N.Y. General Business Law § 520: Application forms or solicitation for credit cards

§ 520. Application forms or solicitation for credit cards. Any

application form or preapproved written solicitation to enter into a

credit card agreement for personal, family, or household purposes which

is mailed to an individual residing in this state on or after January

first, nineteen hundred eighty-eight, by or on behalf of a issuer,

whether or not the issuer is located in this state, other than an

application form or solicitation included in a magazine, newspaper, or

other publication distributed by someone other than the issuer, and, any

application primarily for a credit card to be used for personal, family

or household purposes which is distributed or made available in this

state to a resident of this state on or after January first, nineteen

hundred eighty-eight in an office or other place of business owned or

operated by the issuer, shall contain the following disclosures in chart

form and shall put chart headings in bold face type of at least ten

point in size and material inside the chart of at least eight point type

in size. Such chart shall use substantially the same format and

terminology shown below. In completing the chart with the information

required for each category, the guidelines hereinafter contained in the

corresponding subdivisions numbered one through four shall be utilized:

_________________________________________________________________________

1 | | | |Cash Advance |

2 | Variable | | |Fee, Trans- |

3 Annual | Rate Index | Annualized | Grace | action Fee, |

4 Percentage | and | Membership | Period for |Late Fee, and|

5 Rate (1) | Spread (1a) | Fee (2) |Purchases (3)| Over-the- |

6 | | | |Limit Fees(4)|

7 | | | | |

_________________________________________________________________________

8 | | | | |

9 | | | | |

0 | | | | |

1 | | | | |

2 | | | | |

3 | | | | |

4 | | | | |

_________________________________________________________________________

(1) and (1a) Any periodic rate or rates that may be applied, shall be

expressed as an annual percentage rate or rates. If the credit card

agreement provides for a variable rate, the issuer shall disclose the

rate as of a specific date and identify the index and any amount or

percentage added to, or subtracted from, that index. For purposes of

this category, that amount of percentage shall be referred to as the

"spread". If a fixed rate is to be applied, the issuer shall indicate

"No" or "None" or "Does not apply" in category (1-a) and further the

issuer may elect to disclose a rate as of a specified date.

(2) Any membership or participation fee that may be imposed for

availability of a credit agreement, shall be expressed as an annualized

amount. If no such fee will be imposed, issuer shall indicate "No" or

"None" or "Does not apply".

(3) If the issuer provides a period during which the holder may repay

the full balance reflected on a monthly statement which is attributable

to purchases of goods and services without the imposition of a service

charge, the issuer shall either disclose the number of days of that

period, calculated from the closing date of the prior billing period to

the date designated in the monthly statement sent to the holder as the

date by which that payment must be received to avoid additional service

or other charges, or describe the manner in which the period is

calculated. For purposes of this category, the period shall be referred

to as the "grace period". If the issuer does not provide such a period,

the disclosure shall so indicate. The issuer may, at its option, and

without disclosure impose no service or other charge where payment is

received after the expiration of the grace period.

(4) Any cash advance fee, per transaction fee, late fee or

over-the-limit fee that may be imposed shall be expressed as an amount

or as a percentage of the transaction, as applicable. If no such fee

will be imposed, the issuer shall indicate "No" or "None" or "Does not

apply".

(5) (a) Nothing in this section shall be deemed or construed to

prohibit an issuer from disclosing additional terms, conditions, or

information, whether or not relating to the disclosures required under

this section, in conjunction with the disclosures required by this

section.

(b) All application forms for a credit card agreement, including

those in a magazine, newspaper, or other publication, distributed by

someone other than the issuer in this state on or after January first,

nineteen hundred eighty-eight shall contain a statement in substantially

the following form:

"If you wish to receive disclosure of the terms of this credit card,

check here and return to the address on this application".

A box shall be printed in or next to this statement for placement of

such a check mark.

However, this requirement does not apply if the application contains

the disclosures provided for in subdivisions one through four of this

section.

(6) For purposes of this section, "Regulation Z" and all of the terms

used in this section shall have the same meaning as attributed to them

in Federal Regulation Z (12 C.F.R. Sec.226.1 et seq.).

(7) This section shall not apply to any application form or written

advertisement where the credit to be extended will be secured by a lien

on real property or a lien on an existing ownership interest in

certificates of stock or other evidences of an ownership interest in a

proprietary lease from a corporation or partnership formed for the

purpose of the co-operative ownership of real estate.

(8) If an issuer is required under federal law to make any disclosure

of the terms applicable to a credit card plan or account under this

section in connection with application forms or solicitation, the seller

or issuer shall be deemed to have complied with the requirements of this

section with respect to those application forms or solicitations if the

seller or issuer complies with the federal disclosure requirements.

(9) Any application form or preapproved written solicitation to enter

into a retail installment credit agreement in which the retail seller or

financing agency may take or retain a purchase money security interest,

as set forth in paragraph (c) of subdivision twelve of section four

hundred thirteen of the personal property law, which is mailed or

otherwise made available to an individual residing in this state on or

after the effective date of this subdivision, by or on behalf of an

issuer, whether or not the issuer is located in this state, other than

an application form or solicitation included in a magazine, newspaper,

or other publication distributed by someone other than the issuer, shall

contain a clear and conspicuous written notice or disclosure to the

buyer that the retail seller or financing agency has or may retain a

security interest in merchandise covered under paragraph (c) of

subdivision twelve of section four hundred thirteen of the personal

property law until the full payment price of said merchandise is paid.

Further provided, however, in all instances, said written notice must be

provided to any buyer prior to the first transaction made under any such

retail installment credit agreement in which a security interest has

been or may be taken or retained.