N.Y. General Business Law Section 520
Application forms or solicitation for credit cards

Any application form or preapproved written solicitation to enter into a credit card agreement for personal, family, or household purposes which is mailed to an individual residing in this state on or after January first, nineteen hundred eighty-eight, by or on behalf of a issuer, whether or not the 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 issuer, and, any application primarily for a credit card to be used for personal, family or household purposes which is distributed or made available in this state to a resident of this state on or after January first, nineteen hundred eighty-eight in an office or other place of business owned or operated by the issuer, shall contain the following disclosures in chart form and shall put chart headings in bold face type of at least ten point in size and material inside the chart of at least eight point type in size. Such chart shall use substantially the same format and terminology shown below. In completing the chart with the information required for each category, the guidelines hereinafter contained in the corresponding subdivisions numbered one through four shall be utilized: _________________________________________________________________________ 1 | | | |Cash Advance | 2 | Variable | | |Fee, Trans- | 3 Annual | Rate Index | Annualized | Grace | action Fee, | 4 Percentage | and | Membership | Period for |Late Fee, and| 5 Rate (1) | Spread (1a) | Fee (2) |Purchases (3)| Over-the- | 6 | | | |Limit Fees(4)| 7 | | | | | _________________________________________________________________________ 8 | | | | | 9 | | | | | 0 | | | | | 1 | | | | | 2 | | | | | 3 | | | | | 4 | | | | | _________________________________________________________________________ (1) and (1a) Any periodic rate or rates that may be applied, shall be expressed as an annual percentage rate or rates. If the credit card agreement provides for a variable rate, the issuer shall disclose the rate as of a specific date and identify the index and any amount or percentage added to, or subtracted from, that index. For purposes of this category, that amount of percentage shall be referred to as the “spread”. If a fixed rate is to be applied, the issuer shall indicate “No” or “None” or “Does not apply” in category (1-a) and further the issuer may elect to disclose a rate as of a specified date.

(2)

Any membership or participation fee that may be imposed for availability of a credit agreement, shall be expressed as an annualized amount. If no such fee will be imposed, issuer shall indicate “No” or “None” or “Does not apply”.

(3)

If the issuer provides a period during which the holder may repay the full balance reflected on a monthly statement which is attributable to purchases of goods and services without the imposition of a service charge, the issuer shall either disclose the number of days of that period, calculated from the closing date of the prior billing period to the date designated in the monthly statement sent to the holder as the date by which that payment must be received to avoid additional service or other charges, or describe the manner in which the period is calculated. For purposes of this category, the period shall be referred to as the “grace period”. If the issuer does not provide such a period, the disclosure shall so indicate. The issuer may, at its option, and without disclosure impose no service or other charge where payment is received after the expiration of the grace period.

(4)

Any cash advance fee, per transaction fee, late fee or over-the-limit fee that may be imposed shall be expressed as an amount or as a percentage of the transaction, as applicable. If no such fee will be imposed, the issuer shall indicate “No” or “None” or “Does not apply”.

(5)

(a) Nothing in this section shall be deemed or construed to prohibit an issuer from disclosing additional terms, conditions, or information, whether or not relating to the disclosures required under this section, in conjunction with the disclosures required by this section.

(b)

All application forms for a credit card agreement, including those in a magazine, newspaper, or other publication, distributed by someone other than the issuer in this state on or after January first, nineteen hundred eighty-eight shall contain a statement in substantially the following form: “If you wish to receive disclosure of the terms of this credit card, check here and return to the address on this application”. A box shall be printed in or next to this statement for placement of such a check mark. However, this requirement does not apply if the application contains the disclosures provided for in subdivisions one through four of this section.

(6)

For purposes of this section, “Regulation Z” and all of the terms used in this section shall have the same meaning as attributed to them in Federal Regulation Z (12 C.F.R. Sec.226.1 et seq.).

(7)

This section shall not apply to any application form or written advertisement where the credit to be extended will be secured by a lien on real property or a lien on an existing ownership interest in certificates of stock or other evidences of an ownership interest in a proprietary lease from a corporation or partnership formed for the purpose of the co-operative ownership of real estate.

(8)

If an issuer is required under federal law to make any disclosure of the terms applicable to a credit card plan or account under this section in connection with application forms or solicitation, the seller or issuer shall be deemed to have complied with the requirements of this section with respect to those application forms or solicitations if the seller or issuer complies with the federal disclosure requirements.

(9)

Any application form or preapproved written solicitation to enter into a retail installment credit agreement in which the retail seller or financing agency may take or retain a purchase money security interest, as set forth in paragraph (c) of subdivision twelve of Personal Property Law § 413 (Retail instalment credit agreements)section four hundred thirteen of the personal property law, which is mailed or otherwise made available to an individual residing in this state on or after the effective date of this subdivision, by or on behalf of an issuer, whether or not the 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 issuer, shall contain a clear and conspicuous written notice or disclosure to the buyer that the retail seller or financing agency has or may retain a security interest in merchandise covered under paragraph (c) of subdivision twelve of Personal Property Law § 413 (Retail instalment credit agreements)section four hundred thirteen of the personal property law until the full payment price of said merchandise is paid. Further provided, however, in all instances, said written notice must be provided to any buyer prior to the first transaction made under any such retail installment credit agreement in which a security interest has been or may be taken or retained.

Source: Section 520 — Application forms or solicitation for credit cards, https://www.­nysenate.­gov/legislation/laws/GBS/520 (updated Sep. 22, 2014; accessed Apr. 19, 2025).

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Accessed:
Apr. 19, 2025

Last modified:
Sep. 22, 2014

§ 520’s source at nysenate​.gov

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