SafeLine® Account Protection Plan Contract
This is a summary of benefits and conditions of the optional SafeLine Account Protection Program in which you have elected to be enrolled in connection with your WebBank/Fingerhut credit account. In this benefits and conditions guide, the words “you” and “your” refer to the person enrolled in the SafeLine Account Protection Program, and the words “we”, “us” and “our” refer to WebBank.
- Enrollment
Your purchase of SafeLine Account Protection is an optional benefit for WebBank/Fingerhut credit account customers. Whether or not you purchase this product will not affect your application for credit or the other terms of any existing credit agreement you have with WebBank.
The monthly fee for SafeLine Account Protection is 94 cents per $100 outstanding on your credit account statement at the end of each monthly billing cycle. To determine your monthly SafeLine fee we take the Previous Balance and subtract any Payments & Credits, then add Purchases & Debits, Fees Charged (excluding SafeLine fee) and Interest Charged as listed on your account statement. (This is equal to your New Balance minus the SafeLine fee.) We then divide the total by $100 and multiply that number by $0.94. Here are two examples. If your Previous Balance was $100, you made a $30 payment, made $50 in new purchases, incurred no fees, and incurred $5 in interest, then your SafeLine fee would be $1.18 (($100 - $30 + $50 + $5)/$100 x $0.94 = $1.18). If your Previous Balance was $650, you made a $100 payment, made $75 in new purchases, incurred a $25 late fee, and incurred $15 in interest, then your SafeLine fee would be $6.25 (($650 - $100 + $75 + $25 + $15)/$100 x $0.94 = $6.25).
You have the right to cancel SafeLine Account Protection at any time. If you cancel within 60 days of your enrollment date, we will refund your SafeLine Account Protection fee. We may cancel SafeLine Account Protection at any time. We will not reduce any claimed benefits you are already receiving at the time of our cancellation notice. Fingerhut reserves the right to adjust benefits and pricing with 30 days prior written notification to you of the change.
- Benefits Description
SafeLine Account Protection may activate your benefits which will credit the current month’s minimum monthly payment of principal and interest due (“Monthly Benefit Payment”), which is not inclusive of any past due or delinquent payments, and will freeze your WebBank/Fingerhut credit account for up to six months in the event that you become unemployed or disabled, provided all conditions are met. (See “Conditions for Unemployment Benefit Activation” and “Conditions for Disability Benefit Activation” below.) In the event of your death, SafeLine Account Protection will waive your entire balance as of the date of your death (up to your assigned credit limit) provided all conditions are met, and your WebBank/Fingerhut credit account will be closed. (See “Conditions for Death Benefit” below.) In the event of foreclosure on your primary residence (dwelling you reside in on a full-time basis) for a balance due on your mortgage or unpaid property taxes or bankruptcy if you file a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy under debt on personal accounts, and the court has determined the disposition of your debt, SafeLine Account Protection will waive your entire balance as of the date of notice regarding foreclosure or filing for bankruptcy (up to your assigned credit limit) provided all conditions are met, and your WebBank/Fingerhut credit account will be closed. (See “Conditions for Foreclosure” and “Conditions for Bankruptcy” below.)
The term “freeze” means that we will not impose late fees or SafeLine Account Protection fees in any billing period in which benefits are provided. Your account status with WebBank will be frozen upon benefit activation during those billing periods, and no reports reflecting a deteriorating credit status with WebBank will be sent to any credit reporting agency during those billing periods. For example, if your account is 30 days delinquent when you activate benefits, the status will remain unchanged while your account is frozen. Please note that you will be unable to use your WebBank/Fingerhut credit account and interest will continue to accrue on your outstanding balance while SafeLine Account Protection is activated and your account is frozen.
The term “Monthly Benefit Payment” means that we will credit the current month’s minimum monthly payment on your credit account while your benefits are active. You will not be required to make a payment on your credit account while your benefits are active. “Current month’s minimum monthly payment” is not a term found on the billing statement. It is calculated by taking the Total Amount Due for the current month, as shown on the billing statement, and then subtracting any past due amounts and/or late fees assessed prior to benefit activation. Only the current month’s minimum monthly payment is eligible for the Monthly Benefit Payment. Past due amounts and/or late fees assessed prior to benefit activation included in the Total Amount Due, as shown on your monthly billing statement, are not included in the current month’s minimum payment definition and will be your responsibility to pay.
