§478-11.5 - Credit cards.
§478-11.5 Credit cards. (a) With regard to every credit card issuer wherever located and a customer who is a resident of this State and who is given the opportunity to enter into a credit card plan, every solicitation and application for the credit card plan shall set forth all of the following:
(1) The initial simple interest numerical periodic rate and any fee or charge payable by the cardholder, directly or indirectly, as an incident to or a condition of the extension of credit, or if the rate or fee may vary, a statement that it may do so and the circumstances under which it may increase and the effects of the increase;
(2) The date or occasion upon which the interest begins to accrue;
(3) Whether any annual fee is charged and the amount of the fee;
(4) Any minimum, fixed, transaction, activity, or similar charge that could be imposed; and
(5) That charges incurred by the use of a charge card are due and payable upon receipt of a periodic statement of charges, if applicable. For purposes of this paragraph, the term "charge card" means any card, plate, or other device pursuant to which the charge card issuer extends credit that is not subject to a finance charge and where the charge cardholder cannot automatically access credit that is repayable in installments.
(b) With respect to any credit card agreement, in no case shall it be deemed unlawful to stipulate by written contract for any amount of interest, except that the simple interest numerical periodic rate shall not exceed eighteen per cent per year. Prior to charging any fee or charge, the credit card issuer shall disclose the fee or charge to the credit cardholder in the credit card agreement or in an amendment to the credit card agreement.
As used in this subsection, "interest" means the simple interest numerical periodic rate and any other fee, charge, or payment, directly or indirectly charged or received as an incident to or a condition of an extension of credit under a credit card agreement, including but not limited to:
(1) A currency exchange conversion fee;
(2) A late fee;
(3) A creditor-imposed "not sufficient funds" fee charged when a borrower tenders payment on a debt with a check drawn on insufficient funds;
(4) An over-the-credit limit fee;
(5) An annual fee or other periodic membership fee;
(6) A balance transfer fee;
(7) A cash advance fee; or
(8) A minimum finance charge. [L 1987, c 206, §1; am L 2006, c 307, §2]