97A.200 - Prohibited acts by issuer: Increase of interest rate based upon late payment to another creditor; universal default clauses; exception.

97A.200  Prohibited acts by issuer: Increase of interest rate based upon late payment to another creditor; universal default clauses; exception.

      1.  An issuer shall not:

      (a) Increase the interest rate it charges a cardholder for the use of the card based upon the late payment by the cardholder to another issuer or a creditor of the cardholder that is not an affiliate or subsidiary of the issuer; or

      (b) Include a universal default clause in a contract or other agreement relating to a credit card account.

      2.  Notwithstanding the provisions of subsection 1, an issuer may increase the interest rate it charges a cardholder for the use of the card based on a change in the credit rating of the cardholder.

      3.  As used in this section:

      (a) “Affiliate or subsidiary of the issuer” means an affiliate or subsidiary that conducts business under a name that is:

             (1) The same as the name of the issuer; or

             (2) Sufficiently similar to the name of the issuer that a cardholder could reasonably believe that the cardholder is conducting business with the issuer.

      (b) “Universal default clause” means a clause or provision that allows an issuer to increase the interest rate it charges a cardholder for the use of the card based upon the late payment by the cardholder to another issuer or a creditor of the cardholder that is not an affiliate or subsidiary of the issuer.

      (Added to NRS by 2007, 404, 655)

      NRS 97A.210  Prohibited acts by issuer: Prohibiting merchant from offering certain discounts.  No issuer may, by contract or otherwise, prohibit a merchant from offering a discount to a customer to induce the customer to pay by cash, check or similar means rather than by use of a credit card or a credit card account for the purchase of goods or services.

      (Added to NRS by 2007, 404, 655)