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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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CHAPTER 318
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HOUSE BILL 2664 |
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AN ACT
amending title 44, Arizona Revised Statutes, by adding chapter 35; relating to credit card agreements.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, Arizona Revised Statutes, is amended by adding chapter 35, to read:
CHAPTER 35
CREDIT CARD AGREEMENTS
ARTICLE 1. GENERAL PROVISIONS
44-7801. Definitions
In this article, unless the context otherwise requires:
1. "Authorized user" means any person other than a cardholder who has actual, implied or apparent authority to use a cardholder's credit card or credit card account.
2. "Cardholder" means the named person who applies for or accepts the credit card account.
3. "Charges" means purchases, cash advances, annual membership fees, delinquent payment fees, insufficient fund fees, over limit fees or other amounts incurred through use of the credit card.
4. "Credit card" means any card, plate or other single credit device that may be used from time to time to obtain credit and shall include a charge card, courtesy card, identification card or account number that may be used to access a line of credit to purchase goods or services.
5. "Credit card account" means a line of credit offered by an issuer to a cardholder that is accessible by the use of a credit card.
6. "Credit card agreement" means the terms and conditions governing the use of the credit card account.
7. "Creditor" means the person, business, financial institution or commercial enterprise that owns the credit card account.
8. "Financial institution" means any of the following:
(a) A banking institution that is authorized to issue credit cards pursuant to federal or state law.
(b) A banking subsidiary owned by a bank holding company as defined in 12 United States Code section 1841, or by a savings and loan holding company as defined in 12 United States Code section 1467a(a)(1)(d).
(c) Any other federally regulated banking institution.
9. "Issuer" means a financial institution or an authorized agent of a financial institution that issues a credit card.
44-7802. Acceptance of credit card agreement
A cardholder's acceptance of the terms and conditions of a credit card account may be established as binding and enforceable in accordance with the terms and conditions of the credit card agreement or by either of the following other methods:
1. The cardholder's written or electronic signature or by any other electronic record acceptance as provided by title 44, chapter 26, article 1.
2. Any cardholder or authorized user uses the credit card account.
44-7803. Consumer credit card protections
A cardholder is personally liable for all charges and interest incurred on the cardholder's credit card account by The cardholder or an authorized user. In no case is a cardholder liable for any charges or interest that result from the unauthorized use of a credit card.
44-7804. Establishment of amount owed on a credit card account
In an uncontested court action in this state a creditor may establish the amount of the debt that is owed on a credit card account through a copy of the issuer's final billing statement or by the electronic record pursuant to section 44-7007 that is maintained by the issuer and that represents the amount owed. In contested actions the court shall weigh the evidence of the parties as required by law.
44-7805. Establishment of interest rate
A. Subject to sections 44-1205 and 44‑6002, if applicable, A creditor may establish the contracted interest rate for a credit card account through either of the following:
1. Terms and conditions that contain a stated or variable interest rate.
2. A billing statement generated by the issuer that contains a stated or variable interest rate.
44-7806. Consumer protection rights
Nothing in this chapter diminishes the party's consumer protection rights that are prescribed in any federal law or other state law relating to consumers.
APPROVED BY THE GOVERNOR MAY 9, 2012.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 10, 2012.