NRS 97A.200
Prohibited acts by issuer: Increase of interest rate based upon late payment to another creditor

  • universal default clauses
  • exception.

1.

An issuer shall not:

(a)

Increase the interest rate it charges a cardholder for the use of the card based upon the late payment by the cardholder to another issuer or a creditor of the cardholder that is not an affiliate or subsidiary of the issuer; or

(b)

Include a universal default clause in a contract or other agreement relating to a credit card account.

2.

Notwithstanding the provisions of subsection 1, an issuer may increase the interest rate it charges a cardholder for the use of the card based on a change in the credit rating of the cardholder.

3.

As used in this section:

(a)

“Affiliate or subsidiary of the issuer” means an affiliate or subsidiary that conducts business under a name that is:

(1)

The same as the name of the issuer; or

(2)

Sufficiently similar to the name of the issuer that a cardholder could reasonably believe that the cardholder is conducting business with the issuer.

(b)

“Universal default clause” means a clause or provision that allows an issuer to increase the interest rate it charges a cardholder for the use of the card based upon the late payment by the cardholder to another issuer or a creditor of the cardholder that is not an affiliate or subsidiary of the issuer.

Source: Section 97A.200 — Prohibited acts by issuer: Increase of interest rate based upon late payment to another creditor; universal default clauses; exception., https://www.­leg.­state.­nv.­us/NRS/NRS-97A.­html#NRS97ASec200.

Last Updated

Jun. 24, 2021

§ 97A.200’s source at nv​.us