Koto Card Limited card terms and conditions

Koto Card Limited (“Koto”) is a business registered in the United Kingdom with company number 11224081 and head office at Nightingale House, 46-48 East Street, Epsom, Surrey, KT171HQ. Your Koto Card and any e-money issued to you is issued by PrePay Technologies Ltd (“PPS”) pursuant to a license granted by Mastercard International. PPS is authorised by the FCA under the Electronic Money Regulations 2011 (FRN: 900010) for the issuing of electronic money and provision of payment services. Koto has been appointed as an agent of PPS. This e-money Agreement is between us and you, the Koto Account Holder. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Important information you need to know

Please read this e-money Agreement carefully before using your Koto Account or activating your Koto Card or using any of our services. This information forms the e-money Agreement for your Koto Account including any associated Koto Card and payment services that we may provide to you. By confirming that you accept the terms of this e-money Agreement, or by using your Koto Account or activating your Koto Card and/or using our services, you accept this e-money Agreement. If there is anything you do not understand, please don’t hesitate to contact Customer Services using the contact details in paragraph 21 of this e-money Agreement.

Koto also provides consumer Credit Facility products that may be entered into via a separate credit agreement. PPS is not responsible for any credit agreement entered into by you and Koto, this is strictly between you and Koto.

Any Credit Facility provided to you by Koto will be added to your Koto Account which will become e-money, and can be used in accordance with this e-money Agreement.

Subject to a Koto Credit Agreement, should your Koto Account go into a negative balance then Koto will fund your Koto Account either up to the value of your Koto Credit Agreement or with the equivalent amount to cover your negative balance. You will be liable to pay Koto of any amount that Koto will fund under the Koto Credit Agreement, plus any additional charges you may have agreed with Koto.

Defined Terms

A list of all defined terms used in this e-money Agreement can be found at paragraph 22 below.

1. KOTO ACCOUNT LIMITS

For Koto Account:

Subject to any further risk assessment requirements, on opening a new account, Koto Account Limits are set out in the table below. Please note that it may be necessary for us to set lower Koto Account Limits than those set out below. We can also change limits at our discretion at any time to comply with our regulatory obligations and to reduce the risk of financial crime. In the event that we lower Koto Account Limits, if we are able to, we will notify you of the revised Koto Account Limits applicable to your Koto Account.

Any Credit Facility that you may have under a separate agreement with Koto Card Limited may contribute to your Maximum Balance.

2. SCOPE OF THIS E-MONEY AGREEMENT

2.1 Your Koto Account is an e-money account held in pounds sterling. If you qualify for a Koto Account, you will be issued a virtual Koto Card that is associated with your Koto Account. Upon your request we will issue you a plastic/physical Koto Card. Both virtual and physical card will be Mastercard debit product, it is not a credit card or a charge card.

2.2 The Koto Account is an electronic money product and the electronic money stored in the Koto Account is issued by PPS, and distributed and administered by Koto as agent for PPS.

2.3 All Koto Cards are issued by us pursuant to our license from Mastercard. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Your Koto Card remains PPS’ property.

2.4 Your rights and obligations relating to the use of your Koto Account and Koto Card are as set out in this e-money Agreement between you and us; you have no rights against Mastercard or its respective affiliates. If you experience any difficulties in using your Koto Account and/or Koto Card you should contact Customer Services.

2.5 This e-money Agreement is written and available in English only. All our communications with you relating to this e-money Agreement, the Koto Account and any Koto Card will be in English.

2.6 You acknowledge that we may communicate with you by e-mail and/or SMS and/or via the Koto App or a messenger such as WhatsApp or iMessage, when we provide you with any service notifications or other information about your Koto Account and therefore it is important that you ensure you keep your e-mail address and mobile phone number updated via the Koto App. You may download a copy of this e-money Agreement from our website (getkoto.com/legal-info).

2.7 If you wish to make use of services provided by an Authorised Third Party Provider on your Koto Account, you may do so provided that you have signed up to use Koto App and your Koto Account is active. We advise that before using an Authorised Third Party Provider, you ensure that the Authorised Third Party Provider is authorised by a Regulator to provide their services. In the UK, the Financial Conduct Authority’s register (available at https://register.fca.org.uk/) and in other EEA countries respective registries maintained by national authorities will tell you whether a company is authorised. You must provide your explicit consent or share your Koto App credentials with the Authorised Third Party Provider each time an access to your Koto Account is required for them to provide you with their services. You should always consider the implications of sharing your Koto App credentials and your personal information.

2.8 If an Authorised Third Party Provider requests access to your Koto Account to provide you with their services using your Koto App credentials, we will assume that you have given consent to do so. Please note, once you have so approved this request we are obliged to provide access to your Koto Account if it is requested by an Authorised Third Party Provider and can only refuse access in certain circumstances.

2.9 If you do not wish to use services provided by an Authorised Third Party Provider on your Koto Account, you simply refuse to provide your consent or refuse to share your Koto App credentials with an Authorised Third Party Provider.

3. APPLYING FOR AND REGISTERING YOUR KOTO ACCOUNT

3.1 To apply for a Koto Account, you must be at least 18 years old.

3.2 We will register your Koto Account for you on the basis of the Information that you have provided to us. You must provide accurate information and tell us of any changes to your Information as soon as possible so that our records remain correct.

3.3 If we discover that the information we hold about you is incorrect, we may have to suspend or cancel your Koto Account until we can establish the correct information, in order to protect us both.

3.4 To use the Koto Account, you will need to download the Koto App via your mobile phone.

3.5 You may be able to apply for a Credit Facility offered by Koto subject to a separate agreement with Koto.

3.6 A Koto Account is for personal use only, not for business use. If you use your Koto Account for business purposes we may close your Koto Account immediately.

4. RECEIVING AND ACTIVATING A CARD

4.1 You will receive a virtual card immediately in app once you have successfully been onboarded. You can request a physical card to be sent to you. This can be done through the Koto App.

4.2 If you receive the Koto Card, you must immediately sign it and activate the Koto Card according to instructions you receive in the envelope in which the card is delivered. If the Koto Card is intercepted before you receive it you will not be liable for any misuse.

4.3 Once the Koto Card has been activated, the Koto App will provide a PIN. You must never reveal your PIN to anybody and agree to keep your Koto Card safe. We will not reveal the PIN to a third party.

4.4 You may change the PIN at most ATMs that have PIN change functionality. When selecting or changing the PIN, you must not select a PIN that may be easily guessed, such as a number that:

4.4.1 is associated with you, such as your telephone number or birth date; or

4.4.2 is part of data imprinted on your Koto Card; or

4.4.3 consists of the same digits or a sequence of running digits; or

4.4.4 is identical to a previously selected PIN.

5. USING THE KOTO CARD

5.1 The Koto Card can be used at any Merchant to make purchases in-store, via the internet or over the phone and can be used to obtain cash through ATMs within the UK, EEA and abroad (fees may apply, see paragraph 11).

Each transaction will need to be authorised by you at any Merchant by entering the PIN or other security code, if the Merchant does not accept chip and PIN authorisation, the Merchant may allow you to authorise the transaction by signature of the receipt. A transaction can also be authorised by tapping your Koto Card or mobile device with Koto enabled Apple Pay or Google Pay against a Contactless enabled reader. From time to time the Contactless terminal may require you to enter your PIN for security reasons. We may refuse to execute a transaction if we believe the transaction is unlawful or fraudulent. We will treat the transactions as authorised by you if:

5.1.1 the Koto Card PIN or other security code personal to you is used; or

5.1.2 the Koto Card is used and you have authorised the transaction by signature of the receipt.

5.2 The Koto Card is a debit card, which means that the Available Balance will be reduced by the full amount of each transaction you make, plus any applicable taxes and charges, including additional ATM charges if any.

5.3 You must not use your Koto Card if the Full Deductible Amount exceeds the Available Balance, however subject to a Credit Facility you may have with Koto, you may be able to use your Koto Card if the Full Deductible Amount exceeds the Available Balance.

5.4 Once you have authorised a particular transaction, you will not be able to withdraw your consent to that transaction.

5.5 Your Koto Card can be used to make transactions in a currency other than pounds sterling (“foreign currency transaction”). The amount deducted from your Koto Account will be converted to pounds sterling on the day of receipt of the transaction request. We will use a wholesale rate set by Mastercard that day and we will display the exchange rate in your Koto App. Exchange rates can fluctuate and they may change during the day. You can find out the exchange rate applied to a transaction in your transaction history. When you use your Koto Card to make a foreign currency transaction (transaction in currency other than the underlying currency of your Koto Card).

