Regulatory Alerts2023-06-29
Distribution of Credit Cards of Issuers Bound to a Banking Corporation by a Distribution Agreement
The Supervisor of Banks issued this directive to regulate how banking corporations distribute credit cards from issuers bound by distribution agreements under Section 7f of the Banking Law. It mandates that banks present details of all bound issuers, prohibits unreasonable refusal to enter agreements, and strictly limits the terms, fees, and information sharing within those contracts. Additionally, the directive establishes specific reporting obligations for both banking corporations and issuers regarding the number of agreements, recompense, and cards issued.
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