9-A §8-303. Credit card restrictions
Title 9-A: MAINE CONSUMER CREDIT CODE
Article 8: TRUTH-IN-LENDING
Part 3: CREDIT CARD RESTRICTIONS
§8-303. Credit card restrictions
1. With respect to a credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay by cash, check or similar means rather than use a credit card.
[ 1981, c. 243, §25 (NEW) .]
2. A seller in a sales transaction may not impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means.
[ 2009, c. 618, §2 (AMD) .]
2-A. Notwithstanding subsection 2, a governmental entity may impose a surcharge for payments made with a credit card or debit card for taxes, fines, charges, utility fees, regulatory fees, license or permit fees or the provision of a specific service provided by that governmental entity if the surcharge:
A. Is disclosed clearly to the consumer prior to payment; and [2009, c. 113, §1 (NEW).]
B. Does not exceed the costs associated with providing the credit card or debit card service that are directly incurred by the governmental entity or assessed by an authorized 3rd-party payment service provider for a credit card or debit card transaction. If there is not a cost assessed by an authorized 3rd-party payment service provider for a debit card transaction, the governmental entity may not impose a surcharge associated with a debit card transaction. [2009, c. 113, §1 (NEW).]
A governmental entity shall disclose to the consumer that the surcharge may be avoided if the consumer makes payments by cash, check or other means not a credit card or debit card. A governmental entity is not subject to any liability to the issuer of a credit card or an authorized 3rd-party payment service provider for nonpayment of credit card charges by the consumer. As used in this subsection, "governmental entity" means a county established or governed by Title 30-A, Part 1, a municipality as defined in Title 30-A, section 2001, subsection 8, a quasi-municipal corporation as defined in Title 30-A, section 2604, subsection 3 , the Judicial Department as described in Title 4, the University of Maine System, the Maine Community College System or the Maine Maritime Academy.
[ 2009, c. 571, Pt. LLL, §1 (AMD) .]
3. With respect to any sales transaction, any discount offered by the seller for the purpose of inducing payment by cash, check or other means not involving the use of a credit card does not constitute a finance charge as determined under section 8-105, if that discount is offered to all prospective buyers and its availability is disclosed to all prospective buyers clearly and conspicuously.
[ 1981, c. 243, §25 (NEW) .]
4. Notwithstanding any agreement to the contrary, a card issuer may not require a seller, as a condition to participating in a credit card plan, to open an account with or procure any other service from the card issuer or its subsidiary or agent.
[ 1981, c. 243, §25 (NEW) .]
5. A card issuer may not take any action to offset a cardholder's indebtedness arising in connection with a consumer credit transaction under the relevant credit card plan against funds of the cardholder held on deposit with the card issuer unless:
A. This action was previously authorized in writing by the cardholder in accordance with a credit plan whereby the cardholder agrees periodically to pay debts incurred in his open-end credit account by permitting the card issuer periodically to deduct all or a portion of such debt from the cardholder's deposit account; and [1981, c. 243, §25 (NEW).]
B. This action with respect to any outstanding disputed amount may not be taken by the card issuer upon request of the cardholder. [1995, c. 614, Pt. A, §15 (AMD).]
[ 1995, c. 614, Pt. A, §15 (AMD) .]
6. Rights of credit card customers are as follows.
A. Subject to the limitation contained in paragraph B, a card issuer who has issued a credit card to a cardholder pursuant to an open-end consumer credit plan is subject to all claims, other than tort claims, and defenses arising out of any transaction in which the credit card is used as a method of payment or extension of credit if:
(i) The obligor has made a good faith attempt to obtain satisfactory resolution of a disagreement or problem relative to the transaction from the person honoring the credit card;
(ii) The amount of the initial transaction exceeds $50; and
(iii) The place where the initial transaction occurred was in the same state as the mailing address previously provided by the cardholder or was within 100 miles from such address. [1981, c. 243, §25 (NEW).]
B. The limitations set forth in paragraph A, subparagraphs (ii) and (iii), with respect to an obligor's right to assert claims and defenses against a card issuer are not applicable to any transaction in which the person honoring the credit card:
(i) Is the same person as the card issuer;
(ii) Is controlled by the card issuer;
(iii) Is under direct or indirect common control with the card issuer;
(iv) Is a franchised dealer in the card issuer's products or services; or
(v) Has obtained the order for such transaction through a mail solicitation made by or participated in by the card issuer in which the cardholder is solicited to enter into the transaction by using the credit card issued by the card issuer. [1981, c. 243, §25 (NEW).]
C. The amount of claims or defenses asserted by the cardholder may not exceed the amount of credit outstanding with respect to the transaction at the time the cardholder first notifies the card issuer or the person honoring the credit card of that claim or defense. For the purpose of determining the amount of credit outstanding in the preceding sentence, payments and credits to the cardholder's account are deemed to have been applied, in the order indicated, to the payment of:
(i) Late charges in the order of their entry to the account;
(ii) Finance charges in order of their entry to the account; and
(iii) Debits to the account other than those set forth above, in the order in which each debit entry to the account was made. [1981, c. 243, §25 (NEW).]
[ 1981, c. 243, §25 (NEW) .]
7. With respect to an open-end credit plan involving a credit card offered in connection with a seller located in this State using cards displaying the name of the seller:
A. The terms of the credit card contract must comply with the laws that would apply if the seller were the creditor; or [1991, c. 212, (NEW).]
B. The name and state of the financial institution underwriting the debt must appear on the credit card. [1997, c. 660, Pt. D, §1 (AMD).]
This subsection applies to any new credit card programs implemented after November 1, 1991 and takes effect on December 31, 1992 for all other credit card accounts and programs. A violation of this section constitutes a violation of Title 5, chapter 10, Unfair Trade Practices Act.
[ 1997, c. 660, Pt. D, §1 (AMD) .]
SECTION HISTORY
1981, c. 243, §§25,26 (NEW). 1981, c. 551, §3 (AMD). 1991, c. 212, (AMD). 1991, c. 755, §1 (AMD). 1995, c. 614, §A15 (AMD). 1997, c. 660, §D1 (AMD). 2009, c. 113, §1 (AMD). 2009, c. 571, Pt. LLL, §1 (AMD). 2009, c. 618, §2 (AMD).