2000-2008 Credit Cards Interest & Fees Legislation

2008 NCSL Legislative Summit
New Orleans, Louisiana

Will This Purchase be on Your Card?
Tuesday, July 22, 2008
4:30 pm - 5:30 pm

2000-2008 Credit Cards Interest and Fees Legislation

2008 Legislation

Alabama
H.B. 32
Indefinitely postponed 5/6/08
Under existing law, when a payment in a consumer credit transaction is in default, the creditor may charge a late charge of the greater of $10 or five percent of the amount of the payment. This bill increases the amount of the late charge that a creditor may charge.

S.B. 28
Under existing law, when a payment in a consumer credit transaction is in default, the creditor may charge a late charge of the greater of $10 or five percent of the amount of the payment. This bill increases the amount of the late charge that a creditor may charge.

S.B. 334
Postponed indefinitely 5/8/08
Under existing law, when a payment in a consumer credit transaction is in default, the creditor may charge a late charge of the greater of $10 or five percent of the amount of the payment in default, not to exceed $100. This bill increases the amount of the late charge that a creditor may charge to the greater of $18 or five percent of the amount of the scheduled payment in default, not to exceed $100.

Illinois
S.B. 171
Passed Senate 5/2/07
Amends the Credit Card Issuance Act. Prohibits the issuer of a credit card from including in the issuer's credit card contract or agreement a universal default clause that increases the interest rate upon the holder of the credit card for a late payment to another credit card issuer or creditor. Defines "universal default clause". Amends the Interest Act. Provides that, in the case of any credit card account under a revolving credit arrangement containing a universal default provision, no increase in the annual percentage rate of interest, applicable to the account or any portion of an outstanding balance on the account may be made to a credit card account because the holder is late with a payment to another credit card issuer or creditor.

S.J.R. 97
Urges the members of United States Congress to give full consideration to the passage of the federal Credit Cardholders' Bill of Rights Act.

Massachusetts
H.B. 283
Regulates the rate of interest charges on delinquent credit card accounts.

H.B. 899
Requires that fees and amounts imposed by a creditor will be credited for that day at the customary and traditional hourly closing time of business.

S.B. 258
Provides that a charge assessed by a seller in any sales transaction for goods or services effected by the use of the telephone or the Internet as specified where a credit card is accepted as payment and for which the charge assessed is greater than the charge imposed when such payment is made in cash or similar means shall not constitute a surcharge.

Michigan
H.B. 4911
Establishes a 15 percent cap on credit card and mortgage interest by certain lenders.

Minnesota
H.F. 3332
Passed House 4/24/08
S.F. 3328
Indefinitely postponed 4/30/08
Regulates surcharges on credit cards.

New York
A.B. 118
Prohibits the imposition of service charges and annual fees to only those credit card holders or buyers who pay off their balances in full within the grace period allowed for purchases.

A.B. 504
Requires written notice of change of certain terms by issuer of credit card to user 60 days prior to such modifications taking effect.

A.B. 953
Provides that any charges assessed by a credit card company for late payment shall not exceed one and one-half percent of the unpaid balance of any bill or $15.

A.B. 4127
Passed Assembly 6/4/08
Redefines overlimit charge under retail installment credit agreements and under installment obligations to exclude finance, interest or service charges and all other fees and charges including but not limited to commissions, expenses, fines and penalties or by the terms of the retail installment credit agreement in the determination of whether the specified credit limit has been exceeded.

A.B. 5253
Provides for a minimum grace period before a late fee may be charged a credit card holder unless the credit card or finance company provides a local payment facility within the county of the debtor or access to on-line or telephone payment centers for the receipt of payments.

A.B. 6530
Prohibits owner or owners, or agent or employee thereof, of any retail food store or an establishment engaged in the retail sale of grocery products from imposing a surcharge to a person who elects to use a debit card or other banking or purchasing card in lieu of payment by cash, check or similar means.

A.B. 6851
S.B. 532
Prohibits placing holds on credit or debit card uses in excess of the amount actually billed without the holder's knowledge and consent; requires prompt communication with the issuer to release any excess amount reserved or set aside after the charges are determined; prohibits surcharges where holder's use of a credit or debit card is facilitated; provides for enforcement by the attorney general.

A.B. 6864
Provides that service charge increases applicable to credit cards shall not apply to existing credit card balances; defines the term "service charge;" provides remedies and enforcement for violations by credit card issuers and authorizes enforcement and intervention by the attorney general.

A.B. 6889
Passed Assembly 6/23/08
S.B. 4305
Provides for distribution to the public, over the internet, of information regarding credit card rates, charges, terms and other conditions; further provides for dissemination of information over the internet regarding types of bank accounts available, requirements for opening an account, and all fees charged the customer, including monthly fees and transaction fees.

A.B. 6985
S.B. 2442
Passed Senate 6/2/08
Prohibits the imposition of late charges when the total amount due on such credit card for one month is less than the proposed late charge.

A.B. 7291
Prohibits "universal default clauses" in contract agreements or contracts; and prevents credit card issuers from increasing interests upon the holder of such credit card for late payment to other creditors or incurring additional debt through a home equity loan.

A.B. 7715
Provides that any charges assessed by a credit card company for late payment shall not exceed five percent of the unpaid balance of any bill, including any interest thereon, or twenty dollars, whichever amount is less.

A.B. 9219
S.B. 5080
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 10 percent annually; such rate may only exceed 10 percent if the prime rate exceeds 10 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

A.B. 9325
Requires disclosure of the allowance of the modification of the annual percentage rate by an issuer of credit card at time of acceptance of such card.

A.B. 9832
S.B. 5065
Prohibits late charges on credit cards where the holder of the credit card makes a payment within 10 days of the payment due date.

A.B. 9925
S.B. 1906
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 18 percent annually; such rate may only exceed 18 percent if the prime rate exceeds 18 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

A.B. 10448
Substituted 6/4/08
S.B. 7339
Passed Assembly 6/4/08
Prohibits the issuer of a credit card from increasing the rate of interest or imposing a fee on the account of a holder who has made timely payments and in the minimum amounts required, based on such holder's indebtedness or failure to make timely payments to another creditor; violation of such prohibition shall constitute a misdemeanor.

A.B. 11689
S.B. 8533
Requires creditors of consumer credit plans to furnish to the obligor statements providing separate totals of fees and interest for prior month and for year to date.

S.B. 1924
Prohibits "universal default clauses" in contract agreements or contracts; and prevents credit card issuers from increasing interests upon the holder of such credit card for late payment to other creditors.

Ohio
S.B. 308
Requires certain creditors and utility service providers to recognize the postmark date of a payment as the date received with respect to the applicability of late charges and prohibits certain late payment penalties.

Oklahoma
H.B. 3321
Creates the Credit Card Fairness Act; defines terms; prohibits certain credit card companies, financial institutions, and card processors from imposing certain requirements, conditions, penalties, or fines.

S.R. 67
Adopted 5/20/08
Urges the Congress of the United States to support the Credit Cardholders' Bill of rights Act of 2008.

South Dakota
S.B. 128
Signed by governor 3/17/08
Revises certain provisions regarding the modification of credit card agreements.

Tennessee
H.B. 3041
S.B. 2674
Restricts the amount of penalty interest a credit card state bank may charge a cardholder and makes an interest rate increase applied to a credit card account prospective only.

Vermont
H.B. 600
Requires that credit card companies disclose all fees and charges and the methods for calculating such amounts to merchant customers.

West Virginia
H.B. 4555
Relates to banks and other lending institutions not permitted to increase loan interest rates due to the failure of the borrower in paying any other nonrelated debt.

