S-0749.1                   _______________________________________________

                                                     SENATE BILL 5190

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Senators Loveland and Moore

Read first time 01/15/93.  Referred to Committee on Labor & Commerce.

Requiring timely credit of payments on a credit card account.

          AN ACT Relating to payment of credit card accounts; and adding a new section to chapter 62A.3 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 62A.3 RCW to read as follows:

          (1) A financial institution shall credit a credit card account on the same banking day upon which payment is received when (a) the financial institution issued the credit card, and (b) the cardholder has made proper payment.  If an account is credited before the day upon which a late penalty is charged or interest is accrued under the credit card agreement, no late penalties may be charged if the minimum payment has been credited, and no interest charges may be accrued if the account balance has been paid in full.

          (2) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.

          (a) "Financial institution" means a state chartered bank, savings bank, credit union, or savings and loan association authorized to transact business in this state and includes a corresponding federally chartered lender if federal law or regulation does not prohibit the application of this section to such federally chartered lenders.

          (b) "Proper payment" means payment made by cash, United States Postal Service money order, cashier's check, or check so long as sufficient funds exist within the account upon which a check is drawn to honor the face amount of the check, and the check is received by a branch of a financial institution and drawn on the same or another branch of the same financial institution.

          (3) The legislature finds the practices covered by this section are matters vitally affecting the public interest for the purpose of applying the Consumer Protection Act, chapter 19.86 RCW.  Violations of this section are not reasonable in relation to the development and preservation of business.  A violation of this section is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the Consumer Protection Act, chapter 19.86 RCW.

                                                           --- END ---