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This entry was published on 2022-08-19
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SECTION 520-E
Grace period for use of credit card reward points
General Business (GBS) CHAPTER 20, ARTICLE 29-A
* § 520-e. Grace period for use of credit card reward points. 1. As
used in this section, the following terms shall have the following
meanings:

(a) "credit card points" or "points" shall mean denominated units that
can be accumulated in an account in connection with a credit card
reward, loyalty, or other incentive program, often referred to as points
or for certain travel-related rewards as miles, which are redeemable,
fungible, or otherwise exchangeable, in whole or in part, for rewards;

(b) "rewards" shall mean goods, services, cash, merchant-specific gift
cards, travel benefits, or one or more other things of value;

(c) "rewards program" shall mean any agreement between a holder and an
issuer regarding points related to an account; and

(d) "modified" or "modification" shall mean a change that has the
effect of eliminating points, reducing the value of points, affecting
the ability of a holder to accumulate points, limiting or reducing
rewards availability, limiting a holder's use of points or the credit
card account, otherwise diminishing the value of the rewards program or
the credit card account to the holder or changing the obligations of the
holder with respect to the rewards program or credit card account.

2. If any credit card account or rewards program is modified,
cancelled, closed or terminated, the holder must be provided notice from
the issuer of such cancellation, closure, termination or modification as
soon as possible, and in any event within forty-five days of such
cancellation, closure, termination or modification. Beginning with the
date on which notice is sent, the holder shall have ninety days to
redeem, exchange, or otherwise use any credit card points that the
holder accumulated at the time of such modification, cancellation,
closure, or termination as permitted under the terms of the agreement or
agreements between the holder and the issuer which is servicing the
applicable credit card account or related rewards program, subject to
the availability of rewards.

3. It shall be unlawful for any agreement between an issuer and a
holder, or any rewards program, to provide for the expiration,
forfeiture or cancellation of credit card points prior to the expiration
of the ninety day period set forth in subdivision two of this section.

4. The provisions of subdivisions two and three of this section shall
not apply in the case of fraud by the holder with respect to the credit
card account or any related rewards program, or misuse by the holder of
the credit card account or any related rewards program.

5. Any agreement entered into by a holder that waives, limits or
disclaims the rights set forth in this section shall be void as contrary
to public policy.

* NB Effective December 10, 2023