Definitions

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Credit Cards and Credit Card Banks
  5. Definitions

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As used in this chapter, the term:

  1. "Affiliate" means the same as that set forth in paragraph (1) of Code Section 7-1-4.
  2. "Commissioner" and "department" shall have the meanings provided in paragraphs (13) and (16) of Code Section 7-1-4.
  3. "Credit card" means any type of arrangement or loan agreement pursuant to which a domestic lender or credit card bank gives a debtor the privilege of using a credit card or other credit confirmation or device of any type in transactions out of which debt arises:
    1. By the domestic lender or credit card bank honoring a draft or similar order for the payment of money created, authorized, issued, or accepted by the debtor; or
    2. By the domestic lender or credit card bank paying or agreeing to pay the debtor's obligation.
  4. "Credit card account" means an arrangement between a domestic lender or credit card bank and a debtor for the creation of debt pursuant to a credit card and under which:
    1. The domestic lender or credit card bank may permit the debtor to create debt from time to time;
    2. The unpaid balance of principal of such debt and the loan, finance, or other appropriate charges are debited to an account;
    3. A loan finance charge is computed or an interest rate imposed upon the outstanding balances of the debtor's account from time to time; and
    4. The domestic lender or credit card bank is to render bills or statements to the debtor at regular intervals, the amount of which bills or statements is payable by and due from the debtor on a specified date as stated in such bill or statement or, at the option of the debtor, but subject to the terms and conditions of the credit card account, may be paid by the debtor in installments.
  5. "Credit card bank" means a national bank located in this state or a bank organized under the laws of this state which, in either event, the activities of which are limited to those permitted under Code Section 7-5-3.
  6. "Domestic lender" means any bank, savings and loan association, savings bank, credit union, or other business organization organized or chartered under the laws of this state or the United States, which in any event is authorized by law to accept deposits and make loans and has its principal place of business in this state.
  7. "Foreign lender" means any bank, savings and loan association, savings bank, credit union, or other business organization organized or chartered under the laws of the United States, or any state other than this state, or the District of Columbia, which in any event is authorized by law to accept deposits and make loans and has its principal place of business outside this state.
  8. "Holding company" means any company that controls a domestic or foreign lender or a credit card bank. The term "company" and "control" shall have the meanings set forth in Code Section 7-1-605.
  9. "Qualifying organization" means a corporation, partnership, or other entity which at all times maintains an office in the State of Georgia at which it employs at least 250 persons residing in this state who are directly or indirectly engaged in providing the following services, either for the qualifying organization or on behalf of other domestic or foreign lenders or credit card banks:
    1. The distribution of credit cards or other devices designed and effective to access credit card accounts;
    2. The preparation of periodic statements of amounts due under credit card accounts;
    3. The receipt from credit card holders of amounts paid on or with respect to such accounts; or
    4. The maintenance of financial records reflecting the status of such accounts from time to time.

      The term "qualifying organization" shall also include any domestic bank and credit card bank satisfying the employment and activities requirements set forth in this paragraph.

(Code 1981, §7-5-2, enacted by Ga. L. 1987, p. 268, § 1; Ga. L. 1988, p. 13, § 7; Ga. L. 1999, p. 674, § 41; Ga. L. 2016, p. 864, § 7/HB 737.)

OPINIONS OF THE ATTORNEY GENERAL

Editor's notes.

- In light of the similarity of the statutory provisions, annotations decided under former O.C.G.A. § 7-5-2 are included in the annotations for this Code section.

Applicability of chapter.

- Line of credit arrangement accessed through special drafts drawn on the lender which the borrower may make payable to a third party is clearly governed by the Lender Credit Card Act. The drafts are "lender credit cards" within the meaning of former § 7-5-3(2) since the drafts constitute "credit confirmation or identification." 1985 Op. Att'y Gen. No. 85-32 (decided under former § 7-5-2).

When the financial institution issues special drafts which the borrower may make payable only to the issuing financial institution and to draw on the line of credit, the borrower must either come back to the financial institution and cash one of the drafts or deposit the draft into the borrower's checking account at the financial institution and then use the borrower's personal check drawn on the borrower's deposit account, the third party would have no reason to know that a credit transaction was transpiring. Thus, lacking the requisite "credit confirmation or identification," it would not be governed by the Lender Credit Card Act, but, rather, would be governed by Georgia's usury provisions found at O.C.G.A. § 7-4-1. 1985 Op. Att'y Gen. No. 85-32 (decided under former § 7-5-2).

When the drawee bank extends a line of credit to the customer against which the customer may draw by writing checks that would otherwise overdraw the drawee's checking account, because the customer's checks do not indicate the customer has overdraft protection nor is the customer given any article which the customer could present to a third party to give notification of overdraft protection, this arrangement would be governed by Georgia's general usury provisions rather than the Lender Credit Card Act. 1985 Op. Att'y Gen. No. 85-32 (decided under former § 7-5-2).

RESEARCH REFERENCES

C.J.S.

- 47 C.J.S., Interest and Usury; Consumer Credit, § 523 et seq.


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