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This entry was published on 2014-09-22
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SECTION 520
Application forms or solicitation for credit cards
General Business (GBS) CHAPTER 20, ARTICLE 29-A
§ 520. Application forms or solicitation for credit cards. Any
application form or preapproved written solicitation to enter into a
credit card agreement for personal, family, or household purposes which
is mailed to an individual residing in this state on or after January
first, nineteen hundred eighty-eight, by or on behalf of a 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 primarily for a credit card to be used for personal, family
or household purposes which is distributed or made available in this
state to a resident of this state on or after January first, nineteen
hundred eighty-eight in an office or other place of business owned or
operated by the issuer, shall contain the following disclosures in chart
form and shall put chart headings in bold face type of at least ten
point in size and material inside the chart of at least eight point type
in size. Such chart shall use substantially the same format and
terminology shown below. In completing the chart with the information
required for each category, the guidelines hereinafter contained in the
corresponding subdivisions numbered one through four shall be utilized:
_________________________________________________________________________
1 | | | |Cash Advance |
2 | Variable | | |Fee, Trans- |
3 Annual | Rate Index | Annualized | Grace | action Fee, |
4 Percentage | and | Membership | Period for |Late Fee, and|
5 Rate (1) | Spread (1a) | Fee (2) |Purchases (3)| Over-the- |
6 | | | |Limit Fees(4)|
7 | | | | |
_________________________________________________________________________
8 | | | | |
9 | | | | |
0 | | | | |
1 | | | | |
2 | | | | |
3 | | | | |
4 | | | | |
_________________________________________________________________________

(1) and (1a) Any periodic rate or rates that may be applied, shall be
expressed as an annual percentage rate or rates. If the credit card
agreement provides for a variable rate, the issuer shall disclose the
rate as of a specific date and identify the index and any amount or
percentage added to, or subtracted from, that index. For purposes of
this category, that amount of percentage shall be referred to as the
"spread". If a fixed rate is to be applied, the issuer shall indicate
"No" or "None" or "Does not apply" in category (1-a) and further the
issuer may elect to disclose a rate as of a specified date.

(2) Any membership or participation fee that may be imposed for
availability of a credit agreement, shall be expressed as an annualized
amount. If no such fee will be imposed, issuer shall indicate "No" or
"None" or "Does not apply".

(3) If the issuer provides a period during which the holder may repay
the full balance reflected on a monthly statement which is attributable
to purchases of goods and services without the imposition of a service
charge, the issuer shall either disclose the number of days of that
period, calculated from the closing date of the prior billing period to
the date designated in the monthly statement sent to the holder as the
date by which that payment must be received to avoid additional service
or other charges, or describe the manner in which the period is
calculated. For purposes of this category, the period shall be referred
to as the "grace period". If the issuer does not provide such a period,
the disclosure shall so indicate. The issuer may, at its option, and
without disclosure impose no service or other charge where payment is
received after the expiration of the grace period.

(4) Any cash advance fee, per transaction fee, late fee or
over-the-limit fee that may be imposed shall be expressed as an amount
or as a percentage of the transaction, as applicable. If no such fee
will be imposed, the issuer shall indicate "No" or "None" or "Does not
apply".

(5) (a) Nothing in this section shall be deemed or construed to
prohibit an issuer from disclosing additional terms, conditions, or
information, whether or not relating to the disclosures required under
this section, in conjunction with the disclosures required by this
section.

(b) All application forms for a credit card agreement, including
those in a magazine, newspaper, or other publication, distributed by
someone other than the issuer in this state on or after January first,
nineteen hundred eighty-eight shall contain a statement in substantially
the following form:

"If you wish to receive disclosure of the terms of this credit card,
check here and return to the address on this application".

A box shall be printed in or next to this statement for placement of
such a check mark.

However, this requirement does not apply if the application contains
the disclosures provided for in subdivisions one through four of this
section.

(6) For purposes of this section, "Regulation Z" and all of the terms
used in this section shall have the same meaning as attributed to them
in Federal Regulation Z (12 C.F.R. Sec.226.1 et seq.).

(7) This section shall not apply to any application form or written
advertisement where the credit to be extended will be secured by a lien
on real property or a lien on an existing ownership interest in
certificates of stock or other evidences of an ownership interest in a
proprietary lease from a corporation or partnership formed for the
purpose of the co-operative ownership of real estate.

(8) If an issuer is required under federal law to make any disclosure
of the terms applicable to a credit card plan or account under this
section in connection with application forms or solicitation, the seller
or issuer shall be deemed to have complied with the requirements of this
section with respect to those application forms or solicitations if the
seller or issuer complies with the federal disclosure requirements.

(9) Any application form or preapproved written solicitation to enter
into a retail installment credit agreement in which the retail seller or
financing agency may take or retain a purchase money security interest,
as set forth in paragraph (c) of subdivision twelve of section four
hundred thirteen of the personal property law, which is mailed or
otherwise made available to an individual residing in this state on or
after the effective date of this subdivision, 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, shall
contain a clear and conspicuous written notice or disclosure to the
buyer that the retail seller or financing agency has or may retain a
security interest in merchandise covered under paragraph (c) of
subdivision twelve of section four hundred thirteen of the personal
property law until the full payment price of said merchandise is paid.
Further provided, however, in all instances, said written notice must be
provided to any buyer prior to the first transaction made under any such
retail installment credit agreement in which a security interest has
been or may be taken or retained.