Terms of Service

These terms and conditions (hereinafter referred to as the “Agreement”) govern the contractual relationship between Scratch Financial, Inc. including its subsidiaries, affiliates, agents, and assigns, (“Scratch,” “Scratchpay,” “our,” “we,” “Company”) and you (“you” and “your”) when you use service and features through the Company’s website or mobile application (the “Services”). The Services include but are not limited to your account with us (“Scratch Financial User Account”), the Scratch Financial website, our mobile application (or any other application that we may create in the future) (“Scratch App”), Scratch Financial’s payment platform (“Platform”), any and all associated technologies used by or with the Services and any other services provided by Scratch or other third parties where this Agreement is presented to you. This Agreement contains important terms that govern your relationship with us and your use of the Services, including (but not limited to):

Electronic Communication
Credit Pull Authorization
Mandatory Arbitration Clause

If you do not agree to these terms without limitation or exclusions, you should exit this site immediately.

USER AGREEMENT

Please carefully review the following rules that govern your use of this web site (the "Site") and also read our Privacy Policy regarding the information that you provide to us. The following are terms of a legal agreement (“Agreement”) between you, individually and/or as an agent on behalf of another registered user ("you") and Scratch Financial, Inc. ("Scratchpay") that sets forth the terms and conditions for your use of the Site. The Site is owned and operated by Scratchpay. This Site is being provided to you expressly subject to this Agreement. By accessing, browsing and/or using the Site, you acknowledge that you have read, understood, and agree to be bound by the terms of this Agreement and to comply with all applicable laws and regulations. Subject to these Terms of Use, Company grants you a non-transferable, non-exclusive, non-sublicensable, revocable, limited license to use and access the Services solely for your own personal, noncommercial use. Subject to your compliance with the Agreement, Company grants you a limited, non-exclusive, non-transferable, non-sublicensable, revocable license to download, install and use a copy of the Mobile App on a single mobile device that you own or control and to run such copy of the Mobile App solely for your own personal or internal business purposes; provided that you will only use any Mobile App accessed through or downloaded from the Apple App Store (a) on an Apple-branded product that runs iOS (Apple’s proprietary operating system) and (b) as permitted by the “Usage Rules” set forth in the Apple App Store Terms of Service.

CHANGES TO THIS AGREEMENT

Scratchpay reserves the right to amend this Agreement at any time and will notify you of any such changes by posting the revised Agreement and/or amendments on the Site. You should check this Agreement on the Site periodically for changes. All changes shall be effective upon posting. Your continued use of the Site after any change to this Agreement constitutes your agreement to be bound by any such changes. Scratchpay may terminate, suspend, change, or restrict access to all or any part of this Site without notice or liability. However, unless you agree to changes to this Agreement by using any of the Services, amendments we make to this Agreement will not impose new obligations on you with respect to any actions you took before the change became effective. If you do not agree to the updated changes to the Site, you must stop using the site.

AMENDMENT OF THIS AGREEMENT

Notwithstanding your obligations as described above in “Changes to this Agreement,” in our discretion, we may amend this Agreement from time to time, for whatever reason, and give you written notice of any significant changes if required by law. An amendment may change your rights and obligations under the Agreement, add something new, or take something out. Amendments will apply to all existing users (you) and future users of our Services, except if otherwise indicated in written notice or as otherwise provided by applicable law. If you gave us your email address when applying for a loan, we will send notice of significant changes to that email address, but otherwise you will need to review these terms each time you access this Site or use our Services to check for changes. We will make all significant changes easy to identify. You will need to agree to the changes the next time that you access this Site or use our Services after the end of the notice period. If you do not agree to any significant changes, you may contact Customer Service to terminate this Agreement.

LIMITATIONS OF USE

The copyright in all material on this Site and the Site itself to include all “Services” (including but not limited to the mobile application, creation of any customer accounts, and the payment platform as stated above), including without limitation the text, data, articles, design, source code, software, photos, images and other information (collectively the "Content"), is held by Scratchpay or by the original creator of the material and is protected by U.S. and International copyright laws or treaties. You agree that the Content may not be copied, reproduced, distributed, republished, displayed, posted or transmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording, or otherwise, without the express prior written consent of Scratchpay. You acknowledge that the Content is and shall remain the property of Scratchpay. You may not modify, participate in the sale or transfer of, or create derivative works based on any Content, in whole or in part. The use of the Content on any other Site, including by linking or framing, or in any networked computer environment for any purpose, is prohibited without Scratchpay's prior written approval. All data obtained from or provided by Scratchpay, regardless of the method of delivery, is explicitly prohibited from publication and distribution and is subject to the Scratchpay Data Terms of Use. You also may not, without Scratchpay's express written permission, "mirror" any material contained on this Site on any other server, including any described Services. Additionally, you are restricted from reverse engineering, disassembling or web scraping any and all materials, data or any information associated with this Site and its Services. Any unauthorized use of any Content on this Site may violate copyright laws, trademark laws, the laws of privacy and publicity, and communications statutes and regulations.

