New York Consolidated Laws, General Business Law - GBS § 520-b. Secured credit cards




1. If an issuer or any other person uses a 900 telephone number to solicit or market a secured credit card to an individual residing in this state, or otherwise advertises or promotes the availability of a secured credit card through use of a 900 telephone number to an individual residing in this state, the issuer or other person must disclose all of the following terms that may be applicable:

(a) either the flat fee charged for the call or the cost of the call per minute and the anticipated number of minutes for such call;

(b) the fact that the fee described in paragraph (a) of this subdivision is refundable in its entirety, at the consumer's request, if for whatever reason the consumer does not get a secured credit card;  and

(c) the fact that no fees may be imposed or collected, other than a refundable fee for a 900 telephone number, until the consumer has asked the issuer to open a credit card account and the issuer has agreed to open such an account under the terms and conditions of the offer.

2. The disclosures required by subdivision one of this section shall be provided before the 900 telephone number call is placed by the consumer.  Such disclosures shall be provided clearly and conspicuously.

3. An issuer of a secured credit card shall, either prior to or at the time of issuance, disclose the minimum amount of money the consumer must keep on deposit to qualify for such a card, the interest that will be paid on said deposit, and the amount of credit that will be extended either in absolute terms or expressed as a percentage of such deposit.

4. In connection with any application or solicitation for a secured credit card, no person shall impose any fee or charge as an application fee, set-up fee, credit review fee, search fee, or any other fee by any other name prior to, contemporaneous with, or incidental to the opening of such a secured credit card agreement.  Provided, however, that nothing contained herein shall prohibit an issuer from contracting for and imposing any fees and charges authorized by section four hundred thirteen of the personal property law and provided further that nothing contained herein shall prohibit solicitation for such a card by use of a 900 telephone number pursuant to the provisions of this section.





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