Prohibited acts by issuer: Increase of interest rate based upon late payment to another creditor; universal default clauses; exception.

NRS 97A.200 Prohibited acts by issuer: Increase of interest rate based upon late payment to another creditor; universal default clauses; exception. 1. An issuer shall not: (a) Increase the interest rate it charges a cardholder for the use of the card based upon the late payment by the cardholder to another issuer or a creditor of the cardholder that is not an affiliate or subsidiary of the issuer; or (b) Include a universal default clause in a contract or other agreement relating to a credit card account. 2. Notwithstanding the provisions of subsection 1, an issuer may increase the interest rate it charges a cardholder for the use of the card based on a change in the credit rating of the cardholder. 3. As used in this section: (a) “Affiliate or subsidiary of the issuer” means an affiliate or subsidiary that conducts business under a name that is: (1) The same as the name of the issuer; or (2) Sufficiently similar to the name of the issuer that a cardholder could reasonably believe that the cardholder is conducting business with the issuer. (b) “Universal default clause” means a clause or provision that allows an issuer to increase the interest rate it charges a cardholder for the use of the card based upon the late payment by the cardholder to another issuer or a creditor of the cardholder that is not an affiliate or subsidiary of the issuer. (Added to NRS by 2007, 404, 655)