2007 Legislation

Alabama
H.B. 323
Indefinitely postponed 3/29/07
Under existing law, when a payment in a consumer credit transaction is in default, the creditor may charge a late charge of the greater of $10 or five percent of the amount of the payment. This bill increases the amount of the late charge that a creditor may charge to $18.

S.B. 168
Under existing law, when a payment in a consumer credit transaction is in default, the creditor may charge a late charge of the greater of $10 or five percent of the amount of the payment. This bill increases the amount of the late charge that a creditor may charge to $18.

California
S.B. 968
Returned to Secretary of Senate pursuant to Joint Rule 56 2/4/08
Voids as contrary to public policy any provision of a contract that provides for a penalty, including, but not limited to, a fee, an increased interest rate, or an accelerated payment schedule, based on behavior not directly related to the performance of the contract, including a default with a person or entity that is not a party to the contract.

S.B. 1035
Returned to Secretary of Senate pursuant to Joint Rule 56 2/4/08
Existing state and federal law regulate the terms and conditions of credit cards. Existing state law permits a credit cardholder to request the card issuer to inform the cardholder of the total amount of finance charges assessed on the account during the preceding calendar year and requires the card issuer to provide that information to the cardholder within 30 days without charge, except as specified. This bill makes a technical, nonsubstantive change to these provisions.

Florida
H.B. 421
Died in committee 5/4/07
S.B. 748
Died in committee 5/4/07
Prohibits creditors from increasing rates of interest or imposing fees on borrower accounts based upon certain activities of borrower; provides definition; provides for voiding certain contract, loan, or credit agreement terms or provisions.

Hawaii
H.B. 1668
Makes it an unfair or deceptive act or practice in trade or commerce for a business to not give notice to customers that the prices for purchases made in cash differ from those made through the use of a credit or debit card. Requires disclosure of the difference in price.

Illinois
H.B. 292
Amends the Interest Act. Provides that no increase in the annual percentage rate of interest on a revolving credit arrangement for a credit card account, other than an increase due to the expiration of an introductory percentage rate of interest, may be made because of a late payment by the debtor, provided that the payment has been postmarked or entered electronically on or before the date that the payment was due. Provides that the exception for the increase in the annual percentage rate of interest on a revolving credit arrangement for a credit card account does not apply to late payments due to a check not being honored by the debtor's bank for insufficient funds.

S.B. 171
Passed Senate 5/2/07
Amends the Credit Card Issuance Act. Prohibits the issuer of a credit card from including in the issuer's credit card contract or agreement a universal default clause that increases the interest rate upon the holder of the credit card for a late payment to another credit card issuer or creditor. Defines "universal default clause". Amends the Interest Act. Provides that, in the case of any credit card account under a revolving credit arrangement containing a universal default provision, no increase in the annual percentage rate of interest, applicable to the account or any portion of an outstanding balance on the account may be made to a credit card account because the holder is late with a payment to another credit card issuer or creditor.

Kentucky
H.B. 56
Withdrawn 2/7/07
Creates a new section of KRS Chapter 367 to require a retailer that offers an initial discount to purchasers who sign up for a retail credit card in the retail store to disclose in all credit card promotional material in the retail store the retail card's interest, finance charges, service charges, or other charges, including membership or participation fees; requires such fees and charges to be displayed as clearly and prominently as the display of the initial discount and the annual fee; declares that failure to do so shall be deemed a billing error; permits the cardholder to mail an inquiry within 60 days of receipt of the billing statement that contains the billing error; requires the retailer within 60 days of receipt of the inquiry to correct the billing error or send written explanation to the cardholder of why the retailer believes there was not a billing error; directs that a retailer who fails to correct the billing error is liable for the amount of the disputed fee or charge; permit recovery of three times the actual damages and attorney fees for a willful violation of this section; prohibits the retailer from threatening to report or from reporting to any person adversely on the cardholder's credit rating or credit standing until at least 10 days after the retailer has responded to the inquiry; permits the retailer to report the cardholder as delinquent if the cardholder continues to dispute the charges after the retailer has responded to the inquiry but requires the retailer to include in its report that the matter is in dispute and to notify the cardholder of the name and address of each party to whom the retailer reported the information concerning the delinquency; provides that if a requirement of this Act and a requirement of the federal Fair Credit Billing section or any federal act are inconsistent or in conflict, the federal law shall control; requires application of this section to retail credit cards issued on or after January 1, 2008.

H.B. 250
Creates a new section of KRS Chapter 367 to require a credit card issuer to disclose to the applicant the card's interest rate and all charges and fees and to obtain a signature from the applicant; declares it is a "billing error" if the required disclosures are not made; permits the cardholder to mail an inquiry to the credit card issuer if the billing statement requires a billing error; prohibits the card issuer from threatening to report the cardholder adversely on any credit report after the cardholder sends an inquiry; deems a violation of this section to be an unfair, false, misleading, or deceptive act or practice in violation of KRS 367.170; provides that if any inconsistency exists between this section and federal laws, the federal law controls; provides that this section applies to credit cards issued or renewed on or after January 1, 2008.

H.B. 260
Creates a new section of KRS Chapter 367 to require a credit card issuer to include in each billing statement a minimum payment warning; requires a statement showing the number of years and the total cost to pay off balances in certain amounts; requires a toll-free telephone number to be available to consumers; directs the Office of Financial Institutions to develop a table illustrating the approximate number of months it would take and the approximate total cost to repay an outstanding balance if the consumer makes only the minimum payments based on a significant number of different annual percentage rates and different account balances; restricts the requirements of this section to apply in any billing cycle in which the account agreement does not require a minimum payment of at least 10 percent of the outstanding balance; provides that this section does not apply in any billing cycle in which finance charges are not imposed; creates a new section of KRS Chapter 371 to require retail installment contracts and retail charge agreements with consumers to be printed in not less than 10-point type and be written in layman's language that is easily readable and understandable by a person of average intelligence and education.

Maine
L.D. 951
Signed by governor 5/10/07, Chapter 99
Prohibits a credit card issuer from refusing to accept or charging a fee for more than one payment on a credit card debt by a cardholder within a one-month period.

Massachusetts
H.B. 283
Regulates the rate of interest charges on delinquent credit card accounts.

H.B. 899
Requires that fees and amounts imposed by a creditor will be credited for that day at the customary and traditional hourly closing time of business.

Michigan
H.B. 4911
Establishes a 15 percent cap on credit card and mortgage interest by certain lenders.

Nevada
S.B. 302
Signed by governor 5/25/07, Chapter 130
Prohibits an issuer from increasing the interest rate charged to a cardholder based upon the late payment by the cardholder to another issuer or creditor of the cardholder that is not an affiliate or subsidiary of the issuer or creditor. Prohibits an issuer from including in a contract or agreement relating to a credit card account a provision which would allow the issuer to increase the interest rate for such a reason. Provides that an issuer may not prohibit merchants from offering certain discounts to a customer to induce the customer to pay by means other than a credit card or credit card account.

A.B. 504
Requires written notice of change of certain terms by issuer of credit card to user 60 days prior to such modifications taking effect.

A.B. 654
Enacting clause stricken 4/20/07
Requires disclosure of the allowance of the modification of the annual percentage rate by an issuer of credit card at time of acceptance of such card.

A.B. 953
Provides that any charges assessed by a credit card company for late payment shall not exceed one and one-half percent of the unpaid balance of any bill or $15.

