SECTION 160:45-3-7. Subsequent disclosure requirements

(a)   Furnishing statement of billing rights.

(1)   Annual statement. The creditor shall mail or deliver the billing rights statement required by 160:45-3-4(4) at least once per calendar year, at intervals of not less than 6 months nor more than 18 months, either to all consumers or to each consumer entitled to receive a periodic statement under 160:45-3-1(b)(2) for any one billing cycle.

(2)   Alternative summary statement. As an alternative to paragraph (a)(1) of this section, the creditor may mail or deliver, on or with each periodic statement, an alternative summary statement in accordance with federal regulations, 12 CFR §226.9(a)(2).

(b)   Disclosures for supplemental credit devices and additional features.

(1)   If a creditor, within 30 days after mailing or delivering the initial disclosures under 160:45-3-4(1), adds a credit feature to the consumer's account or mails or delivers to the consumer a credit device for which the finance charge terms are the same as those previously disclosed, no additional disclosures are necessary. After 30 days, if the creditor adds a credit feature or furnishes a credit device (other than as a renewal, resupply, or the original issuance of a credit card) on the same finance charge terms, the creditor shall disclose, before the consumer uses the feature or device for the first time, that it is for use in obtaining credit under the terms previously disclosed.

(2)   Whenever a credit feature is added or a credit device is mailed or delivered, and the finance charge terms for the feature or device differ from disclosures previously given, the disclosures required by 160:45-3-4(1) that are applicable to the added feature or device shall be given before the consumer uses the feature or device for the first time.

(c)   Change in terms.

(1)   Written notice required. Whenever any term required to be disclosed under 160:45-3-4 is changed or the required minimum periodic payment is increased, the creditor shall mail or deliver written notice of the change to each consumer who may be affected. The notice shall be mailed or delivered at least 15 days prior to the effective date of the change. The 15-day timing requirement does not apply if the change has been agreed to by the consumer, or if a periodic rate or other finance charge is increased because of the consumer's delinquency or default; the notice shall be given, however, before the effective date of the change.

(2)   Notice not required. No notice under this section is required when the change involves late-payment charges, charges for documentary evidence, or over-the-limit charges; a reduction of any component of a finance or other charge; suspension of future credit privileges or termination of an account or plan; or when the change results from an agreement involving a court proceeding, or from the consumer's default or delinquency (other than an increase in the periodic rate or other finance charge).

(3)   Notice for home-equity plans. If a creditor prohibits additional extensions of credit or reduces the credit limit applicable to a home-equity plan pursuant to 160:45-3-3 (6)(C)(i) or 160:45-3-3(6)(C)(vi), the creditor shall mail or deliver written notice of the action to each consumer who will be affected. The notice must be provided not later than three business days after the action is taken and shall contain specific reasons for the action. If the creditor requires the consumer to request reinstatement of credit privileges, the notice also shall state that fact.

(d)   Finance charge imposed at time of transaction.

(1)   Any person, other than the card issuer, who imposes a finance charge at the time of honoring a consumer's credit card, shall disclose the amount of that finance charge prior to its imposition.

(2)   The card issuer, if other than the person honoring the consumer's credit card, shall have no responsibility for the disclosure required by paragraph (d)(1) of this section and shall not consider any such charge for purposes of 160:45-3-2, 160:45-3-4 and 160:45-3-5.

(e)   Disclosures upon renewal of credit or charge card.

(1)   Notice prior to renewal. Except as provided in paragraph (e)(2) of this section, a card issuer that imposes any annual or other periodic fee to renew a credit or charge card account subject to 160:45-3-2, including any fee based on account activity or inactivity, shall mail or deliver written notice of the renewal to the cardholder. The notice shall be provided at least 30 days or one billing cycle, whichever is less, before the mailing or the delivery of the periodic statement on which the renewal fee is initially charged to the account. The notice shall contain the following information:

(A)   The disclosures contained in 160:45-3-2(b)(1) through (7) that would apply if the account were renewed; 20a/ and

(B)   How and when the cardholder may terminate credit availability under the account to avoid paying the renewal fee.

(2)   Delayed notice. The disclosures required by paragraph (e)(1) of this section may be provided later than the time in paragraph (e)(1) of this section, but no later than the mailing or the delivery of the periodic statement on which the renewal fee is initially charged to the account, if the card issuer also discloses at that time that-

(A)   The cardholder has 30 days from the time the periodic statement is mailed or delivered to avoid paying the fee or to have the fee recredited if the cardholder terminates credit availability under the account; and

(B)   The cardholder may use the card during the interim period without having to pay the fee.

(3)   Notification on periodic statements. The disclosures required by this paragraph may be made on or with a periodic statement. If any of the disclosures are provided on the back of a periodic statement, the card issuer shall include a reference to those disclosures on the front of the statement.

(f)   Change in credit card account insurance provider.

(1)   Notice prior to change. If a credit card issuer plans to change the provider of insurance for repayment of all or part of the outstanding balance of an open-end credit card account subject to 160:45-3-2, the card issuer shall mail or deliver the cardholder written notice of the change not less than 30 days before the change in providers occurs. The notice shall also include the following terms, to the extent applicable:

(A)   Any increase in the rate that will result from the change;

(B)   Any substantial decrease in coverage that will result from the change; and

(C)   A statement that the cardholder may discontinue the insurance.

(2)   Notice when change in provider occurs. If a change described in paragraph (f)(1) of this section occurs, the card issuer shall provide the cardholder with a written notice no later than 30 days after the change, including the following items, to the extent applicable:

(A)   The name and address of the new insurance provider;

(B)   A copy of the new policy or group certificate containing the basic terms of the insurance, including the rate to be charged; and

(C)   A statement that the cardholder may discontinue the insurance.

(3)   Substantial decrease in coverage. For purposes of this paragraph, a substantial decrease in coverage is a decrease in a significant term of coverage that might reasonably be expected to affect the cardholder's decision to continue the insurance. Significant terms of coverage include, for example, the following:

(A)   Type of coverage provided;

(B)   Age at which coverage terminates or becomes more restrictive;

(C)   Maximum insurable loan balance, maximum periodic benefit payment, maximum number of payments, or other term affecting the dollar amount of coverage or benefits provided;

(D)   Eligibility requirements and number and identity of persons covered;

(E)   Definition of a key term of coverage, such as disability;

(F)   Exclusions from or limitations on coverage; and

(G)   Waiting periods and whether coverage is retroactive.

(4)   Combined notification. The notices required by paragraphs (f)(1) and (2) of this section may be combined provided the timing requirement of paragraph (f)(1) of this section is met. The notices may be provided on or with a periodic statement.

20a/  These disclosures need not be provided in tabular format or in a prominent location.

[Source: Amended at 8 Ok Reg 3537, eff 9-3-91 (emergency); Amended at 9 Ok Reg 2283, eff 6-25-92; Amended at 17 Ok Reg 1587, eff 5-25-00; Amended at 18 Ok Reg 2361, eff 6-25-01; Amended at 27 Ok Reg 213, eff 10-2-09 through 7-14-10 (emergency)]

Note

EDITOR’S NOTE: This emergency action expired without being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last effective permanent text is reinstated. Therefore, on 7-15-10 (after the 7-14-10 expiration of this emergency action), the text of 160:45-3-7 reverted back to the permanent text that became effective 6-25-01, as was last published in the 2006 Edition of the OAC.