§ 24-11.2. Disclosure requirements for charge cards.
§24‑11.2. Disclosure requirements for charge cards.
(a) Applications andOther Communications. This section applies to any application, solicitationof an application, offer of credit, or communication extending credit that is:
(1) For credit accessed througha charge card;
(2) Printed;
(3) Mailed or otherwisedelivered to a person at any address within this State;
(4) Not deliveredpursuant to an existing credit agreement; and
(5) Not printed in anewspaper, magazine, or periodical generally circulated outside as well asinside the State.
For purposes of this section, theterm "charge card" means any card, plate or other device pursuant towhich the charge card issuer extends credit which is not subject to a financecharge and where the charge cardholder cannot automatically access credit thatis repayable in installments.
(b) Disclosures. Thefollowing disclosures shall be clearly and conspicuously made in or with alldocuments described in subsection (a) of this section:
(1) The annual fee andother charges, if any, applicable to the issuance or use of the charge card.
(2) That chargesincurred by the use of the charge card are due and payable upon receipt of aperiodic statement of charges.
(3) Any delinquencycharge, late charge, or collection charge which may be assessed for latepayment, including the terms and conditions for the imposition of such charge.
(c) FederalRequirements. The form and content of the disclosures described in subsection(b) may be consistent with similar disclosures required by the federal Truth‑in‑LendingAct, 15 U.S.C. § 1601 et seq., and Regulation Z, 12 C.F.R. 226. Any amendmentto the Act or Regulation that addresses credit card disclosures shall, to theextent it covers applications, solicitations, and other communications coveredby this section, replace the disclosure requirements of this section forcreditors subject to the Act.
(d) Penalty. Aviolation of this section shall constitute a violation of G.S. 75‑1.1except that the creditor shall not be liable for any fine, civil penalty,treble damages, or attorney's fee where the creditor shows by a preponderanceof the evidence that the violation was not intentional and resulted from a bonafide error, notwithstanding the maintenance of procedures reasonably adapted toavoid any such error.
(e) Severability. Ifany part of this section is found unconstitutional or is preempted by federallaw with regard to a creditor because the creditor is located outside of theState, that part does not apply to creditors located within the State.
(f) Nothing in thissection shall be construed to authorize any fee, charge, surcharge or penaltynot otherwise authorized by law. (1987, c. 735. s. 1.)