Section 525. Prohibited practices  


Latest version.
  • 1. It shall be unlawful for a provider of
      travel services to communicate with a credit card issuer for the purpose
      of  reserving  or  setting  aside  any  specified  amount of credit in a
      consumer's credit card account to ensure  payment  for  services  to  be
      rendered  unless  prior  to  such  communication  the provider of travel
      services informs the consumer of the amount  of  credit  which  will  be
      requested to be reserved or set aside and obtains the consumer's consent
      to the reservation or set aside of such amount.
        2.  It  shall  be  unlawful  for  a  provider  of  travel  services to
      communicate with a credit card issuer for the purpose  of  reserving  or
      setting aside an amount of credit in a consumer's credit card account in
      excess of the actual, agreed upon cost of the services contracted for by
      the  consumer  and  provider  of  travel  services unless, prior to such
      communication, the provider of travel services informs the  consumer  in
      writing  of  the amount of credit which will be requested to be reserved
      or  set  aside  and  obtains  the  consumer's  written  consent  to  the
      reservation or set aside of such amount.
        3.  It shall be unlawful for any provider of travel services, after it
      has determined the final charges for the travel services furnished to  a
      consumer,  to  fail to promptly communicate with a credit card issuer to
      request the release of any amount of credit previously reserved  or  set
      aside  by it in the consumer's credit card account which is in excess by
      more than twenty-five dollars of the charges actually billed.
        4. It shall be unlawful for any provider of travel services to impose,
      as a result of the use of a credit card, a surcharge on a  travel  agent
      acting  as an agent of such provider of travel services where, on behalf
      of a holder of a credit card, as defined in section five hundred  eleven
      of  this  chapter,  such  travel agent facilitates the holder's use of a
      credit card in lieu of payment by cash, check or similar means.