senate Bill S502

Requires credit card solicitations and statements to display a "Credit Card Facts" display box

download pdf

Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 09 / Jan / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 08 / Jan / 2014
    • REFERRED TO CONSUMER PROTECTION

Summary

Requires credit card solicitations and statements to display a "Credit Card Facts" display box.

do you support this bill?

Bill Details

Versions:
S502
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add ยง520-d, Gen Bus L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1283
2009-2010: S6253

Sponsor Memo

BILL NUMBER:S502

TITLE OF BILL:

An act
to amend the general business law, in relation to requiring credit card
solicitations and statements to display a "Credit Card Facts" display
box

PURPOSE:

To allow consumers to easily scan credit card solicitations and credit
card statements by placing an easy to read box, similar to the
Federal Nutrition Labeling and Education Act, with vital information
such as interest rates, purchases, balance transfers, cash advances,
late payments warnings, credit limit warnings and more.

SUMMARY OF PROVISIONS:

Section One of the bill amends the General Business Law by adding
520-d which requires personally mailed credit card solicitations,
credit card applications, and credit card statements to display an
easy to read "Credit Card Facts" box similar to the one used for the
Federal Labeling and Education Act.

The box must include, in plain language information related to the
interest rate, a list of purchases, balance transfers, cash advances,
late payments, minimum interest, fees, foreign currency purchases,
balance transfers, cash advances, exceeding credit card limits, in
full due dates and warnings.

EXISTING LAW:

New Bill.

JUSTIFICATION:

The Federal Nutrition Labeling and Education Act of 1990 created an
easy to read, plain language format for consumers to quickly gather
essential nutritional information on food products.

It makes sense that consumers have the same format when selecting a
credit card, as well as information on the activity, interest rates
and fees placed on their credit card. This information should not be
lost in small, hard to read and confusing print.

LEGISLATIVE HISTORY:

2009: S,6253 (Duane), Died in Rules
2010: S.6253 (Duane), Died in Consumer Protection

FISCAL IMPLICATIONS:

Minimal.

LOCAL FISCAL IMPLICATIONS:


Minimal.

EFFECTIVE DATE:

This act shall take effect on the first January next succeeding the
date on which it shall have become law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   502

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to requiring cred-
  it  card solicitations and statements to display a "Credit Card Facts"
  display box

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
520-d to read as follows:
  S  520-D. CREDIT CARD FACTS DISPLAY. 1. IN ADDITION TO THE DISCLOSURES
REQUIRED BY SECTION FIVE HUNDRED TWENTY OF THIS ARTICLE, ALL APPLICATION
FORMS OR PRE-APPROVED WRITTEN SOLICITATIONS TO ENTER INTO A CREDIT  CARD
AGREEMENT  WHICH  ARE MAILED TO AN INDIVIDUAL RESIDING IN THIS STATE, BY
OR ON BEHALF OF AN ISSUER, WHETHER OR NOT THE ISSUER IS LOCATED IN  THIS
STATE,  OTHER  THAN  AN  APPLICATION  FORM OR SOLICITATION INCLUDED IN A
MAGAZINE, NEWSPAPER, OR OTHER PUBLICATION DISTRIBUTED BY  SOMEONE  OTHER
THAN  THE  ISSUER,  AND,  ANY  APPLICATION  FOR  A  CREDIT CARD WHICH IS
DISTRIBUTED OR MADE AVAILABLE IN THIS STATE TO A RESIDENT OF THIS  STATE
IN AN OFFICE OR OTHER PLACE OF BUSINESS OWNED OR OPERATED BY THE ISSUER,
SHALL  CONTAIN  THE  DISCLOSURES  SET FORTH IN SUBDIVISION THREE OF THIS
SECTION IN THE FORM OF  A  CREDIT  CARD  FACTS  DISPLAY  AND  SHALL  USE
SUBSTANTIALLY THE SAME FORMAT AND TERMINOLOGY SHOWN IN SUBDIVISION THREE
OF THIS SECTION.
  2.  ALL  CREDIT CARD STATEMENTS WHICH ARE MAILED OR PROVIDED ELECTRON-
ICALLY TO AN INDIVIDUAL RESIDING IN THIS STATE, BY OR ON  BEHALF  OF  AN
ISSUER,  WHETHER  OR  NOT  THE  ISSUER  IS  LOCATED IN THIS STATE, SHALL
CONTAIN THE DISCLOSURES SET FORTH IN SUBDIVISION THREE OF  THIS  SECTION
IN  THE  FORM OF A CREDIT CARD FACTS DISPLAY AND SHALL USE SUBSTANTIALLY
THE SAME FORMAT AND TERMINOLOGY  SHOWN  IN  SUBDIVISION  THREE  OF  THIS
SECTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01945-01-3

S. 502                              2

  3.  A.  THE CREDIT CARD FACTS DISPLAY SHALL BE BOXED WITH ALL BLACK OR
ONE COLOR TYPE PRINTED ON A WHITE OR NEUTRAL BACKGROUND.
  B.  HELVETICA  BLACK  BOLD TYPEFACE SHALL BE USED FOR ALL HEADINGS AND
SUBHEADINGS AND HELVETICA REGULAR TYPEFACE MAY BE USED  FOR  INFORMATION
DISCLOSURES.
  C.  TYPE  SIZE  SHALL  BE: (I) SIXTEEN POINT OR LARGER FOR THE PRIMARY
"CREDIT CARD FACTS" HEADING;
  (II) TWELVE POINT OR LARGER FOR THE "INTEREST RATE", "FEES",  "PAYMENT
OPTIONS" AND "WARNINGS" HEADINGS; AND
  (III)  TEN POINT OR LARGER FOR THE SUBHEADINGS AND INFORMATION DISCLO-
SURES.
  D. AN EIGHT POINT RULE SEPARATES LARGE GROUPINGS  AS  SHOWN  BELOW  IN
THIS SUBDIVISION. A SIX POINT RULE INFORMATION DISCLOSURE LINES.
  E.  ALL  LABELS  ARE  ENCLOSED BY ONE-HALF POINT BOX RULE WITHIN THREE
POINTS OF TEXT MEASURE.

CREDIT CARD FACTS
HERE IS A SUMMARY OF THE TERMS OF THIS CREDIT CARD ACCOUNT

INTEREST RATES
PURCHASES
________________________________________________________________________
BALANCE TRANSFERS
________________________________________________________________________
CASH ADVANCES
________________________________________________________________________
LATE PAYMENTS
________________________________________________________________________
MINIMUM INTEREST

FEES
FOREIGN CURRENCY PURCHASES
________________________________________________________________________
BALANCE TRANSFERS
________________________________________________________________________
CASH ADVANCES
________________________________________________________________________
LATE PAYMENTS
________________________________________________________________________
EXCEEDING CREDIT LIMIT

PAYMENT OPTIONS
IN FULL BY DUE DATE
________________________________________________________________________
MINIMUM BALANCE BY DUE DATE

WARNINGS
LATE PAYMENTS

  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.