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S. 1001
STATUS INFORMATION
General Bill
Sponsors: Senator Thomas
Document Path: l:\council\bills\agm\18018mm06.doc
Introduced in the Senate on January 10, 2006
Currently residing in the Senate Committee on Banking and Insurance
Summary: Credit block
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/10/2006 Senate Introduced and read first time SJ-36 1/10/2006 Senate Referred to Committee on Banking and Insurance SJ-36
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 37-2-417 SO AS TO PROVIDE LIMITATIONS ON THE INSTITUTION OF A CREDIT BLOCK BY A GASOLINE RETAILER, A HOTEL OR OTHER SHORT-TERM LODGING FACILITY, OR A RENTAL CAR COMPANY AND TO PROVIDE FOR A PERSONAL CAUSE OF ACTION ONLY IN CERTAIN CIRCUMSTANCES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Part 4, Chapter 2 of Title 37 is amended by adding:
"Section 37-2-417. (A) For purposes of this section:
(1) '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.
(2) 'Credit block' means an arrangement between a retailer and an issuer in which the issuer, at the request of a retailer, before the completion of a purchase, reserves a specified dollar amount of the customer's purchasing capacity for use in connection with a purchase initiated by the customer with the retailer.
(3) 'Issuer' means the entity that issued the credit card or debit card or an entity that administers credit blocks on behalf of the issuer.
(4) 'Retailer' means a gasoline retailer, a hotel or similar short-term lodging facility, or a rental car company.
(B)(1) A gasoline retailer must release a credit block as soon as possible after the gasoline purchase has been completed or otherwise ended. At the latest, the credit block must be released before the end of the gasoline retailer's business day.
(2) A gasoline retailer may not initiate a credit block for a dollar amount that exceeds the price for each gallon for the most expensive type of gasoline sold by the retailer multiplied by twenty-four.
(C)(1) 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. At the latest, the credit block must be released before the end of the hotel's business day.
(2) A hotel or similar short-term lodging facility may not initiate a credit block for an amount that exceeds the number of days of the customer's reservation multiplied by one hundred ten percent of the daily rate to be charged to the customer for the room, including all taxes.
(D)(1) A rental car company must release a credit block as soon as possible after the return of the vehicle. At the latest, the credit block must be released before the end of the business day of the return.
(2) A rental car company may not initiate a credit block for a dollar amount that exceeds the number of the days of the customer's reservation multiplied by the daily rental rate being charged to the customer, including all taxes, plus an additional thirty dollars.
(E)(1) This section does not create a personal cause of action unless the individual has first, in good faith, attempted to correct the problem with the violating retailers.
(2) In a private cause of action, a retailer that has violated this section is liable to the customer for statutory damages of one thousand dollars, plus actual damages.
(3) This remedy is in addition to and cumulative of other remedies provided at law."
SECTION 2. This act takes effect upon approval by the Governor.
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