[First Reprint]

ASSEMBLY, No. 3003







Sponsored by:

Assemblywoman SANDRA LOVE

District 4 (Camden and Gloucester)

Assemblywoman PAMELA R. LAMPITT

District 6 (Camden)

Assemblywoman CONNIE WAGNER

District 38 (Bergen)

Assemblywoman ELEASE EVANS

District 35 (Bergen and Passaic)


Co-Sponsored by:

Assemblyman Diegnan






     Regulates solicitation of credit cards on college campuses.



     As reported by the Assembly Financial Institutions and Insurance Committee on October 23, 2008, with amendments.


An Act concerning certain credit card solicitations 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 prospective or actual purchaser of goods or services primarily for personal, family or household use.

     "Credit card" means a card, plate or other single credit device that may be used from time to time to obtain credit.

     "Credit card issuer" means a person who extends to a consumer the right to use a credit card in connection with purchases.

     "Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.

     "Institution of higher education" means any public or private university, college, technical college or community college located in New Jersey.

     "Student" means a person who is under 21 years of age and who attends an institution of higher education, whether enrolled on a full-time or part-time basis.


     2.    a.  Prior to engaging in the solicitation of students for applications for credit cards on a campus of an institution of higher education, a credit card issuer shall annually register its intent to solicit the student for that purpose with an appropriate official of the institution of higher education.

     b.    The registration shall include the principal place of business of the credit card issuer and shall be in the form required by regulation of the director.


     3.    a.  A credit card issuer who solicits applications for credit cards on a campus of an institution of higher education shall provide to students of that campus a program of education 1or a comprehensive brochure that contains information equivalent to a program of education1 on the responsible use of credit.

     b.    A program of education 1or a comprehensive brochure1 on the responsible use of credit that meets the requirements of subsection a. of this section shall include at a minimum:

     (1)   A full explanation of the financial consequences of not paying off  credit card balances in full within the time specified by the billing statement to avoid interest charges, including an explanation of how the credit card issuer computes interest on unpaid balances;

     (2)   A full explanation of the impact of a shift from an introductory or initial interest rate to an ongoing interest rate that is higher, including the exact time when the higher ongoing interest rate takes effect, and a description of acts on the part of the cardholder that will cause an immediate shift to the higher interest rate;

     (3)   A full explanation, with examples, of how long it would take to pay off various illustrative balance amounts by paying the minimum monthly payment required under the credit card agreement at the interest rate charged by the credit card issuer;

     (4)   A full explanation of credit related terms, including fixed rates, variable rates, introductory rates, balance transfers, grace periods, annual fees and any other fees charged by the credit card issuer; and

     (5)   A full discussion of the generally accepted prudent uses of credit, and the consequences of imprudent uses, as presented by recognized consumer credit counseling agencies.


     4.    A credit card issuer who solicits applications for credit cards on a campus of an institution of higher education shall not issue a credit card to a student enrolled in that institution of higher education unless the application submitted by the student includes a certificate or other reasonable proof that the student has attended the education program 1,  or the credit card issuer has received a signed copy of the brochure, as1 required by section 3 of this act.


     5.    A credit card issuer shall not:

     a.     purchase or otherwise obtain from an institution of higher education the names or addresses of the students at the institution of higher education; or

     b.    offer gifts or other promotional incentives to students at an institution of higher education in order to entice the students to apply for a credit card.


     6.    It shall be unlawful for a credit card issuer to take any debt collection action, including, but not limited to, telephone calls or demand letters against the parent or legal guardian of a student for whom a credit card has been issued, unless the parent or legal guardian has agreed in writing to be liable for the debts of the student under the credit card agreement.


     17. For purposes of complying with the provisions of this act, a credit card issuer that solicits applications for credit cards on a campus of higher education, may request confirmation from a student to be solicited, that that the student has a valid student identification issued by the institution of higher education.1

     1[7.] 8.1     A 1knowing1 violation under this act shall be an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).


     1[8.] 9.1     This act shall take effect on the 180th day following enactment.