Report Title:

Credit Card Limit Disclosure

Description:

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.

HOUSE OF REPRESENTATIVES

H.B. NO.

655

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to credit cards.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 478-11.5, Hawaii Revised Statutes, is amended to read as follows:

"§478-11.5 Credit cards. (a) With regard to every credit card issuer wherever located and a customer who is a resident of this State and who is given the opportunity to enter into a credit card plan, every solicitation and application for the credit card plan shall set forth all of the following:

(1) Annual percentage rate, or if the rate may vary, a statement that it may do so and the circumstances under which it may increase and the effects of the increase;

(2) The date or occasion upon which the finance charge begins to accrue;

(3) Whether any annual fee is charged and the amount of the fee;

(4) Any minimum, fixed, transaction, activity or similar charge that could be imposed; and

(5) That charges incurred by the use of a charge card are due and payable upon receipt of a periodic statement of charges if applicable. For purposes of this paragraph, the term "charge card" means any card, plate or other device pursuant to which the charge card issuer extends credit which is not subject to a finance charge and where the charge cardholder cannot automatically access credit that is repayable in installments.

(b) No credit card shall be issued except:

(1) In response to an oral or written request or application therefor; or

(2) As a renewal of, or in substitution for, an accepted credit card whether such card is issued by the same or a successor card issuer.

(c) No credit card issuer shall increase the credit limit under an existing credit card plan agreement with a customer who is a resident of this State, without first obtaining the customer's consent.

(d) Any violation of subsections (b) or (c) constitutes an unfair method of competition and unfair or deceptive act or practice under section 480-2."

SECTION 2. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on January 1, 2004.

INTRODUCED BY:

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