You agree to use the Content and Site only for lawful purposes. You are prohibited from any use of the Content or Site that would constitute a violation of any applicable law, regulation, rule or ordinance of any nationality, state, or locality or of any international law or treaty, or that could give rise to any civil or criminal liability. Any unauthorized use of the Site, including but not limited to unauthorized entry into Scratchpay's systems, misuse of passwords, or misuse of any information posted on the Site is strictly prohibited. Scratchpay makes no claims concerning whether the Content may be downloaded or is appropriate for use outside of the United States. If you access this Site from outside of the United States, you are solely responsible for ensuring compliance with the laws of your specific jurisdiction. Your eligibility for particular products or services is subject to final determination by Scratchpay.

By using this Site you grant Company a fully paid, royalty-free, worldwide, non-exclusive right (including any moral rights) and license to use, reproduce, modify, adapt, publicly perform, and publicly display Your Content (in whole or in part) for the purposes of operating and providing the Services to you and to our other registered users.

Members of the Scratchpay community must be U.S. Residents that are 18 years of age or older. Children under the age of 18 are not eligible to participate in the offerings on this website.

TRADEMARKS

The trademarks, logos, and service marks (collectively the "Scratchpay Trademarks") displayed herein and on this Site are registered and unregistered trademarks of Scratchpay, its affiliates and others. You can view trademarks owned by Scratchpay on LegalForce Trademarkia at this link: https://file.trademarkia.com/owners/Scratch%20Financial%2C%20Inc.?status=live&page=1. Nothing contained herein, or on this Site, should be construed as granting, by implication, estoppel, or otherwise, any license or right to use any trademark displayed herein, or on this Site, without the written permission of Scratchpay or such third party that may own the trademark displayed herein or on this Site. You may not use, copy, display, distribute, modify or reproduce any of the Scratchpay Trademarks found on the Site unless in accordance with written authorization by us. Scratchpay prohibits use of any of the Scratchpay Trademarks as part of a link to or from any site unless establishment of such a link is approved in writing by us. Your misuse of the trademarks displayed herein, or any other content on this Site, except as provided herein, is strictly prohibited. Any questions concerning any Scratchpay Trademarks, or whether any mark or logo is a Scratchpay Trademark, should be referred to Scratchpay.

LINKS TO THIRD-PARTY SITES

This site may contain links to web sites controlled, owned, and operated by third parties (the "third-party sites"). Scratchpay cannot control and has no responsibility for the accuracy or availability of information provided on the third-party sites. You acknowledge that use of any third-party sites is governed by the terms of use for those websites, and not by this Agreement. Links to third-party sites do not constitute an endorsement or recommendation by Scratchpay of such sites or the content, products, advertising or other materials presented on such sites, but are only for your convenience and you access them at your own risk. Such third-party sites may have a privacy policy different from that of Scratchpay and the third-party site may provide less security than this Site. Scratchpay is not responsible for the content of any third-party web sites, nor does Scratchpay make any warranties or representations, express or implied, regarding the content (or the accuracy of such content) on any third-party websites, and Scratchpay shall have no liability of any nature whatsoever for any failure of products or services offered or advertised at such sites or otherwise.

ELECTRONIC AND TELEPHONE COMMUNICATION

You agree that your telephone communications with us, WebBank, and each of our representatives, affiliates, agents and other service providers (the “Communicating Parties”) may be monitored, recorded and retained by any of them, although they have no obligation to do so. You expressly authorize the Communicating Parties to contact you at any telephone number you have previously provided to the Communicating Parties, using an autodialer, pre-recorded messages, and/or text messages, in order to provide alerts and other information regarding your current and further applications, agreements, loans, and accounts for all products and Services provided to you whether in the past, present or future.

When you visit the Site or send emails to us, you are communicating with us electronically and you consent to receive communications from us electronically to the extent permissible by law. Message and data rates may apply. We will communicate with you by email, posting notices on this Site, or SMS via your confirmed cell phone number (message and data rates may apply). You agree that all agreements, notices, disclosures and other communications that we provide to you electronically satisfy any legal requirement that such communications be in writing to the extent permissible by law. You agree that we may send emails to you for the purpose of advising you of changes or additions to this Site, about any of our products or services, or for such other purposes as we deem appropriate and as permissible by law. For additional information on our electronic communication policies refer to our Electronic Communications Agreement.