A.B. 1020
Enacting clause stricken 4/23/07
Provides that credit card fees shall be calculated only upon the cost of an item and such cost shall not include sales and compensating use taxes.

A.B. 4127
Redefines overlimit charge under retail installment credit agreements and under installment obligations to exclude finance, interest or service charges and all other fees and charges including but not limited to commissions, expenses, fines and penalties or by the terms of the retail installment credit agreement in the determination of whether the specified credit limit has been exceeded.

A.B. 5325
Substituted 6/20/07
S.B. 2969
Vetoed by governor 8/15/07
Prohibits the issuer of a credit card from increasing the rate of interest or imposing a fee on the account of a holder who has made timely payments and in the minimum amounts required, based on such holders indebtedness or failure to make timely payments to another creditor; provides that a violation of such prohibition shall constitute a misdemeanor.

A.B. 6889
S.B. 4305
Provides for distribution to the public, over the internet, of information regarding credit card rates, charges, terms and other conditions; further provides for dissemination of information over the internet regarding types of bank accounts available, requirements for opening an account, and all fees charged the customer, including monthly fees and transaction fees.

A.B. 6985
S.B. 2442
Passed Senate 3/14/07
Prohibits the imposition of late charges when the total amount due on such credit card for one month is less than the proposed late charge.

A.B. 9325
Requires disclosure of the allowance of the modification of the annual percentage rate by an issuer of credit card at time of acceptance of such card.

S.B. 1906
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 18 percent annually; such rate may only exceed 18 percent if the prime rate exceeds 18 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

S.B. 5065
Prohibits late charges on credit cards where the holder of the credit card makes a payment within ten days of the payment due date.

S.B. 5080
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 10 percent annually; such rate may only exceed 10 percent if the prime rate exceeds 10 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

Rhode Island
H.B. 5405
Passed House 5/1/07
S.B. 541
Prohibits credit card transactions from including a usurious rate of interest (no more than 21 percent or an alternate rate no more than nine percent plus the prime rate) and repeals the credit card lending act.

H.B. 5706
Limits the amount of interest a credit card company can charge to 21 percent annually.

S.B. 383
Prohibits credit card lenders from charging interests greater than the prime rate plus 10 percent or 24 percent whichever rate is lower.

Tennessee
H.B. 1483
Prohibits credit card issuers from increasing the interest rate or time price differential on a cardholder based on the payment history of the cardholder with other lenders or entities.

H.J.R. 354
Signed by governor 6/18/07
Urges passage of legislation requiring credit card issuers to include as part of the monthly statement provided to each cardholder the total length of time it will take the cardholder to pay the total debt accumulated on the credit card.

Washington
H.B. 1245
Finds that the number of unrequested solicitations to residents for credit cards is a cause for concern and consider them to be a violation of the consumer protection laws of Washington state. Finds that rising interest rates on credit cards regularly far exceed the state usury limit. The legislature finds many of the credit card industry's practices and interest rates to be unethical. The legislature intends to tax the amounts raised by interest rates that exceed the usury rate at a higher tax rate. The additional tax revenues shall be deposited into the vocational education enhancement account.

2006 Legislation

California
A.B. 1375
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 1/31/06
Imposes an additional tax at a rate of 2.5 percent on a specified bank or financial corporation, as defined, that is engaged in the business of issuing credit cards to California consumers on terms that are inequitable to the consumers, specifically, a special provision in the credit card agreements that allows for an increase of the interest rate, after the credit card has been issued, by any amount that is greater than the increase in the cost of the funds necessary to extend additional credit to the consumer, as specified. This bill also declares the intent of the Legislature to ensure that any revenue generated by the tax imposed under this act be used for purposes of educating consumers regarding predatory lending practices.

Connecticut
H.B. 5601
Failed Joint Favorable deadline 3/9/06
Prohibits a company that extends consumer credit from imposing a late or missing payment fee on an outstanding principal balance on a borrower's account that exceeds the amount of such balance on such account. Provides that any such fee, either alone or in conjunction with any other interest fee, shall be deemed usurious if such fee exceeds the maximum interest rate allowed under the provisions of chapter 673 of the general statutes.

Hawaii
H.B. 2968
Passed House 3/7/06
Clarifies permissible credit card interest rates. Defines "interest" to include credit card fees and charges.

S.B. 3066
Became law without governor's signature 7/12/06, Act 307
Removes fees that are considered interest from the 18 percent cap on credit card interest under Hawaii's usury law, and caps only the simple interest numerical periodic interest rate.

Illinois
H.B. 5294
Tabled by sponsor 2/16/06
Amends the Interest Act. Provides limitations for the increase in the annual percentage rate of interest for credit card accounts under revolving credit arrangements until after the listed time periods for the required notices. Provides that, in the case of any credit card account under a revolving credit arrangement, no fee, including any annual fee, late payment fee, or over-the-limit fee, may be imposed on the account before the end of the 30-day period beginning on the date the obligor receives a specific notice of the imposition of the fee. Provides that, in the case of any credit card account under a revolving credit arrangement containing a universal default provision, no increase in any annual percentage rate of interest due to universal default, applicable to the account, or any portion of any outstanding balance on the account may take effect or apply to any outstanding balance of credit under the plan until the beginning of the billing cycle that begins not less than 30 days after the obligor receives a specific notice of the increase. Requires the notice to be mailed or emailed, if the consumer has requested to receive such notices electronically, to the obligor separately from any statement or other notice and without any advertising or other disclosures. Provides that the notice must have highlighted in a clear and conspicuous manner and in bold and capitalized print any changes to the customers current policy. Provides that in case of a fee, the notice shall include an explanation of how, when, and why a fee will be imposed and what options the obligor may have for addressing the imposition of the fee or any reason for the imposition, including the prevention of any future imposition of the fee. Requires the Department of Financial and Professional Regulation to establish a state-wide data collection of universal default information and rules for the collection of universal default information. Establishes reporting requirements for lenders of revolving credit accounts containing universal default provisions. Requires the Department to file a written report with the General Assembly no later than July 1, 2007, and no later than every July 1 thereafter concerning the universal default information collection.

Kentucky
H.B. 40
Withdrawn 2/6/06
Creates a new section of KRS Chapter 367 pertaining to retail stores that offer an initial discount to a purchaser who signs up in the retail store for a retail credit card; requires the retail card's interest rate and all fees to be included in any promotional material in the store and be displayed as clearly and prominently as the display of the initial discount and annual fee; prohibits the retail credit card issuer from collecting a disputed amount and from reporting the account as delinquent to a credit reporting agency if the disputed amount is a fee or interest rate that was not disclosed to the cardholder at the time the cardholder signed up for the retail credit card in the retail store as required; deems a violation as an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

H.B. 127
Creates a new section of KRS 367.110 to 367.300 to define terms; provides that intentionally imposing a fraudulent finance charge after payment in full by a bank or a credit card issuer is a violation of KRS 367.170, subject to the Consumer Protection Act, KRS 367.110 to 367.300 and to the penalties contained in KRS 367.990.

H.B. 529
Creates a new section of KRS Chapter 367 to require a credit card issuer to include in each billing statement a minimum payment warning; requires a statement showing the number of years and the total cost to pay off balances in certain amounts; requires a toll-free telephone number to be available to consumers; directs the Office of Financial Institutions to develop a table illustrating the approximate number of months it would take and the approximate total cost to repay an outstanding balance if the consumer makes only the minimum payments based on a significant number of different annual percentage rates and different account balances; restricts the requirements of this section to apply in any billing cycle in which the account agreement does not require a minimum payment of at least ten percent of the outstanding balance; provides that this section does not apply in any billing cycle in which finance charges are not imposed; creates a new section of KRS Chapter 371 to require retail installment contracts and retail charge agreements with consumers to be printed in not less than 10-point type and be written in layman's language that is easily readable and understandable by a person of average intelligence and education.