If all conditions are met, your WebBank/Fingerhut credit account will be frozen and eligible for benefits for the shortest of: 1) the number of months you have been enrolled in SafeLine, 2) the length of your unemployment, 3) the length of your disability occurrence, 4) six months, 5) you do not complete and return the continuing benefit activation forms in the required time frame and/or no longer meet the eligibility requirements; or 6) you request the closure of your benefit period early. Approved benefits will be retroactively applied to your account for up to ninety (90) days prior to the receipt of the Benefit Activation Application. Once benefits have expired, your account will be reactivated and you will be responsible for making monthly payments again, as outlined in your WebBank/Fingerhut credit account agreement. In the event of your death, the account balance as of the date of your death (up to your assigned credit limit) will be waived (provided all conditions are met) and your WebBank/Fingerhut credit account will be closed. In the event of Foreclosure or Bankruptcy, the account balance as of the date of notice regarding foreclosure or filing for bankruptcy (up to your assigned credit limit) will be waived (provided all conditions are met) and your WebBank/Fingerhut credit account will be closed.
- Conditions for Unemployment Benefit Activation
- You must be out of work for 30 or more consecutive days prior to making a request for benefits.
- You must have been working in a job which entailed 30 or more hours per week in order to submit an unemployment benefit activation request.
- You are not eligible for the unemployment benefit if you are self-employed. Retired and permanently disabled account holders cannot request benefit activation due to unemployment.
- Your unemployment must be involuntary.
- You must be enrolled in SafeLine Account Protection for three months prior to requesting benefit activation due to unemployment.
- You cannot submit a benefit activation request due to an unemployment condition that we have already honored for the full six-month benefit period.
- You will be required to submit a completed Benefit Activation Application form and a copy of your State unemployment registration form provided to you by the State in which you collect unemployment benefits.
- SafeLine Services will verify the information given and evaluate your request for benefit activation.
- Upon approval of your Benefit Activation Application, your benefits will be made retroactive effective as of the later of (a) your first day of Involuntary Unemployment or (b) three (3) months after your enrollment date in the program. Delinquency and/or negative reporting during this retroactive eligibility period, if any, will be cleared. Any late fees assessed during this eligibility period will be waived. In each case, the delinquency and/or late fees assessed must have been a result of the Involuntary Unemployment condition for which you have been approved for Monthly Benefit Payment Benefits.
- Each month you will be required to give proof that you will continue to receive unemployment benefits. Acceptable verification includes a copy of electronic documentation of receipt of unemployment payment or other similar verification.
- You will not qualify for benefits if your account is seriously delinquent (more than 60 days past due) when we review your application for benefits.
- Conditions for Disability Benefit Activation
- You must be enrolled in SafeLine Account Protection for 30 days prior to requesting benefit activation due to disability.
- You must be unable to work due to the disability.
- You must be out of work for 30 or more consecutive days prior to making a benefit activation request.
- No disability or illness benefit activation request can be submitted for pre-existing conditions until you have been enrolled in SafeLine Account Protection for six months.
- You must have been working in a job which entailed 30 or more hours per week in order to submit a benefit activation request for a disability. You are not eligible for the disability benefit if you are retired, permanently disabled, or self-employed.
- You cannot qualify for disability benefits due to a) childbirth, b) normal pregnancy, or c) intentionally self-inflicted injuries.
- You cannot re-submit a benefit activation request due to a disability condition that we have already honored for the full six-month benefit period.
- SafeLine Services will verify the information given and evaluate your request for benefit activation.
- You will not qualify for benefits if your account is seriously delinquent (more than 60 days past due) when we review your application for benefits.
- Conditions for Death Benefit
- You must be enrolled in SafeLine Account Protection for three months prior to date of death to be eligible for the death benefit.
- A death certificate must be provided. Upon receipt of death certificate, your account balance will be waived up to your credit limit and your account will be closed.
- You will not qualify for benefits if your account is seriously delinquent (more than 60 days past due) when we review your application for benefits.
- Conditions for Foreclosure
- You must be enrolled in the plan for more than six (6) months prior to requesting benefit activation due to Foreclosure.
- Your account may be involuntary suspended due to delinquency for a period of no more than 6 months prior to notification of foreclosure. Upon balance cancellation, your credit account will be closed.
- You must notify SafeLine Services within 3 months of the date of the foreclosure notification.
- Provide a copy of the foreclosure notice.
- Conditions for Bankruptcy
- You must be enrolled in the plan for more than six (6) months prior to requesting benefit activation due to bankruptcy.
- Your account may be involuntary suspended due to delinquency for a period of no more than 6 months prior to filing for bankruptcy. Upon balance cancellation, your credit account will be closed.
- You must notify SafeLine Services within 3 months of the date of the Bankruptcy filing.
- Provide a copy of the bankruptcy court discharge of debtor or Chapter 13 plan.