§ 6-27-10 - Disclosure.
SECTION 6-27-10
§ 6-27-10 Disclosure. – (a) Any application form or written solicitation for a revolving or open endcredit plan provided or offered by a creditor to a resident of this state shallcontain or be accompanied by either of the following disclosures:
(1) A disclosure of each of the following, if applicable:
(i) Any periodic interest or finance charge rate that may beapplied to the credit card account, expressed as an annual percentage rate, orin the case of a credit card account with a variable rate, the means fordetermining that rate;
(ii) If two (2) or more periodic rates may be used to computethe finance charge, each rate, the range of balances to which each rate isapplicable, and the corresponding annual percentage rate with respect to eachperiodic rate;
(iii) Any membership, participation, or other similar feeimposed for the issuance of a credit card or, if the creditor does not impose afee, the disclosure shall so indicate;
(iv) The period within which any credit extended or principalamount withdrawn from a credit card account shall be repaid to avoid incurringa finance charge, and if no period is offered that fact shall be stated, exceptthat a creditor may at its option and without disclosure impose no financecharge when payment is received after the time period's expiration; and
(v) Any per transaction fee or similar fee; or
(2) A disclosure that satisfies the initial disclosurestatement requirements of "Regulation Z".
(b) Any information required to be disclosed pursuant to thissection shall be disclosed in a clear and conspicuous manner.
(c) The provisions of this section shall not apply to oralsolicitations or solicitations made through or applications contained in acatalogue, magazine, newspaper, or other print media that is mailed orotherwise distributed to people in more than one state.
(d) A creditor need not present the disclosures required bysubsection (a) of this section in chart form, or use any specific terminology,except as expressly provided in this section. The following chart shall not beconstrued in any way as a standard by which to determine whether a creditorwhich elects not to use the chart has provided the required disclosures in amanner which satisfies subsection (a) of this section. However, disclosuresshall be conclusively presumed to satisfy the requirements of subsection (a) ofthis section if a chart with captions substantially as follows is completedwith the applicable terms offered by the creditor, or if the creditor presentsthe applicable terms in tabular, list, or narrative format using terminologysubstantially similar to the captions included in the following chart:
SEE THE BOOK FOR THE PROPER TABLE.
(e) For the purposes of this section, "Regulation Z" meansthe regulation promulgated and as amended by the federal reserve board pursuantto the federal truth in lending provisions of the "Consumer Credit ProtectionAct," 15 U.S.C. § 1601 et seq.
(f) Nothing in this section shall be deemed or construed toprohibit a creditor from disclosing additional terms, conditions, orinformation, whether or not relating to the disclosures required under thissection, in conjunction with the disclosures required by this section.
(g) This section does not apply to any application form orwritten solicitation for a revolving or open-end credit plan where the creditto be extended will be secured by a lien on real property.
(h) Any person who knowingly and willfully violates anyprovision of this section shall be subject to a civil penalty of not less thanfive hundred dollars ($500) nor more than five thousand dollars ($5,000) perviolation. Any application or solicitation violating this section shall betreated as a single violation regardless of the number of applications orsolicitations distributed.