S.B. 128
Creates a new section of KRS Chapter 367 to define terms pertaining to credit card transactions; prohibits a credit card issuer from increasing the applicable annual percentage rate or imposing fees on the account of a credit card holder who has made all payments in compliance with the terms of the card holder agreement, due to the holder's indebtedness or failure to make timely payments to any other creditor or due to any negative information in the holder's consumer report about acts or omissions of the holder not directly related to the credit card account; deem violation of this section to be an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170; provides for civil liability; makes applicable to credit cards issued or renewed on or after July 1, 2006.

Louisiana
S.B. 13
Prohibits an issuer of a credit card from imposing any finance charge or termination fee on the cardholder after the cardholder has made payment in full of the entire outstanding unpaid balance owed. Violations will be considered an unfair or deceptive act or practice and will subject violators to any and all penalties provided for under the Unfair Trade Practices and Consumer Protection Law.

Maine
L.D. 1783
Signed by governor 3/9/06, Chapter 484
Exempts home equity lines of credit accessed by a credit card from the provision of law that prohibits the imposition of a finance charge on purchases made during a billing cycle if they are paid for no later than 25 days after the closing date of that billing cycle.

Massachusetts
H.B. 2931
Relates to interest on credit cards.

H.B. 2935
Sets the maximum rate of interest to be charged on credit cards.

H.B. 3707
Provides that a charge assessed by a seller in any sales transaction for goods or services effected by the use of the telephone or the Internet, where a debit or credit card is accepted as payment therefor and for which the charge assessed is greater than the charge imposed when such payment is made in cash or a cash equivalent, shall not constitute a surcharge.

Michigan
S.B. 1359
Requires a notice of fees for use of a debit or credit card to purchase self-service gasoline.

Missouri
H.B. 1329
Makes it a class A misdemeanor for a credit card issuer to increase interest rates or impose fees because a card holder makes only the minimum payment, fails to make timely payments to any other creditor, or because of his or her indebtedness.

S.B. 632
Prohibits credit card issuers from increasing interest or imposing a fee upon a balance by a card holder who has made timely payments in the minimum amount. Prevents an issuer from increasing interest or imposing fees based on the holder's failure to make timely payments to another creditor. A creditor in violation of this act will be guilty of a Class A misdemeanor for each violation.

New York
A.B. 165
Requires credit card issuer to disclose and file with banking superintendent percentage charged retailer for credit card transaction processing.

A.B. 809
Vetoed by governor 8/16/06, Veto No. 320
S.B. 5665
Substituted 6/19/06
Prohibits the issuer of a credit card from increasing the rate of interest or imposing a fee on the account of a holder who has made timely payments and in the minimum amounts required, based on such holder’s indebtedness or failure to make timely payments to another creditor; violation of such prohibition shall constitute a misdemeanor.

A.B. 1524
S.B. 4039
Passed Senate 3/14/06
Permits licensed money transmitters to charge a higher rate for services which are purchased through electronic means via a credit card.

A.B. 3558
Passed Assembly 1/24/06
Prohibits any issuer of a credit card, debit card or secured credit card from imposing a finance charge or fee upon a card holder who elects not to carry a credit balance or a minimum credit balance forward from one billing cycle to the succeeding next billing cycle; provides that no annual fee shall be charged, received or collected by the seller or a holder of a retail installment credit agreement from a buyer based upon the fact that the buyer has elected to pay off all outstanding indebtedness during any grace period provided for in the retail installment credit agreement.

A.B. 4700
S.B. 7098
Provides for a minimum 10 day grace period before a late fee may be charged a credit card holder unless the credit card or finance company provides a local payment facility within the county of the debtor or access to on-line or telephone payment centers for the receipt of payments.

A.B. 7196
S.B. 581
Passed Senate 6/19/06
Prohibits the imposition of late charges when the total amount due on such credit card for one month is less than the proposed late charge.

A.B. 9322
S.B. 1950
Provides for distribution to the public, over the Internet, of information regarding credit card rates, charges, terms and other conditions; further provides for dissemination of information over the internet regarding types of bank accounts available, requirements for opening an account, and all fees charged the customer, including monthly fees and transaction fees.

A.B. 9738
Allows credit card payment to be mailed and postmarked three days before due date to avoid late charge.

A.B. 10605
Prohibits credit card companies from charging card holders with administrative service fees for payment of credit card accounts.

A.B. 11193
Prohibits the imposition of interchange rates or transaction fees on the sales tax portion of credit or debit card charges where the fee or change is a percentage of the gross dollar amount of the credit or debit card transaction.

South Carolina
H.B. 4997
Provides that it is an unfair trade practice for the issuer of an unsolicited credit card to charge an activation, annual, or other fee unless the cardholder benefits from the card by using it or otherwise affirmatively acts to accept the unsolicited offer of the use of the card, provides that nonpayment of the fee by the cardholder, without any other act, is a rejection of the offer, and defines "credit card."

Tennessee
H.B. 569
S.B. 1783
Prohibits lenders and credit card companies from imposing interest rates higher than the maximum rate of interest allowed under Tennessee law.

H.B. 938
S.B. 952
Restricts credit card issuers from increasing interest rate or time price differential on a cardholder based on payment history of cardholder with other lenders or entities.

Virginia
S.B. 104
Prohibits a credit card issuer from increasing the interest rate or imposing a fee on a credit card account based on the cardholder's failure to make timely payment on another credit card account or other reasons not directly related to the cardholder's credit card account with the issuer.

Washington
H.B. 2938
S.B. 6863
Finds that the number of unrequested solicitations to residents for credit cards is a cause for concern and consider them to be a violation of the consumer protection laws of Washington state. Finds that rising interest rates on credit cards regularly far exceed the state usury limit. The legislature finds many of the credit card industry's practices and interest rates to be unethical. The legislature intends to tax the amounts raised by interest rates that exceed the usury rate at a higher tax rate. The additional tax revenues shall be deposited into the vocational education enhancement account.

West Virginia
H.B. 4451
Prohibits the use of certain adverse information concerning a consumer as the basis for increasing interest rates.

2005 Legislation

Alabama
H.B. 230
Passed House 3/1/05
Allows an account maintenance fee on certain credit transactions if the additional fees are stipulated in the contract.

Arkansas
H.B. 2768
Levies a $0.05 fee for fuel purchases paid at the pump using a credit or debit card.

California
A.B. 1375
Imposes an additional tax at a rate of 2.5 percent on a specified bank or financial corporation, as defined, that is engaged in the business of issuing credit cards to California consumers on terms that are inequitable to the consumers, specifically, a special provision in the credit card agreements that allows for an increase of the interest rate, after the credit card has been issued, by any amount that is greater than the increase in the cost of the funds necessary to extend additional credit to the consumer, as specified. This bill also declares the intent of the Legislature to ensure that any revenue generated by the tax imposed under this act be used for purposes of educating consumers regarding predatory lending practices.

S.B. 860
Passed Senate 6/1/05
Prohibits any state agency, the University of California, the California State University, and the community colleges, or an agent of one of these entities that accepts a credit or debit card from imposing any processing fee or charge for the use of a credit card or debit card if that fee or charge is not also imposed upon persons who pay for the same service or obligation by cash or check.

