THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GREENLEAF, TARTAGLIONE, WASHINGTON, BROWNE, FONTANA, KASUNIC, RAFFERTY, WAUGH, COSTA, BREWSTER AND STACK, JANUARY 12, 2011

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, JANUARY 12, 2011  

AN ACT

Imposing limitations on credit blocking by the retail industry

and providers of travel services; establishing a ceiling

amount on the amount of credit allowed to block; prescribing

a fixed time period to block a certain amount in a consumer's

account or line of credit; and providing for enforcement.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Credit

Blocking Regulation Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Credit blocking."  The process by which merchants in the

retail industry or providers of travel services block a portion

of a consumer's account or line of credit for a fixed period of

time when a consumer makes a purchase on that consumer's debit

or credit card in order to ensure payment.

"Provider" or "provider of travel services."  A person, firm

or corporation engaged in the business of furnishing travel

services.

"Travel services."  Public transportation, public

accommodations in hotels, motels or motor courts, rental of

motor vehicles or any other service related to travel or

vacations.

Section 3.  Ceiling amount.

It shall be unlawful for a merchant in the retail industry or

provider of travel services to impose a credit block on a

consumer's account or line of credit that is greater than 20% of

the consumer's actual purchase on that consumer's debit or

credit card.

Section 4.  Time period.

It shall be unlawful for a merchant in the retail industry or

provider of travel services to impose a credit block on a

portion of a consumer's account or line of credit for a period

longer than 72 hours after the actual transaction or purchase.

Section 5.  Notification.

A merchant in the retail industry or provider of travel

services that imposes a credit block of any amount above the

purchase price of goods or travel services purchased by

consumers shall notify the consumer prior to purchase of the use

of credit blocking for purchases by verbal notification or by a

clearly visible written notification displayed in a public

location.

Section 6.  Enforcement.

A violation of this act shall be deemed to be a violation of

the act of December 17, 1968 (P.L.1224, No.387), known as the

Unfair Trade Practices and Consumer Protection Law.

Section 7.  Effective date.

This act shall take effect immediately.