As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 97A.020
to 97A.130 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1995, 2597)
“Authorized user” means
any person granted express, implied or apparent authority to use the
credit card or credit card account of a cardholder. The term includes a
secondary cardholder.
(Added to NRS by 1995, 2597)
“Beneficial use” means any
use made of the credit card or credit card account of a cardholder by a
person other than the cardholder that results in a direct or indirect
benefit to the cardholder or any member of the cardholder’s immediate
family.
(Added to NRS by 1995, 2597)
“Cardholder” means a person:
1. Who establishes a credit card account;
2. Whose name appears on the credit card issued on that account;
and
3. Who is liable for the payment of all charges incurred on that
account.
(Added to NRS by 1995, 2597)
“Credit card” means any
instrument or device, whether known as a credit card, credit plate, or by
any other name, issued with or without fee by an issuer for the use of
the cardholder in obtaining money, property, goods, services or anything
else of value on credit.
(Added to NRS by 1995, 2597)
“Credit card account”
means an open line of credit offered by an issuer to a cardholder which
is accessed by obtaining money, property, goods, services or anything of
value by the use of a credit card.
(Added to NRS by 1995, 2598)
“False or
fraudulent application” means any written request for the issuance of a
credit card, whether or not on a form prescribed by an issuer, that
contains an intentional error or mistake regarding any material fact.
(Added to NRS by 1995, 2598)
“Financial
institution” means:
1. A bank, commercial bank or banking corporation as defined in
NRS 657.016 ;
2. A banking institution which is authorized to issue credit cards
pursuant to federal or state law;
3. A banking subsidiary owned by a bank holding company pursuant
to 12 U.S.C. § 1841, or by a savings and loan holding company pursuant to
12 U.S.C. § 1467a(a)(1)(D); and
4. Any other federally regulated banking institution.
(Added to NRS by 1995, 2598)
1. “Interest,” however denominated or expressed, means the amount
which is paid or payable for the privilege of purchasing goods or
services with a credit card to be paid for in installments over a period
that is longer than the grace period allowed by the issuer during which
no payment is due.
2. The term includes:
(a) Annual membership fees;
(b) Charges for the delinquent payment of an installment;
(c) Charges for a check or other negotiable instrument that is
submitted for the payment of an installment and is drawn on an account
with insufficient money to pay the installment;
(d) Charges for the extension of credit in excess of the limit
prescribed by the issuer; and
(e) Any other charge or fee to which the issuer and cardholder
agree.
3. The term does not include premiums paid for insurance,
attorney’s fees, court costs or fees required to file any civil action.
(Added to NRS by 1995, 2598)
“Issuer” means a financial
institution, or an authorized agent of a financial institution, that
issues a credit card.
(Added to NRS by 1995, 2598)
“Joint account” means a
credit card account for which two or more persons agree in writing to be
jointly and severally liable for all authorized charges incurred on the
account.
(Added to NRS by 1995, 2598)
“Secondary
cardholder” means a person whose name appears on a credit card at the
request of the cardholder for the purpose of authorizing that person to
use the credit card account of the cardholder.
(Added to NRS by 1995, 2598)
“Service provider” means
any financial institution or organization retained by an issuer pursuant
to a written agreement to provide services related to the administration
of credit card accounts.
(Added to NRS by 1995, 2598)
1. An issuer located in this State shall not issue a credit card
to a cardholder unless the issuer first:
(a) Provides the written notice required pursuant to NRS 97A.145
to the cardholder; and
(b) Receives a written or oral request from the cardholder for the
issuance of the credit card.
2. An issuer shall provide the cardholder with the terms and
conditions that govern the use of the credit card, in writing, before or
at the time of the receipt of the credit card. A cardholder shall be
deemed to have accepted the written terms and conditions provided by the
issuer upon subsequent actual use of the credit card.
3. The rate of interest charged, and any other fees or charges
imposed for the use of the credit card, must be in an amount agreed upon
by the issuer and cardholder.
4. An issuer may unilaterally change any term or condition for the
use of a credit card without prior written notice to the cardholder
unless the change will adversely affect or increase the costs to the
cardholder for the use of the credit card. If the change will increase
such costs, the issuer shall provide notice to the cardholder of the
change at least 30 days before the change becomes effective.
5. Unless otherwise stated as a term or condition, the law of this
State governs all transactions relating to the use of a credit card if an
issuer, or the service provider of an issuer, is located in this State.
(Added to NRS by 1995, 2598; A 2005, 2502 )
1. When issuing a credit card to a cardholder in this State, an
issuer shall provide the cardholder with the written notice in the form
prescribed by the Commissioner of Financial Institutions pursuant to this
section.
2. The Commissioner of Financial Institutions shall adopt
regulations prescribing the form of the written notice required pursuant
to this section. The regulations must provide that the written notice
must:
(a) Include, without limitation, the following information:
(1) The policies and procedures adopted by the issuer to
protect the personal identifying information and credit information of
the cardholder from any unlawful use by another person; and
(2) The legal rights and responsibilities of the cardholder
if another person unlawfully uses the personal identifying information
and credit information of the cardholder; and
(b) Be printed in a separate box created by bold lines that
includes:
(1) A heading indicating the general subject matter of the
notice that is printed in at least 12-point type; and
(2) The text of the notice that is printed in at least
10-point type.
3. An issuer that is subject to and complies with the privacy and
security provisions of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801 et
seq., shall be deemed to be in compliance with the notification
requirements of this section.
4. As used in this section:
(a) “Credit information” means any information that is related to
credit and derived from a consumer credit report, found on a consumer
credit report or provided on an application for a credit card.
(b) “Personal identifying information” has the meaning ascribed to
it in NRS 205.4617 .
(Added to NRS by 2005, 2502 )
1. A cardholder is personally liable for all charges incurred on
his credit card account by:
(a) The cardholder or an authorized user; and
(b) Any other person if the charges result in a beneficial use to
the cardholder.
2. An authorized user is jointly and severally liable for the
actual charges he incurs on the credit card account of the cardholder.
3. Any person, other than the cardholder or an authorized user, is
liable for all charges he incurs on the credit card account of the
cardholder, except for the amount for which the cardholder is liable
pursuant to 15 U.S.C. § 1643.
4. Any person who causes an issuer to open a credit card account
based on a false or fraudulent application is liable to the issuer for
all charges incurred on the account, without regard to whether the
charges were authorized by the person responsible for opening the account.
(Added to NRS by 1995, 2599)
1. Notwithstanding the provisions of chapter 52 of NRS, in any action brought to collect a debt owed
to an issuer:
(a) The issuer may establish that the cardholder is contractually
liable for the debt owed by submitting the written application for a
credit card account submitted to the issuer by the cardholder or evidence
that the cardholder incurred charges on the account and made payments
thereon.
(b) The amount owed may be established by photocopies of:
(1) The periodic billing statements provided by the issuer;
or
(2) Information stored by the issuer on a computer,
microfilm, microfiche or optical disc which indicate the amount of the
debt owed.
2. The content of such records must be authenticated:
(a) Pursuant to the procedures set forth in NRS 52.450 to 52.480 ,
inclusive; or
(b) By the submission of a written affidavit sufficient to
establish:
(1) The affiant as the custodian of the written records
offered as evidence;
(2) That the written records offered as evidence were made
in the ordinary course of the issuer’s business; and
(3) That the written records are true and correct copies of
the records retained by the issuer.
3. The liability of a person other than the cardholder for the
amount of any debt owed to an issuer may be established by evidence
indicating that the person caused the charge to be incurred on the credit
card account.
4. An issuer shall retain any record necessary to establish the
existence and amount of any debt owed to the issuer for at least 24
months after the record is first published, issued or filed.
(Added to NRS by 1995, 2599)
1. An issuer or service provider shall be deemed to be a payee
with respect to any payment made on a credit card account of a cardholder
by a check or other negotiable instrument.
2. Upon the posting of a payment on a credit card account of a
cardholder by the issuer or service provider, an issuer has changed its
position in reliance thereon if the payment was made by check or other
negotiable instrument.
3. A payment made on a credit card account of a cardholder by a
check or other negotiable instrument is received by the issuer in good
faith if the issuer did not have actual knowledge that the check or other
negotiable instrument was forged, altered or unauthorized when it was
posted to the account.
4. An action or proceeding brought to determine liability for an
allegedly forged, altered or unauthorized check or other negotiable
instrument used to make a payment on a credit card account of a
cardholder must be determined pursuant to the provisions of chapter 104
of NRS.
(Added to NRS by 1995, 2600)
1. If an issuer is a subsidiary directly or indirectly owned by a
bank holding company as defined in 12 U.S.C. § 1841, a savings and loan
holding company as defined in 12 U.S.C. § 1467a(a)(1)(D) or a holding
company of any other financial institution, information relating to the
credit card account of a cardholder may be transferred to and used by
other subsidiaries owned by the same bank holding company, savings and
loan holding company or holding company of any other financial
institution. For the purposes of this subsection, any bank holding
company, savings and loan holding company or holding company of any other
financial institution shall be deemed the owner of a subsidiary if it or
a subsidiary corporation owns 80 percent or more of the stock of a
subsidiary or 80 percent or more of the stock of the corporation that
owns a subsidiary.
2. An issuer may transfer information relating to the credit card
account of a cardholder to any person, other than a secondary cardholder,
whose name appears on the face of the credit card of the cardholder.
(Added to NRS by 1995, 2600)
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