N.Y. General Business Law § 520-e: Grace period for use of credit card reward points

§ 520-e. Grace period for use of credit card reward points. 1. As used

in this section, the following terms shall have the following meanings:

(a) "credit card points" or "points" shall mean denominated units that

can be accumulated in an account in connection with a credit card

reward, loyalty, or other incentive program, often referred to as points

or for certain travel-related rewards as miles, which are redeemable,

fungible, or otherwise exchangeable, in whole or in part, for rewards;

(b) "rewards" shall mean goods, services, cash, merchant-specific gift

cards, travel benefits, or one or more other things of value;

(c) "rewards program" shall mean any agreement between a holder and an

issuer regarding points related to an account; and

(d) "modified" or "modification" shall mean a change that has the

effect of eliminating points, reducing the value of points, affecting

the ability of a holder to accumulate points, limiting or reducing

rewards availability, limiting a holder's use of points or the credit

card account, otherwise diminishing the value of the rewards program or

the credit card account to the holder or changing the obligations of the

holder with respect to the rewards program or credit card account.

2. If any credit card account or rewards program is modified,

cancelled, closed or terminated, the holder must be provided notice from

the issuer of such cancellation, closure, termination or modification as

soon as possible, and in any event within forty-five days of such

cancellation, closure, termination or modification. Beginning with the

date on which notice is sent, the holder shall have ninety days to

redeem, exchange, or otherwise use any credit card points that the

holder accumulated at the time of such modification, cancellation,

closure, or termination as permitted under the terms of the agreement or

agreements between the holder and the issuer which is servicing the

applicable credit card account or related rewards program, subject to

the availability of rewards.

3. It shall be unlawful for any agreement between an issuer and a

holder, or any rewards program, to provide for the expiration,

forfeiture or cancellation of credit card points prior to the expiration

of the ninety day period set forth in subdivision two of this section.

4. The provisions of subdivisions two and three of this section shall

not apply in the case of fraud by the holder with respect to the credit

card account or any related rewards program, or misuse by the holder of

the credit card account or any related rewards program.

5. Any agreement entered into by a holder that waives, limits or

disclaims the rights set forth in this section shall be void as contrary

to public policy.