§ 520-B — Secured credit cards

§ 520-b. Secured credit cards. 1. If an issuer or any other person\nuses a 900 telephone number to solicit or market a secured credit card\nto an individual residing in this state, or otherwise advertises or\npromotes the availability of a secured credit card through use of a 900\ntelephone number to an individual residing in this state, the issuer or\nother person must disclose all of the following terms that may be\napplicable:\n (a) either the flat fee charged for the call or the cost of the call\nper minute and the anticipated number of minutes for such call;\n (b) the fact that the fee described in paragraph (a) of this\nsubdivision is refundable in its entirety, at the consumer's request, if\nfor whatever reason the consumer does not get a secured credit card; and\n (c) the fact that no fees may be imposed or collected, other than a\nrefundable fee for a 900 telephone number, until the consumer has asked\nthe issuer to open a credit card account and the issuer has agreed to\nopen such an account under the terms and conditions of the offer.\n 2. The disclosures required by subdivision one of this section shall\nbe provided before the 900 telephone number call is placed by the\nconsumer. Such disclosures shall be provided clearly and conspicuously.\n 3. An issuer of a secured credit card shall, either prior to or at the\ntime of issuance, disclose the minimum amount of money the consumer must\nkeep on deposit to qualify for such a card, the interest that will be\npaid on said deposit, and the amount of credit that will be extended\neither in absolute terms or expressed as a percentage of such deposit.\n 4. In connection with any application or solicitation for a secured\ncredit card, no person shall impose any fee or charge as an application\nfee, set-up fee, credit review fee, search fee, or any other fee by any\nother name prior to, contemporaneous with, or incidental to the opening\nof such a secured credit card agreement. Provided, however, that nothing\ncontained herein shall prohibit an issuer from contracting for and\nimposing any fees and charges authorized by section four hundred\nthirteen of the personal property law and provided further that nothing\ncontained herein shall prohibit solicitation for such a card by use of a\n900 telephone number pursuant to the provisions of this section.\n