§ 520 — Application forms or solicitation for credit cards

§ 520. Application forms or solicitation for credit cards. Any\napplication form or preapproved written solicitation to enter into a\ncredit card agreement for personal, family, or household purposes which\nis mailed to an individual residing in this state on or after January\nfirst, nineteen hundred eighty-eight, by or on behalf of a issuer,\nwhether or not the issuer is located in this state, other than an\napplication form or solicitation included in a magazine, newspaper, or\nother publication distributed by someone other than the issuer, and, any\napplication primarily for a credit card to be used for personal, family\nor household purposes which is distributed or made available in this\nstate to a resident of this state on or after January first, nineteen\nhundred eighty-eight in an office or other place of business owned or\noperated by the issuer, shall contain the following disclosures in chart\nform and shall put chart headings in bold face type of at least ten\npoint in size and material inside the chart of at least eight point type\nin size. Such chart shall use substantially the same format and\nterminology shown below. In completing the chart with the information\nrequired for each category, the guidelines hereinafter contained in the\ncorresponding subdivisions numbered one through four shall be utilized:\n_________________________________________________________________________\n1 | | | |Cash Advance |\n2 | Variable | | |Fee, Trans- |\n3 Annual | Rate Index | Annualized | Grace | action Fee, |\n4 Percentage | and | Membership | Period for |Late Fee, and|\n5 Rate (1) | Spread (1a) | Fee (2) |Purchases (3)| Over-the- |\n6 | | | |Limit Fees(4)|\n7 | | | | |\n_________________________________________________________________________\n8 | | | | |\n9 | | | | |\n0 | | | | |\n1 | | | | |\n2 | | | | |\n3 | | | | |\n4 | | | | |\n_________________________________________________________________________\n (1) and (1a) Any periodic rate or rates that may be applied, shall be\nexpressed as an annual percentage rate or rates. If the credit card\nagreement provides for a variable rate, the issuer shall disclose the\nrate as of a specific date and identify the index and any amount or\npercentage added to, or subtracted from, that index. For purposes of\nthis category, that amount of percentage shall be referred to as the\n"spread". If a fixed rate is to be applied, the issuer shall indicate\n"No" or "None" or "Does not apply" in category (1-a) and further the\nissuer may elect to disclose a rate as of a specified date.\n (2) Any membership or participation fee that may be imposed for\navailability of a credit agreement, shall be expressed as an annualized\namount. If no such fee will be imposed, issuer shall indicate "No" or\n"None" or "Does not apply".\n (3) If the issuer provides a period during which the holder may repay\nthe full balance reflected on a monthly statement which is attributable\nto purchases of goods and services without the imposition of a service\ncharge, the issuer shall either disclose the number of days of that\nperiod, calculated from the closing date of the prior billing period to\nthe date designated in the monthly statement sent to the holder as the\ndate by which that payment must be received to avoid additional service\nor other charges, or describe the manner in which the period is\ncalculated. For purposes of this category, the period shall be referred\nto as the "grace period". If the issuer does not provide such a period,\nthe disclosure shall so indicate. The issuer may, at its option, and\nwithout disclosure impose no service or other charge where payment is\nreceived after the expiration of the grace period.\n (4) Any cash advance fee, per transaction fee, late fee or\nover-the-limit fee that may be imposed shall be expressed as an amount\nor as a percentage of the transaction, as applicable. If no such fee\nwill be imposed, the issuer shall indicate "No" or "None" or "Does not\napply".\n (5) (a) Nothing in this section shall be deemed or construed to\nprohibit an issuer from disclosing additional terms, conditions, or\ninformation, whether or not relating to the disclosures required under\nthis section, in conjunction with the disclosures required by this\nsection.\n (b) All application forms for a credit card agreement, including\nthose in a magazine, newspaper, or other publication, distributed by\nsomeone other than the issuer in this state on or after January first,\nnineteen hundred eighty-eight shall contain a statement in substantially\nthe following form:\n "If you wish to receive disclosure of the terms of this credit card,\ncheck here and return to the address on this application".\n A box shall be printed in or next to this statement for placement of\nsuch a check mark.\n However, this requirement does not apply if the application contains\nthe disclosures provided for in subdivisions one through four of this\nsection.\n (6) For purposes of this section, "Regulation Z" and all of the terms\nused in this section shall have the same meaning as attributed to them\nin Federal Regulation Z (12 C.F.R. Sec.226.1 et seq.).\n (7) This section shall not apply to any application form or written\nadvertisement where the credit to be extended will be secured by a lien\non real property or a lien on an existing ownership interest in\ncertificates of stock or other evidences of an ownership interest in a\nproprietary lease from a corporation or partnership formed for the\npurpose of the co-operative ownership of real estate.\n (8) If an issuer is required under federal law to make any disclosure\nof the terms applicable to a credit card plan or account under this\nsection in connection with application forms or solicitation, the seller\nor issuer shall be deemed to have complied with the requirements of this\nsection with respect to those application forms or solicitations if the\nseller or issuer complies with the federal disclosure requirements.\n (9) Any application form or preapproved written solicitation to enter\ninto a retail installment credit agreement in which the retail seller or\nfinancing agency may take or retain a purchase money security interest,\nas set forth in paragraph (c) of subdivision twelve of section four\nhundred thirteen of the personal property law, which is mailed or\notherwise made available to an individual residing in this state on or\nafter the effective date of this subdivision, by or on behalf of an\nissuer, whether or not the issuer is located in this state, other than\nan application form or solicitation included in a magazine, newspaper,\nor other publication distributed by someone other than the issuer, shall\ncontain a clear and conspicuous written notice or disclosure to the\nbuyer that the retail seller or financing agency has or may retain a\nsecurity interest in merchandise covered under paragraph (c) of\nsubdivision twelve of section four hundred thirteen of the personal\nproperty law until the full payment price of said merchandise is paid.\nFurther provided, however, in all instances, said written notice must be\nprovided to any buyer prior to the first transaction made under any such\nretail installment credit agreement in which a security interest has\nbeen or may be taken or retained.\n