5.6 Due to security safeguards, Merchants that accept your Koto Card are required to seek authorisation from us for all of the transactions that are made by you. In some circumstances Merchants may require you to have an Available Balance greater than the value of the transaction they wish to make. You will only be charged for the actual and final value of the transaction they make. Merchants request this as they may need to access more funds than you initially planned to spend. This may be the case for:

5.6.1 hotels, rental cars, and

5.6.2 internet Merchants – certain internet Merchant sites will, on registration or at checkout stage, send a request for payment authorisation to verify if funds are available. This will temporarily impact the Available Balance.

Many merchants, particularly online merchants, will not deduct payment from your Koto Card until goods are dispatched. You should be aware of any payments that will be deducted in this manner when you are making other purchases to ensure that your Available Balance is enough to cover all purchases. We will not block funds in instances of transactions of unknown amounts as suggested under 5.6.1 and 5.6.2 unless you authorise the exact amount of funds to be blocked. We will release any blocked funds without undue delay after becoming aware of the amount of the payment transaction, and in any event immediately after receipt of the payment order.

5.7 Where you have agreed that another person can take a payment made from your Koto Account (e.g. if you have given your Koto Card details to a retailer for the purpose of making a payment for renting a car or booking a hotel room), you can ask us to refund a payment if all the following conditions are satisfied:

5.7.1 the authorisation given did not specify the exact amount to be paid;

5.7.2 the amount that has been charged to your Koto Account was more than you could reasonably have expected to pay, based on the circumstances, including previous spending patterns; and

5.7.3 you make the refund request within eight weeks of the date when the payment was taken from your Koto Account.

5.8 We may ask you to provide information as is reasonably necessary to verify that conditions in 5.7.1 – 5.7.3 are satisfied.

5.9 If you ask us to make a refund under paragraph 5.7 then, within 10 Working Days of the date we receive your request (or if we ask for more information under paragraph 5.8, within 10 Working Days of the date we receive that information) we will either:

5.9.1 refund the payment in full; or

5.9.2 tell you the reasons why we do not agree to the refund.

5.10 You will not be entitled to a refund under paragraph 5.7 if:

5.10.1 you have given us your consent for the payment to be made; and

5.10.2 where applicable we (or the person or a Merchant you agreed to pay) have given you information on the payment in question at least four weeks before the due date of the payment; or

5.10.3 if the payment in question was higher than you reasonably expected to pay is due to a change in any currency exchange rate.

5.11 Paragraph 5.10 does not limit your rights under the Direct Debit Guarantee Scheme.

5.12 If a Merchant agrees to give you a refund for a purchase made using the Koto Card, the funds will be added to the Available Balance of the Koto Account when we receive the funds from the Merchant.

LIMITS ON THE USE OF THE KOTO CARD

5.13 Your Koto Card cannot be used in all situations. Where it is not possible to obtain online authorisation that you have a sufficient Available Balance for the transaction, the Koto Card cannot be used. This may be the case for transactions on trains, ships, and some inflight purchases. You will be responsible if an offline transaction does go through for whatever reason and you must repay us the amount that exceeds the Available Balance.

5.14 Your Koto Card cannot be used to pay at the pump at self-service petrol pumps; however, you can use your Koto Card to pay for the petrol by taking it to the cashier.

5.15 Your Koto Card should not be used as a form of identification.

5.16 Your Koto Card should not be used for any illegal purpose or in any manner prohibited by law.

5.17 Your Koto Card should not be used for gambling, for any adult entertainment or for Quasi Cash transactions

5.18 We may ask you to surrender any Koto Cards at any time for a valid reason in accordance with the provisions in paragraph 14 or 15 or 16 of this e-money Agreement.

EXPIRY DATE

5.19 The expiry date of your Koto Card is printed on the back of your Koto Card. You will not be able to use your Koto Card once it expires. If you request a replacement Koto Card, we may send you a replacement Koto Card.

5.20 Any Available Balance remaining on the Koto Account at Koto Card expiry will remain yours for a period of six years from the expiry date. Within this period, you may at any time transfer any Available Balance on the Koto Account to a UK bank account via Faster Payment in pounds sterling (subject to Koto Account Limits). You will not have access to your Koto Account and we will not return any funds remaining on the Koto Account after six years from Koto Card expiry and this e-money Agreement will terminate. We may charge you £5 redemption fee for this service.

5.21 You are responsible for the use of your Koto Card issued to you under this e-money Agreement and any fees or charges that your Koto Card may incur.

6. USING THE KOTO ACCOUNT

6.1 The Koto Account can be used for setting up Direct Debit, for making and receiving Faster Payments and for receiving BACS Credits and CHAPS payments, each subject to Koto Account Limits (see paragraph 1).

ADDING FUNDS TO THE KOTO ACCOUNT

6.2 Subject to the limits set out in paragraph 1, funds can be added to your Koto Account through UK Faster Payments, UK BACS Credit and UK CHAPS payments, you will require your Koto Account Details for adding funds via any one of these methods. Funds can also be added to the Koto UK Account by depositing cash at a PayPoint.

Subject to being approved for a Credit Facility, funds can also be added to your Koto Account by Koto with any amount that has been granted to you under a separate credit agreement with Koto. We reserve the right to permanently or temporality restrict certain methods of adding funds to you Koto Account in order to prevent financial crime and/or or any use of Koto Cards or Koto Accounts which is not, in our reasonable opinion, consistent with acceptable and intended use of Koto Cards and Koto Accounts or which is outside of our risk appetite from time to time.

6.3 We may not credit your Koto Account with a payment intended for your Koto Account if:

6.3.1 the Koto Account has reached the Koto Account Maximum Balance or Koto Account Limits;

6.3.2 the Koto Account is inactive or blocked;

6.3.3 the sender has provided incorrect/invalid Koto Account Details for your Koto Account;

6.3.4 we suspect fraudulent activity on your Koto Account; or

6.3.5 to do so is prohibited by any law.

6.4 The funds may be sent back to the sender without notifying you if paragraph 6.3 applies.

UK FASTER PAYMENTS OUT

6.5 To make a UK Faster Payment from your Koto Account, you must first set up the recipient as a new payee. For setting up a new payee to make UK Faster Payments from your Koto Account, you will need to provide name, account number and sort code of the person you wish to pay (these details are referred to as the “Unique Identifier”). You will then undergo some security authorisation steps on the Koto App.

6.6 Once the security authorisation steps have been successfully completed, a payment to that authorised payee can be made via the Koto App. Provided we process the payment transaction in accordance with the Unique Identifier provided by you, we will not be liable for any non-execution or defective execution if the Unique Identifier provided is incorrect.

6.7 It is your responsibility to check there is sufficient Available Balance before sending any payments out. If your Koto Account does not have sufficient Available Balance or a valid Credit Facility to cover the payment, your payment will be rejected.

6.8 If you update your mobile number via the Koto App or Customer Services, you not able to set up a new payee for making payments for 24 hours.

6.9 If a payment is rejected by the recipient bank, a refund is automatically credited to your Koto Account after we receive the funds from the recipient bank.

DIRECT DEBITS

6.10 Koto will allow you to setup Direct Debits outgoing from your Koto Account.

6.11 To set up a Direct Debit from your Koto UK Account, you must first authorise the organisation taking Direct Debit payments from the Koto Account.

6.12 If a Direct Debit on the Koto Account specifies that a payment is to take place on a specified day or on the last day of a certain period, then we will treat the Payment Instruction as being received on the day specified.

6.13 Any Direct Debit payment is usually taken from your Koto Account at the beginning of the Working Day it is due.

6.14 It is your responsibility to check there is sufficient Available Balance before any payment is due. If your Koto Account does not have sufficient Available Balance or a valid Credit Facility to cover the payment, any Direct Debit payment will be rejected.

6.15 In the case of a Direct Debit, you can revoke a payment order at any time up to the end of the working day preceding the day agreed for debiting the funds. The revocation will be effective for all future direct debits.

6.16 We will only allow a payment to be made if the payment is within your Koto Account Limits and there is sufficient Available Balance and/or a valid Credit Facility to cover the payment.

6.17 The time of receipt of a transaction order is when we receive it. If receipt of the transaction is received out of Working Day, it is deemed to be received on the following Working Day. You cannot stop a transaction after it has been transmitted to us and you have given your consent, or when you have given your consent to a pre-authorised payment.

6.18 In relation to any payment order you give directly to us we will on request from you tell you the maximum execution time and the amount of any charges payable, including a breakdown if appropriate.

AUTHORISATION FOR PAYMENTS AND STOPPING PAYMENTS

6.19 It is your responsibility to ensure you provide correct recipient account details and payment amount when making any payment or setting up a payee. You are responsible if you give us incorrect instructions or mistakenly instruct us to make the same payment more than once, but we will try to help you get the money back. We may not always be able to do this, but we will do all we can. We may charge you a fee for tracing, recalling or cancelling a payment. If we cannot get the money back, you can request the relevant information we have about the transaction to help you reclaim the money. We will provide this information on receiving a written request from you, unless the law prevents us doing so.

