N.Y. General Business Law § 525: Prohibited practices

§ 525. Prohibited practices. 1. It shall be unlawful for a provider of

travel services to communicate with a credit card issuer for the purpose

of reserving or setting aside any specified amount of credit in a

consumer's credit card account to ensure payment for services to be

rendered unless prior to such communication the provider of travel

services informs the consumer of the amount of credit which will be

requested to be reserved or set aside and obtains the consumer's consent

to the reservation or set aside of such amount.

2. It shall be unlawful for a provider of travel services to

communicate with a credit card issuer for the purpose of reserving or

setting aside an amount of credit in a consumer's credit card account in

excess of the actual, agreed upon cost of the services contracted for by

the consumer and provider of travel services unless, prior to such

communication, the provider of travel services informs the consumer in

writing of the amount of credit which will be requested to be reserved

or set aside and obtains the consumer's written consent to the

reservation or set aside of such amount.

3. It shall be unlawful for any provider of travel services, after it

has determined the final charges for the travel services furnished to a

consumer, to fail to promptly communicate with a credit card issuer to

request the release of any amount of credit previously reserved or set

aside by it in the consumer's credit card account which is in excess by

more than twenty-five dollars of the charges actually billed.

4. It shall be unlawful for any provider of travel services to impose,

as a result of the use of a credit card, a surcharge on a travel agent

acting as an agent of such provider of travel services where, on behalf

of a holder of a credit card, as defined in section five hundred eleven

of this chapter, such travel agent facilitates the holder's use of a

credit card in lieu of payment by cash, check or similar means.