CREDIT PULL CONSENT & AUTHORIZATION

By registering on the Platform as a borrower, you consent to Scratch Financial, Inc. (“Scratchpay”), WebBank, our partner bank that may extend credit to you (“originating bank”), and their respective agents and affiliated companies (together, “We,” “Our,” or “Us”) to obtain a credit report from one or more consumer credit reporting agencies. We may use the credit report for any purpose that would be authorized by applicable law in connection with a credit transaction involving you and involving the extension of credit to you or review or collection of your account, including but not limited to:

(i) for authentication purposes (i.e., to make sure you are who you say you are); (ii) for internal modeling and analysis purposes; (iii) to evaluate your credit profile in order to make credit decisions; (iv) to determine your debt-to-income ratio;
(v) to obtain your credit score(s) and assign you a Scratchpay Risk Score based in part on that credit score(s); and
(vi) to obtain and display information and characteristics from your credit report from one or more consumer credit reporting agencies.

You authorize us to verify information in your credit report, and you agree that Scratch Financial, Inc or WebBank may contact third parties to verify any such information. We will obtain your credit report each time you submit a loan request to us and at any other time that we deem it necessary in our sole discretion, including in connection with loan servicing or collection.

ADDITIONAL STATE LAW NOTICES FOR BORROWER MEMBERS

In registering an Account, you agree to (a) provide true, accurate, current and complete information about yourself as prompted by the registration form (the “Registration Data”); and (b) maintain and promptly update the Registration Data to keep it true, accurate, current and complete. You represent that you are (i) at least eighteen (18) years old; (ii) of legal age to form a binding contract; and (iii) not a person barred from using the Services under the laws of the United States, your place of residence or any other applicable jurisdiction. You are responsible for all activities that occur under your Account.

CALIFORNIA RESIDENTS

Married registrants may apply for a separate account. AS REQUIRED BY LAW, YOU ARE HEREBY NOTIFIED THAT A NEGATIVE CREDIT REPORT REFLECTING ON YOUR CREDIT RECORD MAY BE SUBMITTED TO A CREDIT REPORTING AGENCY IF YOU FAIL TO FULFILL THE TERMS OF YOUR CREDIT OBLIGATIONS. BUT, WE WILL NOT SUBMIT A NEGATIVE CREDIT REPORT TO A CREDIT REPORTING AGENCY ABOUT THIS OBLIGATION UNTIL THE EXPIRATION OF ANY TIME PERIOD DESCRIBED.

DISCLAIMER OF WARRANTIES

None of Scratchpay, any of its affiliates, providers or their respective officers, directors, employees, agents, independent contractors or licensors (collectively the "Scratchpay Parties") guarantees the accuracy, adequacy, timeliness, reliability, completeness, or usefulness of any of the Content and the Scratchpay Parties disclaim liability for errors or omissions in the Content. This Site and all of the Content is provided "as is" and "as available," without any warranty, either express or implied, including the implied warranties of merchantability, fitness for a particular purpose, non-infringement or title. Additionally, there are no warranties as to the results of your use of the Content. The Scratchpay Parties do not warrant that the Site is free of viruses or other harmful components. This does not affect those warranties which are incapable of exclusion, restriction or modification under the laws applicable to this Agreement.

The Scratchpay Parties may discontinue or make changes in the Content and site at any time without prior notice to you and without any liability to you. Any dated information is published as of its date only, and the Scratchpay Parties do not undertake any obligation or responsibility to update or amend any such information. The Scratchpay Parties reserve the right to terminate any or all Site offerings or transmissions without prior notice to you. This Site could contain technical inaccuracies or typographical errors. Use of this Site is at your own risk; you assume total responsibility for your use of the site and any linked sites.

LIMITATION OF LIABILITY

Under no circumstances will the Scratchpay Parties be liable for any damages including general, special, direct, indirect, incidental, consequential, punitive (as permitted by state statute) or any other damages of any kind whether in an action in contract or negligence arising or relating in any way to the use or inability to use by any party of the content, the Site or any third-party site to which this site is linked, or in connection with any failure of performance, error, omission, interruption, defect, delay in operation or transmission, computer virus or line or system failure, even if Scratchpay Parties, or representatives thereof, are advised of the possibility of such damages, losses or expenses. The Scratchpay Parties are not liable for any defamatory, offensive or illegal conduct of any user. Your sole remedy for dissatisfaction with this Site is to stop using the Site. If your use of materials from this Site results in the need for servicing, repair or correction of equipment or data, you assume any costs thereof. If the foregoing limitation is found to be invalid, you agree that the Scratchpay Parties' total liability for all damages, losses, or causes of action of any kind or nature shall be limited to the greatest extent permitted by applicable law.

