Bill Text: NJ A3645 | 2014-2015 | Regular Session | Introduced
Bill Title: Prohibits assessment of overlimit fee assessed by issuer of credit or debit cards in certain instances.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2014-09-15 - Introduced, Referred to Assembly Consumer Affairs Committee [A3645 Detail]
Download: New_Jersey-2014-A3645-Introduced.html
Sponsored by:
Assemblyman MICHAEL PATRICK CARROLL
District 25 (Morris and Somerset)
SYNOPSIS
Prohibits assessment of overlimit fee assessed by issuer of credit or debit cards in certain instances.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain credit and debit card fees and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Consumer" means a natural person who is a resident of this State.
"Credit card" means any instrument or device, whether known as a credit card, credit plate, or by any other name, issued with or without fee by an issuer for the use of the credit card holder in obtaining money, goods, services or anything else of value on credit.
"Credit card holder" means a consumer named on the face of a credit card to whom or for whose benefit the credit card is issued by an issuer.
"Debit card" means any instrument or device, whether known as a debit card, automated teller machine card, or by any other name, issued with or without fee by an issuer for the use of the debit card holder in obtaining money, goods, services or anything else of value through the electronic authorization of a financial institution to debit the debit card holder's account.
"Debit card holder" means a consumer named on the face of a debit card to whom or for whose benefit the debit card is issued by an issuer.
"Issuer" means the person which issues a credit card or a debit card or its duly authorized agent.
"Overlimit fee" means a fee charged to a credit card holder for exceeding the credit limit allowed on that consumer's credit card or a fee charged to a debit card holder for debiting an amount in excess of that consumer's available balance.
2. An issuer shall not charge an overlimit fee to a credit card or debit card holder unless, at the point of sale, the issuer provides notification that the transaction would result in an overlimit fee and the credit card or debit card holder, with knowledge of the overlimit fee, approves that transaction.
3. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to violate the provisions of this act.
4. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the provisions of this act.
5. This act shall take effect immediately.
STATEMENT
This bill prohibits an issuer of credit cards or debit cards from charging an overlimit fee unless the transaction which causes the overlimit fee is approved by the consumer, after notification by the issuer at the point of sale, with knowledge that the overlimit fee will be imposed. The bill defines an "overlimit fee" as a fee charged to a credit card holder for exceeding the credit limit allowed on that consumer's credit card or a fee charged to a debit card holder for debiting an amount in excess of that consumer's available balance.
A violation of this bill's provisions is an unlawful practice and a violation of the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). Thus, any person who violates any of the provisions of the bill is liable to a penalty of not more than $10,000 for the first offense and not more than $20,000 for the second and each subsequent offense. In addition, a violation may result in cease and desist orders issued by the Attorney General, and the awarding of treble damages, attorneys' fees and costs of suit to the injured party.
