H-3558.1 _______________________________________________
HOUSE BILL 2310
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State of Washington 55th Legislature 1998 Regular Session
By Representative L. Thomas
Prefiled 12/24/97. Read first time 01/12/98. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to credit cards; adding a new section to chapter 63.14 RCW; adding a new chapter to Title 31 RCW; prescribing penalties; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. (1) The legislature finds that credit is an important tool for consumers in today's economy, particularly the use of credit cards. The legislature expects credit card companies to act fairly and responsibly in marketing their credit cards and servicing their customers, and expects consumers to act responsibly in the use of credit cards. Primary concerns of the legislature include overuse of credit cards by consumers resulting in financial problems, and unfair marketing and servicing by credit card companies, such as improperly raising interest rates or unfairly raising fees or canceling cards for insufficient use.
(2) The legislature declares that canceling a credit card for insufficient use limits the ability of the consumer to participate in the economy in a manner determined by the consumer to be prudent in light of personal financial needs and credit practices.
NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context requires otherwise.
(1) "Credit card company" means a state or federally chartered bank, trust company, savings bank, or credit union, or any other entity, located in or outside Washington state, that issues credit cards to Washington residents or services the credit cards it issues.
(2) "Credit card" means a card or device existing for the purpose of obtaining money, property, labor, or services on credit.
NEW SECTION. Sec. 3. Credit card companies shall not cancel the credit card of a Washington state resident solely because the cardholder failed to use the card enough. Each such improper cancellation of a credit card is subject to a five hundred dollar penalty.
NEW SECTION. Sec. 4. The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. A violation of this chapter 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.
NEW SECTION. Sec. 5. A new section is added to chapter 63.14 RCW to read as follows:
A holder or seller of a lender credit card agreement or retail charge agreement shall not cancel the credit card of a Washington state resident solely because the cardholder failed to use the card enough. Each improper cancellation of a credit card is subject to a five hundred dollar penalty and constitutes a violation of chapter 19.86 RCW.
NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
NEW SECTION. Sec. 7. This act takes effect July 1, 1998, and applies to credit card cancellations that occur on or after July 1, 1998.
NEW SECTION. Sec. 8. Sections 1 through 4, 6, and 7 of this act constitute a new chapter in Title 31 RCW.
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