6.20 You can authorise us to make a payment from your Koto Account via the Koto App by setting up electronic payments and giving us instructions via a third party, such as through a Direct Debit scheme or Payment Initiation Service Provider. We will treat a payment as authorised by you if:

6.20.1 the transaction was authorised from the Koto App using the required app entry passcode or credentials and that the payee had been approved;

6.20.2 you have set up or agreed to any Direct Debit payments to be taken from your Koto Account; or

6.20.3 a Payment Initiation Service Provider has made a payment from your Koto Account.

6.21 We may refuse to execute or process a payment (without prior notice to you) if:

6.21.1 the Koto Account does not have sufficient Available Balance to cover the payment; or

6.21.2 the Koto Account is suspended or closed; or

6.21.3 the Koto Account has reached its Koto Account Limits; or

6.21.4 we need to do so to comply with the rules of the payment system; or

6.21.5 we suspect fraudulent activity on your Koto Account or the payment is unlawful or fraudulent;

6.21.6 we are concerned about fraud or unauthorised access to your Koto Account by a Payment Initiation Service Provider; or

6.21.7 required to comply with any law.

6.22 If we refuse to process a payment under 6.21:

6.22.1 we will notify you via email/SMS/in-app of the refusal and unless the law prevents us we will tell you the reasons, at the earliest opportunity and no later than the end of the next Working Day following receipt of the payment order

6.22.2 we will not be liable for any loss this may result in, nor will we be obliged to inform the intended recipient;

6.22.3 you can check your Koto Account to ensure there was enough Available Balance and/or that correct recipient details were provided and if you contact Customer Services we will if possible tell you what you can do to correct any errors in the Payment Instruction;

6.22.4 due to concerns detailed in 6.21.6.

6.23 In the event of suspected or actual fraud or security threat to your Koto Card or Koto Account, we will use in-app messaging, SMS, telephone, post, email or another secure procedure to contact you. We may ask you to verify your identity for security purposes.

6.24 You will generally not be able to stop any payment once it has been authorised by you or Payment Initiation Service Provider. However you may be able to stop a Direct Debit payment provided that:

6.24.1 you cancel the Direct Debit before the end of the Working Day preceding the day your Koto Account is due to be debited; and

6.24.2 the payment has not already been made.

6.25 If you stop or cancel a Direct Debit, you must tell the recipient to whom the Direct Debit is payable. We will not be responsible if you fail to inform them and the recipient will not have any claim against us.

6.26 If, for any reason, a payment is processed for an amount greater than the Available Balance on your Koto Account, you must repay us the amount by which the Full Deductible Amount exceeds your Available Balance immediately after receiving an invoice from us. Should you not repay this amount immediately after receiving an invoice from us we reserve the right to take all steps necessary, including legal action and/or closing the Koto Account, to recover any monies outstanding. However, if you have a Koto Credit Agreement with Koto, you will be liable to pay Koto.

6.27 The Available Balance on the Koto Account will not earn any interest.

7. CHECKING YOUR KOTO ACCOUNT BALANCE

7.1 You can check the Available Balance and transaction history on the Koto Account via the Koto App.

7.2 Your monthly Koto Account statements will be available in the Koto App. You will be able to receive your monthly Koto Account statements in a durable medium, such as email. We will send you a monthly notification to inform you that your account statement has been produced.

8. CANCELLING, CLOSING YOUR KOTO ACCOUNT AND REDEEMING E-MONEY

8.1 You may close your Koto Account and cancel any Koto Card at any time by contacting Customer Services. Any Available Balance may be transferred to a UK bank account via UK Faster Payments in pounds sterling (subject to Koto Account Limits) before cancelling the Koto Account.

8.2 Subject to paragraph 8.5, once the Available Balance is redeemed and the Koto Account is closed, your e-money Agreement will terminate. However, if paragraph 8.5 applies to your Koto Account then your Koto Account will remain active and your e-money Agreement will continue to apply to you until there is no money outstanding on your Koto Account.

8.3 All Direct Debit transactions that were set up on the Koto Account will be rejected once your Koto Account is closed.

8.4 Any Credit Facility that you may have with Koto must have come to a conclusion and be fully paid before your Koto Account is closed. You will not be able to use the Koto Account nor the Credit Facility after the Koto Account is closed.

8.5 If we find any additional withdrawals, fees or charges have been incurred on your Koto Account following the processing of the redemption request, we’ll send an itemised invoice to you and we will require you to refund us immediately after receiving the invoice. Should you not repay this amount immediately after receiving an invoice from us we reserve the right to take all steps necessary, including legal action, to recover any monies outstanding.

8.6 Even if you do not wish to close your Koto Account and cancel you Koto Card you can at any time redeem any part of monetary value by transfer to a UK bank account via UK Faster Payments in pounds sterling or by cash withdrawal at an ATM (subject to Koto Account Limits).

9. YOUR LIABILITY AND AUTHORISATIONS

9.1 You are responsible for the use of your Koto Account and any Koto Cards issued for your Koto Account.

9.2 You are responsible for keeping your Koto Card, security information related to your Koto Card and Koto Account and Koto App credentials safe.

9.3 You must not:

9.3.1 allow a third party other than an Authorised Third Party Provider to use your Koto Account and Koto App to provide you with their Services;

9.3.2 allow another person to use your Koto Card or Koto App;

9.3.3 write down your PIN or any security information in a way that enables a third party to make fraudulent use of your Koto Account or Koto App or Koto Card;

9.3.4 disclose or make available your PIN or other security information related to your Koto Card, Koto App and Koto Account to third parties;

9.3.5 disclose or make available your Koto App credentials to a third party unless the third party is an Authorised Third Party Provider and you want to use services provided by them; or

9.3.6 enter the PIN in any ATM that does not look genuine, has been modified, has a suspicious device attached or is operating in a suspicious manner.

9.4 You will be responsible for all transactions which you and a Payment Initiation Service Provider authorise in accordance with the provisions of this e-money Agreement.

9.5 You will be liable for all transactions that take place as a result of your acting fraudulently or failing to comply with this e-money Agreement with intent or gross negligence.

9.6 You agree to indemnify and hold harmless, us and our distributors, partners, agents, sponsors, and service providers and their group companies from and against the costs of any legal action taken to enforce this e-money Agreement and/or any breach of this e-money Agreement or fraudulent use of the Koto Account, Koto Card, Koto App log-in details, or PIN by or authorised by either you.

9.7 The Koto App is only supported on devices where the operating system has not been modified, or jailbroken, or configured to allow software installation from sources other than those approved by Koto (including but not limited to the Apple App Store and Google Play). Use of the Koto App on such a device is at your risk and we cannot be held responsible for any financial loss or loss of data or Information.

9.8 All Koto intellectual property rights contained therein, including but not limited to any content, are owned or licensed by Koto. Nothing in these Agreement grants you any legal rights in the Koto App or the Koto website, other than as necessary to enable you to access the Koto App. You agree not to adjust or try to circumvent or delete any notices contained on the Koto App and the particular in any digital rights or other security embedded or contained within the Kota App.

10. LOST, STOLEN OR DAMAGED CARDS

10.1 In the event of loss, theft, fraud, or any other event that results in the risk of an unauthorised use of the Koto Card or Koto Account, or if the Koto Card is damaged or malfunctions, you must ensure that the Koto Card is blocked via the Koto App immediately or contact Customer Services. Please refer to 19.2 for further information as to how you can contact Customer Services.

10.2 Provided that you have followed one of the steps in accordance with paragraph 10.1 and that paragraph 10.4 does not apply, then you will not be liable for losses that take place following the date on which you blocked your Koto Card and/or Koto Account or informed Customer Services. If there is an Available Balance remaining on your Koto Account, you can request for a replacement Koto Card for your Koto Account via the Koto App. If we replace the Koto Card, the Koto Card will be delivered to your home address (fees apply, see paragraph 11).

10.3 In the event that we have reason to believe that you have acted fraudulently or have acted with gross negligence or intentionally (i) in failing to notify us of the lost or stolen Koto Card or Koto Account security details or (ii) where you have failed to keep your Koto Card or security information related to the Koto Card or Koto Account safe or (iii) where you have breached this e-money Agreement, then you shall be liable for all resulting losses.

10.4 Subject to 10.3, you may be liable up to a maximum of £35 for any losses you incur for unauthorised payment transactions using your Koto Account or Koto Card where the Koto Account or Koto Card security information has been lost or stolen, or where you have failed to keep such security information safe from misappropriation. This charge, however, will not apply if: it was not possible you to detect the loss, theft or misappropriation before the payment was made (unless you have acted fraudulently) or the loss was caused by an employee or agent of us or of anybody which carried out the activities on our behalf.

