California Law Comes With Considerable Loophole - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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

California Law Comes With Considerable Loophole
The content is accurate at the time of publication and is subject to change.

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.”

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Capital One Partnering Up with Airlines

Posted: November 16, 2018

Starting in December Capital One is partnering with a dozen airlines so their cardholders can transfer their miles and book flights. The new transfer benefit will be available to people with the Capital One Venture One, Spark Miles and ... Continue reading
Getting Quadruple Points with the New Business Gold Card by American Express

Posted: November 12, 2018

American Express is rolling out a new credit card for small businesses, offering quadruple reward points on the two categories in which they spend the most during the month. There are six categories they can earn these enhanced rewards in, ... Continue reading
Now Cardholders can use Ultimate Rewards for Apple Products

Posted: November 9, 2018

Chase credit card holders can now use their rewards to buy Apple products via the new Apple Ultimate Rewards Store. When shopping in the new store people with a Chase Sapphire, Freedom and Ink credit card can use their reward points to pay ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!