Connecticut
S.B. 136
Failed Joint Favorable deadline 3/22/05
Deems a payment made to a creditor which is due on a weekend day or holiday when the creditor is not open for business and postmarked two or more days prior to the due date to be timely if received on the first business day following the due date.

Hawaii
H.B. 392
Carried over to 2006 session
S.B. 1135
Clarifies permissible credit card interest rates. Defines "interest" to include credit card fees and charges.

Indiana
H.B. 1213
Requires credit card issuers to put certain terms in at least 12 point bold print. Establishes penalties for violations.

Kansas
H.B. 2276
Signed by governor 4/13/05
Clarifies that the credit card surcharge statute in the Kansas Uniform Consumer Credit Code was not meant to apply to the different methods that consumers use to send money through a money transmitter, as long as the price charged is consistent within each method of delivery.

Kentucky
S.B. 117
Creates a new section of KRS Chapter 367 to define terms pertaining to credit card transactions; prohibits a credit card issuer from increasing the applicable annual percentage rate or imposing fees on the account of a credit card holder, who has made all payments in compliance with the terms of the card holder agreement, due to the holder's indebtedness or failure to make timely payments to any other creditor or due to any negative information in the holder's consumer report about acts or omissions of the holder not directly related to the credit card account; deems violations of this Act an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170; provides for civil liability; makes applicable to credit cards issued or renewed on or after July 1, 2005.

Maine
L.D. 6
Prohibits a credit card processing company from charging a termination fee.

L.D. 41
Prohibits credit card issuers from charging a late fee on an account if the interest rate exceeds 12.5 percent.

Massachusetts
H.B. 2931
Relates to interest on credit cards.

H.B. 2935
Sets the maximum rate of interest to be charged on credit cards.

Missouri
S.B. 505
Makes it a misdemeanor for any credit card issuer to charge any fees or increase any rates for a holder when the holder owes or fails to make timely payments to any other creditor.

New York
A. B. 137
Charges assessed by a credit card company for late payment shall not exceed one and one-half percent of the unpaid balance of any bill or $15.

A.B. 165
Requires credit card issuer to disclose and file with banking superintendent percentage charged retailer for credit card transaction processing.

A. B. 170
Requires written notice of change of certain terms by issuer of credit card to user 60 days prior to such modifications taking effect.

A.B. 470
Prohibits the imposition of service charges and annual fees to only those credit card holders or buyers who pay off their balances in full within the grace period allowed for purchases.

A.B. 809
S.B. 5665
Prohibits the issuer of a credit card from increasing the rate of interest or imposing a fee on the account of a holder who has made timely payments and in the minimum amounts required, based on such holder’s indebtedness or failure to make timely payments to another creditor; violation of such prohibition shall constitute a misdemeanor.

A.B. 938
Prohibits issuers of credit cards from imposing any fee or surcharge upon a holder thereof for exceeding the credit limit established by the issuer for such hold, if the issuer approves or accepts any transaction which causes such credit limit to be exceeded; provides that violation of such provisions shall be punishable by a civil fine not to exceed $1,000.

A.B. 1039
Prohibits owner or owners, or agent or employee thereof, of any retail food store or an establishment engaged in the retail sale of grocery products from imposing a surcharge to a person who elects to use a debit card or other banking or purchasing card in lieu of payment by cash, check or similar means.

A.B. 1355
Provides that service charge increases applicable to credit cards shall not apply to existing credit card balances; defines the term "service charge;" provides remedies and enforcement for violations by credit card issuers and authorizes enforcement and intervention by the attorney general.

A.B. 1524
S.B. 4039
Passed Senate 6/14/05
Permits licensed money transmitters to charge a higher rate for services which are purchased through electronic means via a credit card.

A.B. 3558
Passed Assembly 4/4/05
Prohibits any issuer of a credit card, debit card or secured credit card from imposing a finance charge or fee upon a card holder who elects not to carry a credit balance or a minimum credit balance forward from one billing cycle to the succeeding next billing cycle; provides that no annual fee shall be charged, received or collected by the seller or a holder of a retail installment credit agreement from a buyer based upon the fact that the buyer has elected to pay off all outstanding indebtedness during any grace period provided for in the retail installment credit agreement.

A.B. 4700
Provides for a minimum 10 day grace period before a late fee may be charged a credit card holder unless the credit card or finance company provides a local payment facility within the county of the debtor or access to on-line or telephone payment centers for the receipt of payments.

A.B. 5224
Requires those who contract with a retailer to process retail installment credit agreements (credit card slips) to report to the banking department on the amount or percentage charged to retail merchants or outlets for processing credit card purchase slips in each instance and directs superintendent of banks to review nature and effects of such charges and report thereon to the governor and legislature, together with his recommendations as to mandating public disclosure and possible uniformity of such charges.

A.B. 5639
Provides that any charges assessed by a credit card company for late payment shall not exceed five percent of the unpaid balance of any bill, including any interest thereon, or $20, whichever amount is less.

A.B. 6248
S.B. 2255
Prohibits charging a person with a motor fuel company credit card a price in excess of the cash price for such company’s motor fuel.

A.B. 6644
Requires disclosure of the allowance of the modification of the annual percentage rate by an issuer of credit card at time of acceptance of such card.

A.B. 7196
S.B. 581
Prohibits the imposition of late charges when the total amount due on such credit card for one month is less than the proposed late charge.

S.B. 239
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 10 percent annually; such rate may only exceed 10 percent if the prime rate exceeds 10 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

S.B. 240
Prohibits late charges on credit cards where the holder of the credit card makes a payment within ten days of the payment due date.

S.B. 628
Requires statements sent by a credit card company to a consumer to contain a clear and conspicuous notice of the due date of the balance and the payment required to avoid incurring new or additional finance charges.

S.B. 1022
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 10 percent annually; such rate may only exceed 10 percent if the prime rate exceeds 10 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

S.B. 1950
Provides for distribution to the public, over the Internet, of information regarding credit card rates, charges, terms and other conditions; further provides for dissemination of information over the internet regarding types of bank accounts available, requirements for opening an account, and all fees charged the customer, including monthly fees and transaction fees.

S.B. 2878
Provides that restaurants must conspicuously post and give notice of price of specials and credit card limitations; defines "restaurant" and "specials"; imposes a civil penalty of $100 and a subsequent violation occurring within twelve months of the first violation shall be $250.

S.B. 3683
Prohibits "universal default clauses" in contract agreements or contracts; and prevents credit card issuers from increasing interests upon the holder of such credit card for late payment to other creditors.

Pennsylvania
S.B. 90
Prohibits transaction fees for the use of an automated teller machine card or debit card for the purchase of goods or services; and provides penalties.

Rhode Island
S.B. 66
Prohibits credit card lenders from assessing a late or delinquency charge on payments due on a Saturday, Sunday or holiday which have been made but not recorded as received until the next business day.

South Dakota
S.B. 109
Signed by governor 3/9/05, Chapter 259
Revises provisions relating to the modification of credit card agreements.

Tennessee
H.B. 569
S.B. 1783
Prohibits lenders and credit card companies from imposing interest rates higher than the maximum rate of interest allowed under Tennessee law.

H.B. 938
S.B. 952
Restricts credit card issuers from increasing interest rate or time price differential on a cardholder based on payment history of cardholder with other lenders or entities.

Texas
H.B. 42
Requires that payments be applied to portion of balance on credit account with highest interest.

H.B. 1829
Signed by governor 6/18/05, Chapter 980
Authorizes certain institutions of higher education to charge fees for processing or handling certain payments or payment transactions.

