Neo Disclosure Statement, Rate & Fee Schedule

(Quebec)
Effective: August 25, 2021

This Neo Disclosure Statement, Rate and Fee Schedule (“Rate and Fee Schedule”) is provided by Neo Financial (“Neo”, also referred to as “we”, “our” and “us”) in connection with the Neo Financial Mastercard® Card Account (the “Card Account”), and the Neo Financial Mastercard Card (the “Card”) issued by ATB Financial. This Rate and Fee Schedule sets out the annual credit rates and fees that apply to the Card Account, summarizes certain provisions of the Neo Financial Mastercard Personal Cardholder Agreement (the “Cardholder Agreement”), and forms a part of the Cardholder Agreement. Capitalized terms not defined in this Rate and Fee Schedule have the meaning indicated in the Cardholder Agreement. This Rate and Fee Schedule and the Cardholder Agreement apply to all Neo Financial Card Card Accounts and Cards, including co-branded Card Accounts and Cards. We may change the information set out below in accordance with the Cardholder Agreement. The information set out here and rates are correct as of August 25, 2021 and are subject to change in accordance with the Cardholder Agreement. For complete information about the Card Account, please email support@neofinancial.com. You may also contact Neo in writing at Suite 200, 632 Confluence Way SE, Calgary AB, T2G 0G1.

Credit Limit Granted

Your initial Credit Limit is assigned at the end of your application for a Neo Financial MasterCard® and could range from $250 to $10,000. This limit will be presented prior to your acceptance of the card. Your current Credit Limit will be shown on each Statement and can be found in-app and online.

Credit Rate:

The annual interest rates that will apply to your Card Account are set out in this information box and expanded in the “Annual Credit Rates” section below. These annual credit rates are in effect the day the Card Account is opened.

Purchases
Neo Financial Standard MasterCard Standard Rate: 19.99% - 21.99%
Default Rate: 24.99%
Cash Advances
Neo Financial Standard MasterCard Standard Rate: 21.99%
Default Rate: 26.99%

You will lose the benefit of the Standard Rates that apply to your Card, if, for two consecutive Billing Periods, you fail to pay at least the Minimum Balance Due for each Statement when due, in which case your annual credit rates will increase to the Default Rates that apply to the Card you receive, beginning on the first day of the Billing Period following such second consecutive Billing Period.

At any time the Default Rate applies, the Default Rate will continue to apply until, for three consecutive Billing Periods, you pay at least the Minimum Balance Due for each particular Statement on or before the respective payment due date for each Statement, in which case, the applicable annual credit rates will be decreased, effective from (and including) the first day of the next Billing Period following such payment, to the Standard Rate.

Grace Period

You will benefit from a grace period of at least 21 days free of any credit charges for new purchases and fees if you pay your statement balance in full by the payment due date shown on your statement.

If you do not pay your statement balance in full by the payment due date, you must then pay credit charges, including interest, on all purchases and fees shown on that month's statement from the posted date until we receive your payment for the total amount you owe.

There is no grace period for Cash Advances. Cash withdrawals and cash like transactions such as balance transfers, money orders, wire transfers, traveler’s cheques, overdraft transfers, and gambling transactions are all Cash Advances. Interest is charged from the day the Cash Advance is posted until we receive your payment for the total Cash Advance amount you owe.

Minimum Periodic Payment

The Minimum Balance Due for each Statement will be equal to:

  1. $10.00 or 5.0% of your total statement balance, whichever is greater; plus

  2. All outstanding interest and fees on your Card Account; plus

  3. Any amount that exceeds the Credit Limit; or any amount that is overdue, whichever is greater.

However, if the new balance indicated on the Statement is less than $10.00, it must be paid in full by the payment due date shown on that Statement.

Other Charges

You will be charged on the day the transaction or event occurs unless otherwise indicated below:

Cash Advance in Canada: $2.50 for each physical Cash Withdrawal.

Cash Advance outside Canada: $5.00 for each physical Cash Withdrawal.

Overdraft Transfer Fee: $0.00 for each Overdraft Transfer from the Card Account to the Neo Savings Account

Promotional Balance Transfer/Cheque Fee: Up to 2% of the amount of each Balance Transfer made to take advantage of a promotional interest rate offer. The fee will be charged to you at the same time that the Balance Transfer is posted to your Card Account.

Supplementary statement: $2.50 per statement mailed, charged within 3 business days from when the statement was requested.

Secondary Authorized User: $10.00 for each authorized user added to the Card Account.

Rush Replacement Card: $29.00 for any rush replacement card ordered on the Card Account.

Annual Fee: There is $0 in annual fees for a Card Account

Foreign Currency Conversion: If you use your Card for a transaction in a currency other than Canadian Dollars, foreign currency will be converted into Canadian Dollars before it is posted on your Card Account. We will convert the amount of your transaction to Canadian Dollars at the conversion rate established by MasterCard International Inc. (“MCI”).

