SENATE, No. 806

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 22, 1996

 

 

By Senators KOSCO and KYRILLOS

 

 

An Act concerning consumer banking services 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. The Legislature hereby finds and declares that:

    a. State and federally chartered depository institutions, (banks, savings banks, savings and loan associations and credit unions) have put considerable emphasis on the use by customers of automated teller machines (ATMs) cards rather than carrying cash;

    b. Many of the largest depository institutions are trying to convince customers to use ATMs more and to visit their branches less, so branches can be closed and operating costs can be cut;

    c. Most depository institutions already charge a fee to at least some customers when they use an ATM owned by another bank or independent company:

    d. Under considerable pressure, VISA, which operates the VISA U.S.A's Plus network connecting the ATMs of thousands of banks, has reversed its policy and agreed to permit depository institutions using the Plus network to charge their customers the access fee the depository institutions are charged for using the Plus network.

    e. It is important, therefore, to authorize the Division of Consumer Affairs in the Department of Law and Public Safety to conduct an investigation into the fees depository institutions in this State are charging customers for accessing information with respect to personal checking and savings accounts and for accessing those accounts through an ATM to determine if the fees are reasonable and not excessive.

 

    2. a. The division shall conduct an investigation of the fees State and federally chartered banks, savings banks, savings and loan associations and credit unions charge customers for the following consumer banking services: phone and electronic access to information concerning checking and savings accounts; and transactions using an ATM.

    b. State and federally charted banks, savings banks, savings and loan associations and credit unions shall provide information to the division upon request concerning the fees charged customers for the following consumer banking services: phone and electronic access to information concerning checking and savings accounts; and transactions using an ATM.

 

    3. a. Consumer banking services constitute a service within the term "merchandise" as defined pursuant to section 1 of P.L.1960, c.39 (C.56:8-1).

    b. It shall be an unlawful practice for a person to charge unreasonable and excessive fees in order for a consumer to obtain access to information about the consumer's personal checking or savings account, or both.

    c. It shall be an unlawful practice for a person to charge unreasonable and excessive fees for transactions involving the use of an automated teller machine.

 

    4. Upon completion of its investigation pursuant to section 2 of this act, the division 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.

 

    5. This act shall take effect immediately, except section 3 shall take effect upon adoption of the regulations required pursuant to section 4 of this act.

 

 

STATEMENT

 

    This bill requires the Division of Consumer Affairs to conduct an investigation of the fees depository institutions charge customers for the following consumer banking services: phone and electronic access to information concerning personal checking and savings accounts; and transactions using an ATM card. The bill provides that it is an unlawful practice within the meaning of the Consumer Fraud Act, P.L.1960, c.39 (C.56:8-1 et seq), for any person to charge unreasonable and excessive fees: to a consumer in order to obtain access to information about that consumer's personal checking or savings account, or both; or for transactions involving the use of an automated teller machine. The bill requires the Division of Consumer Affairs, upon completion of its investigation, to promulgate regulations necessary to effectuate the provisions of the bill.


                             

 

Concerns fees charged customers for certain consumer banking services.