| 1 | A bill to be entitled |
| 2 | An act relating to credit card rates; defining the terms |
| 3 | "cardholder" and "issuer"; prohibiting an issuer of a |
| 4 | credit card from including a universal default clause in |
| 5 | the issuer's credit card contract or agreement with a |
| 6 | cardholder; prohibiting an issuer from increasing the |
| 7 | interest rate of a cardholder if the cardholder is late |
| 8 | with a payment to another credit card issuer; providing an |
| 9 | exception; prohibiting an issuer from increasing the |
| 10 | interest rate of a cardholder if the cardholder has |
| 11 | incurred additional debt pursuant to a home equity line of |
| 12 | credit or home equity loan, but has otherwise continued to |
| 13 | make timely payments to the issuer of the credit card; |
| 14 | providing an effective date. |
| 15 |
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| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
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| 18 | Section 1. Credit card rates; limitations.-- |
| 19 | (1) As used in this section, the term: |
| 20 | (a) "Cardholder" means the person or organization named on |
| 21 | the face of a credit card to whom or for whose benefit the |
| 22 | credit card is issued by an issuer. |
| 23 | (b) "Issuer" means the business organization, state or |
| 24 | federal government, or financial institution, or its duly |
| 25 | authorized agent, which issues a credit card. |
| 26 | (2) An issuer may not include in the credit card contract |
| 27 | or agreement a universal default clause that increases the |
| 28 | interest rate paid by the cardholder due to the cardholder |
| 29 | making a late payment to another credit card issuer or creditor. |
| 30 | (3) An issuer may not increase the interest rate paid by a |
| 31 | cardholder if the cardholder: |
| 32 | (a) Is late with a payment to another credit card issuer |
| 33 | or creditor, unless the cardholder is also late with a credit |
| 34 | card payment to the issuer. |
| 35 | (b) Has incurred additional debt pursuant to a home equity |
| 36 | line of credit or home equity loan, but has otherwise continued |
| 37 | to make timely payments to the issuer of the credit card. |
| 38 | Section 2. This act shall take effect July 1, 2009. |