If a card issuer fails to give a timely response to an inquiry of a cardholder concerning any debit or credit applicable to an obligation incurred through the use of a credit card, he shall not be entitled to interest, finance charges, service charges, or any other charges thereon, from the date of mailing of the inquiry to date of mailing of the response.

(Added by Stats. 1971, Ch. 1019.)

Terms Used In California Civil Code 1747.40

  • Card issuer: means any person who issues a credit card or the agent of that person for that purpose with respect to the credit card. See California Civil Code 1747.02
  • Cardholder: means a natural person to whom a credit card is issued for consumer credit purposes, or a natural person who has agreed with the card issuer to pay consumer credit obligations arising from the issuance of a credit card to another natural person. See California Civil Code 1747.02
  • Credit card: means any card, plate, coupon book, or other single credit device existing for the purpose of being used from time to time upon presentation to obtain money, property, labor, or services on credit. See California Civil Code 1747.02
  • inquiry: is a writing that is posted by mail to the address of the card issuer to which payments are normally tendered, unless another address is specifically indicated on the statement for that purpose, then to that other address, and that is received by the card issuer no later than 60 days after the card issuer transmitted the first periodic statement that reflects the alleged billing error, and that does all of the following:

    California Civil Code 1747.02

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • response: is a writing that is responsive to an inquiry and mailed to the cardholder's address last known to the card issuer. See California Civil Code 1747.02
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