INDEMNIFICATION

You agree to indemnify and hold harmless Scratchpay Parties from and against any and all claims, losses, expenses, demands or liabilities, including attorneys' fees and costs, incurred by the Scratchpay Parties in connection with any of the Services provided, claim by a third party (including any intellectual property claim) arising out of (i) materials and content you submit to, post to or transmit through the Site, or (ii) your use of the Site or mobile application or other Servicesin violation of this Agreement or in violation of any applicable law. You further agree that you will cooperate fully in the defense of any such claims. Scratchpay Parties reserve the right, at their own expense, to assume the exclusive defense and control of any matter otherwise subject to indemnification by you, and you shall not in any event settle any such claim or matter without the written consent of Scratchpay. You further agree to indemnify and hold harmless Scratchpay Parties from any claim arising from a third party's use of information or materials of any kind that you post to the Site. Scratchpay may only be liable for gross negligence or gross recklessness arising out of the use of said Services.

MONITORING OF THE SITE

Scratchpay has no obligation to monitor the Site; however, you acknowledge and agree that Scratchpay has the right to monitor the Site electronically from time to time and to disclose any information as necessary or appropriate to satisfy any law, regulation or other governmental request, to operate the Site, or to protect itself or other users of the Site.

INACTIVE APPLICATIONS

Loan applications are canceled after seven (7) days of inactivity.

MINORS

This Site is not directed at children under the age of eighteen (18) and Scratchpay does not knowingly collect personal information from any child under the age of eighteen (18) at this Site.

SUBMISSIONS TO THE SITE

All remarks, discussions, ideas, concepts, know-how, techniques, graphics or other submissions communicated to Scratchpay through this Site (collectively, "Submissions") will be deemed and remain the property of Scratchpay, and Scratchpay is entitled to use any Submission for any purpose, without restriction or compensation to the individual who has provided the Submission. Scratchpay shall not be subject to any obligations of confidentiality regarding Submissions except as expressly agreed by Scratchpay or as otherwise required by applicable law. Nothing herein contained shall be construed as limiting Scratchpay's responsibilities and obligations under its Privacy Policy. Additionally, by using the Site, you acknowledge and agree that Internet transmissions are never completely private or secure. You understand that any message or information you send to the Site may be read or intercepted by others, notwithstanding Scratchpay’s efforts to protect such transmissions.

USE OF PERSONALLY IDENTIFIABLE INFORMATION

Scratchpay's practices and policies with respect to the collection and use of personally identifiable information are governed by Scratchpay's Privacy Policy.

AVAILABILITY

This Site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to applicable law or regulation. By offering this Site and Content no distribution or solicitation is made by Scratchpay to any person to use the Site or Content in jurisdictions where the provision of the Site and/or Content is prohibited by law.

TERMINATION

This Agreement is effective until terminated by Scratchpay. Scratchpay may terminate this Agreement at any time without notice, or suspend or terminate your access and use of the Site at any time, with or without cause, in Scratchpay's absolute discretion and without notice. The following provisions of this Agreement shall survive termination of your use or access to the Site: the sections concerning Indemnification, Disclaimer of Warranties, Limitation of Liability, Waiver, Applicable Law and Dispute Resolution, and General Provisions, and any other provision that by its terms survives termination of your use or access to the Site.

WAIVER

Failure by Scratchpay to enforce any of its rights under this Agreement shall not be construed as a waiver of those rights or any other rights in any way whatsoever.

APPLICABLE LAW AND DISPUTE RESOLUTION

This Agreement and all other aspects of your use of the Site shall be governed by and construed in accordance with the laws of the United States and, to the extent applicable, to the laws of the State of California, without regard to its conflict of laws rules. You agree that you will notify Scratchpay in writing of any claim or dispute concerning or relating to the Site and the information or services provided through it, and give Scratchpay a reasonable period of time to address it BEFORE bringing any legal action, either individually, as a class member or representative, or as a private attorney general, against Scratchpay.

OTHER AGREEMENTS

This Agreement shall be subject to any other agreements you have entered into with Scratchpay.

ADDITIONAL TERMS

Certain sections or pages on the Site may contain separate terms and conditions of use, which are in addition to the terms and conditions of this Agreement. In the event of a conflict, the additional terms and conditions will govern those sections or pages.

ASSIGNMENT

You may not transfer or assign any rights or obligations you have under this Agreement. To the extent not otherwise already permitted by applicable law, we may transfer or assign this Agreement or any right or obligation under this Agreement at any time provided that such transfer does not alter your rights and obligations under this Agreement to your detriment.

