Credit Policy Change
Feb 27, 2019
CREDIT POLICY CHANGE EFFECTIVE MARCH 1, 2019
United Farmers Cooperative’s Board of Directors has approved a change to our Credit Policy that will become effective March 1st 2019.
The change in policy is in regards to payment terms and the consequence of past due accounts.
We understand that this policy change will only affect a small percentage of our customers whose accounts become past due. This change was made to protect customers who follow our credit policy and credit terms.
UFC is a Cooperative, so when accounts are not paid it affects all of our customers. We thank you for your support and appreciate your business.
Credit Policy and Procedures
The extension of convenience credit is intended to make shopping at UFC more convenient by eliminating the need for you to pay for goods and services with cash or personal check, which is why we refer to it as “convenience credit” in contrast to credit cards that typically do not expect full payment each month. The extension of credit involves risk that all members share in proportionate to their business with UFC when accounts are not paid. UFC’s credit policy is intended to establish boundaries around the extension of credit for the protection of all patrons and members.
The purpose of this notice is to summarize UFC’s credit policy for our valued members and customers. UFC’s credit application is the formal document that new applicants are asked to fill out, sign and return to UFC. The application contains the binding terms and conditions to obtain credit from UFC. The application is available from our main office and it is on UFC’s website as well. UFC also, from time to time, will update our members credit applications to update our credit information. The following is a summary of the services and options that UFC offers to customers and members through its credit policy.
The purpose of this notice is to summarize UFC’s credit policy for our valued members and customers. UFC’s credit application is the formal document that new applicants are asked to fill out, sign and return to UFC. The application contains the binding terms and conditions to obtain credit from UFC. The application is available from our main office and it is on UFC’s website as well. UFC also, from time to time, will update our members credit applications to update our credit information. The following is a summary of the services and options that UFC offers to customers and members through its credit policy.
1.UFC - OPEN ACCOUNT PURCHASES
- Purchases of goods and services in any month will be itemized and a month end statement will be mailed to you. Your statement must be paid as follows:
- PAYMENT NEEDS TO BE RECEIVED BY THE 25TH OF THE FOLLOWING MONTH OF PURCHASES.
- If your account is not paid by the due date, the account becomes PAST DUE.
- Certain products, programs and special pricing may have other terms and will be stated at the time of invoice.
- Purchases of all grain are required to be paid upon receipt of invoice.
2.FORMS OF PAYMENT
- We accept personal checks, credit and debit cards, and ACH transfers to pay your UFC account. Payments on your account can also be made online at www.UFCmn.com by signing into your account.
- A convenience fee of 3% of the payment is added for payments on account balances made with a credit card.
3.POLICY AND PROCEDURE SUBJECT TO REVIEW
- The Board of Directors authorizes management to extend credit as well as defining the terms under which credit is extended. The Board has the power to change the terms under which credit is extended at any time. Management is charged with enforcing the policy according to its terms.
4.EXTENSION OF CREDIT - PURPOSE
- UFC extends convenience credit to members and customers for retail sales of goods and services. UFC also extends credit to agricultural producers for the purchase of agricultural inputs and for grain handling or application services like grain drying or chemical application on cropland. The terms of payment may vary between different products and services.
5.APPROVAL PROCESS
- All applicants must submit a completed credit application/agreement to UFC. Individuals are required to have a minimum beacon score of 650. Commercial buyers are usually required to provide more sophisticated information along with the application, which varies by the size and complexity of the credit requested.
6.REVIEW OF ACCOUNT HOLDERS
- UFC reviews existing accounts periodically to assess continuing credit worthiness. UFC may refuse credit to any existing or new account holder if, in UFC sole discretion, UFC has a good faith concern about being repaid.
7.UNITED FARMERS COOPERATIVE (UFC) COOP CASH CARD
- A Co-op Cash card is one way of accessing the available credit on your open account. For example, Co-op Cash cards can be used 24 hours daily at UFC pump islands.
8.OTHER PAYMENT PLANS
- Cash payment
- Secure Payment Plan for home heating accounts is available (fuel oil, L.P. Gas or Natural Gas).
- Prepayment on account (various discounts may apply depending on the item or commodity purchased).
- Financing alternatives for crop and feed input purchases are available.
9.PAST DUE ACCOUNTS
- The discussion that follows explains how UFC will usually react to accounts that are not paid when due. UFC reserves the right in its sole discretion to move more quickly and initiate legal action immediately if UFC believes, in its sole discretion, that circumstances require an alternative action on its part.
- When an account is past due, a finance charge is assessed on amounts owed for purchases that are not paid in full by the due date, which is an ANNUAL PERCENTAGE RATE OF 18%, or 1.5% per month.
- When an account becomes PAST DUE, communication will be attempted to set up a payment or payment plan. If payment or plan cannot be agreed upon, then the account will be placed on C.O.D. (cash on delivery).
- N.S.F. checks will be assessed a $30.00 service charge and forwarded to a collection agency.
- Attorney’s fees and collection costs are added to your account and collected along with the balance of other monies owed to UFC.