West Virginia
H.B. 2160
Allows vendors to apply a surcharge of up to six percent of the amount of any retail sales transaction in which a credit card is used.

S.B. 258
Requires that the required monthly minimum payment on credit card debt be set at an amount equal to the monthly interest accrued on the outstanding balance , thus protecting the person from going further into debt when paying only the minimum payment.

Wisconsin
S.B. 180
Signed by governor 12/22/05, Act 84
Prohibits credit card issuers from prohibiting, by contract or otherwise, a merchant from offering a discount to a customer to induce the customer to pay by cash, check, or similar means, rather than by use of a credit card or its underlying account, for the purchase of goods or services.

2004 Legislation

California
A.B. 1664
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 2/2/04
Enacts the Bank Customer Bill of Rights that would prohibit banks from engaging in various acts, including selling private credit information about a customer to a marketing business without the customer's consent, charging customers using the bank's automated teller machine cards an overdraft penalty that is $30 or more without providing a specified notice, issuing a credit card that has an interest rate that is greater than two percent above the prime rate, and charging a customer with a higher than average interest rate on a loan if the customer qualifies for a lower interest rate and the bank has not made the customer aware of that fact.

S.B. 505
Provides that if specified payments to financial institutions and credit card issuers required to be made on or before a prescribed date are delivered after that date by the United States Postal Service, the payments are deemed to have been received on the date of the postmark stamped by the United States Postal Service on the envelope or other cover in which the payment was mailed.

S.B. 1801
Failed passage in committee 4/20/04
Prohibits any state or local agency or court or agent for a state agency that accepts a credit card or debit card as payment for any service or obligation from imposing any processing fee or charge for the use of that card that is not also imposed upon persons who pay for the same service or obligation by cash or check.

Colorado
H.B. 1167
Postponed indefinitely 2/3/04
Unless directed differently by a debtor, requires a creditor of credit card debt to allocate the largest percentage of a payment made by a debtor to the portion of the debt bearing the highest interest rate. Makes contract provisions that are contrary to such allocation void.

H.B. 1258
Postponed indefinitely 2/12/04
Requires a creditor to place a notice that there is information regarding a change in the terms of a credit card agreement enclosed with the bill on the first page of the bill in at least 14-point bold-faced type. Requires the information detailing the change to be no smaller than 12-point type. Clarifies that a consumer's failure to respond to a notice of change in the terms of an agreement shall not be interpreted as an agreement to or acceptance of the new terms. Prohibits a creditor from requiring a consumer to notify a creditor that he or she does not agree to or accept a change in the terms of a credit card agreement. Prohibits a creditor from increasing the finance charge, periodic rate, or any other charge on an existing credit card based on the consumer's default or delinquency on an amount due to another creditor.

Hawaii
S.B. 2126
Prohibits credit card issuers from soliciting minors, requires existing disclosure requirements to be in bold and conspicuous print, and adds escalating rate penalties as a required disclosure.

Illinois
H.B.4684
Provides that a credit card issuer that issues a credit card to a cardholder in this state shall allow the cardholder to select the day of each month on which payment is due for purchases of goods and services by the use of the credit card. Provides that a person who violates those provisions commits an unlawful practice within the meaning of the Act.

Kansas
H.B. 2838
If two interest rates apply to an outstanding credit card balance, the issuer of such credit card shall provide notice to the credit card holder that any payment received by the credit card issuer from the credit card holder shall be applied against the balance subject to the lower of the two interest rates first. Such notice shall be in at least 10 point bold face type. Failure to comply with the provisions of this section shall be a misdemeanor punishable by a fine of not less than $500 nor more than $1,500.

Kentucky
H.B. 324
Provides that intentionally imposing a fraudulent finance charge after payment in full by a bank or a credit card issuer is a violation, subject to the Consumer Protection Act, and to penalties.

H.B. 481
Provides that the issuer of a credit card may change a cardholder's credit limit only after providing written notice 15 days prior to the effective date and that the issuer shall not collect an over-the-limit-fee if the cardholder exceeds the new credit limit and the issuer has not provided the written notice.

Maryland
S.B. 463
Prohibits a person that issues a credit card to a consumer in the state from imposing a fee or charge, or including a fee or charge on a consumer's credit card statement, for a service related to the consumer's credit card account unless the consumer has requested the service or agreed in writing to receive the service.

New York
A.B. 245
Passed Assembly 3/8/04
Prohibits any issuer of a credit card, debit card or secured credit card from imposing a finance charge or fee upon a card holder who elects not to carry a credit balance or a minimum credit balance forward from one billing cycle to the succeeding next billing cycle; provides that no annual fee shall be charged, received or collected by the seller or a holder of a retail installment credit agreement from a buyer based upon the fact that the buyer has elected to pay off all outstanding indebtedness during any grace period provided for in the retail installment credit agreement.

A.B. 5725
A.B. 8185
S.B. 1454
Prohibits issuers of credit cards from imposing any fee or surcharge upon a holder thereof for exceeding the credit limit established by the issuer for such hold, if the issuer approves or accepts any transaction which causes such credit limit to be exceeded; provides that violation of such provisions shall be punishable by a civil fine not to exceed $1,000.

A.B. 10212
Prohibits the issuer of a credit card from increasing the rate of interest or imposing a fee on the account of a holder who has made timely payments and in the minimum amounts required, based on such holder’s indebtedness or failure to make timely payments to another creditor; violation of such prohibition shall constitute a misdemeanor.

A.B. 10470
Prohibits issuer from imposing late charges on credit card after period of 90 days from the date of imposition of such charges; prohibits interest on credit card transaction after period of one year from date of imposition of interest on that credit card transaction.

A.B. 10878
Permits licensed money transmitters to charge a higher rate for services which are purchased through electronic means via a credit card.

S.B. 1318
Prohibits the imposition of late charges when the total amount due on such credit card for one month is less than the proposed late charge.

S.B. 1321
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 15 percent annually; such rate may only exceed 15 percent if the prime rate exceeds 15 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

S.B. 4576
Permits licensed money transmitters to charge a higher rate for services which are purchased through electronic means via a credit card.

South Carolina
H.B. 4818
Signed by governor 5/11/04, Act 234
Relates to delinquency charges in connection with a credit sale; provides that a delinquency charge must not be applied to a delinquency attributable only to an assessment against an earlier installment; relates to additional charges permitted in connection with a consumer loan; relates to notice to co-signers and similar parties to a consumer loan; includes an open-end credit pursuant to a lender credit card or similar arrangement.

Virginia
H.B. 263
Stricken from docket 2/12/04
Requires issuers of credit cards and suppliers of goods and services that provide credit through open-end accounts to cancel a credit card or other open-end account within 48 hours after receiving a request for cancellation from an account holder or within 48 hours after receiving the final payment if the account is not paid in full at the time of the request for cancellation. The measure requires issuers and suppliers to provide written notice of amount due if account has not been paid in full, and requires issuers and suppliers to provide written notification of cancellation within 48 hours of cancellation. Finally, it establishes that account holders are not liable for amounts accruing on the account after cancellation other than amounts charged to the account by, or at the direction of, the account holder.

West Virginia
H.B. 4386
Provides that vendors may apply a surcharge of up to six percent of the amount of any retail sales transaction in which a credit card is used.

2003 Legislation

Connecticut
S.B. 627
Failed Joint Favorable Deadline 3/20/03
Caps credit card interest rates at prime plus 10 percent.

Florida
S.B. 1814
Died in committee 5/2/03
Permits the imposition of a surcharge or fee for a credit card transaction that occurs over the phone or the Internet.

