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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GREENLEAF, TARTAGLIONE, WASHINGTON, BROWNE, FONTANA, KASUNIC, RAFFERTY, WAUGH, COSTA, BREWSTER AND STACK, JANUARY 12, 2011 |
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| REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, JANUARY 12, 2011 |
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| AN ACT |
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1 | Imposing limitations on credit blocking by the retail industry |
2 | and providers of travel services; establishing a ceiling |
3 | amount on the amount of credit allowed to block; prescribing |
4 | a fixed time period to block a certain amount in a consumer's |
5 | account or line of credit; and providing for enforcement. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Short title. |
9 | This act shall be known and may be cited as the Credit |
10 | Blocking Regulation Act. |
11 | Section 2. Definitions. |
12 | The following words and phrases when used in this act shall |
13 | have the meanings given to them in this section unless the |
14 | context clearly indicates otherwise: |
15 | "Credit blocking." The process by which merchants in the |
16 | retail industry or providers of travel services block a portion |
17 | of a consumer's account or line of credit for a fixed period of |
18 | time when a consumer makes a purchase on that consumer's debit |
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1 | or credit card in order to ensure payment. |
2 | "Provider" or "provider of travel services." A person, firm |
3 | or corporation engaged in the business of furnishing travel |
4 | services. |
5 | "Travel services." Public transportation, public |
6 | accommodations in hotels, motels or motor courts, rental of |
7 | motor vehicles or any other service related to travel or |
8 | vacations. |
9 | Section 3. Ceiling amount. |
10 | It shall be unlawful for a merchant in the retail industry or |
11 | provider of travel services to impose a credit block on a |
12 | consumer's account or line of credit that is greater than 20% of |
13 | the consumer's actual purchase on that consumer's debit or |
14 | credit card. |
15 | Section 4. Time period. |
16 | It shall be unlawful for a merchant in the retail industry or |
17 | provider of travel services to impose a credit block on a |
18 | portion of a consumer's account or line of credit for a period |
19 | longer than 72 hours after the actual transaction or purchase. |
20 | Section 5. Notification. |
21 | A merchant in the retail industry or provider of travel |
22 | services that imposes a credit block of any amount above the |
23 | purchase price of goods or travel services purchased by |
24 | consumers shall notify the consumer prior to purchase of the use |
25 | of credit blocking for purchases by verbal notification or by a |
26 | clearly visible written notification displayed in a public |
27 | location. |
28 | Section 6. Enforcement. |
29 | A violation of this act shall be deemed to be a violation of |
30 | the act of December 17, 1968 (P.L.1224, No.387), known as the |
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1 | Unfair Trade Practices and Consumer Protection Law. |
2 | Section 7. Effective date. |
3 | This act shall take effect immediately. |
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