SEVERABILITY

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall be enforced to the fullest extent possible, and the remaining provisions of the Agreement shall remain in full force and effect.

GENERAL PROVISIONS

This Agreement supersedes any previous Terms of Use Agreement to which you and Scratchpay may have been bound. This Agreement will be binding on, inure to the benefit of, and be enforceable against the parties and their respective successors and assigns. Neither the course of conduct between parties nor trade practice shall act to modify any provision of the Agreement. All rights not expressly granted herein are hereby reserved. Headings are for reference purposes only and in no way define, limit, construe or describe the scope or extent of such section.

COPYRIGHT COMPLAINTS

If you believe, in good faith, that any materials on the Site infringe your copyrights, notifications of claimed copyright infringement should be sent to Scratchpay's designated agent. Notification should include:

an electronic or physical signature of the person authorized to act on behalf of the owner of the copyright interest;
a description of the copyrighted work that you claim has been infringed;
a description of where the material you claim is infringing is located on the Site;
a statement by you that you have a good faith belief that the disputed use is not authorized by the copyright owner, its agent or the law; and
a statement by you, made under penalty of perjury, that the above information in your notice is accurate and that you are the copyright owner or duly authorized to act on the copyright owner's behalf.

You may contact Scratchpay's agent for notification of claimed copyright infringement by e-mail at [email protected] or by regular mail at Scratch Financial Inc., 225 S. Lake Avenue, Suite 250, Pasadena, CA 91101, Attn: Compliance.

COOKIES

"Cookies" are small data files transferred by a website to your computer's hard drive. Scratchpay or its service providers send cookies when you surf our site or sites where Scratchpay ads appear, make purchases, request or personalize information, or register yourself for certain services. Accepting the cookies used on our site, sites that are "powered by" another company on Scratchpay’s behalf, or sites where our ads appear may give us access to information about your browsing preferences, which we may use to personalize and enhance your experience. Cookies are typically classified as either "session" cookies or "persistent" cookies.

Session cookies do not stay on your computer after you close your browser.
Persistent cookies remain on your computer until you delete them or they expire.

Generally speaking, web browsers automatically accept cookies by default. That being said, you can typically prevent cookies or selectively accept cookies by adjusting the preferences in your browser. If cookies are not accepted, there may be some features of our site that will not be available and some Websites may not display properly. In most instances, however, a customer may refuse a cookie and still be able to navigate our website without issue.

A web browser is usually set to accept cookies automatically but can be changed to decline them. Information on how to adjust cookie preferences (e.g., preventing your browser from accepting new cookies, etc.) are located in the help and support section of your browser. In most cases, a visitor may refuse a cookie and still fully navigate our Website.

Like many companies, we use cookies and other tracking technologies on our online services (referred to together from this point forward as “Cookies”, unless otherwise stated) including HTTP cookies, flash cookies, HTML5 and Flash local storage, web beacons/GIFs, embedded scripts, and e-tags/cache browsers. We may use Cookies for a variety of purposes and to enhance your online experience, for example, by remembering your application status and viewing preferences from a previous use of an online service, for when you later return to that online service.

Scratchpay does not store passwords or any other information about a visitor in a cookie that would identify them, locate them, and determine their preferences or their financial activity. Aggregated customer information may help Scratchpay assess the performance of its website and develop strategies to maximize utility. This information may be provided to other companies, including but not limited to third party advertisers. This information does NOT include any personal details that can be used to identify individuals.

The cookies that Scratchpay uses on its Website

Security Cookies – Session cookies used to support security measures within the site.
Yield Manager – This is a tracking pixel that records traffic coming from 3rd party sources.
LivePerson – A tracking pixel used to track web session for customer service web chat.
Scratchpay – Contains a session cookie recognizing applicant to process loan application through completion
Iovation – Contains a cookie to identify applicants electronic device
DoubleClick – This is a tracking pixel that records traffic coming from 3rd party sources.
H Online – Contains a cookie to identify applicants electronic device
Google Analytics – Web analytics tracking
Google Adwords – Conversion tracking

How long does Scratchpay keep personal information?

Scratchpay will maintain the information that is necessary to enable Scratchpay to provide the requested service and only for as long as it takes Scratchpay to provide any such requested service.
Scratchpay may still need to keep personal details of customers to ensure that systems reflect your preferences even if a customer has chosen to opt out of allowing Scratchpay to use that customer's personal details for marketing purposes.
Scratchpay may keep records of any transactions a customer enters into on the Scratchpay Website for a minimum of six years from the end of Scratchpay’s relationship with the customer.
Scratchpay may keep other information about a customer only to the extent necessary to comply with applicable laws and to further legitimate business needs.