11. FEES

11.1 Your Koto Account is subject to the following fees. The fees detailed below relate to the core bundle of services provided to you that are core services in relation to normal use of your Koto Account. Our revenue is generated by the core fees that we charge to you. The other fees are charged to you on an ad hoc basis when certain services are used/required by you on your Koto Account.

11.2 We will deduct any charges due from the Available Balance on your Koto Account. If there is no Available Balance of funds, or taxes or charges exceed the balance of funds available on your Koto Account we shall send an invoice to you and will require you to refund us immediately after receiving the invoice. Should you not repay this amount immediately after receiving an invoice from us we reserve the right to take all steps necessary, including legal action, to recover any monies outstanding.

11.3 We reserve the right to use the balance in your Koto Account to make repayments towards any credit facility that you may have open with us. All top-ups and repayments for the credit facility will be collected from the Koto Account.

12. UNAUTHORISED AND INCORRECT TRANSACTIONS

12.1 If you have a reason to believe that a transaction on your Koto Account was not authorised by you or a Payment Initiation Service Provider, you must inform Customer Services immediately via telephone or in-app chat, but in any event within 13 months of the date of the relevant transaction.

12.2 If you inform us of an unauthorised executed transaction under paragraph 12.1:

12.2.1 the obligation lies with us to prove that the transaction was authenticated, accurately recorded, entered in our accounts and not affected by a technical breakdown or any other deficiency in our services;

12.2.2 we will by the end of the next Working Day following receipt of notification in accordance with 12.1 and subject to 12.2.1 refund the unauthorised amount including any fees to your Koto Account to the position it would have been in if the unauthorised or improperly executed transaction had not taken place.

12.2.3 we are not obliged to refund the unauthorised sums to you if we or Koto have reason to believe that you have acted fraudulently and we may notify the police or any other authority permitted by law. If we don’t provide a refund by the end of the next Working Day but subsequently confirm that the transaction was unauthorised, we will refund the unauthorised sums to you straight away. These will be back valued to ensure you suffer no loss.

12.2.4 We will have no further liability to you once we have refunded the unauthorised sums to you. If we subsequently discover on investigation that you were not entitled to a refund, we shall treat the refund as a mistake and be entitled to reapply the transaction, including any fees, to your Koto Account. We shall give you reasonable notice if any such reversal of a refund.

12.3 You will be liable for all unauthorised transactions made from your Koto Account if you have deliberately or with gross negligence failed to keep your Koto Account security details or Koto Card or Koto Card security information safe in accordance with the terms of this e-money Agreement, or where you have failed to notify us without undue delay on becoming aware that your Koto Account security details or Koto Card or Koto Card security information has been lost, stolen or otherwise misappropriated.

12.4 Unless you have acted fraudulently you will not be liable for any losses in respect of unauthorised transactions from your Koto Account after you have told us that your Koto Card or Koto Card security information or Koto Account security details has been lost, stolen or compromised or where the Koto Card has been used in connection with a distance contract.

12.5 We are responsible for making payments on your Koto Account correctly. If you tell us that a payment has been made incorrectly, we will immediately refund your Koto Account with the amount including fees of the incorrect payment transaction and, restore your Koto Account to the state in which it would have been had the incorrect transaction not taken place. However, this will not apply if:

12.5.1. you fail to tell us of the incorrect payment without undue delay and in any case within 13 months of the date on which the transaction occurred;

12.5.2 any part of the Unique Identifier in the Payment Details you gave us was incorrect. If so, we will make reasonable efforts to recover your money if the payment has gone missing, but we may charge you a fee to cover our costs in doing so. We will tell you how much it is before we start recovery. If we are unable to recover the funds, you can request the relevant information we have regarding the transaction to help you reclaim payment amount. For legal reasons, we are obliged to provide this information on receipt of a written request, except where the law prevents us from doing so; or

12.5.3 we can show that the payment was actually received by the other bank (in which case they are liable).

12.5.4 if the failure giving rise to the incorrect payment was due to abnormal and unforeseeable circumstances beyond our control, the consequences of which would have been unavoidable despite all efforts to the contrary, or if it arose because of our having to comply with other EU or UK law.

12.6 If funds have been paid into your Koto Account by mistake, we can take the funds back out of your Koto Account and/or put a hold on the money so it cannot be spent.

12.6.1 We don’t have to tell you before we take the money back or put a hold on the money.

12.6.2 If funds go into your Account by mistake, we are required to provide sufficient details about you and the incorrect payment to the bank or institution that sent the payment to enable them to recover the funds.

12.7 If an error is made in Direct Debit, you will be entitled to a refund from the payee or us under the Direct Debit Guarantee.

12.8 Regardless of liability, if you wish to make a request for information regarding the execution of a payment transaction, we will make immediate efforts to trace the transaction and notify you of the outcome, free of charge.

13. CHANGING THE E-MONEY AGREEMENT

13.1 We may change this e-money Agreement, including fees and limits by providing you with at least two months’ notice by e-mail (provided you have supplied us with an up-to-date e-mail address). In addition, the most recent version of this e-money Agreement will be available on the Koto App.

13.2 If you do not agree with the changes to the e-money Agreement, you may at any time within the two months’ notice period terminate your e-money Agreement and close your Koto Account at that time in accordance with paragraph 8.1 without a charge. However, in the event you do not cancel during this period then you will be deemed to have accepted them and the changes will apply to you.

13.3 If any part of this e-money Agreement is inconsistent with any regulatory requirements then we will not rely on that part but treat it as if it did actually reflect the relevant regulatory requirement.

13.4 There are some situations where we can make changes to this e-money Agreement and we do not have to tell you in advance. These are changes you probably expect because of the nature of the product or service, or that we deem to be an improvement to the service with no negative monetary impact to you. We do not have to tell you personally in advance when any of the following happen:

13.4.1 The change has no monetary detriment to you, better protects customer funds, provides a better service or if we introduce a new service or feature from which you can benefit.

13.4.2 Whilst we will always, where possible, give you at least 2 months’ notice of any changes required by UK or EU law or regulation, there may be exceptional instances where this may not be possible. In such circumstances we will give you as much notice as possible.

14. TERMINATION OF THIS E-MONEY AGREEMENT

14.1 This e-money Agreement will continue until terminated by you or us. You may terminate this e-money Agreement at any time by giving notice to Koto. If you terminate this e-money Agreement and you also have a Credit Facility from Koto, you must ensure that you do not have an outstanding amount payable under your credit agreement. Once you have settled any outstanding principle and fees owed under your credit agreement we can terminate all agreements together.

14.2 We can terminate this e-money Agreement at any time if we give you two months’ notice via email, in-app messaging or text and refund the Available Balance to you without charge. We can also terminate this e-money Agreement with immediate effect if you, in your capacity as either the Koto Account Holder or the Cardholder, have breached any provision of this e-money Agreement, or if we have reason to believe that you have used, or intend to use the Koto Account or Koto Card in a grossly negligent manner or for fraudulent or other unlawful purposes, or your behavior towards our staff members is improper, insulting, violent or threatening or making it difficult for us to continue dealing with you or if we can no longer process your transactions due to the actions of third parties. If you also have a Credit Facility, we will terminate this at the same time. All monies owed by you to Koto will still be payable under the terms of a separate credit agreement with Koto.

14.3 In the event that any additional fees are found to have been incurred on your Koto Account following termination by either you or us, then subject to this e-money Agreement, or Credit Facility agreement you shall refund to us any sum which relates to a withdrawal on the Koto Account or fees and/or charges validly applied whether before or after termination. We will send an invoice to you and will require you to refund us immediately. Should you not repay this amount immediately after receiving an invoice from us we reserve the right to take all steps necessary, including legal action, to recover any monies outstanding.

15. SUSPENSION OF THIS E-MONEY AGREEMENT

15.1 We can suspend or cancel your Koto Account or Koto Card at any time with immediate effect without any prior notice to you if:

15.1.1 we discover any of the Information that you provided to us when applied for your Koto Account was incorrect; or

15.1.2 we suspect or to prevent suspected unauthorised or fraudulent use of the Koto Account, Koto Card or any security information related to your Koto Card or Koto Account;

15.1.3 you have reached your Koto Account Limit;

15.1.4 you have breached this e-money Agreement;

15.1.5 we believe that this is necessary for security reasons;

15.1.6 any legal obligations require us to do so; or

15.1.7 we have reason to believe that you, in your capacity as the Koto Account Holder have used, or intend to use the Koto Account or Koto Card in (i) a grossly negligent manner or (ii) for fraudulent or other unlawful purposes or (iii) if we cannot process any transactions due to the actions of third parties, or (iv) use of Koto Cards or Koto Accounts is not, in our reasonable opinion, consistent with acceptable and intended use of Koto Cards and Koto Accounts or is outside of our risk appetite from time to time.

