California Law Comes With Considerable Loophole - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » California Law Comes With Considerable Loophole

California Law Comes With Considerable Loophole

Add to Favorites:
California Law Comes With Considerable Loophole

A law by Californian politicians comes with a serious oversight in its planning. This proposed law will attach charges when a person opts to pay for their bills with their plastic, instead of either cash or check.

It just depends on where they pay at. Many institutions, according to an article appearing in the Los Angeles Times, “exploit” this loophole to their advantage, creating what are called “convenience fees” that are only all too convenient for them. The loophole exists in the state law of the California Civil Code, Section 1748.1 and calls out “retailers” in particular.

Public agencies and utilities are exempt from this regulation, however; which is precisely where the problem stems from.

The definition of a retailer then, if following the law’s logic “every person other than a card issuer who furnishes money, goods, services or anything else of value upon presentation of a credit card by a cardholder.” Which would be, then, most private sector entities, such as universities like UCLA, as the law further states does not pertain to “the state, a county, city, city and county, or any other public agency.”

UCLA has come under fire for its decision, effective last August, to add a 2.75% fee for students using their credit and debit cards to pay for tuition, among other things.

Utility companies, like those that provide gas and electricity for millions of people, often charge extra fees to credit or debit-using customers as well. They have another set of guidelines to adhere to, courtesy of the California Public Utilities Code.

Those guidelines try to enforce that utility companies “an electrical, gas or water corporation that offers customers credit card or debit card payment options may recover the reasonable expenses incurred by the electrical, gas or water corporation for providing the customers the option of paying their bills by credit card or debit card.”

Add to Favorites:

Related News:

More EMV Enabled Debit Cards, Less Fraud

Posted: August 22, 2017

Last year there was an upswing in the number of chip-enabled debit cards rolled out, according to the 2017 Debit Issuer Study by Pulse, with an estimated 80% of cards in the United States having been outfitted with EMV technology. While ... Continue reading
Fewer Millennials Paying Attention to Finances

Posted: August 21, 2017

In 2015 more than half of Millennials were thinking about how to turn their financial goals into a reality, but in 2016 that number dropped to 37%, according to Navy Federal's 2017 Millennials and Their Money study. They also found that ... Continue reading
Debt Could Put a Damper on Romance

Posted: August 18, 2017

Does credit health factor into romance? The answer is yes, according to the new Chase Slate 2017 Credit Outlook survey. Carrying a lot of debt could be a deal breaker for some people, with 37% saying that it could make them think less of a ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Match Mile For Mile: We’ll match all the Miles you’ve earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit