HF 284

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:35am

A bill for an act
relating to commerce; prohibiting unreasonable blocks on a customer's access
to credit capacity on a credit card or debit card; providing remedies; proposing
coding for new law in Minnesota Statutes, chapter 325G.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325G.053] UNREASONABLE CREDIT BLOCKING PROHIBITED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Capacity" means a dollar amount of available credit in the case of a credit card,
and a dollar amount of the account balance or overdraft capacity in the case of a debit card.
new text end

new text begin (c) "Credit block" means an arrangement between a retailer and an issuer, in which
the issuer, at the request of a retailer, reserves, prior to completion of a purchase, a
specified dollar amount of the customer's purchasing capacity for use in connection with a
purchase initiated by a customer with the retailer.
new text end

new text begin (d) "Issuer" means the entity that issued the credit card or debit card or an entity that
administers credit blocks on behalf of the issuer.
new text end

new text begin (e) "Retailer" means a gasoline retailer, a hotel or similar short-term lodging facility,
or a rental car company.
new text end

new text begin Subd. 2. new text end

new text begin Gasoline credit blocks limited. new text end

new text begin (a) A gasoline retailer must release
a credit block as soon as possible after the gasoline purchase has been completed or
otherwise ended. The credit block must in any case be released before the end of the
gasoline retailer's business day.
new text end

new text begin (b) A gasoline retailer must not initiate a credit block for a dollar amount that
exceeds the price per gallon for the most expensive type of gasoline sold by the retailer
multiplied by 24.
new text end

new text begin Subd. 3. new text end

new text begin Hotel credit blocks limited. new text end

new text begin (a) A hotel or similar short-term lodging
facility must release a credit block as soon as possible after the customer's stay has ended
and the hotel has authorization to charge against the customer's credit or debit card. The
credit block must in any case be released before the end of the hotel's business day.
new text end

new text begin (b) A hotel or similar short-term lodging facility must not initiate a credit block for
an amount that exceeds the number of days of the customer's reservation multiplied by 110
percent of the daily rate to be charged to the customer for the room, including all taxes.
new text end

new text begin Subd. 4. new text end

new text begin Rental car credit blocks limited. new text end

new text begin (a) A rental car company must release a
credit block as soon as possible after the return of the vehicle. The credit block must in
any case be released before the end of that business day.
new text end

new text begin (b) A rental car company must not initiate a credit card block for a dollar amount that
exceeds the number of days of the customer's reservation multiplied by the daily rental
rate being charged to the customer, including all taxes, plus an additional $30.
new text end

new text begin Subd. 5. new text end

new text begin Enforcement. new text end

new text begin (a) No one may bring a private cause of action to enforce
this section unless the individual has first in good faith attempted to correct the problem
with the party violating the section.
new text end

new text begin (b) This section may be enforced under section 8.31, including the private cause of
action under section 8.31, subdivision 3a. In such a private cause of action, a retailer that
has violated this section is liable to the customer for statutory damages of $1,000, actual
damages if any, and the customer's costs and disbursements incurred in the action.
new text end

new text begin (c) A customer against whom a retailer has violated this section has a private cause
of action against the retailer under this section. In such a cause of action, the customer
may recover statutory damages of $1,000, actual damages if any, and the customer's costs
and disbursements incurred in the action.
new text end

new text begin (d) A private cause of action authorized under paragraph (b) or (c) is in the public
interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2009.
new text end