Legislation
SECTION 525
Prohibited practices
General Business (GBS) CHAPTER 20, ARTICLE 29-B
§ 525. Prohibited practices. 1. It shall be unlawful for a provider of
travel services to communicate with a credit card issuer for the purpose
of reserving or setting aside any specified amount of credit in a
consumer's credit card account to ensure payment for services to be
rendered unless prior to such communication the provider of travel
services informs the consumer of the amount of credit which will be
requested to be reserved or set aside and obtains the consumer's consent
to the reservation or set aside of such amount.
2. It shall be unlawful for a provider of travel services to
communicate with a credit card issuer for the purpose of reserving or
setting aside an amount of credit in a consumer's credit card account in
excess of the actual, agreed upon cost of the services contracted for by
the consumer and provider of travel services unless, prior to such
communication, the provider of travel services informs the consumer in
writing of the amount of credit which will be requested to be reserved
or set aside and obtains the consumer's written consent to the
reservation or set aside of such amount.
3. It shall be unlawful for any provider of travel services, after it
has determined the final charges for the travel services furnished to a
consumer, to fail to promptly communicate with a credit card issuer to
request the release of any amount of credit previously reserved or set
aside by it in the consumer's credit card account which is in excess by
more than twenty-five dollars of the charges actually billed.
4. It shall be unlawful for any provider of travel services to impose,
as a result of the use of a credit card, a surcharge on a travel agent
acting as an agent of such provider of travel services where, on behalf
of a holder of a credit card, as defined in section five hundred eleven
of this chapter, such travel agent facilitates the holder's use of a
credit card in lieu of payment by cash, check or similar means.
travel services to communicate with a credit card issuer for the purpose
of reserving or setting aside any specified amount of credit in a
consumer's credit card account to ensure payment for services to be
rendered unless prior to such communication the provider of travel
services informs the consumer of the amount of credit which will be
requested to be reserved or set aside and obtains the consumer's consent
to the reservation or set aside of such amount.
2. It shall be unlawful for a provider of travel services to
communicate with a credit card issuer for the purpose of reserving or
setting aside an amount of credit in a consumer's credit card account in
excess of the actual, agreed upon cost of the services contracted for by
the consumer and provider of travel services unless, prior to such
communication, the provider of travel services informs the consumer in
writing of the amount of credit which will be requested to be reserved
or set aside and obtains the consumer's written consent to the
reservation or set aside of such amount.
3. It shall be unlawful for any provider of travel services, after it
has determined the final charges for the travel services furnished to a
consumer, to fail to promptly communicate with a credit card issuer to
request the release of any amount of credit previously reserved or set
aside by it in the consumer's credit card account which is in excess by
more than twenty-five dollars of the charges actually billed.
4. It shall be unlawful for any provider of travel services to impose,
as a result of the use of a credit card, a surcharge on a travel agent
acting as an agent of such provider of travel services where, on behalf
of a holder of a credit card, as defined in section five hundred eleven
of this chapter, such travel agent facilitates the holder's use of a
credit card in lieu of payment by cash, check or similar means.