SENATE, No. 1403
STATE OF NEW JERSEY
INTRODUCED MARCH 29, 2004
Senator PETER A. INVERSO
District 14 (Mercer and Middlesex)
Provides for financial management program for certain students.
CURRENT VERSION OF TEXT
An Act concerning certain credit card solicitations and supplementing Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Credit" means the right to defer payment of debt or to incur debt and defer its payment.
"Credit card" means any card, plate, coupon book, or other single credit device that may be used from time to time to obtain credit.
"Department" means the Department of Banking and Insurance.
"Direct solicitation" means the promotion of credit cards for the purpose of encouraging students to enter into agreements for credit cards by means of interpersonal contact or through the use of displays.
"Public institution of higher education" means Rutgers, The State University, the State colleges or universities established pursuant to chapter 64 of Title 18A of the New Jersey Statutes, the New Jersey Institute of Technology, the University of Medicine and Dentistry of New Jersey, the county colleges and any other public university or college now or hereafter established or authorized by State law.
"Student" means a person who is a matriculated student at a public institution of higher education in this State whose billing address is in this State.
2. A public institution of higher education or its agent may enter into an agreement for the direct solicitation of credit cards to its students if it charges a fee for that agreement which is sufficient to fund the financial management program required by section 4 of this act.
3. The department shall establish guidelines for a financial management program for students which shall include, but not be limited to, short- and long-term implications of credit card use and general principles of financial management including budgeting, prudent use of credit, personal credit reports, savings and retirement goals.
4. A public institution of higher education that enters into an agreement pursuant to section 2 of this act shall establish a financial management program for its students.
5. A student of a public institution of higher education that has entered into an agreement pursuant to section 2 of this act shall not be liable for any interest on a debt incurred pursuant to a credit card agreement entered into pursuant to a direct solicitation, unless that student has successfully completed a financial management program established by that public institution of higher education prior to entering into that agreement.
6. This act shall take effect on the 180th day following enactment.
This bill requires a public institution of higher education to establish a financial management program for its students if the institution enters into an agreement for the direct solicitation of credit cards to its students. The financial management program is to be funded by the credit card issuers and conform to the guidelines for the program established by the Department of Banking and Insurance. If a student has not successfully completed the financial management program prior to entering a credit card agreement pursuant to a direct solicitation, the student would not be liable for any interest on the debt pursuant thereto.