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Can I collect credit card information from participants in Minnesota? What are the requirements?

Collecting Credit Card Information in Minnesota

If you are collecting credit card information from participants in Minnesota, there are certain requirements you must follow to comply with state law.

Credit Card Disclosure Report Form

If you are a creditor who distributes its own credit card application within the state of Minnesota, you are required to complete and file the credit card disclosure report form with the Department of Management and Budget on December 31 of each year beginning in 1992 [1.1]. To comply with this requirement, you must use the Minnesota Credit Card Disclosure Report Form and provide specific dollar amounts or percentage rates charged to Minnesotans. You must also give the amount of any membership, participation, or similar fee that may be imposed as a condition of the issuance or renewal of the credit card, expressed as an annual amount, charges for exceeding credit limits, and the amount of late payment fees [1.1].

Public Access to Information Filed

The credit card disclosure information shall be available from the Department of Management and Budget upon request subject to the provisions of Minnesota Statutes, chapter 13 (Government Data Practices) [1.2].

Credit Card Disclosures

A credit card application distributed in Minnesota must disclose the following terms of the credit card plan, if applicable [2.2]:

  • Any periodic rate or rates that may be applied to the account, expressed as an annual percentage rate or rates.
  • Any membership, participation, or similar fee that may be imposed as a condition of the issuance or renewal of a credit card, expressed as an annual amount.
  • Any minimum, fixed, transaction, activity, or similar charge.
  • Any other fees that may be charged to the account, including late payment fees and charges for exceeding credit limits.
  • The date or occasion upon which the finance charge, if any, begins to accrue on a transaction.

The disclosures required under this section shall be written in plain language, as defined in section 325G.31; shall be in boldface type of a minimum size of ten points; shall be clear and conspicuous; and shall be prominently set apart from the remaining portions of the credit card application or other written material, by the use of margins, enclosures, underlining, contrasting colors, or similar methods [2.2].

If you are not a creditor who distributes its own credit card application within the state of Minnesota, it is unclear what requirements you must follow to collect credit card information from participants in Minnesota. Therefore, it is recommended that you consult with a legal professional for guidance on this matter.

Conclusion

To summarize, if you are collecting credit card information from participants in Minnesota, you must comply with the state’s credit card disclosure requirements. If you are a creditor who distributes its own credit card application within the state of Minnesota, you must complete and file the credit card disclosure report form with the Department of Management and Budget. Additionally, credit card applications distributed in Minnesota must disclose certain terms of the credit card plan. If you are unsure about the requirements you must follow, it is recommended that you consult with a legal professional for guidance.

Source(s):
Jurisdiction

Minnesota