OTHER IMPORTANT INFORMATION

ADDITIONAL INFORMATION FTC HOLDER RULE

YOUR BILLING RIGHTS SUMMARY:

ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

YOUR RIGHTS AND OUR RESPONSIBILITIES UNDER THE FAIR CREDIT BILLING ACT IF YOU FIND A MISTAKE ON YOUR STATEMENT:

If you think there is an error on your statement, please write us at: Scratch Financial, Inc., 225 S. Lake Ave., Suite 250, Pasadena, CA 91101

YOU MUST CONTACT US:

You must notify us of any potential errors in writing. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question.

Within 60 days after the error appeared on the statement.
At least 3 business days before an automated payment is scheduled, if you want to stop payment on the amount you think is wrong.
In your letter, please provide the following information:
- Account Information: Your name and account number
- Dollar Amount: The dollar amount of the suspected error
- Description of the problem: If you think there is an error on your bill, describe what you think is wrong and why you believe it is a mistake.

WHAT WILL HAPPEN AFTER WE RECEIVE YOUR LETTER:

Within 30 days of receiving your letter, we must tell you that we received your letter. We will also tell you if we have already corrected the error.
Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct.
While we investigate whether or not there is an error:
- We cannot try to collect the amount in question, or report you as delinquent on that account.
- The charge in question may remain on your statement, and we may continue to charge you interest on that amount.
- While you do not have to pay that amount in question, you are responsible for the remainder of the balance.

AFTER THE INVESTIGATION IS COMPLETED, one of two things will happen:

If we made a mistake you will not have to pay that amount in question, or any interest or fees related to that amount.
If we do not believe there was a mistake: You will have to pay the amount in question along with the applicable interest and fees. We will send you a statement of the amount you owe and the date payment is due. We may then report you as delinquent if you do not pay the amount we think you owe.
- If you receive our explanation but still believe your bill is wrong, you must write us within 10 days that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting that you are questioning your statement. We must tell you the name of anyone whom we reported you to as delinquent, and we must let those organizations know when the matter has been settled between us.
- If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question even if your bill is correct.

YOUR RIGHTS IF YOU ARE DISSATISFIED WITH THE SERVICES INVOICED FROMTHE VETERINARY OR MEDICAL/DENTAL PROVIDER (collectively “Provider”):

Please refer to the Arbitration Section of your Promissory Note. If you are dissatisfied with the finalized services provided by the "Provider" who was paid by us on your behalf, and you have tried in good faith to correct the problem with the Provider, you may have the right not to pay the remaining amount due, or the questioned amount, on the balance. To use this right, the following must be true:

The finalized invoice for services must have been made in your home state, or within 100 miles of your current mailing address, and the amount must have been more than $50.
You must have used your loan to pay in full the finalized invoice for services by the approved Provider.
You must not have fully paid off the loan.
If all of the criteria are met and you are still dissatisfied with the service purchased, contact us in writing at: Scratch Financial, Inc. 225 S. Lake Ave. Suite 250, Pasadena, CA 91101.
While we investigate, the same rules apply to the disputed amount as discussed above. After we finish our investigation, we will tell you of our decision. At that point, if we think you owe an amount and you do not pay, we may report you as delinquent.

MANDATORY ARBITRATION OF DISPUTES PROVISION

PLEASE READ THIS ARBITRATION PROVISION CAREFULLY. UNLESS YOU (1) ARE SUBJECT TO THE PROTECTIONS OF THE MILITARY LENDING ACT OR (2) OPT OUT IN ACCORDANCE WITH THE PROCEDURES DESCRIBED BELOW, ITWILL HAVE A SUBSTANTIAL EFFECT ON YOUR RIGHTS, INCLUDING YOUR RIGHT TO BRING OR PARTICIPATE IN A JURY TRIAL OR A CLASS ACTION.

NOTICE FOR ACTIVE DUTY MILITARY MEMBERS AND THEIR DEPENDENTS:

The following disclosures apply to you if you open your account on or after October 3, 2017 and at the time your account is opened you are a “covered borrower” as defined in the Military Lending Act, which includes eligible active duty Members of the Armed Forces and their dependents:

The provision in the Promissory Note Agreement resolving a dispute with Arbitration and these Terms of Use will not apply to your account.
Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. The cost of consumer credit to members of the Armed Forces and their dependents relating to extensions may not exceed an Annual Percentage rate of 36 percent. You can call 1-855-367-4541 to hear the information and a description of the payment obligationfor your account.

