Bill Text: NJ S278 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires ATM operators to disclose balance inquiry fees.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Commerce Committee [S278 Detail]
Download: New_Jersey-2010-S278-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
Co-Sponsored by:
Senator Sacco
SYNOPSIS
Requires ATM operators to disclose balance inquiry fees.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning certain automated teller machine fee disclosures and supplementing P.L.1983, c.466 (C.17:16K-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Account" means a demand, time, or savings deposit, or other consumer asset account, other than an occasional or incidental credit balance, held either directly or indirectly by a financial institution and established for personal, family or household purposes.
"Automated teller machine" means an electronic information processing device located in the State which accepts or dispenses cash in connection with a credit or deposit account. The term does not include tellers' stations staffed by a person or other staffed facilities.
"Operator" means any State or federally chartered bank, savings bank, savings and loan association, credit union or other entity which operates an automated teller machine.
2. An operator shall not charge a fee to a consumer for the consumer's use of an automated teller machine to inquire as to the balance in the consumer's account unless both of the following conditions are met:
a. A notice is prominently displayed on the automated teller machine screen, disclosing to the consumer before the consumer is committed to completing the inquiry and paying the fee:
(1) that a fee will be imposed for providing the balance inquiry service;
(2) the amount of the fee; and
(3) that the consumer has a right to cancel the inquiry without paying the fee; and
b. The consumer elects to continue the inquiry after the notice is displayed.
3. The Department of Banking and Insurance shall enforce the provisions of this act. An operator found to be in violation of this act shall be subject to a civil penalty of not more than $1,000 per day for each day that the operator is in violation of this act, which penalty may be collected by the Commissioner of Banking and Insurance by summary proceedings instituted in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
4. This act shall take effect on the 90th day following enactment.
STATEMENT
This bill supplements the "Electronic Fund Transfer Privacy Act," P.L.1983, c.466 (C.17:16K-1 et seq.), to require operators of automated teller machines (ATMs) located in the State to disclose "balance inquiry" fees. The bill defines an operator to be a State or federally chartered bank, savings bank, savings and loan association, credit union or other entity which operates an ATM in the State.
The bill prohibits an operator from charging a fee to a consumer for using an ATM to inquire as to a balance in the consumer's account unless: (1) a notice is prominently displayed on the ATM screen, disclosing to the consumer before the consumer is committed to completing the inquiry and paying the fee, that a fee will be imposed for providing the balance inquiry service, the amount of the fee, and that the consumer has a right to cancel the inquiry without paying the fee; and (2) the consumer elects to continue the inquiry after the notice is displayed.
Finally, the bill provides that the Department of Banking and Insurance must enforce the provisions of the bill, and that an operator found to be in violation of the bill's provisions is subject to a civil penalty of not more than $1,000 per day for each day that the operator is in violation.