15.2 In the event that we do suspend or terminate your Koto Account or Koto Card, we will, if able to do so, tell you prior to suspending or terminating them. In addition, we may advise anyone involved in the transaction if a suspension has taken place.

16. BLOCKING YOUR KOTO CARD

16.1 We may block or stop your Koto Card if:

16.1.1 We believe this is necessary for security reasons,

16.1.2 We have reason to suspect unauthorised or fraudulent use of your Koto Card, or

16.1.3 We are required to do so by UK or EU legal obligations

16.2 In the event that we do stop or block your Koto Card, we will, if able to do so, tell you prior to stopping or blocking and provide you with the reasons for doing so. If we are in the circumstances unable to give you such prior notice we will inform you immediately we are able of the stoppage and the reasons. In addition, we may advise anyone involved in the transaction if a suspension has taken place.

16.3 If we do block or stop your Koto Card we will unblock it as soon as practicable after the reasons for so blocking or stopping cease to exist.

17. OUR LIABILITY

17.1 Subject to paragraph 17.2, our liability in connection with this e-money Agreement (whether arising in contract, tort (including negligence), breach of statutory duty or otherwise) shall be subject to the following exclusions and limitations:

17.1.1 we shall not be liable for any default resulting directly or indirectly from any cause beyond our control, including but not limited to, a lack of funds and/or failure of network services at ATMs, maximum withdrawal limits set by ATM operators and failure of data processing systems;

17.1.2 we shall not be liable for any loss of profits, loss of business, (in each case whether direct or indirect) or for any indirect, consequential, special or punitive losses;

17.1.3 where the Koto Card is faulty due to our default, our liability shall be limited to replacement of the Koto Card, or at our choice, refund of the Available Balance;

17.1.4 where sums are incorrectly deducted from your Available Balance due to our default, our liability shall be limited to payment to you of an equivalent amount;

17.1.5 in the unlikely event that sums are deducted from your Available Balance but you did not authorise such deduction in accordance with this e-money Agreement, then our liability shall be as set out in paragraph 12; and

17.1.6 in all other circumstances of our default, our liability will be limited to refund of the Available Balance.

17.2 Nothing in this e-money Agreement shall exclude or limit our liability for death or personal injury resulting from our negligence or fraud, or otherwise to the extent that such liability cannot be limited or excluded under applicable law or regulation.

17.3 To the extent permitted by law, all conditions or warranties implied by law, statute or otherwise are expressly excluded.

17.4 The above exclusions and limitations set out in this paragraph shall apply to any liability of our affiliates such as Mastercard, and other suppliers, contractors, agents or distributors and any of their respective affiliates (if any), to you, which may arise in connection with this e-money Agreement.

18. YOUR INFORMATION

18.1 Some personal data will be necessary for us to provide you with the Koto Account and services under this e-money Agreement. Both Koto and PPS are the Data Controllers in respect to our responsibilities in providing you with the services subject to this e-money Agreement and will use your personal data for this purpose. Should you apply to have a credit facility with Koto your personal information will be used during the onboarding and collections process. Please see the Privacy Policy published at https://getkoto.com/legal-info#privacy-notice for full details on the personal data that PPS and Koto hold, how we will use it and how we will keep it safe.

18.2 To make a payment we may transfer your Information/data to any payment service provider used to complete your Payment Instruction. By making a Payment Instruction you acknowledge this transfer of your Information. We will contact you if any additional information is required from you in relation to such payment. If you require any information about payment service providers used in relation to payments, you can contact Customer Services. We may also transfer your Information outside of the European Union and the EEA to enable the Cardholder to use their Koto Card while they are travelling or as permitted by law.

18.3 If you allow or give consent to an Authorised Third Party Provider to access your Koto Account to provide their services to you, you should know that we have no control over how an Authorised Third Party Provider will use your information nor will we be liable for any loss of information after an Authorised Third Party Provider has access to your information.

19. COMPLAINTS PROCEDURE

19.1 Complaints regarding any element of the service provided by us can be sent to us via in-app messaging center. Once a complaint has been raised it will be dealt with through email or in-app messaging.

19.2 All complaints will be subject to our complaints procedure. We will provide you with a copy of our complaints procedure upon request and, if we receive a complaint from you, we will confirm the procedure when we send you receipt sent to you by email or via in-app messaging.

19.3

Where possible Koto will endeavour to provide you with a final response within 3 working days of receiving your complaint. If we are unable to and your complaint relates to an issue with a payment or transaction then we aim to issue a final response within 15 days, but where this maybe out of our control no more than 35 business days. If your complaint relates to any other matter, we will respond to your complaint within no more than 8 weeks.

19.3 If we fail to resolve your complaint to your satisfaction you may refer your complaint to the Financial Ombudsman Service (Exchange Tower, London E14 9SR, phone 0800 023 4567 when calling from UK and +44 20 7964 0500 when calling from abroad). Details of the service offered by the Financial Ombudsman Service are available at www.financial-ombudsman.org.uk.

19.4 There are also other options available, for example, you could submit a complaint to the FCA, our regulator, or try to invoke an alternative dispute resolution procedure by visiting the ODR Platform at http://ec.europa.eu/odr.

20. GENERAL

20.1 Any delay or failure to exercise any right or remedy under this e-money Agreement by us shall not be construed as a waiver of that right or remedy or preclude its exercise at any subsequent time.

20.2 If any provision of this e-money Agreement is deemed unenforceable or illegal, the remaining provisions will continue in full force and effect.

20.3 You may not assign or transfer any of your rights and/or benefits under this e-money Agreement and you shall be the sole party to the contract between us. You will remain liable until all Koto Accounts and/or Koto Cards registered in your name are terminated and all sums due under this e-money Agreement have been paid by you in full. We may assign our rights and benefits at any time without prior written notice to you. We may subcontract any of our obligations under this e-money Agreement to the extent permitted by applicable law and regulation.

20.4 No third party who is not a party to this e-money Agreement has a right to enforce any of the provisions in this e-money Agreement, save that Mastercard and their respective affiliates may enforce any provision of this e-money Agreement which confers a benefit or a right upon them and a person specified in paragraph 17.4 may enforce paragraph 17.

20.5 This e-money Agreement contains the information set out in Schedule 4 of the Payment Service Regulations 2017 and you can obtain a copy of this e-money Agreement at any time by visiting the Koto App or the Website.

20.6 This e-money Agreement is governed by English law. By entering into this e-money Agreement, you agree to the exclusive jurisdiction of the courts of England and Wales.

20.7 The Financial Services Compensation Scheme is not applicable for this Koto Account. No other compensation schemes exist to cover losses claimed in connection with your Koto Account. In the event that we become insolvent, your funds are safeguarded under the EU Electronic Money Directive 2009/110/EC and UK Electronic Money Regulations 2011 which are designed to ensure the safety of funds held in electronic money accounts like your Koto Account.

21. CONTACTING CUSTOMER SERVICES

21.1 If you have a query regarding your Koto Account, you can contact us via in-app messager.

21.2 Lost, damaged or stolen cards can be blocked immediately via the Kota App or can be reported via in-app customer service.

22. DEFINITIONS

Account Information Services – An online service which provides consolidated information on accounts held by you with one or more payment service providers such as banks.

Account Information Services Provider – A third party payment service provider which is authorised by its Regulator to provide Account Information Services to you with your explicit consent and under a separate e-money Agreement which you have signed with them.

ATM - Automated Teller Machine, otherwise known as a cash machine.

Authorised Third Party Provider – Includes Account Information Service Provider and/or Payment Initiation Service Provider.

Available Balance - The value of funds available on your Koto Account to use.

BACS Credit – Means UK BACS Direct Credit, a payment service applicable to Koto UK Accounts that enables a payment to be made into an account which normally takes 3 Working Days for the funds to be cleared.

Card Number - The 16-digit number on the front of your Koto Card.

CHAPS - Clearing House Automated Payments System, bank-to-bank technology which enables same-business day payments to be made within the UK, provided the payment instruction is received by the sending bank or organisation before a certain time.

Contactless - A payment feature that enables Cardholders to pay by tapping the Koto Card on a point-of-sale terminal reader for transactions of up to £45 for Koto UK Card and up to €50 for Koto Eurozone Card (limit may vary from country to country and amended from time to time).

Credit Facility – A credit facility provided to youby Koto in the form of either a payment instalment plan or buffer facility made in accordance with a separate agreement which you have entered into with Koto.

