California Civil Code Section 1747.90
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California Laws > Civil Code > California Civil Code Section 1747.90
1747.90. (a) (1) Subject to the limitation contained in subdivision
(b), a card issuer who has issued a credit card to a cardholder
pursuant to an open-end consumer credit plan shall be subject to all
claims and defenses, other than tort claims, arising out of any
transaction in which the credit card is used as a method of payment
or extension of credit if the following conditions are met:
(A) The cardholder has made a good faith attempt to obtain
satisfactory resolution of a disagreement or problem relative to the
transaction from the person honoring the credit card.
(B) The amount of the initial transaction exceeds fifty dollars
(C) The place where the initial transaction occurred was in
California, or, if not within California, then within 100 miles from
the cardholder's current designated address in California.
(2) The limitations set forth in subparagraphs (B) and (C) of
paragraph (1) with respect to a cardholder's right to assert claims
and defenses against a card issuer shall not be applicable to any
transaction in which the person honoring the credit card satisfies
any of the following requirements:
(A) Is the same person as the card issuer.
(B) Is controlled by the card issuer.
(C) Is under direct or indirect common control with the card
(D) Is a franchised dealer in the card issuer's products or
(E) Has obtained the order for such transaction through a mail
solicitation made by or participated in by the card issuer in which
the cardholder is solicited to enter into such transaction by using
the credit card issued by the card issuer.
(b) The amount of claims or defenses asserted by the cardholder
may not exceed the amount of credit outstanding with respect to such
transaction at the time the cardholder first notifies the card issuer
or the person honoring the credit card of such claim or defense. For
the purpose of determining the amount of credit outstanding,
payments and credits to the cardholder's account are deemed to have
been applied, in the order indicated, to the payment of the
(1) Late charges in the order of their entry to the account.
(2) Finance charges in order of their entry to the account.
(3) Debits to the account other than those set forth above, in the
order in which each debit entry to the account was made.
(c) This section does not apply to the use of a check guarantee
card or a debit card in connection with an overdraft credit plan, or
to a check guarantee card used in connection with cash advance
Last modified: February 22, 2013