S.B. 2728
Died in committee 5/2/03
Requires credit card issuers to provide certain disclosures to cardholders regarding total payment amount and number of minimum payments required to pay the balance.

Hawaii
H.B. 655
Carried over to 2004 session 8/21/03
Prohibits as an unfair method of competition and unfair or deceptive act or practice in the conduct of any trade or commerce, increasing the credit limit of a state resident credit card holder without first obtaining the holder's consent.

H.B. 2296
Signed by governor 5/13/04, Act 71
Authorizes persons to use debit cards in making payments, including posting bail, to the courts. Authorizes the judiciary to charge a convenience fee for payments made through a credit or debit card.

Illinois
H.B. 1479
Provides that a credit card issuer who offers to an Illinois resident a credit card with a fixed annual percentage rate may not increase the annual percentage rate or rates of interest applicable to that credit card account, or prematurely remove or increase any introductory annual percentage rate or rates of interest applicable to the account, for reasons other than actions or omissions of the card holder that are directly related to the account and that are clearly and conspicuously described to the card holder at the time the credit card is issued.

S.B. 1116
Signed by governor 7/22/03, Public Act 93-287
Amends the Illinois Financial Services Development Act. Provides that if an amendment to a revolving credit plan agreement results in an unfavorable change in the interest or other charges on a revolving credit plan which: (i) relates to a change in the borrower's credit standing, (ii) does not affect all or a substantial portion of a class of the creditor's accounts, and (iii) does not relate to inactivity, default, or delinquency on that revolving credit plan, the financial institution must give the borrower a written notice concerning a change in credit standing. Amends the Tax Refund Anticipation Loan Disclosure Act. Requires a facilitator's disclosure of (i) the annual percentage rate utilizing a 10-day time period and (ii) the total cost to the borrower for utilizing a refund anticipation loan.

Indiana
H.B. 1799
Provides that a license agent who receives at least 90 percent of the agent's gross income from the sale of sporting goods receives a $1 service fee for each hunting and fishing license purchased with a credit card.

Louisiana
H.B. 1889
In conference committee 6/22/03
Provides that the term "credit service charge" under the Louisiana Consumer Credit Law shall not include origination and other authorized fees enumerated in R.S. 9:3530.

Maine
L.D. 473
Limits the rate of interest that may be charged on consumer credit loans, such as credit cards and automobile loans, to 12 percent per year.

L.D. 1168
Establishes a cap on the percentage of interest rates on credit card balances at 18 percent per year. This bill also requires creditors to notify consumers before raising the percentage of interest rates on credit card balances, even if the increase is described in the credit agreement between the creditor and consumer.

Massachusetts
H.B. 3106
Relates to the maximum rate of interest to be charged on credit cards.

S.B. 12
Relates to late payment fees.

S.B. 30
Eliminates credit card minimum payments.

S.B. 110
Relates to credit card borrowing disclosure.

A.B. 1375
Provides that late payment charges shall not exceed 1.5 percent or unpaid balance or $15, whichever is less.

A.B. 1670
S.B. 1321
Authorizes the banking board to set the maximum rate of interest for credit cards at not to exceed 15 percent annually; such rate may only exceed 15 percent if the prime rate exceeds 15 percent for 60 consecutive days, but in no event shall such new rate be more than one and one quarter percent above the prime rate in effect at the time such rate is set.

A.B. 1788
S.B. 1557
Requires bank to give notice prior to the cancellation of a credit card which is offered by the bank and relied upon by the customer for overdraft protection; prohibits the bank from assessing fees or charges in the event of overdraft when the bank fails to provide notice of cancellation.

A.B. 3125
Prohibits owner or owners, or agent or employee thereof, of any retail food store or an establishment engaged in the retail sale of grocery products from imposing a surcharge to a person who elects to use a debit card or other banking or purchasing card in lieu of payment by cash, check or similar means.

A.B. 3458
Prohibits the imposition of service charges and annual fees to only those credit card holders or buyers who pay off their balances in full within the grace period allowed for purchases.

A.B. 3491
S.B. 4487
Prohibits charging a person with a motor fuel company credit card a price in excess of the cash price for such company’s motor fuel.

A.B. 6592
Provides that service charge increases applicable to credit cards shall not apply to existing credit card balances; defines the term service charge; provides remedies and enforcement for violations by credit card issuers and authorizes enforcement and intervention by the attorney general.

A.B. 6919
Provides for a minimum 10 day grace period before a late fee may be charged a credit card holder unless the credit card or finance company provides a local payment facility within the county of the debtor or access to on-line or telephone payment centers for the receipt of payments.

A.B. 7457
Provides that service charge increases applicable to credit cards shall not apply to existing credit card balances; defines the term service charge; provides remedies and enforcement for violations by credit card issuers and authorizes enforcement and intervention by the attorney general.

A.B. 7458
Prohibits the imposition of late charges when the total amount due on such credit card for one month is less than the proposed late charge.

A.B. 8185
Prohibits issuers of credit cards from imposing any fee or surcharge upon a holder thereof for exceeding the credit limit established by the issuer for such hold, if the issuer approves or accepts any transaction which causes such credit limit to be exceeded; provides that violation of such provisions shall be punishable by a civil fine.

A.B. 10212
Prohibits the issuer of a credit card from increasing the rate of interest or imposing a fee on the account of holder who has made timely payments and in the minimum amounts required, based on such holders indebtedness or failure to make timely payments to another creditor; violation of such prohibition shall constitute a misdemeanor.

S.B. 865
Prohibits any issuer of a credit card, debit card or secured credit card from imposing a finance charge or fee upon a card holder who elects not to carry a credit balance or a minimum credit balance forward from one billing cycle to the succeeding next billing cycle; provides that no annual fee shall be charged, received or collected by the seller or a holder of a retail installment credit agreement from a buyer based upon the fact that the buyer has elected to pay off all outstanding indebtedness during any grace period provided for in the retail installment credit agreement.

S.B. 1317
Prohibits late charges on credit cards where the holder of the credit card makes a payment within ten days of the payment due date.

S.B. 1498
Provides that restaurants must conspicuously post and give notice of price of specials and credit card limitations.

S.B. 4274
Enacting clause stricken 5/14/03
Provides for a minimum 10 day grace period before a late fee may be charged a credit card holder unless the credit card or finance company provides a local payment facility within the county of the debtor or access to on-line or telephone payment centers for the receipt of payments.

S.B. 4741
Provides for distribution to the public over the internet, of information regarding credit card rates, charges, terms and other conditions; further provides for dissemination of information over the internet regarding types of bank accounts available, requirements for opening an account, and all fees charged the customer, including monthly fees and transaction fees.

North Carolina
H.B. 1192
Signed by governor 8/7/03
Expands usury exemption to credit cards.

Ohio
S.B. 45
Requires a bank to include certain fees and charges that are charged under a consumer revolving credit agreement in the computation of the maximum annual percentage rate allowed by statute, requires arbitration proceedings held pursuant to such an agreement to be held in the county of the borrower's residence, and requires such agreements to be governed by Ohio and federal law. Requires that agreements for a consumer credit card issued by a savings and loan association or a savings bank provide that the association or savings bank may contract for and receive interest or finance charges at rates agreed upon or consented to by the parties to the agreement, but not exceeding an annual percentage rate of 25 percent, and that an association or savings bank may charge, collect, and receive, as interest, other fees and charges that must be included in the computation of the maximum annual percentage rate allowed by statute; requires arbitration proceedings held pursuant to such an agreement to be held in the county of the borrower's residence; and requires such agreements to be governed by Ohio and federal law.