Customer Services - The team responsible for supporting queries relating to your Koto Account. Contact details for Customer Services can be found in paragraph 21.

Direct Debit – A service allowing a third party to collect pre-authorised funds from your Koto Account electronically on agreed dates, for example to pay bills.

EEA - The European Economic Area, which currently includes all countries in the European Union together with Iceland, Norway and Liechtenstein.

e-money - The electronic money associated with your Koto Account.

e-money Agreement - This e-money Agreement with PPS regarding the services provided by PPS only and as varied from time to time. This e-money Agreement does not include any separate arrangements you may have with Koto such as for Credit Facility.

Faster Payment – A service allowing you to make and receive electronic payments in the UK using your Koto Account which is received by the recipient bank within 2 hours provided that the receiving organisation or bank is part of the UK Faster Payments Scheme.

Full Deductible Amount - The full transaction amount, including the transaction itself along with any associated fees, charges and taxes.

Information – Means any personal information related to you.

Koto – Koto Card Limited, a company registered in England and Wales with number 11224081 who can be contacted at Nightingale House, 46-48 East Street, Epsom, Surrey, England.

Koto Account - The e-money account in pounds sterling which may have a Koto Card linked to it.

Koto Account Details – Any details related to a Koto Account, including but not limited to, Sort Code and Account Number.

Koto Account Holder – you, the individual entering into this e-money Agreement with us.

Koto Account Limits – Maximum limits in relation to the Koto Account, such as Koto Account - Maximum Balance, and topping up limits as shown in paragraph 1.

Koto Account Maximum Balance – The maximum balance you can have on your Koto Account as referred to in paragraph 1.

Koto App – A smartphone App that allows you to have access to your Koto Account which is provided to you by Koto.

Koto Card – A virtual card and a physical card (if you opt to have one). Both these are referred Koto Prepaid Mastercard Card associated with your Koto Account, including any additional cards.

Koto Credit Agreement – A separate agreement with Koto which gives you permission to spend an amount greater than the Available Balance on your Koto Account.

Mastercard Acceptance Mark - The Mastercard International Incorporated Brand Mark, indicating acceptance of the Koto Card.

Mastercard - Mastercard International Incorporated whose head office is at 2000 Purchase Street, Purchase, New York, 10577-2509, USA.

Merchant - A retailer, or any other person, firm or corporation that accepts cards which display the Mastercard Acceptance Mark.

Payment Details – The details you provide to enable funds to be received into your Koto Account or the details that you provide in order to send funds from your Koto Account.

Payment Initiation Services – An online service which accesses your Koto Account to initiate the transfer of funds on your behalf.

Payment Initiation Service Provider – An third party payment service provider which is authorised by its Regulator to provide Payment Initiation Services to you with your explicit consent and under a separate e-money Agreement which you have signed with them.

Payment Instruction – An instruction from you to make a payment from your Koto Account.

PIN - Your four digit personal identification number for use with the Koto Card.

PPS - PrePay Technologies Ltd, a company registered in England and Wales with number 04008083, with its head office at 6th floor, 3 Sheldon Square, London W26HY, which can be contacted at PO BOX 3883 Swindon SN3 9EA.

Quasi Cash – Means transactions that includes, but not limited to, purchasing travelers cheque, lottery tickets, casino gaming chips, money orders, deposits and wire transfer money orders.

Regulator – Means Financial Conduct Authority in the UK or another European financial services regulator.

Unique Identifier - For UK Faster Payments the name, account number and sort code of the person you wish to pay.

we, us or our - means PPS or Koto acting on its behalf.

Website –getkoto.com

Working Day – Monday to Friday but does not include bank or public holidays in England.

you, your - The Koto Account Holder.

Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

UNEXECUTED CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974 FOR RUNNING-ACCOUNT CREDIT

KOTO CARD

PRODUCT SUMMARY BOX

The information contained in this table summarises key product features and is not intended to replace any terms and conditions.

PRODUCT INFORMATION GUIDE: ABOUT YOUR CREDIT PRODUCT

This document is not intended to represent the terms and conditions of the product and where there is any conflict between this document and the credit agreement, the credit agreement will prevail. All credit is subject to status and affordability checks. Credit Limits will apply.

Your product is a running-account credit agreement. It provides you with two different types of credit facilities within the one agreement. These are called the Extra Credit Facility and the Spread Credit Facility.

Summary of the Extra Credit Facility

The Extra Credit Facility provides you with an automatic advance of funds into your Koto Account if:

1. You have insufficient funds in your Koto Account to meet any obligations you have registered against it such as direct debits or continuous payment authorities; and/or

2. Should you use your Koto Card to pay for a purchase but you do not have sufficient funds in your Koto Account to cover that purchase.

In the above two circumstances, we will automatically advance credit to you (provided you have sufficient credit limit available) without you needing to do anything.

There will be a £0.20 charge per day, this is called a Credit Usage Charge, until you repay the credit in full to us.

You can repay the credit to us by making payment to us either in full or by way of minimum monthly payments from your Koto Account. We will send to you a statement detailing the minimum payment due for each month and informing you of the date by which you are to make that payment to us (known as your Payment Due Date).

The minimum payment will be (a) (i) 1% of the credit balance due to us for that month plus the total of (ii) the Credit Usage Charges; (iii) Default Charges (we discuss these below); and (iv) any Deferred Spread Minimum Payment; or (b)will be the sum of £1 if this is of greater value than the previous calculation.

Summary of the Spread Credit Facility

The Spread Credit Facility allows you to contact us to request an Advance of credit should you plan to make a purchase of any item using your Koto Card but spread the cost of that purchase over a period of months. The purchase must be for £100 or more and you can select a repayment term of up to 24 months. The cost of the purchase will be split evenly over those months. This will form your Spread Plan.

You can set up multiple Spread Plans provided you remain within your Spread Credit Limit.

You can also transfer an existing purchase made within your Koto Card onto a Spread Plan provided you made that purchase within the last 30 days.

For each month there is a balance due to us because of any Spread Plans, we will charge you a £10 monthly fixed fee. This is regardless of how many Spread Plans you have ongoing at the time the fee falls due for charging.

You can repay the credit to us by making payment to us either in full or by way of minimum payments from your Koto Account. We will send to you a statement detailing the minimum payment due for each month and informing you of the date by which you are to make that payment to us (known as your Payment Due Date).

The minimum payment will be the total of the monthly payment due under each of your Spread Plans plus the £10 Credit Usage Fee. If you incur any Default Charges these will be added to your liability under the Extra Credit Facility.

If you have a balance due under the Extra Credit Facility and/or under the Spread Credit Facility the Statement will inform you of the Total Minimum Payment you must pay to us that month which will be the total amount due under the Extra Credit Facility and/or the total due under the Spread Credit Facility including Credit Usage Fees and any Default Charges.

Default Fees

If you fail to make the Total Minimum Payment due on the Payment Due Date, then you will incur a £10 late fee.

If we have to locate you, you will incur a £25 customer trace fee.

Your liability for these Default Fees will be added to your liability under your Extra Credit Facility.

Privacy Notice

This Privacy Notice explains what information we collect about you, how we use it and the purposes for which we use it. It applies to all your interactions with us, including when you use our app or our website and when you apply for any of our products or services.

We are committed to collecting and using your personal information fairly and in accordance with our obligations under the General Data Protection Regulation (‘GDPR’) and the Data Protection Act 2018.

1. Who we are:

We are Koto Card Limited (“Koto”, “we”, “our”, “us”), a Company registered in England and Wales under No. 11224081 whose registered office is at Nightingale House, 46-48 East Street, Epsom, Surrey, KT17 1HQ. We are committed to protecting and respecting your privacy.

As a Data Controller and Processor, we are registered with the Information Commissioner’s Office under number ZA455892.

If you have a question or concern about this Privacy Notice or your data protection rights, please contact us through the Koto app, by emailing us at support@koto.com or by writing to us at Koto Card Limited, Nightingale House, 46-48 East Street, Epsom, Surrey KT17 1HQ.

2. What personal information do we collect from you?

We collect information from you directly when you apply for and you use our services, or from relevant third parties.

(i) Information provided by you:

When you apply for our services and throughout the course of our relationship with you we will collect information from you. This information includes:

• your full name and date of birth;
• your residential address and any recent previous addresses;
• your email address and telephone number(s);
• a photograph of you (‘selfie’);
• your marital status and details of any dependants;
• information about people who are financially linked to you;
• your employment and income details; and
• documentation provided by you evidencing your identity and address.