For purchases, cash advances and credits to the Card Account, the rate is set at the time the transaction or credit is presented for payment to MCI.

When the transaction is posted to your Card Account, in addition to the conversion rate, you will be charged a foreign currency conversion fee of 2.5% of the amount of the foreign currency transaction after the foreign currency has been converted to Canadian Dollars. This fee applies to both debits and credits.

Credit Limit Granted

Your initial Credit Limit is assigned at the end of your application for a Neo Financial MasterCard® and could range from $250 to $10,000. This limit will be presented prior to your acceptance of the card. Your current Credit Limit will be shown on each Statement and can be found in-app and online.

Credit Rate:

The annual credit rates that will apply to your Card Account are set out in this information box and expanded in the “Annual Credit Rates” section below. These annual credit rates are in effect the day the Card Account is opened.

Purchases Cash Advances
Neo Financial Standard MasterCard Standard Rate: 19.99% - 21.99%
Default Rate: 24.99%
Standard Rate: 21.99%
Default Rate: 26.99%

You will lose the benefit of the Standard Rates that apply to your Card, if, for two consecutive Billing Periods, you fail to pay at least the Minimum Balance Due for each Statement when due, in which case your annual credit rates will increase to the Default Rates that apply to the Card you receive, beginning on the first day of the Billing Period following such second consecutive Billing Period.

At any time the Default Rate applies, the Default Rate will continue to apply until, for three consecutive Billing Periods, you pay at least the Minimum Balance Due for each particular Statement on or before the respective payment due date for each Statement, in which case, the applicable annual credit rates will be decreased, effective from (and including) the first day of the next Billing Period following such payment, to the Standard Rate.

Grace Period

You will benefit from a grace period of at least 21 days free of any credit charges for new purchases and fees if you pay your statement balance in full by the payment due date shown on your statement.

If you do not pay your statement balance in full by the payment due date, you must then pay credit charges, including interest, on all purchases and fees shown on that month's statement from the posted date until we receive your payment for the total amount you owe.

There is no grace period for Cash Advances. Cash withdrawals and cash like transactions such as balance transfers, money orders, wire transfers, traveler’s cheques, overdraft transfers, and gambling transactions are all Cash Advances. Interest is charged from the day the Cash Advance is posted until we receive your payment for the total Cash Advance amount you owe.

Minimum Periodic Payment

The Minimum Balance Due for each Statement will be equal to:

  1. $10.00 or 5.0% of your total statement balance, whichever is greater; plus

  2. All outstanding interest and fees on your Card Account; plus

  3. Any amount that exceeds the Credit Limit; or any amount that is overdue, whichever is greater.

However, if the new balance indicated on the Statement is less than $10.00, it must be paid in full by the payment due date shown on that Statement.

Other Charges

You will be charged on the day the transaction or event occurs unless otherwise indicated below:

Cash Advance in Canada: $2.50 for each physical Cash Withdrawal.

Cash Advance outside Canada: $5.00 for each physical Cash Withdrawal.

Overdraft Transfer Fee: $0.00 for each Overdraft Transfer from the Card Account to the Neo Savings Account

Promotional Balance Transfer/Cheque Fee: Up to 2% of the amount of each Balance Transfer made to take advantage of a promotional interest rate offer. The fee will be charged to you at the same time that the Balance Transfer is posted to your Card Account.

Supplementary statement: $2.50 per statement mailed, charged within 3 business days from when the statement was requested.

Secondary Authorized User: $10.00 for each authorized user added to the Card Account.

Rush Replacement Card: $29.00 for any rush replacement card ordered on the Card Account.

Annual Fee: There is $0 in annual fees for a Card Account

Foreign Currency Conversion: If you use your Card for a transaction in a currency other than Canadian Dollars, foreign currency will be converted into Canadian Dollars before it is posted on your Card Account. We will convert the amount of your transaction to Canadian Dollars at the conversion rate established by MasterCard International Inc. (“MCI”).

For purchases, cash advances and credits to the Card Account, the rate is set at the time the transaction or credit is presented for payment to MCI.

When the transaction is posted to your Card Account, in addition to the conversion rate, you will be charged a foreign currency conversion fee of 2.5% of the amount of the foreign currency transaction after the foreign currency has been converted to Canadian Dollars. This fee applies to both debits and credits.

