When is a credit card issuer required to disclose the terms and conditions of a credit card?
In Hawaii, credit card issuers are required to fully disclose the terms and conditions of the credit card before any cardholder is obligated to pay any fees or charges associated with the card. This is typically done either in writing or electronically, depending on the issuer. The credit card issuer must make sure that all disclosures of terms and conditions are clear and conspicuous. This means that the credit card issuer must use language that is not confusing and easy to understand. The credit card issuer must also provide the cardholder with a document that itemizes all costs and fees associated with the card. This document must include the annual percentage rate, any fees associated with balance transfers and cash advances, and any fees associated with late payments. In addition to the disclosure of terms and conditions, credit card issuers must also provide a summary of the costs associated with the credit card before the card is issued. This summary must include any fees and interest rates. The summary must also include a full list of other costs such as annual fees, balance transfer fees, cash advance fees, and foreign transaction fees. Credit card issuers must provide the disclosure of terms and conditions to any new or prospective customers and it must be provided to existing customers at least once every 12 months. This disclosure must also be provided whenever there is a significant change to the terms of the card. This ensures that consumers are aware of all the costs associated with the credit card and can make informed decisions about whether to accept or decline the offer.
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