N.Y. General Business Law § 520-b: Secured credit cards

§ 520-b. Secured credit cards. 1. If an issuer or any other person

uses a 900 telephone number to solicit or market a secured credit card

to an individual residing in this state, or otherwise advertises or

promotes the availability of a secured credit card through use of a 900

telephone number to an individual residing in this state, the issuer or

other person must disclose all of the following terms that may be

applicable:

(a) either the flat fee charged for the call or the cost of the call

per minute and the anticipated number of minutes for such call;

(b) the fact that the fee described in paragraph (a) of this

subdivision is refundable in its entirety, at the consumer's request, if

for whatever reason the consumer does not get a secured credit card; and

(c) the fact that no fees may be imposed or collected, other than a

refundable fee for a 900 telephone number, until the consumer has asked

the issuer to open a credit card account and the issuer has agreed to

open such an account under the terms and conditions of the offer.

2. The disclosures required by subdivision one of this section shall

be provided before the 900 telephone number call is placed by the

consumer. Such disclosures shall be provided clearly and conspicuously.

3. An issuer of a secured credit card shall, either prior to or at the

time of issuance, disclose the minimum amount of money the consumer must

keep on deposit to qualify for such a card, the interest that will be

paid on said deposit, and the amount of credit that will be extended

either in absolute terms or expressed as a percentage of such deposit.

4. In connection with any application or solicitation for a secured

credit card, no person shall impose any fee or charge as an application

fee, set-up fee, credit review fee, search fee, or any other fee by any

other name prior to, contemporaneous with, or incidental to the opening

of such a secured credit card agreement. Provided, however, that nothing

contained herein shall prohibit an issuer from contracting for and

imposing any fees and charges authorized by section four hundred

thirteen of the personal property law and provided further that nothing

contained herein shall prohibit solicitation for such a card by use of a

900 telephone number pursuant to the provisions of this section.