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)
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