§ 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\nin this section, the following terms shall have the following meanings:\n (a) "credit card points" or "points" shall mean denominated units that\ncan be accumulated in an account in connection with a credit card\nreward, loyalty, or other incentive program, often referred to as points\nor for certain travel-related rewards as miles, which are redeemable,\nfungible, or otherwise exchangeable, in whole or in part, for rewards;\n (b) "rewards" shall mean goods, services, cash, merchant-specific gift\ncards, travel benefits, or one or more other things of value;\n (c) "rewards program" shall mean any agreement between a holder and an\nissuer regarding points related to an account; and\n (d) "modified" or "modification" shall mean a change that has the\neffect of eliminating points, reducing the value of points, affecting\nthe ability of a holder to accumulate points, limiting or reducing\nrewards availability, limiting a holder's use of points or the credit\ncard account, otherwise diminishing the value of the rewards program or\nthe credit card account to the holder or changing the obligations of the\nholder with respect to the rewards program or credit card account.\n 2. If any credit card account or rewards program is modified,\ncancelled, closed or terminated, the holder must be provided notice from\nthe issuer of such cancellation, closure, termination or modification as\nsoon as possible, and in any event within forty-five days of such\ncancellation, closure, termination or modification. Beginning with the\ndate on which notice is sent, the holder shall have ninety days to\nredeem, exchange, or otherwise use any credit card points that the\nholder accumulated at the time of such modification, cancellation,\nclosure, or termination as permitted under the terms of the agreement or\nagreements between the holder and the issuer which is servicing the\napplicable credit card account or related rewards program, subject to\nthe availability of rewards.\n 3. It shall be unlawful for any agreement between an issuer and a\nholder, or any rewards program, to provide for the expiration,\nforfeiture or cancellation of credit card points prior to the expiration\nof the ninety day period set forth in subdivision two of this section.\n 4. The provisions of subdivisions two and three of this section shall\nnot apply in the case of fraud by the holder with respect to the credit\ncard account or any related rewards program, or misuse by the holder of\nthe credit card account or any related rewards program.\n 5. Any agreement entered into by a holder that waives, limits or\ndisclaims the rights set forth in this section shall be void as contrary\nto public policy.\n