NY State Senate Bill 2019-S2073

Senate Bill S2073

2019-2020 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to consumer protection
Jan 22, 2019	referred to consumer protection

2019-S2073 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §520-e, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6253
2011-2012: S1283
2013-2014: S502
2015-2016: S3843
2017-2018: S2383

2019-S2073 (ACTIVE) - Summary

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

2019-S2073 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2073

SPONSOR: BENJAMIN
 
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-e
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:

 
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 onfood products.

Currently, credit card solicitations and statements can be confusing or
misleading. This legislation would require banks and credit card compa-
nies to provide consumers with clear, concise information relating to
the offer being made by the credit card company and in the consumer's
activity statement. This information should not be lost or hidden in
small, hard to read and confusing print.

 
LEGISLATIVE HISTORY:

2017-18: S.2383
2015-16: S.3843

 
FISCAL IMPLICATIONS:

None

 
LOCAL FISCAL IMPLICATIONS:

None

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

2019-S2073 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2073
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2019
                                ___________
 
 Introduced  by Sen. BENJAMIN -- 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-e to read as follows:
   § 520-E. 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.
                                                            LBD06080-01-9

 S. 2073                             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
 
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.

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