Adequate explanations document
Key information relating to the Keebo credit card
We have produced this document to provide you with key information about the Keebo credit card to help you to assess whether it meets your needs before you sign the credit card agreement.
Please read the Pre-Contract Credit Information document above and carefully consider its content. The Pre-Contract Credit Information sets out summary information about the characteristics of Keebo's credit card as well as your credit limit, your interest rate, your APR and other fees and charges.
In order to be eligible for a Keebo credit card, you must link at least one current account with an eligible financial institution in the UK to your Keebo account. We use linked accounts to perform credit checks on you and for direct debit payments.
The Keebo credit card provides you with a revolving credit facility to use on an ongoing basis. Due to the revolving nature of a credit card, it is not a suitable form of long-term credit if you are unable to make significant repayments towards outstanding balances as this can result in sustained debt over a long period, and paying more interest.
Given that you must link at least one current account to your Keebo account, a Keebo credit card will not be suitable if you do not wish to:
- link at least one current account to your Keebo account;
- share your banking and transactional data with us; or
- repay us via direct debit from the linked account you designate via the Keebo app.
The minimum monthly repayment you are required to make under the credit card agreement will be the higher of the interest and fees (plus 3% of the outstanding remaining balance) or £5.
If you only make the minimum payment each month, it will take you longer and cost you more to clear your balance. We recommend that you should aim to pay more than the minimum payment in each month, since this will clear your balance sooner so you will pay less interest.
We use direct debit to collect payment of, at least, the minimum monthly repayment amount from the linked account you designate via the app.
You must have at least one direct debit set up via the app to make payments. If you want to cancel future direct debit payments, you must let us know no later than ten working days before the payment is due. If you cancel all direct debit payments, we will freeze your credit card and you will not be able to use the card or make payments with your card until you add at least one direct debit to an eligible linked account (excluding any linked savings accounts).
Interest rates and charges
There are no annual card membership fees associated with the Keebo credit card.
There are different ways to use your Keebo credit card and different interest rates and charges apply to these (we tell you more about these in section 3 of the PCCI document above and the agreement). The interest rate we charge you for card purchases and cash advances is the same, but using your card to withdraw cash or making a transaction in a foreign currency is more expensive than using your card for purchases. If you:
- withdraw cash, you’ll pay a fee of 2.5% on the cash amount (minimum £2.50); or
- make a payment in a foreign currency, you’ll pay a fee of 2.5% on the transaction amount (minimum £2.50).
We can change our rates and charges but we'll tell you about the change and how it will affect you before we make any change.
If we're changing your interest rate because the Base Rate has changed, we will tell you of this on the monthly statement before the change takes effect. If we’re increasing your interest rate because we are increasing your Personal Rate, we'll give you at least 60 days' advance notice of the change. We'll give you 30 days' notice for all other changes (unless they're to your advantage, in which case, we may make the change sooner. We will still provide you notice of the change).
If you don't want to accept an interest rate increase, you can close the account and pay off the amount you owe at the unchanged rate. If you're eligible for a promotional rate or financial relief rate offer, the interest free or reduced interest period will last for the period we tell you, after which the standard rate will apply.
Consequences of missing payment
Please note that failure to make payment of, at least, the minimum monthly repayment amount on time may result in the following:
- the total cost of your debt growing;
- incurring late payment fees and late payment interest (if you don’t pay your balance in full each month, we’ll charge interest on interest at the rate of interest which applies to the credit agreement. We calculate the interest charge on unpaid transactions daily and then add the interest to your account every month, this is called 'compounding' interest);
- suspension of your Keebo credit card;
- termination of the credit card agreement;
- impairing your credit rating as we report credit performance to credit reference agencies on a monthly basis. An impaired credit rating can affect future access to or cost of credit; and
- taking legal action against you, and you having to pay our legal costs and other third party costs that we incur as a result of taking action to enforce the agreement.
Your right to withdraw
You have the right to withdraw from this agreement without giving a reason within 14 days beginning the day after the day that your agreement has been signed by both you and us, and we confirm via the App that your credit card has been set up. If you withdraw from the agreement, you must pay us the balance on your account and any interest no later than the end of the period of 30 days beginning the day after the date you gave us notice of withdrawal. If you do not do this, we may recover it as a debt through the courts. Where you have used credit under this agreement during the withdrawal period, we shall inform you, on request, without delay, of the amount of interest payable per day.
You can exercise your right to withdraw by contacting us on firstname.lastname@example.org or in-App.
Please take the time to read this document carefully and do not hesitate to ask us any questions you may have about the Keebo credit card. For further information or if you require an explanation of anything relating to the Keebo credit card, you can contact us by email on email@example.com.