§14A-3-309.1. Disclosure in credit and charge card applications and
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solicitation.
Disclosure in credit and charge card applications and solicitation:
(1)Any application to open a credit card account for any person under a revolving loan account plan, or a solicitation to open such an account without requiring an application that is mailed to consumers shall disclose the following information, subject to subsection
(8)of this section and subsections
(5)through
(8)of Section 3-302 of this title.
(a)Each annual percentage rate applicable to extensions
of credit under such credit plan.
(b)Where an extension of credit is subject to a variable
rate, the fact that the rate is variable, the annual
percentage rate in effect at the time of the mailing,
and how the rate is determined.
(c)Where more than one rate applies, the range of
balances to which each rate applies.
(d)Any annual fee, other periodic fee, or membership fee
imposed for the issuance or availability of a credit
card, including any account maintenance fee or other
charge imposed based on activity or inactivity for the
account during the billing cycle.
(e)Any minimum finance charge imposed for each period
during which any extension of credit which is subject
to a finance charge is outstanding.
(f)Any transaction charge imposed in connection with use
of the card to purchase goods or services.
(g)The date by which or the period within which any
credit extended under such credit plan for purchases
of goods or services must be repaid to avoid incurring
a loan finance charge, and, if no such period is
offered, such fact shall be clearly stated.
(h)If the length of such "grace period" varies, the card
issuer may disclose the range of days in the grace
period, the minimum number of days in the grace
period, or the average number of days in the grace
period, if the disclosure is identified as such.
(i)The name of the balance calculation method used in
determining the balance on which the loan finance
charge is computed if the method used has been defined
by the Administrator, or a detailed explanation of the
balance calculation method used if the method has not
been so defined.
(j)In prescribing rules to carry out the requirements of
paragraph
(i)of this subsection, the Administrator
shall define and name not more than the five balance
calculation methods determined by the Administrator to
be the most commonly used methods.
(2)In addition to the information required to be disclosed under subsection
(1)of this section each application or solicitation to which such subsection applies shall disclose clearly and conspicuously the following information, subject to subsections
(8)and
(9)of this section:
(a)Any fee imposed for an extension of credit in the form
of cash.
(b)Any fee imposed for a late payment.
(c)Any fee imposed in connection with an extension of
credit in excess of the amount of credit authorized to
be extended with respect to such account.
(a)In any telephone solicitation to open a credit card
account for any person under a revolving loan account
plan, the person making the solicitation shall orally
disclose the information described in subsection
of this section.
(b)Paragraph
(a)of this subsection shall not apply to
any telephone solicitation if:
(i)the credit card issuer:
(aa)does not impose any fee described in
paragraph
(d)of subsection
(1)of this
section, or
(bb)does not impose any fee in connection with
telephone solicitations unless the consumer
signifies acceptance by using the card;
(ii)the card issuer discloses clearly and
conspicuously in writing the information
described in subsections
(1)and
(2)of this
section within thirty
(30)days after the
consumer requests the card, but in no event later
than the date of delivery of the card; and
(iii)the card issuer discloses clearly and
conspicuously that the consumer is not obligated
to accept the card or account and the consumer
will not be obligated to pay any of the fees or
charges disclosed unless the consumer elects to
accept the card or account by using the card.
(a)Any application to open a credit card account for any
person under a revolving loan account plan, and any
solicitation to open an account without requiring an
application, that is made available to the public or
contained in catalogs, magazines or other publications
shall meet the disclosure requirements of paragraph
(b), (c), or
(d)of this subsection.
(b)An application or solicitation described in paragraph
(a)of this subsection meets the requirement of this
paragraph if such application or solicitation
contains:
(i)the information:
(aa)described in subsection
(1)of this section
in the form required under subsections
through
(8)of Section 3-302 of this title
subject to subsection
(8)of this section;
and
(bb)described in subsection
(2)of this section
in a clear and conspicuous form, subject to
subsections
(8)and
(9)of this section;
(ii)a statement, in a conspicuous and prominent
location on the application or solicitation,
that:
(aa)the information is accurate as of the date
the application or solicitation was printed;
(bb)the information contained in the application
or solicitation is subject to change after
such date; and
(cc)the applicant should contact the creditor
for information on any change in the
information contained in the application or
solicitation since it was printed;
(iii)a clear and conspicuous disclosure of the date
the application or solicitation was printed; and
(iv)a disclosure, in a conspicuous and prominent
location on the application or solicitation, of a
toll free telephone number or a mailing address
at which the applicant may contact the creditor
to obtain any change in the information provided
in the application or solicitation since it was
printed.
