2006 New York Code - Application Forms Or Solicitation For Credit Cards.

 
    §  520.  Application  forms  or  solicitation  for  credit  cards. Any
  application form or preapproved written solicitation  to  enter  into  a
  credit  card agreement for personal, family, or household purposes which
  is mailed to an individual residing in this state on  or  after  January
  first,  nineteen  hundred  eighty-eight,  by  or  on behalf of a issuer,
  whether or not the issuer is  located  in  this  state,  other  than  an
  application  form  or solicitation included in a magazine, newspaper, or
  other publication distributed by someone other than the issuer, and, any
  application primarily for a credit card to be used for personal,  family
  or  household  purposes  which  is distributed or made available in this
  state to a resident of this state on or after  January  first,  nineteen
  hundred  eighty-eight  in  an office or other place of business owned or
  operated by the issuer, shall contain the following disclosures in chart
  form and shall put chart headings in bold face  type  of  at  least  ten
  point in size and material inside the chart of at least eight point type
  in  size.  Such  chart  shall  use  substantially  the  same  format and
  terminology shown below.  In completing the chart with  the  information
  required  for each category, the guidelines hereinafter contained in the
  corresponding subdivisions numbered one through four shall be utilized:
 
  _________________________________________________________________________
  1             |              |              |             |Cash Advance |
  2             |  Variable    |              |             |Fee, Trans-  |
  3  Annual     | Rate Index   |  Annualized  |   Grace     | action Fee, |
  4 Percentage  |    and       |  Membership  | Period for  |Late Fee, and|
  5  Rate (1)   | Spread (1a)  |    Fee (2)   |Purchases (3)| Over-the-   |
  6             |              |              |             |Limit Fees(4)|
  7             |              |              |             |             |
  _________________________________________________________________________
  8             |              |              |             |             |
  9             |              |              |             |             |
 10             |              |              |             |             |
 11             |              |              |             |             |
 12             |              |              |             |             |
 13             |              |              |             |             |
 14             |              |              |             |             |
  _________________________________________________________________________
 
    (1) and (1a) Any periodic rate or rates that may be applied, shall  be
  expressed  as  an  annual  percentage  rate or rates. If the credit card
  agreement provides for a variable rate, the issuer  shall  disclose  the
  rate  as  of  a  specific  date and identify the index and any amount or
  percentage added to, or subtracted from, that  index.  For  purposes  of
  this  category,  that  amount  of percentage shall be referred to as the
  "spread". If a fixed rate is to be applied, the   issuer shall  indicate
  "No"  or  "None"  or  "Does not apply" in category (1-a) and further the
  issuer may elect to disclose a rate as of a specified date.
    (2) Any membership or  participation  fee  that  may  be  imposed  for
  availability  of a credit agreement, shall be expressed as an annualized
  amount. If no such fee will be imposed, issuer shall  indicate  "No"  or
  "None" or "Does not apply".
    (3)  If the issuer provides a period during which the holder may repay
  the full balance reflected on a monthly statement which is  attributable
  to  purchases  of goods and services without the imposition of a service
  charge, the issuer shall either disclose the  number  of  days  of  that
  period,  calculated from the closing date of the prior billing period to
  the date designated in the monthly statement sent to the holder  as  the
  date  by which that payment must be received to avoid additional service
  or other charges,  or  describe  the  manner  in  which  the  period  is
  calculated.  For purposes of this category, the period shall be referred
  to as the "grace period". If the issuer does not provide such a  period,
  the  disclosure  shall  so  indicate. The issuer may, at its option, and
  without disclosure impose no service or other charge  where  payment  is
  received after the expiration of the grace period.
    (4)   Any   cash  advance  fee,  per  transaction  fee,  late  fee  or
  over-the-limit fee that may be imposed shall be  expressed as an  amount
  or  as  a  percentage  of the transaction, as applicable. If no such fee
  will be imposed, the issuer shall indicate "No" or "None" or  "Does  not
  apply".
    (5)    (a)    Nothing  in this section shall be deemed or construed to
  prohibit an issuer from  disclosing  additional  terms,  conditions,  or
  information,  whether  or not relating to the disclosures required under
  this section, in conjunction  with  the  disclosures  required  by  this
  section.
    (b)    All  application  forms  for a credit card agreement, including
  those in a magazine, newspaper, or  other  publication,  distributed  by
  someone  other  than the issuer in this state on or after January first,
  nineteen hundred eighty-eight shall contain a statement in substantially
  the following form:
    "If you wish to receive disclosure of the terms of this  credit  card,
  check here and return to the address on this application".
    A  box  shall be printed in or next to this statement for placement of
  such a check mark.
    However, this requirement does not apply if the  application  contains
  the  disclosures  provided  for in subdivisions one through four of this
  section.
    (6)  For purposes of this section, "Regulation Z" and all of the terms
  used in this section shall have the same meaning as attributed  to  them
  in Federal Regulation Z (12 C.F.R. Sec.226.1 et seq.).
    (7)    This section shall not apply to any application form or written
  advertisement where the credit to be extended will be secured by a  lien
  on  real  property  or  a  lien  on  an  existing  ownership interest in
  certificates of stock or other evidences of an ownership interest  in  a
  proprietary  lease  from  a  corporation  or  partnership formed for the
  purpose of the co-operative ownership of real estate.
    (8)  If an issuer is required under federal law to make any disclosure
  of the terms applicable to a credit card  plan  or  account  under  this
  section in connection with application forms or solicitation, the seller
  or issuer shall be deemed to have complied with the requirements of this
  section  with respect to those application forms or solicitations if the
  seller or issuer complies with the federal disclosure requirements.
    (9) Any application form or preapproved written solicitation to  enter
  into a retail installment credit agreement in which the retail seller or
  financing  agency may take or retain a purchase money security interest,
  as set forth in paragraph (c) of  subdivision  twelve  of  section  four
  hundred  thirteen  of  the  personal  property  law,  which is mailed or
  otherwise made available to an individual residing in this state  on  or
  after  the  effective  date  of  this subdivision, by or on behalf of an
  issuer, whether or not the issuer is located in this state,  other  than
  an  application  form or solicitation included in a magazine, newspaper,
  or other publication distributed by someone other than the issuer, shall
  contain a clear and conspicuous written  notice  or  disclosure  to  the
  buyer  that  the  retail  seller or financing agency has or may retain a
  security  interest  in  merchandise  covered  under  paragraph  (c)   of
  subdivision  twelve  of  section  four  hundred thirteen of the personal
  property law until the full payment price of said merchandise  is  paid.
  Further provided, however, in all instances, said written notice must be
  provided to any buyer prior to the first transaction made under any such
  retail  installment  credit  agreement  in which a security interest has
  been or may be taken or retained.