SF 2050

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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; 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.052] 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 under 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 subdivision 3a of
that section. In a private cause of action, a retailer that has
violated this section is liable to the customer for statutory
damages of $1,000, plus actual damages if any.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end