(c)An application or solicitation described in paragraph
(a)of this subsection meets the requirement of this
paragraph if such application or solicitation:
(i)contains a statement, in a conspicuous and
prominent location on the application or
solicitation, that:
(aa)there are costs associated with the use of
credit cards; and
(bb)the applicant may contact the creditor to
request disclosure of specific information
of such costs by calling a toll free
telephone number or by writing to an address
specified in the application;
(ii)contains a disclosure, in a conspicuous and
prominent location on the application or
solicitation, of a toll free telephone number and
a mailing address at which the applicant may
contact the creditor to obtain such information;
and
(iii)does not contain any of the items described in
subsections
(1)and
(2)of this section.
(d)An application or solicitation meets the requirements
of this subsection if it contains, or is accompanied
by:
(i)the disclosures required by paragraphs
through
(f)of subsection
(l)of Section 3-309 of
this title;
(ii)the disclosures required by subsections
(1)and
(2)of this section included clearly and
conspicuously, except that the provisions of
subsections
(5)through
(8)of Section 3-302 of
this title shall not apply; and
(iii)a toll free telephone number or a mailing address
at which the applicant may contact the creditor
to obtain any change in the information provided.
(e)Upon receipt of a request for any of the information
referred to in paragraph (b),
(c)or
(d)of this
subsection, the card issuer or the agent of such
issuer shall promptly disclose all of the information
described in subsections
(1)and
(2)of this section.
(a)Any application or solicitation to open a charge card
account shall disclose clearly and conspicuously the
following information in the form required by
subsections
(5)through
(8)of Section 3-302 of this
title subject to subsection
(8)of this section:
(i)Any annual fee, other periodic fee, or membership
fee imposed for the issuance or availability of
the charge card, including any account
maintenance fee or other charge imposed based on
activity or inactivity for the account during the
billing cycle.
(ii)Any transaction charge imposed in connection with
use of the card to purchase goods or services.
(iii)A statement that charges incurred by use of the
charge card are due and payable upon receipt of a
periodic statement rendered for such charge card
account.
(b)In addition to the information required to be
disclosed under paragraph
(a)of this subsection each
written application or solicitation to which such
paragraph applies shall disclose clearly and
conspicuously the following information, subject to
subsections
(8)and
(9)of this section:
(i)Any fee imposed for an extension of credit in the
form of cash.
(ii)Any fee imposed for a late payment.
(iii)Any fee imposed in connection with an extension
of credit in excess of the amount of credit
authorized to be extended with respect to such
account.
(c)Any application to open a charge card account, and any
solicitation to open such an account without requiring
an application, that is made available to the public
or contained in catalogs, magazines, or other
publications shall contain:
(i)the information:
(aa)described in paragraph
(a)of this
subsection in the form required under
subsections
(5)through
(8)of Section 3-302
of this title subject to subsection
(8)of
this section; and
(bb)described in paragraph
(b)of this
subsection in a clear and conspicuous form,
subject to subsections
(8)and
(9)of this
section;
(ii)a statement, in a conspicuous and prominent
location on the application or solicitation,
that:
(aa)the information is accurate as of the date
the application or solicitation was printed;
(bb)the information contained in the application
or solicitation is subject to change after
such date; and
(cc)the applicant should contact the creditor
for information on any change in the
information contained in the application or
solicitation since it was printed;
(iii)a clear and conspicuous disclosure of the date
the application or solicitation was printed; and
(iv)a disclosure, in a conspicuous and prominent
location on the application or solicitation, of a
toll free telephone number or a mailing address
at which the applicant may contact the creditor
to obtain any change in the information provided
in the application or solicitation since it was
printed.
