Preferred Credit INC

124 cardholder agreements · 56.1 MB

Fair Terms · grade B (76/100)

2 contract red flags across 124 filed docs · see how every issuer ranks →

Why this grade

Starting score100
Forced arbitration (opt-out available)-12
Class-action waiver-12
Fair Terms score76 · grade B

See the exact wording behind each below.

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You can opt out of this issuer's forced arbitration

deadline ≈ 30 days

Preferred Credit INC's agreement lets you reject arbitration and keep your right to sue — usually within 30 days of opening the account. You have to send it in writing. Here's the language from the filed agreement:

“…ThisArbitrationProvisionshall survivetheterminationofanycontractualagreementbetweenyouandus,whetherbydefaultorrepaymentinfull. Youmayelecttoopt-outofthearbitrationprovisiononlybynotifyingusinwritingatPreferredCredit,Inc.,628RooseveltRoad,St.Cloud,MN56301within30daysfromthedateinwhichyou signedthisAgreement,andincludinginthenoticeyourname,addressandaccountnumberandaclearstatementthatyoudonotwishtoresolvedisputesthrougharbitration.Nooneelsemay signtherejectionnoticeforyou.Yourrejectionnoticealsomustnotbesentwithanyothercorrespondence.Rejectionofarbitrationwillnotaffectyourotherrightsorresponsibilitiesunderthis Agreement.Ifyourejectarbitration,neitheryounorwewillbesubjecttothearbitrationprovisionsforthisAgreement.RejectionofarbitrationforthisAgreementwillnotconstituterejectionofanyprior orfuturearbitrationprovisionbetweenyouandus. YourBillingRights.KeepThisNoticeForFutureUse.Thisnoticeconta…”

E-IL01-R ↗

“…n shall survive the termination of any contractual agreement between you and us, whethe r by default or repayment in full. You may elect to opt-out of the arbitration provision only by notifying us in writing at Preferred Credit, Inc., 628 Roosevelt Road, St. Cloud, MN 56301 within 30 days from the date in which you signed this Agreement, and including in the notice your name, address and account number a nd a clear statement that you do not wish to resolve disputes through arbitration. No one else may sign the rejection notice for you. Your rejection notice also must not be sent with any other correspondence. Rejection of arbitration will not affect your other rights or responsibilities under this Agreement. If you reject arbitration, neither you nor we will be subject to the arbitration provisions for this Agreement. Rejection of arbitration for this Agreement will not constitute rejec…”

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“…on shall survive the termination of any contractual agreement between you and us, whether by default or repayment in full. You may elect to opt-out of the arbitration provision only by notifying us in writing at Preferred Credit, Inc., 628 Roosevelt Road, St. Cloud, MN 56301 within 30 days from the date in which you signed this Agreement, and including in the notice your name, address and account number a nd a clear statement that you do not wish to resolve disputes through arbitration. No one else may sign the rejection notice for you. Your rejection notice also must not be sent with any other correspondence. Rejection of arbitration will not affect your other rights or responsibilities under this Agreement. If you reject arbitration, neither you nor we will be subject to the arbitration provisions for this Agreement. Rejection of arbitration for this Agreement will not constitute rejec…”

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Read the exact mailing address in the clause above, then use our opt-out letter template and full guide →

Contract X-Ray — what's buried in the fine print

2 red flags · 124 filed docs

Detected in the CFPB-filed cardholder agreements from Preferred Credit INC. Verbatim quotes below — CardSleuth flags the language; this isn't legal advice.

Forced arbitration

You give up your right to sue in court — disputes are pushed into private arbitration.

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“…efilingfeeifwedemandarbitrationfirstorifthearbitratordeterminesthatapplicablelawrequiresustodosoorthatyouareunabletodosoorthatwemustdosoinorderforthisArbitration Provisiontobeenforceable.Wewillpaythearbitrationcostsandfeesforthefirstdayofarbitration,uptoamaximumofeighthours. Wewillalsopayanyfeesandchargesthatthearbitrat…”

E-IL01-R ↗

“…of your Account. A negative credit report may be submitted to a credit reporting ag ency if you fail to fulfill the terms of your credit obligations. ARBITRATION PROVISION This Arbitration Provision significantly affects your rights in any dispute with us. Please read this Arbitration Provision carefully before you sign…”

ee-ca04-r ↗

“…of your Account. A negative credit report may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations. ARBITRATION PROVISION This Arbitration Provision significantly affects your rights in any dispute with us. Please read this Arbitration Provision carefully before you sign…”

ee-ca04-w ↗

Class-action waiver

You can't band together with other cardholders in a class action.

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“…),beresolvedbyneutral,bindingarbitrationandnotbya courtaction.Anyclaimordisputeistobearbitratedonanindividualbasisandnotasaclassaction,andyouexpresslywaiveanyrightyoumayhavetoarbitrateaclassaction(thisiscalled theclassactionwaiver").YoumaychoosetheapplicablerulesofeithertheAmericanArbitrationAssociation(1-800-778-7879),JAMS(800-352-5267)oranyothernationallyrecognize…”

E-IL01-R ↗

“…g arbitration and not by a court action. Any claim or dispute is to be arbitrated on an individual basis and not as a class action, and you expressly waive any right you may have to arbitrate a class action (this is called the "class action waiver"). You may choose the applicable rules of either the American Arbitration Association (1-800-778-7879…”

ee-ca04-r ↗

“…,beresolvedbyneutral,bindingarbitrationandnotbya courtaction. Anyclaimordisputeistobearbitratedonanindividualbasisandnotasaclassaction,andyouexpresslywaiveanyrightyoumayhavetoarbitrateaclassaction(thisiscalled the"classactionwaiver"). YoumaychoosetheapplicablerulesofeithertheAmericanArbitrationAssociation(1-800-778-7879),JAMS(800-352-5267),oranyothernationallyrecogni…”

Retail Charge Agreement - E-CA05-R ↗

Arbitration opt-out

The contract lets you reject arbitration (usually within a short deadline) and keep your right to sue.

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“…forceable.ThisArbitrationProvisionshall survivetheterminationofanycontractualagreementbetweenyouandus,whetherbydefaultorrepaymentinfull. Youmayelecttoopt-outofthearbitrationprovisiononlybynotifyingusinwritingatPreferredCredit,Inc.,628RooseveltRoad,St.Cloud,MN56301within30daysfromthedateinwhichyou signedthisAgreement,an…”

E-IL01-R ↗

“…n Provision shall survive the termination of any contractual agreement between you and us, whethe r by default or repayment in full. You may elect to opt-out of the arbitration provision only by notifying us in writing at Preferred Credit, Inc., 628 Roosevelt Road, St. Cloud, MN 56301 within 30 days from the date in which…”

ee-ca04-r ↗

“…on Provision shall survive the termination of any contractual agreement between you and us, whether by default or repayment in full. You may elect to opt-out of the arbitration provision only by notifying us in writing at Preferred Credit, Inc., 628 Roosevelt Road, St. Cloud, MN 56301 within 30 days from the date in which…”

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Checked & clear: Jury-trial waiver · Deferred interest · Change-anytime clause · Penalty APR

Cardholder agreements

Filed with the CFPB in the 2026 Q1 bulk submission. Opens the original PDF.