§ 24-11.1. Disclosure requirements for credit cards. - North Carolina Statutes

§24‑11.1.  Disclosure requirements for credit cards.

(a)        This sectionapplies to any application, solicitation of an application, offer of credit, orcommunication extending credit that is:

(1)        For an open‑endcredit plan accessed through a credit card or a revolving credit loan accessedthrough a credit card;

(2)        Printed;

(3)        Mailed or otherwisedelivered to a person at any address within this State;

(4)        Not deliveredpursuant to an existing credit agreement; and

(5)        Not printed in anewspaper, magazine, or periodical generally circulated outside as well asinside the State.

(b)        Disclosures. – Thefollowing disclosures shall be clearly and conspicuously made in or with alldocuments described in subsection (a) of this section:

(1)        The annualpercentage rate or, if the rate may vary, a statement that it may vary, thecircumstances under which the rate may increase, any limitations on theincrease, and the effects of the increase on the other terms of the agreement.

(2)        The date or occasionupon which the finance charge begins to accrue on a transaction and theduration of any grace period.

(3)        Whether an annualfee is charged and the amount of the fee.

(4)        Any delinquencycharge, late charge, or collection charge which may be assessed for the latepayment of any installment, including the terms and conditions for theimposition of such charge.

(c)        FederalRequirements. – The form and content of the disclosures described in subsection(b) may be consistent with similar disclosures required by the federal Truth‑in‑LendingAct, 15 U.S.C. § 1601 et seq., and Regulation Z, 12 C.R.F. 226.  Any amendmentto the Act or Regulation that addresses credit card disclosures shall to theextent it covers applications, solicitations, and other communications coveredby this section, replace the disclosure requirements of this section forcreditors subject to the Act.

(d)        Penalty. – Aviolation of this section shall constitute a violation of G.S. 75‑1.1except that the creditor shall not be liable for any fine, civil penalty, trebledamages, or attorney's fee where the creditor shows by a preponderance of theevidence that the violation was not intentional and resulted from a bona fideerror, notwithstanding the maintenance of procedures reasonably adapted toavoid any such error.

(e)        Severability. – Ifany part of this section is found unconstitutional or is preempted by federallaw with regard to a creditor because the creditor is located outside of theState, that part does not apply to creditors located within the State.

(f)         Nothing in thissection shall be construed to authorize any fee, charge, surcharge or penaltynot otherwise authorized by law. (1987, c. 735, s. 1.)