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| Bankruptcy trustee | A private individual or corporation appointed in all Chapter 7, Chapter 12, and Chapter 13 cases to represent the interests of the bankruptcy estate and the debtor's creditors. |
| Basis point | One one-hundredth of a percentage point. The difference between 7.04 percent and 7.05 percent is one basis point. |
| Bill presentment | An online system that allows customers to receive and view the bill on a computer, and then pay the bill electronically. Users can pay their bills immediately and the money is transferred from a designated account. |
| Billing cycle | The number of days between the last statement date and the current statement date. |
| Billing statement | The monthly bill sent by a credit card issuer to the customer. It gives a summary of activity on an account, including balance, purchases, payments, credits and finance charges. |
| Borrower | One who gets a loan. |
| Card holder agreement | The written statement that gives the terms and conditions of a credit card account. The cardholder agreement is required by Federal Reserve regulations. It must include the Annual Percentage Rate, the monthly minimum payment formula, annual fee, if applicable, and the cardholder's rights in billing disputes. Changes in the cardholder agreement may be made, with written advance notice, at any time by the issuer. Rules for imposing changes vary from state to state, but the rules that apply are those of the home state of the issuing bank, not the home state of the cardholder. |
| Cash advance fee | A charge by the bank for using credit cards to obtain cash. This fee can be stated in terms of a flat per-transaction fee or a percentage of the amount of the cash advance. For example, the fee may be expressed as follows: "3%/$15". This means that the cash advance fee will be the greater of 3% of the cash advance amount or $15. The banks may limit the amount that can be charged to a specific dollar amount. Depending on the bank issuing the card, the cash advance fee may be deducted directly from the cash advance at the time the money is received or it may be posted to your bill as of the day you received the advance. The cost of a cash advance is also higher because there generally is no grace period. Interest accrues from the moment the money is withdrawn.. |
| Cash Cards | Cash cards, similar to pre-paid phone cards, contain a set amount of value, which can be read by a special cash card reader. Participating retailers will use the reader to debit the card in increments until the value is gone. The cards are like cash -- they have no built-in security, so if lost or stolen, they can be used by anyone. . |
| Caveat | A warning or caution. |
| Caveat emptor | Latin for "let the buyer beware." It means that the buyer of a property or item buys it at his or her risk.. |
| Chapter 11 | A reorganization bankruptcy, usually involving a corporation or partnership. (A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in Chapter 11.) |
| Chapter 12 | Chapter of the Bankruptcy Code designed to give special relief to a family farmer with regular income. |
| Chapter 13 | The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) |
| Chapter 7 | The chapter of the Bankruptcy Code providing for "liquidation," i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors. |
| Charge card | A card that requires a full payment of the charge by the due date. Unlike credit cards, which give borrowers a revolving line of credit and lets them borrow against it, carrying a balance with an agreed-to interest rate, charge cards do not allow carrying a balance and no interest is charged. |
| Charge off | Term used to indicate that a creditor does not expect a debt to be paid and is listing it as such. This does not mean that the debt no longer exists or that there will not be further attempts to collect it.. |
| Closed-account fee | A fee charged for shutting down an account. Sometimes charged if the account is closed before a certain time period has passed. |
| Co-branded cards | A type of affinity card issued through a partnership between a bank and another retail company. For instance, a large department store may co-brand a card with a bank. Usually, the attraction of the card is special deals with the retail partner. |
| Co-signer | A person who signs a promissory note that is also signed by one or more other parties. All parties take responsibility for the debt if any of the others renege. |
