1.1                          A bill for an act 
  1.2             relating to commerce; requiring certain consumer 
  1.3             information in credit card statements; amending 
  1.4             Minnesota Statutes 2000, sections 325G.42; 325G.45. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 325G.42, is 
  1.7   amended to read: 
  1.8      325G.42 [CREDIT CARD DISCLOSURES.] 
  1.9      Subdivision 1.  [~~REQUIRED~~ APPLICATION DISCLOSURES.] A 
  1.10  credit card application distributed in this state must disclose 
  1.11  the following terms of the credit card plan, if applicable: 
  1.12     (1) Any periodic rate or rates that may be applied to the 
  1.13  account, expressed as an annual percentage rate or rates.  If 
  1.14  the account is subject to a variable rate, the creditor may 
  1.15  disclose the rate as of a specific date and indicate that the 
  1.16  rate may vary, or may identify the index and any amount or 
  1.17  percentage added to, or subtracted from, that index and used to 
  1.18  determine the rate.  For purposes of this section, the amount or 
  1.19  percentage must be referred to as the "spread."  If charges 
  1.20  incurred by use of the credit card are due and payable upon 
  1.21  receipt of a periodic statement of charges, then that fact must 
  1.22  be disclosed. 
  1.23     (2) Any membership, participation, or similar fee that may 
  1.24  be imposed as a condition of the issuance or renewal of a credit 
  1.25  card, expressed as an annual amount. 
  2.1      (3) Any minimum, fixed, transaction, activity, or similar 
  2.2   charge. 
  2.3      (4) Any other fees that may be charged to the account, 
  2.4   including late payment fees and charges for exceeding credit 
  2.5   limits. 
  2.6      (5) The date or occasion upon which the finance charge, if 
  2.7   any, begins to accrue on a transaction. 
  2.8      Subd. 1a.  [MONTHLY STATEMENT DISCLOSURES.] A creditor 
  2.9   shall disclose, in the monthly credit card statement, the number 
  2.10  of months it would take the consumer to pay off the outstanding 
  2.11  balance on the account, and the total cost of the debt, 
  2.12  including interest, if the consumer were only to make each month 
  2.13  the minimum required payment. 
  2.14     Subd. 2.  [FORM OF DISCLOSURES.] The disclosures required 
  2.15  under this section shall be written in plain language, as 
  2.16  defined in section 325G.31; shall be in boldface type of a 
  2.17  minimum size of ten points; shall be clear and conspicuous; and 
  2.18  shall be prominently set apart from the remaining portions of 
  2.19  the credit card application, monthly statement, or other written 
  2.20  material, by the use of margins, enclosures, underlining, 
  2.21  contrasting colors, or similar methods. 
  2.22     Subd. 3.  [OPTIONAL DISCLOSURE CHART.] A creditor need not 
  2.23  present the disclosures required by subdivision 1 or 1a in any 
  2.24  specific form other than as provided in subdivision 2.  However, 
  2.25  the disclosures are conclusively presumed to satisfy the 
  2.26  requirements of subdivision 1 if the disclosures satisfy the 
  2.27  requirements of subdivision 2 and are presented in a chart, 
  2.28  substantially similar to the following description: 
  2.29     (1) The chart shall consist of contiguous boxes, and each 
  2.30  required disclosure shall appear exclusively within one of the 
  2.31  boxes. 
  2.32     (2) The first box shall contain the wording "ANNUAL 
  2.33  PERCENTAGE RATE" if the creditor charges a fixed rate, or 
  2.34  "VARIABLE RATE INDEX AND SPREAD," if appropriate, underneath 
  2.35  which the creditor's rate will appear.  If full payment is due 
  2.36  upon receipt of a periodic statement of charges, then the first 
  3.1   box shall state "Full payment due upon receipt of billing 
  3.2   statement." 
  3.3      (3) The second box shall contain the wording "OTHER FEES"  
  3.4   and shall disclose all other fees, including late payment 
  3.5   penalties and any charges for exceeding the credit limit. 
  3.6      (4) The third box shall contain the wording "ANNUAL FEE," 
  3.7   underneath which the appropriate information shall be disclosed. 
  3.8      (5) The fourth box shall contain the wording "TRANSACTION 
  3.9   FEE," underneath which the appropriate information shall be 
  3.10  disclosed. 
  3.11     (6) The fifth box shall contain the wording "FREE PERIOD" 
  3.12  or "GRACE PERIOD," underneath which the appropriate information 
  3.13  shall be disclosed.  For example, "30 days," or "yes, if full 
  3.14  payment is received by next billing date," or "yes, if full new 
  3.15  balance is paid by due date." 
  3.16     Subd. 4.  [ADDITIONAL DISCLOSURES PERMITTED.] Nothing in 
  3.17  this section prohibits a creditor from disclosing additional 
  3.18  terms, conditions, or information, whether or not relating to 
  3.19  the disclosures required under this section, in conjunction with 
  3.20  the disclosures required by this section. 
  3.21     Subd. 5.  [EXCEPTION.] This section does not apply to any 
  3.22  advertisement, catalogue, or other written document or material 
  3.23  which does not contain a credit card application. 
  3.24     Sec. 2.  Minnesota Statutes 2000, section 325G.45, is 
  3.25  amended to read: 
  3.26     325G.45 [FEDERAL LAW.] 
  3.27     If a creditor becomes required by federal law to make 
  3.28  disclosure of the terms required in section 325G.42 in 
  3.29  connection with the distribution of a credit card 
  3.30  application, or monthly statement, then the creditor is 
  3.31  considered to have complied with the requirements of section 
  3.32  325G.42 if the creditor complies with the federal disclosure 
  3.33  requirement.