Bill Text: NJ A3646 | 2014-2015 | Regular Session | Introduced
Bill Title: Limits overlimit fee assessed by issuer of credit or debit cards.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2014-09-15 - Introduced, Referred to Assembly Consumer Affairs Committee [A3646 Detail]
Download: New_Jersey-2014-A3646-Introduced.html
Sponsored by:
Assemblyman MICHAEL PATRICK CARROLL
District 25 (Morris and Somerset)
SYNOPSIS
Limits overlimit fee assessed by issuer of credit or debit cards.
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. a. An issuer shall not charge an overlimit fee to a credit card holder in an amount that is in excess of the amount that the credit card holder exceeded the credit limit on the card.
b. An issuer shall not charge an overlimit fee to a debit card holder in an amount that is in excess of the amount that the debit card holder exceeded the balance available on the card.
3. 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.
4. 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.
5. This act shall take effect immediately.
STATEMENT
This bill prohibits an issuer of credit cards or debit cards from charging an overlimit fee that is in excess of the amount that the credit card holder exceeded his credit limit or a debit card holder exceeded his available balance, as the case may be. 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.
