Florida Senate - 2009                                     SB 772
       
       
       
       By Senator Justice
       
       
       
       
       16-00544-09                                            2009772__
    1                        A bill to be entitled                      
    2         An act relating to credit card rates; defining the
    3         terms “cardholder” and “issuer”; prohibiting an issuer
    4         of a credit card from including a universal default
    5         clause in the issuer's credit card contract or
    6         agreement with a cardholder; prohibiting an issuer
    7         from increasing the interest rate of a cardholder if
    8         the cardholder is late with a payment to another
    9         credit card issuer; providing an exception;
   10         prohibiting an issuer from increasing the interest
   11         rate of a cardholder if the cardholder has incurred
   12         additional debt pursuant to a home equity line of
   13         credit or home equity loan, but has otherwise
   14         continued to make timely payments to the issuer of the
   15         credit card; providing an effective date.
   16         
   17  Be It Enacted by the Legislature of the State of Florida:
   18         
   19         Section 1. Credit card rates; limitations.—
   20         (1) As used in this section, the term:
   21         (a) “Cardholder” means the person or organization named on
   22  the face of a credit card to whom or for whose benefit the
   23  credit card is issued by an issuer.
   24         (b) “Issuer” means the business organization, state or
   25  federal government, or financial institution, or its duly
   26  authorized agent, which issues a credit card.
   27         (2) An issuer may not include in the credit card contract
   28  or agreement a universal default clause that increases the
   29  interest rate paid by the cardholder due to the cardholder
   30  making a late payment to another credit card issuer or creditor.
   31         (3) An issuer may not increase the interest rate paid by a
   32  cardholder if the cardholder:
   33         (a) Is late with a payment to another credit card issuer or
   34  creditor, unless the cardholder is also late with a credit card
   35  payment to the issuer.
   36         (b) Has incurred additional debt pursuant to a home equity
   37  line of credit or home equity loan, but has otherwise continued
   38  to make timely payments to the issuer of the credit card.
   39         Section 2. This act shall take effect July 1, 2009.