ARBITRATION PROVISION

AN AGREEMENT TO ARBITRATE IS NOT A CONDITION OF THE USE OF THESE SERVICES OR ANY LOAN AGREEMENT. IF YOU WOULD LIKE TO OPT OUT OF ARBITRATION PLEASE DELIVER NOTICE TO [email protected].
IF EITHER YOU OR WE MAKE A DEMAND FOR ARBITRATION, YOU AND WE MUST ARBITRATE AND WE MUST ARBITRATE ANY DISPUTE OR CLAIM BETWEEN YOU AND ANY OTHER USER OF THE ACCOUNT, AND US, OUR AFFILIATES AND/OR PROVIDERS AS IT RELATES TO YOUR ACCOUNT.
IF YOU AGREED TO THIS JURY TRIAL WAIVE AND ARBITRATION CLAUSE (“CLAUSE”), MOST DISPUTES BETWEEN YOU AND US WILL BE SUBJECT TO INDIVIDUAL ARBITRATION.

You agree that any and all past, present or future disputes or claims, including without limitation (a) federal and state regulatory and statutory claims, (b) common law claims, (c) claims under local ordinances, (d) data breach or privacy claims and (e) claims based in contract, tort, intentional tort, fraud, misrepresentation or any other legal theory, arising out of or relating to Scratch’s Terms of Use (“Agreement”), the Scratchpay loans including but not limited to: Scratchpay Take 5, Scratchpay Downpayment (Pay over Time Agreement), or other agreements between you and Scratchpay, Services provided by Scratchpay, use of the Scratchpay App or Scratchpay payment platform, transactions you engage in, collection of amounts due, or the relationship between you and Scratchpay (Company) or WebBank and their agents, employees, officers,directors, predecessors in interest, and successors and assigns, shall –at the election of either you or us –be resolved exclusively through final and binding arbitration, as set forth in this Arbitration Provision, rather than in court before a judge or a jury. This Arbitration Provision is also binding upon and may be enforced by any third party who is named as a co-defendant with us in a claim asserted by you. Notwithstanding the foregoing:

ARBITRATION PROVISION DESCRIBED: Background and Scope.


What is arbitration?	An alternative to court.	In arbitration, a third party ("Arbiter") solves Disputes in a hearing ("hearing"). You, related third parties, and we, waive the right to go to court. Such "parties" waive jury trials.
Is it different from court and jury trials?	Yes.	The hearing is private and less formal than court. Arbiters may limit pre-hearing fact finding, called "discovery." The decision is final. Courts rarely overturn Arbiters.
Who does the Clause cover?	You, Us, and Others	This Clause governs the parties, their permitted assigns, and third parties related to any Dispute.
Which Disputes are covered?	All Disputes	In this Clause, the word "Disputes" has the broadest possible meaning. This Clause governs all "Disputes" involving the parties. This includes all claims even indirectly related to your application and agreements with us. This includes claims related to information you previously gave us. It includes all past agreements. It includes extensions, renewals, refinancings, or payment plans. It includes claims related to collections, privacy, and customer information. It includes claims related to setting aside this Clause. It includes claims about the Clause's validity and scope. It includes claims about whether to arbitrate.
Are you waiving rights?	Yes.	You waive your rights to: 1. Have juries solve Disputes. 2. Have courts, other than small-claims courts, solve Disputes. 3. Serve as a private attorney general or in a representative capacity. 4. Be in a class action.
Are you waiving class action rights?	Yes.	COURTS AND ARBITERS WON'T ALLOW CLASS ACTIONS. You waive your rights to be in a class action, as a representative and a member. Only individual arbitration, or small-claims courts, will solve Disputes. You waive your right to have representative claims. Unless reversed on appeal, if a court invalidates this waiver, the Clause will be void.
What law applies?	The Federal Arbitration Act (“FAA”)	This transaction involves interstate commerce, so the FAA governs. If a court finds the FAA doesn't apply, and the finding can't be appealed, then your state's law governs. The Arbiter must apply substantive law consistent with the FAA. The Arbiter must follow statutes of limitation and privilege claims.
Can the parties try to solve Disputes first?	Yes.	We can try to solve Disputes if you call us at 855-727-2395. If this doesn't solve the Dispute, mail us notice, within 100 days of the Dispute date. In your notice, tell us the details and how you want to solve it. We will try to solve the Dispute. If we make a written offer ("Settlement Offer"), you can reject it and arbitrate. If we don't solve the Dispute, either party may start arbitration. To start arbitration, contact an Arbiter or arbitration group listed below. No party will disclose settlement proposals to the Arbiter during arbitration.
How should you contact us?	By mail.	Send mail to: Scratch Financial, Inc. 225 S. Lake Avenue, Suite 250, Pasadena, CA 91101. You can call us at 855-727-2395 or use certified mail to confirm receipt.
Can small- claims court solve some Disputes?	Yes.	Each party has the right to arbitrate, or to go to small-claims court if the small-claims court has the power to hear the Dispute. Arbitration will solve all Disputes that the small-claims court does not have the power to hear. If there is an appeal from small-claims court, or if a Dispute changes so that the small-claims court loses the power to hear it, then the Dispute will only be heard by an Arbiter.
Do other options exist?	Yes.	Both parties may use lawful self-help remedies. This includes set-off or repossession and sale of any collateral. Both parties may seek remedies which don't claim money damages. This includes pre-judgment seizure, injunctions, or equitable relief.
Will this Clause continue to govern?	Yes, unless otherwise agreed.	The Clause stays effective unless the parties sign an agreement stating it doesn't. The Clause governs if you rescind the transaction. It governs if you default, renew, prepay, or pay. It governs if your contract is discharged through bankruptcy. The Clause remains effective, despite a transaction's termination, amendment, expiration, or performance.

