PRINTER'S NO. 4174
No. 2776 Session of 2002
INTRODUCED BY SCRIMENTI, THOMAS, M. COHEN, TIGUE, GRUCELA,
ROONEY, MYERS, YOUNGBLOOD, STABACK, PISTELLA, CORRIGAN,
JAMES, J. WILLIAMS, WASHINGTON AND GEORGE, JUNE 28, 2002
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 28, 2002
AN ACT
1 Establishing limitations on credit blocking by the retail
2 industry or a provider of travel services; establishing a
3 ceiling amount on the amount of credit allowed to block and
4 establishing a fixed time period to block a certain amount in
5 a consumer's account.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Credit blocking limitations.
9 (a) Definitions.--As used in this section, the following
10 words and phrases shall have the meanings given to them in this
11 subsection:
12 "Credit blocking." The process by which merchants in the
13 retail industry or providers of travel services block a portion
14 of a consumer's account for a fixed period of time when a
15 consumer makes a purchase on their debit card in order to ensure
16 payment.
17 "Provider" or "provider of travel services." A person, firm
18 or corporation engaged in the business of furnishing travel
19 services.
1 "Travel services." Public transportation, public
2 accommodations in hotels, motels or motor courts, rental of
3 motor vehicles or any other service related to travel or
4 vacations.
5 (b) Ceiling amount.--It shall be unlawful for any merchant
6 in the retail industry or provider of travel services to impose
7 a credit block on a consumer's account that is greater than 30%
8 of the consumer's actual purchase on their debit card.
9 (c) Time period.--It shall be unlawful for any merchant in
10 the retail industry or travel provider to block a portion of a
11 consumer's account for a period longer than 48 hours after the
12 actual transaction or purchase.
13 (d) Notification.--Any merchant in the retail industry or
14 provider of travel services that imposes a credit block of any
15 amount above the purchase price must notify consumers prior to
16 purchase by verbal notification or by a clearly visible written
17 notification displayed in a public location.
18 Section 2. Effective date.
19 This act shall take effect immediately.
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