New state laws affect bad checks, consumer credit

Discount Store News, Feb 17, 1986

BAD CHECKS

California

SB1108 would provide for a diversion program to be offered, in leu of prosecution, for people issuing bad checks. These programs would be instituted at the option of any individual county, except that prior to Jan. 1, 1987, the program would be created only in certain countries.

Illinois

SB957 provides that no fee or charge may be assessed against any person other than the person who issues a bad check or draft. A bank or holder of a bad check may charge a person other than the drawer of the check if it is shown that the party charged knew, or should have known, for reasons such as a previous history, that the instrument would not be honored.

CONSUMER CREDIT

California

AB1970 regulates advertising relating to consumer credit. It makes it unlawful for a seller to advertise any payment, number of payments or period of repayment for goods or services purchased through consumer credit under an open-end credit plan accepted for purchases by more than one seller unless the seller clearly and conspicuously discloses the following information: (1) The cash price and the amount or percentage of a down payment, if any; (2) The monthly or other periodic payment, the number of payments or the period of repayment, the total amount of all payments and whether the monthly or other periodic payment is calculated on the assumption that the purchaser has no outstanding balance due under the open-end credit plan if that is the case; (3) The amount of the finance charge and any periodic rate that may be applied, expressed as an annual percentage rate. If the open-end credit plan provides for a variable periodic rate, that fact shall be disclosed; (4) Any minimum, fixed, transaction, activity or similar charge and any membership or participation fee that could be imposed; (5) The name of the creditor, if not the seller; (6) Whether the advertised terms are available to the purchaser only after the creditor's approval, if that is the case.

Any catalog or other multiple-page advertisement which gives information in a table or schedule in sufficient detail to permit determination of the disclosures required in the preceding paragraph shall be considered a single advertisement if the table or schedule is clearly and conspicuously set forth and any statement of the amount of any payment, the number of payments or the period of repayment appearing anywhere else in the catalog or advertisement, clearly refers to the page on which the table or schedule begins.

A catalog or multiple-page ad complies with the advertising requirements if the table or schedule includes all appropriate disclosures for a representative scale of amount up to the level of the more commonly sold higher-priced property or services offered.

It is also unlawful for a seller to advertise any payment, number of payments or period of repayment for particular goods, property or services purchased through an extension of consumer credit under any open-end credit plan unless the seller clearly and conspicuously disclose the cash price proximate to the advertised payment, number of payments or period of repayment.

It is also unlawful for a seller to advertise terms that are not or will not actually be arranged or offered by the creditor.

Connecticut

SB6468 provides that the maximum finance charge which may be applied under an open-end credit plan shall not exceed 1-1/2% per month on sales made prior to Oct. 1, 1987, and 1-1/4% per month on sales made on or after Oct. 1, 1987.

It also provides that finance charges on any retail installment contracts for the sale of goods other than motor vehicles shall not exceed 19% on sales made after Oct. 1, 1985 and prior to Oct. 1, 1987, and 18% on sales made on or after Oct. 1, 1987.

CREDIT CARDS

California

SB848 prohibits imposing a surcharge on persons using credit cards.

The law would also allow offering discounts to induce payment by cash, check or other means not involving the use of a credit card provided a discount is offered to all prospective purchasers.

A retailer who willfully imposes a surcharge and does not pay that amount to the credit card holder within 30 days of a written demand will be liable for three times the amount of actual damages and for reasonable attorney's fees and costs.

EQUAL EMPLOYMENT

California

AB1180 makes it an unlawful employment practice to discriminate against a person where a conflict exists between the person's religious belief or observance and a requirement of the job. An unlawful employment practice would be found unless an employer can demonstrate that it has attempted to find a reasonable alternative means of accommodating the religious belief but cannot do so without undue hardship.

AB403 provides that results of the blood test given to detect antibodies of AIDS shall not be used to determine suitability for employment.

JOB TAX CREDIT

California

SB71 provides that the credit for employment of certain persons under the California Job Tax Credit Act would continue in an amount equal to 10% of the amount of wages, up to a certain limit, paid to certain individuals during the first two years of employment until Dec. 31, 1985, or the date on which the federal targeted job tax credit expires, whichever is later.