CHARGE CARD DISCLOSURES
California Civil Code Section 1748.20-1748.22
1748.20. This title may be cited as the " Areias-Robbins Charge
Card Full Disclosure Act of 1986."
1748.21. For the purposes of this title:
(a) "Charge card" means any card, plate, or other credit device
pursuant to which the charge card issuer extends credit to the charge
cardholder, primarily for personal, family, or household purposes
where (1) the credit extended does not subject the charge cardholder
to a finance charge and (2) the charge cardholder cannot
automatically access credit that is repayable in installments.
(b) "Charge cardholder" means the person to whom a charge card is
(c) "Charge card issuer" means any person that issues a charge
card or that person's agent with respect to the card.
1748.22. (a) On and after October 1, 1987, issuers of charge cards
shall clearly and conspicuously disclose in any charge card
application form or preapproved written solicitation for a charge
card mailed to a consumer who resides in this state to apply for a
charge card, whether or not the charge card issuer is located in this
state, other than an application form or solicitation included in a
magazine, newspaper, or other publication distributed by someone
other than the charge card issuer, the following information:
(1) Any fee or charge assessed for or which may be assessed for
the issuance or renewal of the charge card, expressed as an
annualized amount. The fee or charge required to be disclosed
pursuant to this paragraph shall be denominated as an "annual fee."
(2) The charge card does not permit the charge cardholder to defer
payment of charges incurred by the use of the charge card upon
receipt of a periodic statement of charges from the charge card
(3) Any fee that may be assessed for an extension of credit to a
charge cardholder where the extension of credit is made by the charge
card issuer, and is not a credit sale and where the charge
cardholder receives the extension of credit in the form of cash or
where the charge cardholder obtains the extension of credit through
the use of a preprinted check, draft, or similar credit device
provided by the charge card issuer to obtain an extension of credit.
This fee shall be denominated as a "cash advance fee" in the
disclosure required by this paragraph.
(b) A charge card issuer shall be conclusively presumed to have
complied with the disclosure requirements of subdivision (a) if the
table set out in subdivision (b) of Section 1748.11 is completed with
the applicable terms offered by the charge card issuer in a clear
and conspicuous manner and the completed table in subdivision (b) of
Section 1748.11 is then provided to the person invited to apply for
the charge card as a part of or in material which accompanies the
charge card application or written advertisement which invites a
person to apply for a charge card.
The charge card issuer shall include as part of table set out in
subdivision (b) of Section 1748.11 the following sentences in the
boxes or in a footnote outside of the boxes that relate to the
interest rate disclosure: "This is a charge card which does not
permit the charge cardholder to pay for purchases made using this
charge card in installments. All charges made by a person to whom
the charge card is issued are due and payable upon the receipt of a
periodic statement of charges by the charge cardholder."
The inclusion or exclusion of an expiration date with table set
out in subdivision (b) of Section 1748.11 or the use of footnotes in
the boxes of the table to set out the information required to be
disclosed by this section outside of the boxes of the table set out
in subdivision (b) of Section 1748.11 shall not affect the conclusive
presumption of compliance pursuant to this subdivision. If a charge
card issuer does not offer or require one of the selected attributes
of credit cards in the table set out in subdivision (b) of Section
1748.11 the charge card issuer shall employ the phrase in the
appropriate box or in the appropriate footnote "Not offered" or "Not
required" or a substantially similar phrase without losing the
conclusive presumption of compliance with the requirements of
subdivision (a). If one of the selected attributes of charge cards
required to be disclosed pursuant to subdivision (a) is not
applicable to the charge card issuer, the charge card issuer may
employ in the appropriate box or in the appropriate footnote outside
of the box in the table set out in subdivision (b) of Section 1748.11
the phrase "Not applicable" or a substantially similar phrase
without losing the conclusive presumption of compliance with the
requirements of subdivision (a).
(c) Nothing in this section shall be deemed or construed to
prohibit a charge card issuer from disclosing additional terms,
conditions, or information, whether or not relating to the
disclosures required under this section by subdivision (a) or in
connection with the disclosure provided in subdivision (b), in
conjunction with the disclosures required by this section.
(d) If the charge card issuer offers to the charge cardholder any
program or service under which the charge cardholder may elect to
access open-end credit, the charge card issuer shall provide to the
charge cardholder, before the charge cardholder has the right to
access that credit, the initial disclosure statement required by
Regulation Z, as defined in subdivision (c) of Section 1748.10.
(e) All charge card application forms distributed in this state on
or after October 1, 1987, other than by mail, shall contain a
statement in substantially the following form:
"If you wish to receive disclosure of the terms of this credit
card, pursuant to the Areias Charge Card Full Disclosure Act of 1986,
check here and return to the address on this application."
A box shall be printed in or next to this statement for placing
such a checkmark.
However, this subdivision does not apply if the application
contains the disclosures provided for in this title.
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