We will also collect information from you and about you when you interact with us:

• Electronically/Online - Where you use our website, information from any accounts you share with us, when and how you use our mobile application (‘app’), your login data, information we use to identify you and other information obtained from your mobile device.
• In writing - Where you send us letters, forms, survey responses, emails, chat messages and texts or your social media posts about us.
• On the telephone - We may monitor or record calls with you to check we have carried out your instructions correctly, to resolve queries or disputes, to improve the quality of our service, or for regulatory or fraud prevention purposes.

Where you provide us with your personal information you should ensure that it is accurate and you should tell us without delay if it changes. You are required to do this under your contract with us.

(ii) Information we collect when you use our services:

We will collect and use transaction and payment data, for example when we deal with or manage your account, when you request credit from us and to monitor payments made to and from your account.

We will collect usage and profile data, for example from your use of our website and app. We gather this data from the devices you use using cookies and other software. This includes location and configuration information about your mobile device, which is used for fraud detection and to help us fix bugs, such as app crashes.

Data from your mobile device is also used to help us make our decision on your application. We use information, including that listed below, to validate your application and (together with information and data on any new device of yours) to protect you from fraud in future:

• details of your device, such as the model of your phone;
• the geolocation of your device; and
• the IP (‘internet protocol’) address of your device.

We also collect information you have stored on your device, such as your contact list, the other apps you have downloaded and the way you use your device. This is used to help us make our decisions and in particular to help us make our lending decisions in future. Where we obtain information through this process that is not about you directly, such as your contact list, before using it we will anonymise that data by removing information which would allow us to identify the person or persons to whom it does relate and will only process and store that data in an anonymised form. This means we will not store any names from your contact list and we will mask the associated phone numbers so they cannot be seen. We will retain and may use this anonymised information to help us with our decisions on future applications to us by you and by other persons.

(iii) Information provided by third parties:

When you make your application, we will also use data from persons or entities that may introduce you to us, for example credit brokers and introducers.

To reach a decision on your application and where necessary on an ongoing basis, we will also use information from the following third parties:

• Credit reference agencies (primarily Experian);
• Comply Advantage;
• Fraud prevention agencies.

We will also use publicly available information, for example from the Open Register (also known as the Edited Register) and other information available online or in the media, including social media.

We may collect your personal data from organisations to which you have given permission to share it for specific purposes, such as direct marketing or who have another legal basis on which to share it with us.

Where relevant, we will also collect and use information from your representatives or a third party to whom you have given authorisation to deal with your account. We may also use information about people who are financially linked with you.

We will use information shared with us by PrePay Technologies Limited who provide and operate your Koto E-Money account. We will also use information shared with us by third party providers of information services and payment services to you in the initiation of your payment orders, such as TrueLayer Limited.

3. How we will use your personal information:

By law, we may use your personal information provided we have a lawful basis for doing so or we are under a legal duty to do so. This includes sharing it with third parties in certain circumstances as described below. We consider we have the following reasons (lawful bases) to use your personal information:

Entering into and performance of our contract with you

We need to use your personal information to be able to enter into a contract with you and to provide you with products and services under that contract. This will include:

• making and receiving payments;
• providing you with information such as account statements and notices relating to your account;
• making decisions on how much credit we will let you have;
• administering your account with us;
• carrying out your instructions e.g., to fulfil a payment request you make;
• exercising our rights under our contract with you; and
• dealing with any complaints or queries you or a representative you appoint may have.

Meeting our legal obligations

We need to use your personal information so as to comply with legal requirements upon us. These include:

• checking your identity and conducting a creditworthiness assessment when you apply for credit;
• detecting, investigating and reporting financial crime and taking measures to prevent it; account statements and notices relating to your account;
• identifying and dealing with vulnerable customers appropriately;
• responding to our Regulators’ enquiries and requests for information; and
• keeping business records.‎

Our legitimate interests

We have a legitimate interest in using your personal information:

• to understand our customers’ use of our products and services, improve them and develop and test new products and services;
• to invite you to participate in market research and customer surveys;
• to offer new products and services to you (where you have agreed to this);
• to help prevent and detect financial crime and fraud and to prevent overindebtedness including the sharing of personal data with third parties;
• to lend responsibly (including making creditworthiness checks);
• to support our tracing, collection and litigation processes;
• to recover money you owe us;
• for business analysis, data verification and data enrichment purposes;
• to share your personal information with any person to whom we may transfer or consider transferring our rights under our agreement with you;
• to sell debts owed to us and/or purchase debts from third parties;
• to establish, exercise and defend our legal rights; and
• to assist in complying with legal and regulatory requirements placed upon us.

Where we need your consent

Where we have your consent or in the case of special category data where we have your explicit consent we may also use your personal information for additional purposes.

We will ask you for your consent to offer you new products and services from time to time. We may do this for a reasonable period after you cease your relationship with us. If your application was unsuccessful we will keep your personal information for this purpose for up to 12 months.

We will ask you for your explicit consent to process ‘special category data’ relating to you. We will process biometric data relating to you in the form of your ‘selfie’ which we will use to verify your identity when logging on to the app. Where appropriate, we will also process ‘special category data’ relating to your health or medical condition so we can establish whether you would benefit from and then to provide you with support or make adjustments in how we provide you with information and deliver our products and services to you.

Where use of your personal information is based on consent, you can withdraw it at any time and we will stop using your data for that purpose.

How we make decisions about you

We may use automated systems to help us make decisions on your eligibility to apply, on your application, on how much credit we will grant you, to carry out fraud and money laundering checks and assess risks associated with the use of your account. Details of your rights in respect of these decisions can be found in the ‘Automated decision making and profiling’ section below.

Recording our interactions with you

We may monitor and record calls, letters, emails and chats with you to check we have carried out your instructions correctly, to resolve your queries or disputes with us, to deal with any complaints you may have, to assess and improve the quality of our service, for training our staff, or for regulatory or fraud prevention purposes.

Marketing

We may use your personal information to provide your with information about our products and services. We may send you marketing messages online or by email, text or other messages or through social media. We do this either with your consent or where we have a business or commercial interest to use your information for this purpose. At any time you can change your preferences on how you receive marketing messages or choose to stop receiving them. Please tell us through the Koto app or by emailing us at support@koto.com. You will still continue to receive statements and other information relating to your account, such as changes in your contract with us.

4. Who we share your personal information with:

We may share your personal information with anyone who works for us when they need it to do their job, certain authorities that detect and prevent terrorism and terrorism financing (including authorities outside the UK if one of your payments is processed through a worldwide payment system) and anyone you give us permission to share it with.

We will also share your personal information with organisations (including our sub-contractors, agents or service providers), that facilitate any of our services when they need it to provide their services. These include:

• card producers and networks, such as PrePay Technologies Limited (the Authorised E-Money Institution through which the Koto account is provided);
• credit reference agencies - further information on how credit reference agencies use your data can be found in the Credit Reference Agency Information Notice;
• fraud prevention agencies;
• analytical, ‘know your customer’ and cyber security service providers;
• customer ‘interface’ providers (such as the ones who manage our in-app chat service);
• website hosting service providers;
• payment processors;
• companies that provide specific payment services for your account, such as TrueLayer Limited in the initiation of your payment orders;
• companies that undertake advertising and marketing for us, whether online, by email, text or other messages or through social media - we won’t share identifiable personal information with third parties for their own direct marketing unless you give us permission; and
• debt collection agencies.

We will also share your personal information where it is necessary to comply with the law, to enforce our contract with you or other agreements or to protect our rights, property and safety and those of our customers or others.

If, in the future, we sell, transfer or merge all or part of our business or assets (including debts you and others may owe us) and including the acquisition of other businesses, we may share your information with other parties. We will only do this if they agree to keep it safe and private and to only use it in the same ways and subject to the same limitations as set out in this Privacy Notice.

5. Credit Reference and Fraud and Money Laundering Checks:

When you make an application to us we will perform appropriate credit and identity checks with a fraud prevention and one or more credit reference agencies. We will share your personal information, such as that in your application, with the agency and they will supply us with information about you which may include public information (the Open Register), shared credit information and fraud prevention information.

Fraud Prevention Agencies

Before we provide you with our products and services, we undertake checks for the purposes of preventing fraud and money laundering and to verify your identity. These checks require us to process your personal information. The personal information you have provided, we have collected from you or we have received from third parties about you will be used to prevent fraud and money laundering and to verify your identity.

Details of the personal information that will be processed include your full name, address, date of birth, selfie, contact details, financial information, and device identifiers including IP address.

We and fraud prevention agencies may also give law enforcement agencies access to your personal information to detect, investigate and prevent crime.

We process your personal information on the basis that we have a legitimate interest in preventing fraud and money laundering and to verify identity, in order to protect our business and to comply with laws that apply to us. Such processing is also a contractual requirement of the services or credit you request from time to time.

