BILL REQ. #:  S-0363.1 

Read first time 01/20/2003.   Referred to Committee on Financial Services, Insurance & Housing.

     AN ACT Relating to credit card-based checks; adding a new section to chapter 19.200 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that financial fraud and white collar crime are serious problems, with expensive consequences for consumers, taxpayers, financial institutions, and retailers. The ready availability of unsolicited checks sent by credit card issuers to card holders presents an opportunity for theft, criminal misuse, and identity theft, as well as a temptation to consumers to overextend themselves. Pathological gamblers, inexperienced consumers, and persons with compulsive spending problems may be encouraged to make use of unsolicited checks, putting themselves and their families at additional financial risk. Mail thieves are able to make use of the checks. The legislature finds that, although the checks may be useful for some consumers' occasional needs, the checks would be more appropriate if they were issued only upon request of the card holder. The legislature intends to reduce financial fraud and inhibit consumer financial overextension by requiring credit card issuers to provide credit-based checks only upon affirmative request of the card holder.

NEW SECTION.  Sec. 2   A new section is added to chapter 19.200 RCW to read as follows:
     For credit card accounts held by legal residents of Washington state, credit card issuers shall provide a clearly worded, large-print notice of the following:
     (1) Credit card-based checks are available only upon request and authorization by the card holder; and
     (2) The issuance of unsolicited credit card-based checks to legal residents of Washington state is prohibited.
     The legislature finds that 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. A second or subsequent violation of this section is not reasonable in relation to the development and preservation of business and 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.