Request from cardholder required before issuance of credit card; provision and change of terms and conditions for use of credit card; interest; applicable law.
1. An issuer located in this state shall not issue a credit card to a cardholder unless he first receives a written or oral request from the cardholder for the issuance of the credit card.
2. An issuer shall provide the cardholder with the terms and conditions that govern the use of the credit card, in writing, before or at the time of the receipt of the credit card. A cardholder shall be deemed to have accepted the written terms and conditions provided by the issuer upon subsequent actual use of the credit card.
3. The rate of interest charged, and any other fees or charges imposed for the use of the credit card, must be in an amount agreed upon by the issuer and cardholder.
4. An issuer may unilaterally change any term or condition for the use of a credit card without prior written notice to the cardholder unless the change will adversely affect or increase the costs to the cardholder for the use of the credit card. If the change will increase such costs, the issuer shall provide notice to the cardholder of the change at least 30 days before the change becomes effective.
5. Unless otherwise stated as a term or condition, the law of this state governs all transactions relating to the use of a credit card if an issuer, or the service provider of an issuer, is located in this state.
Last modified: February 27, 2006