Digital Correspondence:

By submitting your application for a Neo Financial MasterCard, you consent to receive electronic communications, notifications and messages from Neo and from service providers working on our behalf to service your Card Account with respect to the use of your Card, including enrollment and transaction information, by way of: (i) e-mail, to the e-mail address you have provided to us in connection with your Card; (ii) by SMS text; (iii) through the digital wallet and/or digital wallet provider itself (if you enroll your Card in the digital wallet); and (iv) through notifications in-app. You consent to the electronic delivery of all documents, to take effect immediately, including but not limited to:

  1. This Rate and Fee Schedule and the Cardholder Agreement;

  2. Monthly account statements and information;

  3. Notice of changes to the account terms, products or services, including changes to any interest rate(s), fee(s), service charge(s), operating conditions of the account, and any other items mentioned in this Rate and Fee Schedule and other disclosure statements provided to you;

  4. Communications from Neo about the terms and conditions applicable to the Card Account, including changes and confirmations; and

  5. Any other confirmation, notice or information that Neo is required by law to provide to you in writing relating to the account.

You agree to update your cellular telephone number and e-mail address in the event that it changes through Neo’s in-app functionality or by calling us at 1-855-636-2265.

Statement Frequency:

Neo will provide a Statement for the Card Account once each month, on a date that depends on your billing cycle; however, we may not provide a Statement for the Card Account if there has been no activity that month and i) nothing is owing on the Card Account or ii) you have been notified that your Card Account has been suspended or cancelled and we have demanded payment of the outstanding balance unless otherwise required by law.

Annual Interest/Credit Rates:

The annual interest/credit rate is based upon the payment history in connection with this Card Account and will be determined as described below:

  1. The Standard rates set out on the first page of this Rate and Fee Schedule, that apply to your Card (the “Standard Rate”) will be the initial annual interest/credit rates. The Standard Rate will apply for the entire Billing Period for a Statement if you always pay at least the Minimum Balance Due for each Statement on or before the payment due date for that Statement;

  2. At any time the Standard Rate applies, you will lose the benefit of the Standard Rate if, for two consecutive Billing periods, you fail to pay at least the Minimum Balance Due for each Statement on or before the payment due date for each particular Statement, in which case, the applicable annual interest/credit rates will be increased, effective from (and including) the first day of the next Billing Period following such second consecutive Billing Period, to the Default Rates set out on the first page of this Rate and Fee Schedule, that apply to your Card (the “Default Rate”);

  3. At any time the Default Rate applies, the Default Rate will continue to apply until, for three (3) consecutive Billing Periods, you pay at least the Minimum Balance Due for each particular Statement on or before the respective payment due date for each Statement, in which case, the applicable annual interest/credit rates will be decreased, effective from (and including) the first day of the next Billing Period following such payment, to the Standard Rate.

Fees:

The annual fee (if applicable) on your Card, will appear and be due on your second Statement, whether or not you have activated your Card, and thereafter will appear annually on your Statement anniversary date. Other fees are charged on the date that the transaction or event occurs (unless otherwise indicated). See the Rate and Fee Schedule above for the annual rate and all other fees applicable to each type of Card.

Minimum Payment:

You will be required to pay the Minimum Balance Due by the payment due date shown on each Statement. We explain how we calculate the Minimum Balance Due in the Rate and Fee Schedule above.

Default Charges:

If you fail to comply with any of your payment obligations under the Cardholder Agreement, interest will be charged in accordance with the Cardholder Agreement.

Security for your Obligations:

If required, security funds you provide us will be held as collateral for payment of your Obligations. You acknowledge and agree that:

  1. The security funds do not constitute a deposit with Neo, are not insured including by the Province of Alberta, the Canada Deposit Insurance Corporation, or any other government deposit insurer or agency, and will be held in an account at a depository institution we select;

  2. The security funds may be used to offset Obligations (and effect compensation in respect of the Obligations, if you are a resident of the province of Quebec);

  3. You have no right to access or withdraw the security funds, except as described below; and

  4. Any interest earned on the security funds will become our sole property.

Application of Security Funds. Upon a Default Event occurring, the termination of this Agreement (whether for a Default Event or otherwise), or the cancellation or suspension of the Card Account, without limiting any other rights we have under law or this Agreement, we may withdraw and set off (and effect compensation, if you’re a resident of the province of Quebec) all or part of the security funds against your Obligations (whether or not then immediately due and payable) without prior notice or demand for payment. Any security funds that we withdraw and set off against your Obligations pursuant to this Agreement will reduce your Obligations but will not be considered a payment on your Card Account, including for credit reporting purposes, or for purposes of determining whether a Default Event has occurred and is continuing. You are responsible for any Debt or Obligation remaining after security funds have been applied, and we may report (or continue to report) your Card Account as delinquent.

