[First Reprint]
SENATE, No. 806
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 22, 1996
By Senators KOSCO and KYRILLOS
An Act concerning consumer banking services 1[and supplementing P.L.1960, c.39 (C.56:8-1 et seq.)]1.
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 1Department of Banking in consultation with the1 Division of Consumer Affairs in the Department of Law and Public Safety to conduct 1[an investigation into] a review of the disclosures provided to customers and1 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 1disclosures are sufficient and the1 fees are reasonable and not excessive.
2. a. The 1[division] Department of Banking in consultation with the Division of Consumer Affairs in the Department of Law and Public Safety1 shall conduct 1[an investigation] a review1 of 1the competitive advantages and disadvantages of applying disclosure requirements and fee restrictions differently to State and federally chartered depository institutions and of the disclosures provided to customers and1 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 1[division] department1 upon request concerning the 1disclosures provided to customers and1 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.
1[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.]1
1[4.] 3.1 Upon completion of its 1[investigation] review1 pursuant to section 2 of this act, the 1[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] department shall reports its findings to the Legislature, including any recommendations for legislation1.
1[5.] 4.1 This act shall take effect immediately 1[, except section 3 shall take effect upon adoption of the regulations required pursuant to section 4 of this act]1.
Concerns fees charged customers for certain consumer banking services.