Pennsylvania
H.B. 1821
Prohibits transaction fees for the use of an automated teller machine card or debit card for the purchase of goods or services; and provides penalties.

S.B. 628
Prohibits transaction fees for the use of an automated teller machine card or debit card for the purchase of goods or services; and provides penalties.

Rhode Island
H.B. 5918
Became effective without governor’s signature 7/17/03
Establishes provisions governing the terms, conditions and obligations under which a bank credit card plan may operate

S.B. 288
Establishes provisions governing the terms, conditions and obligations under which a bank credit card plan may operate

Texas
H.B. 1442
Prohibits imposing a surcharge for use of a credit card when the seller does not post a notice of the surcharge.

S.B. 798
Prohibits a merchant from imposing a surcharge for use of a credit card when the merchant does not post notice of the surcharge.

2002 Legislation

Connecticut
H.B. 5620
Requires credit card issuers to provide notice of interest rate increases on billing statements sent to credit card holders.

Illinois
H.B. 5840
Provides that a credit card issuer may not increase the annual percentage rate or rates of interest applicable to a credit card account, or remove or increase any introductory annual percentage rate or rates of interest applicable to the account, for reasons other than actions or omissions of the card holder that are directly related to the account and that are clearly and conspicuously described to the card holder at the time the credit card is issued.

Massachusetts
H.B. 3667
Prohibits persons from securing credit cards for a third party for a fee.

New York
A.B. 1870
S.B. 1059
Prohibits any issuer of a credit card, debit card or secured credit card from imposing a finance charge or fee upon a card holder who elects not to carry a credit balance or a minimum credit balance forward from one billing cycle to the succeeding next billing cycle; provides that no annual fee shall be charged, received or collected by the seller or a holder of a retail installment credit agreement from a buyer based upon the fact that the buyer has elected to pay off all outstanding indebtedness during any grace period provided for in the retail installment credit agreement.

A.B. 9842
Prohibits owner or owners, or agent or employee thereof, of any retail food store or an establishment engaged in the retail sale of grocery products from imposing a surcharge to a person who elects to use a debit card or other banking or purchasing card in lieu of payment by cash, check or similar means.

A.B. 10648
Provides for a minimum grace period before a late fee may be charged a credit card holder unless the credit card or finance company provides a local payment facility within the county of the debtor or access to on-line or telephone payment centers for the receipt of payments.

Rhode Island
H.B. 6835
Prohibits credit card companies from charging the following fees: monthly late fees which exceed the minimum payment due for that pay period; participation fees; membership fees; annual renewal fees; and any additional fees except for interest.

2001 Legislation

Georgia
S.B. 31
Prohibits the charging and collecting of fees for transactions involving the payment of one credit card account with another credit card account.

Massachusetts
H.B. 2646
Requires that credit cards issued in the Commonwealth contain the maximum rate of interest on such cards.

H.B. 3240
Relates to the maximum rate of interest to be charged on credit cards.

Michigan
H.B. 5105
Limits credit card annual interest rates to 18 percent.

New Hampshire
H.C.R. 7
Urges the federal government to allow a deduction for personal credit card interest from the federal income tax.

New York
A.B. 1910
S.B. 1505
Prohibits late charges on credit cards when the finance charge rates applicable to such credit cards are at least twice the prime interest rate and the holder of such credit card makes a payment within 60 days of the payment due date.

A.B. 3784
Prohibits the imposition of service charges and annual fees to only those credit card holders or buyers who pay off their balances in full within the grace period allowed for purchases.

A.B. 3858
S.B. 1713
Authorizes the Banking Board to set the maximum rate of interest for credit cards.

West Virginia
S.C.R. 8
Urges Congress to protect charge card holders from unconscionable interest rates, late charges and practices.

2000 Legislation

Georgia
H.B. 1156
Restricts the application of late fees to minimum installment payments not paid within seven days following the due date; allows agreements specifying periods exceeding three days following the due date for the application of late fees.

Massachusetts
H.B. 1305
Regulates the imposition of late charge fees by credit card companies.

Michigan
H.B. 6087
Authorizes a consumer to recover any overdraft charges or late fees incurred, costs and reasonable attorney fees and three times the amount of the overpayment due to a retail establishment who submits the consumer’s credit or debit card more than one time for payment.

Mississippi
H.B. 677
Signed by governor 4/30/00, Chapter 517
Authorizes Mississippi banks, retail sellers, lenders and other issuers of credit cards to provide in the written credit card agreement for any products, services, charges and fees as the issuer and the debtor may agree upon; requires credit card issuers to provide 30 days' notice to debtors of any modification of any term of the credit card account; deletes the maximum amount for late payment charges that may be charged on delinquent payments.

S.B. 2696

Authorizes Mississippi banks, retail sellers, lenders and other issuers of credit cards to provide in the written credit card agreement for any products, services, charges and fees as the issuer and the debtor may agree upon; requires credit card issuers to provide 30 days' notice to debtors of any modification of any term of the credit card account; deletes the maximum amount for late payment charges that may be charged on delinquent payments.

New Hampshire
H.B. 1396
Limits the interest rate that may be charged by New Hampshire creditors under an open-end credit plan to six percentage points above the prime interest rate, unless the consumer has failed to make a payment due under the plan during the preceding 12 months.

New York
A.B. 5919
Prohibits the imposition of service charges and annual fees on retail installment credit agreements to only those credit card holders or buyers who pay off their balances in full within the grace period allowed for purchases.

A.B. 7381
S.B. 7632
Prohibits late charges on credit cards when the finance charge rates applicable to such credit cards are at least twice the prime interest rate that holder of such credit card makes a payment within 60 days of the payment due date.

Rhode Island
H.B. 7358
Limits the amount of interest that a credit card issuer can charge for one missed monthly payment to a maximum of five percent for the duration of the credit card, and mandates that this information be stated clearly and conspicuously in all solicitations and credit applications.

Tennessee
H.B. 1774
S.B. 1555
Creates credit card consumer council to review rates and fees charged by issuers of credit cards.

H.B. 1775
Creates credit card consumer council to review rates and fees charged by issuers of credit cards.

S.B. 1561
Creates credit card consumer council to review rates and fees charged by issuers of credit cards.

Virginia
H.J.R. 179
Establishes a joint subcommittee to examine policies and practices of credit card companies operating in the Commonwealth. The issues to be addressed by the joint subcommittee include (i) changing the interest rate and terms of an account when an account is sold; (ii) changing the creditor's mailing address without adequately notifying the cardholder, resulting in the cardholder's payment not being received by its due date; and (iii) reducing or eliminating the grace period prior to assessment of late charges.

Washington
H.B. 1236
Declares that the imposition of a late fee on the credit card of a Washington consumer when the monthly payment is received within five business days of the payment due date is an unfair practice under RCW 19.86.020.

H.B. 1430
Prohibits a credit card company from imposing a late fee on the credit card of a Washington consumer when the monthly payment is mailed on or before the payment due date as shown by the post office cancellation mark stamped on the envelope.

Back arrow, return to previous page Return to CFI 2008 Legislative Summit Agenda

2008 NCSL Legislative SummitNew Orleans, Louisiana

Will This Purchase be on Your Card?Tuesday, July 22, 20084:30 pm - 5:30 pm

2000-2008 Credit Cards Interest and Fees Legislation

2008 NCSL Legislative Summit
New Orleans, Louisiana

Will This Purchase be on Your Card?
Tuesday, July 22, 2008
4:30 pm - 5:30 pm