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This entry was published on 2014-09-22
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Secured credit cards
General Business (GBS) CHAPTER 20, ARTICLE 29-A
§ 520-b. Secured credit cards. 1. If an issuer or any other person
uses a 900 telephone number to solicit or market a secured credit card
to an individual residing in this state, or otherwise advertises or
promotes the availability of a secured credit card through use of a 900
telephone number to an individual residing in this state, the issuer or
other person must disclose all of the following terms that may be

(a) either the flat fee charged for the call or the cost of the call
per minute and the anticipated number of minutes for such call;

(b) the fact that the fee described in paragraph (a) of this
subdivision is refundable in its entirety, at the consumer's request, if
for whatever reason the consumer does not get a secured credit card; and

(c) the fact that no fees may be imposed or collected, other than a
refundable fee for a 900 telephone number, until the consumer has asked
the issuer to open a credit card account and the issuer has agreed to
open such an account under the terms and conditions of the offer.

2. The disclosures required by subdivision one of this section shall
be provided before the 900 telephone number call is placed by the
consumer. Such disclosures shall be provided clearly and conspicuously.

3. An issuer of a secured credit card shall, either prior to or at the
time of issuance, disclose the minimum amount of money the consumer must
keep on deposit to qualify for such a card, the interest that will be
paid on said deposit, and the amount of credit that will be extended
either in absolute terms or expressed as a percentage of such deposit.

4. In connection with any application or solicitation for a secured
credit card, no person shall impose any fee or charge as an application
fee, set-up fee, credit review fee, search fee, or any other fee by any
other name prior to, contemporaneous with, or incidental to the opening
of such a secured credit card agreement. Provided, however, that nothing
contained herein shall prohibit an issuer from contracting for and
imposing any fees and charges authorized by section four hundred
thirteen of the personal property law and provided further that nothing
contained herein shall prohibit solicitation for such a card by use of a
900 telephone number pursuant to the provisions of this section.