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 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)
Nevada Legal Code