourse to other sources of repayment or collateral, even if it causes you to incur penalties or suffer any other consequence. You waive any conditions or limits to our right of set-off to the maximum extent permitted by law. We will notify you if we exercise our right to set-off if required by law.
If we take any action to collect debt incurred by you or other amounts you owe us under this Agreement or defend ourselves in a lawsuit brought by you where we are the prevailing party, you agree to reimburse us for our losses, including, without limitation, reasonable attorneys’ fees, to the extent permitted by applicable law. We may charge your Klutch Account for our losses without prior notice to you.
We may change this Agreement, or any fees and features of your Klutch Account or Klutch Card, at any time by posting an amended Agreement in the Klutch App, and any such amendment shall be effective upon posting. We will give you advance notice of any change where required by law. We may provide such notice to you with your statement or electronically. Any notice we provide to you will be binding and sent to the last (electronic) address in our records. We may change or terminate this Agreement without notice at our discretion or to comply with any appropriate federal or state law or regulation.
All actions relating to your Klutch Account and this Agreement will be governed by the laws of the United States and the State of Minnesota and other applicable rules, regulations and guidance, including rules of any funds transfer systems such as National Automated Clearing House Association (NACHA).
Upon demand by you or us, any disputes, claims and controversies arising under this Agreement shall be resolved by binding arbitration held on an individual basis, administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules. Arbitration will proceed in a location selected by AAA in the state of the applicable governing law of the Agreement. In any arbitration proceeding, the arbitrators shall not have the authority to award exemplary or punitive damages or to alter, modify or add to the terms of this Agreement. If a single arbitrator is used by agreement of the parties, each party shall pay one-half of the fees and costs of the single arbitrator.
If an arbitration panel of three is used, each party shall pay the fees and costs of that party’s arbitrator and one-half of the fees and costs of the panel umpire. If the parties are unable to agree on the single arbitrator or the umpire of a panel of three arbitrators, the single arbitrator or umpire shall be selected by a court of competent jurisdiction. Notwithstanding the foregoing, neither party shall be precluded from seeking injunctive remedies pending arbitration. Judgment on the award rendered by the arbitrators may be entered in any court having competent jurisdiction. This arbitration requirement does not limit the right of either party to: (a) exercise self-help remedies, including setoff or (b) obtain provisional or ancillary remedies such as injunctive relief or attachment, before, during or after the pendency of any arbitration proceeding.
Class Action Waiver. Each party agrees that the resolution of any dispute arising from the terms of this Agreement will be resolved by a separate arbitration proceeding and will not be consolidated with other disputes or treated as a class. Neither party will be entitled to join or consolidate disputes by or against others as a representative or member of a class, to act in any arbitration in the interests of the general public, or to act as a private attorney general. If any provision related to a class action, class arbitration, private attorney general action, other representative action, joinder, or consolidation is found to be illegal or unenforceable, the entire Arbitration Agreement will be unenforceable.
Funds Transfers. This agreement is subject to Article 4A of the Uniform Commercial Code - Fund Transfers as adopted in the state in which you have your account with us. If you originate a fund transfer and you identify by name and number a beneficiary financial institution, an intermediary financial institution or a beneficiary, we and every receiving or beneficiary financial institution may rely on the identifying number to make payment. We may rely on the number even if it identifies a financial institution, person or account other than the one named. You agree to be bound by NACHA rules. These rules provide, among other things, that payments made to you, or originated by you, are provisional until final settlement is made through a Federal Reserve Bank or payment is otherwise made as provided in Article 4A-403(a) of the Uniform Commercial Code. If we do not receive such payment, we are entitled to a refund from you in the amount credited to your Klutch Account and the party originating such payment will not be considered to have paid the amount so credited. Credit entries may be made by ACH. If we receive a payment order to credit an account you have with us by wire or ACH, we are not required to give you any notice of the payment order or credit.
Subject to federal and state law, we may monitor or record phone calls for security reasons, to maintain a record and to ensure that you receive courteous and efficient service. You consent in advance to any such recording. To provide you with the best possible service in our ongoing business relationship for your account we may need to contact you about your account from time to time by telephone, text messaging or email. However, we first obtain your consent to contact you about your Klutch Account in compliance with applicable consumer protection provisions in the federal Telephone Consumer Protection Act of 1991 (TCPA), CAN-SPAM Act and their related federal regulations and orders issued by the Federal Communications Commission (FCC).
- Your consent is limited to your Klutch Account, and as authorized by applicable law and regulations.
- Your consent is voluntary and not conditioned on the purchase of any product or service from us.
With the above understandings, you authorize us to contact you regarding your Klutch Account throughout its existence using any telephone numbers or email addresses that you have previously provided to us by virtue of an existing business relationship or that you may subsequently provide to us.
This consent is regardless of whether the number we use to contact you is assigned to a landline, a paging service, a cellular wireless service, a specialized mobile radio service, other radio common carrier service or any other service for which you may be charged for the call. You further authorize us to contact you through the use of voice, voice mail and text messaging including the use of pre-recorded or artificial voice messages and an automated dialing device. If necessary, you may change or remove any of the telephone numbers or email addresses at any time using any reasonable means to notify us.
Claim of Loss. If you claim a credit or refund because of a forgery, alteration, or any other unauthorized withdrawal, you agree to cooperate with us in the investigation of the loss, including giving us an affidavit containing whatever reasonable information we require concerning your account, the transaction, and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of lost, missing, or stolen checks or unauthorized withdrawals. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. Unless we have acted in bad faith, we will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys' fees incurred by you. You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources.
Address or Name Change. You are responsible for notifying us of any change in your address or your name. Unless we agree otherwise, change of address or name must be made in writing by at least one of the account holders. We will attempt to communicate with you only by use of the most recent address you have provided to us. If provided elsewhere, we may impose a service fee if we attempt to locate you.
Account Disputes. We may place an administrative hold on the funds in your account (refuse payment or withdrawal of the funds) if it becomes subject to a claim adverse to (1) your own interest; (2) others claiming an interest as survivors or beneficiaries of your account; or (3) a claim arising by operation of law. The hold may be placed for such period of time as we believe reasonably necessary to allow a legal proceeding to determine the merits of the claim or until we receive evidence satisfactory to us that the dispute has been resolved. We will not be liable for any items that are dishonored as a consequence of placing a hold on funds in your account for these reasons.
Legal Process. If we are served with a subpoena, restraining order, writ of attachment or execution, levy, garnishment, search warrant, or similar order relating to your Klutch Account (termed "legal action" in this section), we will comply with that legal action. Or, in our discretion, we may freeze the assets in the account and not allow any payments out of the account until a final court determination regarding the legal action. We may do these things even if the legal action involves less than all of you. In these cases, we will not have any liability to you if there are insufficient funds to pay your items because we have withdrawn funds from your account or in any way restricted access to your funds in accordance with the legal action. Any fees or expenses we incur in responding to any legal action (including, without limitation, attorneys' fees and our internal expenses) may be charged against your account. The list of fees applicable to your account(s) provided elsewhere may specify additional fees that we may charge for certain legal actions.
Waiver of Notices. To the extent permitted by law, you waive any notice of non-payment, dishonor or protest regarding any items credited to or charged against your account. For example, if you deposit an item and it is returned unpaid or we receive a notice of nonpayment, we do not have to notify you unless required by law.