Pledge and Grant of Security Interest/Hypothec. As collateral security for the prompt payment and performance of your Obligations, you hereby pledge, hypothecate (in case of a hypothec without possession, for an amount equal to the Credit Limit) and grant to Neo a security interest in and over the security funds provided by you to us as collateral for payment of your Obligations (such pledge, hypothec and security interest, the “Collateral Security”). This Collateral Security applies regardless of when security funds are provided to Neo, and this Collateral Security may be an express condition for your Card Account. You agree to take any actions we request to evidence, perfect, render opposable to third parties or protect the first ranking security/lien position of our Collateral Security in the security funds. If you are a resident of the province of Quebec, you also agree that (i) all security funds shall secure the prompt payment and performance of your Obligations, and that (ii) should we make a recording at the applicable register of a hypothec without possession in and over the security funds in our favour, that does not (and shall not) mean that we do not (or shall not) also hold a pledge (hypothec with possession) in and over the security funds for an unlimited amount as security for the prompt payment and performance of your Obligations.

Additional security. You agree that our Collateral Security in and over the security funds is in addition to, and not in substitution of and does not replace, the set-off and compensation rights that you have granted to us in respect of the security funds pursuant to Section 7.1 above or that we may otherwise have by virtue of law.

Lost or Stolen Cards and Maximum Liability for Unauthorized Use:

If a Card, Card Account information, Cheque, PIN, Password, or other Security Credential, is lost or stolen or suspected lost or stolen, you must notify Neo Financial immediately by utilizing in-app functionality, contacting chat support, or calling 1-855-636-2265. You will not be liable for unauthorized use of the Card or Card Account that occurs after you have notified us that your Card, Card Account information, Cheque, PIN, Password or other Security Credential may have been lost or stolen. Except where you are protected by our zero liability commitment as described in the Cardholder Agreement, or unless otherwise prohibited by law, you will be liable for unauthorized charges on the Card Account as follows:

  1. if Purchases or Cash Advances, other than those drawn using your PIN or other Security Credential at an ATM, are charged to your Card Account as a result of unauthorized use of a lost or stolen Card, each Primary Cardholder will be jointly and severally liable with each other Primary Cardholder to Neo for all Debt on the Card Account resulting from such unauthorized use up to a maximum of $50.00;

  2. if any Cheques that we have provided to you are lost or stolen, each Primary Cardholder will also be jointly and severally liable with each other Primary Cardholder to Neo for all Debt incurred; and

  3. each Primary Cardholder will be jointly and severally liable with each other Primary Cardholder to Neo for the full amount of any unauthorized Cash Advances drawn using your PIN or other Security Credential at an ATM.

A transaction will be considered “unauthorized” only if, after investigation we determine:

  1. the Card, Card Account information, Cheque, PIN, Password or other Security Credential has been used by a person other than a Cardholder and without actual or implied consent, and the Cardholder did not contribute to the unauthorized use in any way;

  2. no Cardholder receives any benefit from the transaction;

  3. the Cardholder has fulfilled their obligations under the Cardholder Agreement.

  4. you have cooperated fully with our investigation.

Under our zero liability commitment, you will not be liable for Charges to your Card Account incurred as a result of unauthorized use of your Card or Card Account, provided the conditions set out in the Cardholder Agreement are satisfied.

Questions – If you have any questions about the Card Account, please email support@neofinancial.com or call the toll-free telephone number 1-855-636-2265 during Neo’s business hours.

SCHEDULE A
Table of Cost of Borrowing Calculations

Balance outstanding Cost of borrowing payable for 1 year (based on a 365 day year)
at an annual interest rate of 19.99% at an annual interest rate of 21.99% at an annual interest rate of 24.99% at an annual interest rate of 26.99%
$500 $99.95 $109.95 $124.95 $134.95
$1,000 $199.90 $219.90 $249.90 $269.90
$2,000 $399.80 $439.80 $499.80 $539.80
$5,000 $999.50 $1,099.50 $1,249.50 $1,349.50
$10,000 $1,999.00 $2,199.00 $2,499.00 $2,699.00
Balance outstanding Cost of borrowing payable for 1 year (based on a 365 day year)
at an annual interest rate of 19.99%
$500 $99.95
$1,000 $199.90
$2,000 $399.80
$5,000 $999.50
$10,000 $1,999.00
Balance outstanding at an annual interest rate of 21.99%
$500 $109.95
$1,000 $219.90
$2,000 $439.80
$5,000 $1,099.50
$10,000 $2,199.00
Balance outstanding at an annual interest rate of 24.99%
$500 $124.95
$1,000 $249.90
$2,000 $499.80
$5,000 $1,249.50
$10,000 $2,499.00
Balance outstanding at an annual interest rate of 26.99%
$500 $134.95
$1,000 $269.90
$2,000 $539.80
$5,000 $1,349.50
$10,000 $2,699.00

Note: Cost of borrowing is calculated based on the original balance outstanding and does not reflect interest charges, which are compounded monthly.

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The Neo Savings account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Savings accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor.

Cards issued by ATB Financial pursuant to license by Mastercard International Inc. Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Inc.


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