Process.


How does arbitration start?	Mailing a notice	Either party may mail the other a request to arbitrate, even if a lawsuit has been filed. The notice should describe the Dispute and relief sought. The receiving party must mail a response within 20 days. If you mail the demand, you may choose the arbitration group. Or, your demand may state that you want the parties to choose a local Arbiter. If related third parties or we mail the demand, you must respond in 20 days. Your response must choose an arbitration group or propose a local Arbiter. If it doesn't, we may choose the group.
Who arbitrates?	AAA, JAMS, or an agreed Arbiter.	You may select the American Arbitration Association ("AAA") (1-800-778-7879) http://www.adr.org or JAMS (1-800-352-5267) http://www.jamsadr.com. The parties may also agree in writing to a local attorney, retired judge, or Arbiter in good standing with an arbitration group. The Arbiter must arbitrate under AAA or JAMS consumer rules. You may get a copy of these rules from such group. Any rules that conflict with any of our agreements with you, don't apply. If these options aren't available, and the parties can't agree on another, a court may choose the Arbiter. Such Arbiter must enforce your agreements with us, as they are written.
Will the hearing be held nearby?	Yes.	The Arbiter will order the hearing within 30 miles of your home or where the transaction occurred.
What about Appeals?	Appeals are limited.	The Arbiter's decision will be final. A party may file the Arbiter's award with the proper court. Arbitration will solve appeals of a small-claims court judgment. A party may appeal under the FAA. If the amount in controversy exceeds $10,000.00, a party may appeal the Arbiter's finding. Such appeal will be to a three-Arbiter panel from the same arbitration group. The appeal will be de novo, and solved by majority vote. The appealing party bears appeal costs, despite the outcome.

Arbitration Fees and Awards.


Will we advance Arbitration Fees?	Yes, but you pay your costs.	We will advance your "Arbitration Fees" if you ask us to. This includes filing, administrative, hearing, and Arbiter's fees. You pay your attorney fees and other expenses.
Are damages and attorney fees possible?	Yes, if allowed by law.	The Arbiter may award the same damages as a court. Arbiters may award reasonable attorney fees, and expenses, if allowed by law.
Will you pay Arbitration Fees if you win?	No.	If the Arbiter awards you funds, you don't reimburse us the Arbitration Fees.
Will you ever pay Arbitration Fees?	Yes.	If the Arbiter doesn't award you funds, then you must repay the Arbitration Fees. If you must pay Arbitration Fees, the amount won't exceed state court costs.
What happens if you win?	You could get more than the Arbiter awarded	If an Arbiter's award to you exceeds our last Settlement Offer, we will pay the greater of the award amount or $7500 in addition to your attorneys' fees and reasonable expert witness costs and other costs incurred.
Can an award be explained?	Yes.	A party may request details from the Arbiter, within 14 days of the ruling. Upon such request, the Arbiter will explain the ruling in writing.

Other Options.


If you don't want to arbitrate, can you still get a transaction?	Yes. You can get our services and decide not to arbitrate.	Consider these choices: 1. Informal Dispute Resolution. Contact us, and attempt to settle any Disputes. 2. Small-claims Court. Seek to solve Disputes in small-claims court, within state law limits. 3. Opt-Out of Arbitration. Sign and then timely opt-out.
Can you opt-out of the Clause?	Yes. Within 60 days.	Write us within 60 calendar days of signing your agreement to opt-out of the Clause for that agreement. List your name, address, account number and date. List that you "opt out." If you opt out, it will only apply to that agreement.

CONTACTING US

[email protected] or by regular mail at Scratch Financial Inc., 225 S. Lake Avenue, Suite 250, Pasadena, CA 91101, Attn: Compliance.

Last Updated: January 2, 2023