(d)If a charge card permits the card holder to receive an
extension of credit under a revolving loan account
plan which is not maintained by the charge card issuer
the charge card issuer may provide the information
described in paragraphs
(a)and
(b)of this subsection
in the form required by such paragraphs in lieu of the
information required to be provided under subsection
(1), (2),
(3)or
(4)of this section with respect to
any credit extended under such plan, if the charge
card issuer discloses clearly and conspicuously to the
consumer in the application or solicitation that:
(i)the charge card issuer will make an independent
decision as to whether to issue the card;
(ii)the charge card may arrive before the decision is
made with respect to an extension of credit under
a revolving loan account plan; and
(iii)approval by the charge card issuer does not
constitute approval by the issuer of the
extension of credit.
The information required to be disclosed under
subsections
(1)and
(2)of this section shall be
provided to the charge card holder by the creditor
which maintains such revolving loan account plan
before the first extension of credit under such plan.
(f)For the purposes of this subsection, the term "charge
card" means a card, plate, or other single credit
device that may be used from time to time to obtain
credit which is not subject to a finance charge.
(6)The Administrator may, by rule, require the disclosure of information in addition to that otherwise required by subsections
(1)through
(7)of this section, and modify any disclosure of information required by subsections
(1)through
(7)of this section, in any application to open a credit card account for any person under a revolving loan account plan or any application to open a charge card account for any person, or a solicitation to open any such account without requiring an application, if the Administrator determines that such action is necessary to carry out the purposes of, or prevent evasions of, any subsection of this section.
(a)A card issuer that imposes any fee described in
paragraph
(d)of subsection
(1)or subparagraph
(i)of
paragraph
(a)of subsection
(5)of this section shall
transmit to a consumer at least thirty
(30)days prior
to the scheduled renewal date of the consumer's credit
or charge card account a clear and conspicuous
disclosure of:
(i)the date by which, the month by which, or the
billing period at the close of which, the account
will expire if not renewed;
(ii)the information described in subsection
(1)or
paragraph
(a)of subsection
(5)of this section
that would apply if the account were renewed,
subject to subsection
(8)of this section; and
(iii)the method by which the consumer may terminate
continued credit availability under the account.
(i)The disclosures required by this subsection may
be provided:
(aa)prior to posting a fee described in
paragraph
(d)of subsection
(1)or
subparagraph
(i)of paragraph
(a)of
subsection
(5)of this section to the
account; or
(bb)with the periodic billing statement first
disclosing that the fee has been posted to
the account.
(ii)disclosures may be provided under subparagraph
(i)of this paragraph only if:
(aa)the consumer is given a thirty-day period to
avoid payment of the fee or to have the fee
recredited to the account in any case where
the consumer does not wish to continue the
availability of the credit; and
(bb)the consumer is permitted to use the card
during such period without incurring an
obligation to pay such fee.
(c)The Administrator may, by rule, provide for fewer
disclosures than are required by paragraph
(a)of this
subsection in the case of an account which is
renewable for a period of less than six
(6)months.
(a)If the amount of any fee required to be disclosed
under the previous subsections of this section is
determined on the basis of a percentage of another
amount, the percentage used in making such
determination and the identification of the amount
against which such percentage is applied shall be
disclosed in lieu of the amount of such fee.
(b)If a credit or charge card issuer does not impose any
fee required to be disclosed under any provision of
the previous subsections of this section, such
provision shall not apply with respect to such issuer.
(9)If the amount of any fee required to be disclosed by a credit or charge card issuer under subsection (2), division
(bb)of subparagraph
(i)of paragraph
(b)of subsection (4), paragraph
(b)of subsection
(5)or division
(bb)of subparagraph
(i)of paragraph
(c)of subsection
(5)of this section varies from state to state, the card issuer may disclose the range of such fees for purposes of subsections
(1)through
(5)of this section in lieu of the amount for each applicable state, if such disclosure includes a statement that the amount of such fee varies from state to state.
