(a) Any application form or preapproved written solicitation for an open-end credit card account to be used for personal, family, or household purposes that is mailed on or after October 1, 1987, to a consumer residing in this state by or on behalf of a creditor, whether or not the creditor is located in this state, other than an application form or solicitation included in a magazine, newspaper, or other publication distributed by someone other than the creditor, shall contain or be accompanied by either of the following disclosures: (1) A disclosure of each of the following, if applicable: (A) Any periodic rate or rates that may be applied to the account, expressed as an annual percentage rate or rates. If the account is subject to a variable rate, the creditor may instead either disclose the rate as of a specific date and indicate that the rate may vary, or identify the index and any amount or percentage added to, or subtracted from, that index and used to determine the rate. For purposes of this section, that amount or percentage shall be referred to as the âspread.â (B) Any membership or participation fee that may be imposed for availability of a credit card account, expressed as an annualized amount. (C) Any per transaction fee that may be imposed on purchases, expressed as an amount or as a percentage of the transaction, as applicable. (D) If the creditor provides a period during which the consumer may repay the full balance reflected on a billing statement that is attributable to purchases of goods or services from the creditor or from merchants participating in the credit card plan, without the imposition of additional finance charges, the creditor shall either disclose the number of days of that period, calculated from the closing date of the prior billing cycle to the date designated in the billing statement sent to the consumer as the date by which that payment must be received to avoid additional finance charges, or describe the manner in which the period is calculated. For purposes of this section, the period shall be referred to as the âfree periodâ or âfree-ride period.â If the creditor does not provide this period for purchases, the disclosure shall so indicate. (2) A disclosure that satisfies the initial disclosure statement requirements of Regulation Z. (b) A creditor need not present the disclosures required by paragraph (1) of subdivision (a) in chart form or use any specific terminology, except as expressly provided in this section. The following chart shall not be construed in any way as a standard by which to determine whether a creditor who elects not to use such a chart has provided the required disclosures in a manner that satisfies paragraph (1) of subdivision (a). However, disclosures shall be conclusively presumed to satisfy the requirements of paragraph (1) of subdivision (a) if a chart with captions substantially as follows is completed with the applicable terms offered by the creditor, or if the creditor presents the applicable terms in tabular, list, or narrative format using terminology substantially similar to the captions included in the following chart: THE FOLLOWING INFORMATION IS PROVIDED PURSUANT TO THE AREIAS CREDIT CARD FULL DISCLOSURE ACT OF 1986: INTEREST RATES, FEES, AND FREE-RIDE PERIOD FOR PURCHASES UNDER THIS CREDIT CARD ACCOUNT ANNUAL PER- CENTAGE RATE (1) VARIABLE RATE INDEX AND SPREAD (2) ANNUAL- IZED MEMBER- SHIP OR PARTICI- PATION FEE TRANS- ACTION FEE FREEâRIDE PERIOD (3) (1) For fixed interest rates. If variable rate, creditor may elect to disclose a rate as of a specified date and indicate that the rate may vary. (2) For variable interest rates. If fixed rate, creditor may eliminate the column, leave the column blank, or indicate âNoâ or âNoneâ or âDoes not apply.â (3) For example, â30 daysâ or âYes, if full payment is received by next billing dateâ or âYes, if full new balance is paid by due date.â (c) For purposes of this section,
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