Bill Text: NJ S1525 | 2010-2011 | Regular Session | Introduced
Bill Title: Clarifies certain dormancy fees chargeable against money orders.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-03-11 - Received in the Assembly, Referred to Assembly Consumer Affairs Committee [S1525 Detail]
Download: New_Jersey-2010-S1525-Introduced.html
Sponsored by:
Senator NIA H. GILL
District 34 (Essex and Passaic)
SYNOPSIS
Clarifies certain dormancy fees chargeable against money orders.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning money order dormancy fees and amending P.L.2007, c.326.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2007, c.326 (C.56:8-182) is amended to read as follows:
1. a. Notwithstanding any other provisions of law to the contrary, a money order sold after the effective date of P.L.2007, c.326 (C.56:8-182 et seq.) shall retain full value until presented for payment, or shall have all conditions and limitations, as permitted in paragraphs (1) [and] , (2) and (3) of this subsection, disclosed to the purchaser of the money order at the time of purchase, as provided in subsection b. of this section.
(1) No dormancy fee, as calculated monthly pursuant to paragraph (2) of this subsection, shall be charged, but may accrue, against a money order within the 12 months immediately following the date of sale. After 12 months, beginning with the anniversary date of the date of sale, any applicable dormancy fee calculated monthly pursuant to paragraph (2) of this subsection may be charged, including in this charge the amount of any accrued monthly dormancy fee retroactive to the date of sale.
(2) An issuer of a money order may charge a dormancy fee against a money order, as permitted by this subsection, of not more than [$2.00] $2 per month.
(3) (a) No dormancy fee shall be charged against a money order after any stated expiration date on that money order.
(b) If there is no stated expiration date on the money order, the maximum aggregate dormancy fee charged against the money order shall be not more than $168, representing the total amount charged over a seven-year period following the date of sale of the money order, including any amount that accrued within the 12 months immediately following the date of sale pursuant to paragraph (1) of this subsection. After this seven-year period, the money order shall be presumed abandoned pursuant to R.S.46:30B-12 and no further dormancy fee shall be charged.
b. The terms of any dormancy fee applicable to a money order, as permitted by subsection a. of this section, shall be disclosed by an issuer to a consumer by:
(1) written notice of the dormancy fee on the money order or the sales receipt for the money order; and
(2) written notice on the money order or the sales receipt for the money order, of a telephone number which the consumer may call for information concerning any dormancy fee.
c. As used in this section, "dormancy fee" means a charge imposed against the value of a money order due to inactivity.
(cf: P.L.2007, c.326, s.1)
2. This act shall take effect on the first day of the second month next following enactment, and shall apply to any money order sold on or after the effective date of P.L.2007, c.326 (C.56:8-182 et seq.), but this retroactive application shall not be construed to invalidate any notice previously provided in connection with the sale of a money order.
STATEMENT
This bill clarifies the existing law concerning money order dormancy fees, established pursuant to P.L.2007, c.326 (C.56:8-182 et seq.).
First, the current law states a prohibition against the charging of a monthly dormancy fee within 12 months immediately following the date of sale of a money order. Concerning this 12-month period, the bill clarifies that even though a monthly dormancy fee, of up to $2 per month, cannot be charged, it may still accrue over the 12 months. Thereafter, beginning with the anniversary date of the date of sale of the money order, the monthly dormancy fee, including any accrued monthly fee retroactive to the date of sale (up to $24), may be charged.
Second, the bill provides clarification with respect to maximum aggregate dormancy fees. It states that no dormancy fee shall be charged against a money order after any stated expiration date on that money order. Further, if there is no stated expiration date, the maximum aggregate dormancy fee charged against the money order shall be not more than $168, representing the total amount charged over a seven-year period following the date of sale of the money order, including any amount that accrued within the 12 months immediately following the date of sale as described above. After this seven-year period, the money order shall be presumed abandoned pursuant to R.S.46:30B-12 and no further dormancy fee shall be charged.
To provide for the consistent application of the law, and in recognition of the intent to clarify dormancy fees chargeable against any money orders sold under P.L.2007, c.326 (C.56:8-182 et seq.), the bill, once effective, shall apply retroactively to any money order sold on or after the effective date of that act (April 12, 2008). However, this retroactive application shall not be construed to invalidate any notice previously provided in connection with the sale of any such money order.