(a)Whenever a card issuer that offers any guarantee or
insurance for repayment of all or part of the
outstanding balance of a revolving loan account plan
proposes to change the person providing that guarantee
or insurance, the card issuer shall send each insured
consumer written notice of the proposed change not
less than thirty
(30)days prior to the change,
including notice of any increase in the rate or
substantial decrease in coverage or service which will
result from such change. Such notice may be included
on or with the monthly statement provided to the
consumer prior to the month in which the proposed
change would take effect.
(b)In any case in which a proposed change described in
paragraph
(a)of this subsection occurs, the insured
consumer shall be given the name and address of the
new guarantor or insurer and a copy of the policy or
group certificate containing the basic terms and
conditions, including the premium rate to be charged.
(c)The notices required under paragraphs
(a)and
(b)of
this subsection shall each include a statement that
the consumer has the option to discontinue the
insurance or guarantee.
(d)No provision of this subsection shall be construed as
superseding any provision of Oklahoma law which is
applicable to the regulation of insurance.
(e)The Administrator shall define, in rules, what
constitutes a "substantial decrease in coverage or
service" for purposes of paragraph
(a)of this
subsection.
(a)In the case of any credit card account under an open-
end consumer credit plan, a creditor shall provide a
written notice of an increase in an annual percentage
rate (except in the case of an increase described in
paragraph (1),
(2)or
(3)of 15 U.S.C. Section 1661i-
1(b)) not later than forty-five
(45)days prior to the
effective date of the increase.
(b)In the case of any credit card account under an open-
end consumer credit plan, a creditor shall provide a
written notice of any significant change, as
determined by rule of the Administrator, in the terms
(including an increase in any fee or finance charge,
other than as provided in paragraph
(a)of this
subsection) of the cardholder agreement between the
creditor and the obligor not later than forty-five
(45)days prior to the effective date of the change.
(c)Each notice required by paragraph
(a)or
(b)of this
subsection shall be made in a clear and conspicuous
manner, and shall contain a brief statement of the
right of the obligor to cancel the account pursuant to
rules established by the Administrator, before the
effective date of the subject rate increase or other
change.
(d)Closure or cancellation of an account by the obligor
shall not constitute a default under an existing
cardholder agreement, and shall not trigger an
obligation to immediately repay the obligation in full
or through a method that is less beneficial to the
obligor than one of the methods described in 15 U.S.C.
Section 1661i-1(c)(2), or the imposition of any other
penalty or fee.
(a)Except as provided in subsection
(2)of this section,
a creditor may not impose any finance charge on a
credit card account under an open-end consumer credit
plan as a result of the loss of any time period
provided by the creditor within which the obligor may
repay any portion of the credit extended without
incurring a finance charge, with respect to:
(i)any balances for days in billing cycles that
precede the most recent billing cycle; or
(ii)any balances or portions thereof in the current
billing cycle that were repaid within such time
period.
(b)This subsection shall not apply to:
(i)any adjustment to a finance charge as a result of
the resolution of a dispute; or
(ii)any adjustment to a finance charge as a result of
the return of a payment for insufficient funds.
(a)In the case of any credit card account under an open-
end consumer credit plan under which an over-the-limit
fee may be imposed by the creditor for any extension
of credit in excess of the amount of credit authorized
to be extended under such account, no such fee shall
be charged, unless the consumer has expressly elected
to permit the creditor, with respect to such account,
to complete transactions involving the extension of
credit under such account in excess of the amount of
credit authorized.
(b)No election by a consumer under paragraph
(a)of this
subsection shall take effect unless the consumer,
before making such election, received a notice from
the creditor of any over-the-limit fee in the form and
manner, and at the time, determined by the
Administrator. If the consumer makes the election
referred to in paragraph
(a)of this subsection, the
creditor shall provide notice to the consumer of the
right to revoke the election, in the form prescribed
by the Administrator, in any periodic statement that
includes notice of the imposition of an over-the-limit
fee during the period covered by the statement.
