S502-2013 Actions

• Jan 9, 2013: REFERRED TO CONSUMER PROTECTION

S502-2013 Memo

BILL NUMBER:S502

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.

S502-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     502

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced by Sen. ESPAILLAT -- 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.
                                                             LBD01945-01-3

 S. 502                              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.