S1283-2011 Actions

• Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
• Jan 6, 2011: REFERRED TO CONSUMER PROTECTION

S1283-2011 Memo

BILL NUMBER:S1283

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.

S1283-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1283
 2011-2012 Regular Sessions
 I N  SENATE
 January 6, 2011
 
 Introduced  by  Sen.  DUANE  -- 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.
 LBD01145-01-1
 
       S. 1283                             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.

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