(c)A consumer may make or revoke the election referred to
in paragraph
(a)of this subsection orally,
electronically, or in writing, pursuant to regulations
prescribed by the Administrator. The Administrator
shall prescribe regulations to ensure that the same
options are available for both making and revoking
such election.
A consumer may make the election referred to in
paragraph
(a)of this subsection at any time, and such
election shall be effective until the election is
revoked in the manner prescribed under paragraph
of this subsection.
(e)The Administrator shall prescribe regulations:
(i)governing disclosures under this subsection; and
(ii)that prevent unfair or deceptive acts or
practices in connection with the manipulation of
credit limits designed to increase over-the-limit
fees or other penalty fees.
(f)Nothing in this subsection shall be construed to
prohibit a creditor from completing an over-the-limit
transaction; provided, that a consumer who has not
made a valid election under paragraph
(a)of this
subsection is not charged an over-the-limit fee for
such transaction.
(g)With respect to a credit card account under an open-
end consumer credit plan, an over-the-limit fee may be
imposed only once during a billing cycle if the credit
limit on the account is exceeded, and an over-the-
limit fee, with respect to such excess credit, may be
imposed only once in each of the two subsequent
billing cycles, unless the consumer has obtained an
additional extension of credit in excess of such
credit limit during any such subsequent cycle or the
consumer reduces the outstanding balance below the
credit limit as of the end of such billing cycle.
(14)With respect to a credit card account under an open-end consumer credit plan, the creditor may not impose a separate fee to allow the obligor to repay an extension of credit or finance charge, whether such repayment is made by mail, electronic transfer, telephone authorization, or other means, unless such payment involves an expedited service by a service representative of the creditor.
(15)With respect to the terms of any credit card account under an open-end consumer credit plan, the term "fixed", when appearing in conjunction with a reference to the annual percentage rate or interest rate applicable with respect to such account, may only be used to refer to an annual percentage rate or interest rate that will not change or vary for any reason over the period specified clearly and conspicuously in the terms of the account.
(16)If the terms of a credit card account under an open-end consumer credit plan require the payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened in an aggregate amount in excess of twenty-
five percent (25%) of the total amount of credit authorized under the account when the account is opened, no payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) may be made from the credit made available under the terms of the account. No provision of this paragraph may be construed as authorizing any imposition or payment of advance fees otherwise prohibited by any provision of law.
(17)The payment due date for a credit card account under an open-end consumer credit plan shall be the same day each month. If the payment due date for a credit card account under an open-end consumer credit plan is a day on which the creditor does not receive or accept payments by mail (including weekends and holidays), the creditor may not treat a payment received on the next business day as late for any purpose.
(18)No credit card may be issued to, or open-end consumer credit plan established by or on behalf of, a consumer who has not attained the age of twenty-one (21), unless the consumer has submitted a written application to the card issuer that meets the requirements of paragraph
(a)of this subsection.
(a)An application to open a credit card account by a
consumer who has not attained the age of twenty-one
(21)as of the date of submission of the application
shall require:
(i)the signature of a cosigner, including the
parent, legal guardian, spouse, or any other
individual who has attained the age of twenty-one
(21)having a means to repay debts incurred by
the consumer in connection with the account,
indicating joint liability for debts incurred by
the consumer in connection with the account
before the consumer has attained the age of
twenty-one (21); or
(ii)submission by the consumer of financial
information, including through an application,
indicating an independent means of repaying any
obligation arising from the proposed extension of
credit in connection with the account.
(b)The Administrator shall promulgate regulations
providing standards that, if met, would satisfy the
requirements of subparagraph
(ii)of paragraph
(a)of
this subsection.
(19)No increase may be made in the amount of credit authorized to be extended under a credit card account for which a parent, legal guardian, or spouse of the consumer, or any other individual has assumed joint liability for debts incurred by the consumer in connection with the account before the consumer attains the age of
twenty-one (21), unless that parent, guardian, or spouse approves in writing, and assumes joint liability for, such increase. Added by Laws 1990, c. 260, § 24, operative July 1, 1990. Amended by Laws 2013, c. 99, § 5, eff. July 1, 2013.