As a result of our checking with a fraud prevention agency we may decline to provide you with the services and credit you have requested and may suspend or close any account you have with us.

Fraud prevention agencies will record the checks we make and can hold your personal information for different periods. If you are considered to pose a fraud or money laundering risk, your information can be held by them for up to six years.

As part of the processing of your personal information, decisions may be made by automated means. This means we may automatically decide that you pose a fraud or money laundering risk if our processing reveals your behaviour to be consistent with money laundering or known fraudulent conduct, is inconsistent with previous communications from you or you appear to have deliberately hidden your true identity. For more information see ‘Automated decision making and profiling’ below.

Credit Reference Agencies (‘CRAs’)

In order to process your application, we may supply your personal information to CRAs in which case they will give us information about you, such as about your financial situation and history. We do this to assess your creditworthiness and the suitability to your financial circumstances of the product you have requested, check your identity, verify any information you have given us, manage your account, trace and recover debts and prevent criminal activity such as fraud and money laundering.

When CRAs receive a search from us they may place what is known as a search footprint on your credit file that may be seen by other lenders and used to assess applications for finance from you and members of your household to whom you are financially linked. The CRA may also share your personal information with other organisations.

We may also continue to exchange information about you with CRAs on an ongoing basis, including about your settled accounts and any debts not fully repaid on time. CRAs will share your information with other organisations. Your data will also be linked to the data of your spouse, any joint applicants or other financial associates. The principal CRA we use is Experian and information on how it uses your personal data is available at experian.co.uk/crain

6. For how long will we keep your personal information:

We will keep your personal information for as long as you are a customer of Koto and for up to seven years afterwards to enable us to deal with any matters including disputes and legal claims that may arise subsequently. Data about live and settled accounts is also kept on credit files for six years from the date they are settled or closed. If the account is recorded as defaulted, the data is kept for six years from the date of the default. We may retain your information for longer periods for statistical purposes. If we do this, your information will be anonymised or pseudonymised to protect your privacy.

If your application is unsuccessful we will keep your personal information for up to 12 months.

In some circumstances, like cases of anti-money laundering or fraud or in the case of a dispute, we may keep data longer if we need to and/or the law says we have to.

We may also retain your data for research and statistical purposes in which case we will ensure it is anonymised where necessary and used only for these purposes.

7. The consequences of our use of your personal information:

If we, or a fraud prevention agency, determine that you pose a fraud or money laundering risk, we may refuse to provide the services and credit you have requested or we may stop providing existing services to you. A record of any fraud or money laundering risk will be retained by the fraud prevention agencies and may result in others refusing to provide services, financing or employment to you.

If you fail to provide us with data we require, this may delay or prevent us from entering into a contract with you and/or complying with our obligations. Depending on the importance of the data, it may mean that we are entitled to terminate an agreement with you.

If you have any questions about your personal information and how it is handled, please contact us through the app or by emailing support@getkoto.com.

8. When your personal information is transferred overseas:

We will transfer and store your personal data outside the United Kingdom in specific circumstances, including making this information available for use by customer services teams based in Ukraine. We may do this in order to perform our obligations under our contract with you, to fulfil legal obligations to which we are subject, to protect our legitimate interests and where the public interest may require it.

Wherever we, or any other party with whom we have shared your personal information as mentioned above, transfer your personal information outside the U.K., we, or they, will make sure that either the data protection laws of the country to which your personal information is to be transferred provide an equivalent level of protection to the standards required in the U.K or, if they do not, the organisations to which your personal information is to be transferred themselves apply a level of protection for your information equivalent to the standards required in the U.K.. This may include imposing conditions in the contracts we have with these parties.

We, or they, may also require the recipient of your personal information to subscribe to ‘international frameworks’ intended to enable the secure sharing of information.

In any other cases, if we transfer your personal information outside the U.K., for example because we have to do so to help prevent or detect a crime, we will only share it lawfully.

9. Automated decision making and profiling

We may use automated systems to help us make decisions concerning entering into or performing our contract with you, for example when you apply to us for credit or an increase in your credit limit and when we carry out fraud and money laundering checks. We may use technology to help us identify the level of risk to us presented by your characteristics (such as your future ability to meet your credit commitments, your interests and your preferences), your activity or activity on your account with us, such as for credit, fraud or financial crime reasons or to identify if your account is being used by a third party without your knowledge or permission.

You have a right to information about how we make these decisions and you can request reconsideration of the decision and ask for human intervention in reviewing it.

10. Your Privacy Rights:

The law which protects your personal information gives you the right to:

• Access the personal information we hold about you, or to get a copy of it.

This can be a request for specific information you wish to access, or a general request to get a copy of all the personal information we hold about you that we are legally permitted to share.

• Request that we amend, update or correct inaccurate information.

This also includes your right to request that we correct inaccurate information that we have shared with third parties.

• Request that your personal information is erased.

The right to erasure is often referred to as the ‘right to be forgotten’. This request will be fulfilled unless and to the extent that we have a legal or contractual obligation to continue to hold or process your information.

• Request that we restrict the personal information we use about you.

You can ask us to restrict the personal information we use about you where it is inaccurate, where you have asked for its erasure, or where you have objected to our using it. We may still use your restricted information where we need to bring or defend legal claims, to protect the rights and freedoms of others or for important public interest reasons.

• Object to our controlling and processing your personal information.

This request will be fulfilled unless and to the extent that we have a legal or contractual obligation to continue to process your information.

• Object to automated decision making.

You have a right to request human intervention where an automated decision has been made relating to your application or your account that has significant effects which may be detrimental to you.

• Request that we transfer your personal information.

If you request it, we will transfer your information you have provided with your consent or relating to the products you have with us (which we process by automated means) to another lender in a structured, commonly used electronic format.

• Object to our sharing of your personal information with others or with certain organisations.

In some cases, however, this sharing is required by legal or contractual obligations.

• Request that we confirm what personal information we currently control and/or process in relation to you.

We will confirm all the data we control in relation to you that we are legally permitted to disclose.

• Withdraw any consent you have previously given us.

For example, if you’d like to withdraw your consent for use of your personal information for marketing purposes.

To exercise any of these rights, or for further information, please contact us through the app or by emailing support@getkoto.com.

You also have the right to complain if you are unhappy about how your personal information has been used.

• To make a complaint, please contact us via the app, or using the website
• To complain to the Information Commissioner’s Office, which regulates the processing of personal data, you can contact them direct at: Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF, on 03031231113, or by email to icocasework@ico.org.uk. See also ico.org.uk/global/contact-us

11. Changes to this Privacy Notice:

We will post any changes we make to our Privacy Notice here on our website. If we make any significant changes we will let you know by email. This Privacy Notice was last updated in December 2020.

12. Cookie Information

Our Cookie Policy has more information on what cookies are and how we use them. You can access this here.

Cookie Policy

Like most websites and apps we use cookies to help you in your interactions with us and enhance your user experience. By using the Koto website and/or app, you are agreeing to our use of cookies.

Cookies are small files placed on your computer's hard drive, or in your browser memory, when you visit Koto Card Limited’s website. It helps us speed things up for you when you come back. It tells us what parts of the site you visit, what you like and what's most relevant to you. Our cookies don’t store any personal or confidential information about you and are used for analysis only.

To make sure you get the best from our website, we advise that users keep cookies active on their machine whilst visiting our website.

What do we use cookies for?

Session Cookies

Most of the cookies we use are session cookies, which last only for the duration of your visit and are deleted when you close your browser. No personal data is collected. These simply enable us to identify that the same person is moving from page to page. We store and collect a unique ID to track your session from page to page via session cookie. This is important to understand our customers’ experience as you move around our website.

Persistent Cookies

We also use certain cookies that are persistent, meaning that they last beyond your session enabling an enhanced user-experience when you return to the site. Most browsers automatically accept cookies and you should be able to accept, delete or reject them if you wish by adjusting the settings on your browser. This will, however, affect your use of the areas of our Website that use cookies.

Third party cookies

From time to time, we may embed external content or media from third party websites (e.g. Facebook, YouTube, Twitter) within our website. As a result of this, these websites may apply a cookie to the page where the embedded content or media is viewed. Koto Card Limited do not take responsibility for third party site cookies and you should check the website of the provider for more information.

Turning cookies off

Exactly how to do this depends on your browser or phone settings. Try looking in your ‘Help’ section or Alternatively, the Interactive Advertising Bureau has produced a guide (see www.allaboutcookies.org) which explains to users how cookies work, can be managed and blocked by all browser types.

If you turn cookies off you may still see adverts for Koto in other places but they will be general and not specific to you.

The cookies we may use

Below is a list of the cookies we may use with a description of what they are used for and details of any other information that may be appropriate: