SENATE, No. 1078

STATE OF NEW JERSEY

INTRODUCED MAY 9, 1996

By Senator BRYANT

An Act concerning electronic funds transfers and supplementing Title 17 of the Revised Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. a. When an electronic fund transfer is initiated by a consumer through the use of an electronic terminal, including a telephone operated by the consumer, no fee may be imposed by any person in connection with the transaction unless a notice is provided to the consumer, in accordance with subsection b. of this section, which clearly states the following:

    (1) that a fee will be imposed in connection with a completed transaction;

    (2) the amount of the fee;

    (3) that if the consumer does not elect to continue in the manner necessary to complete the transaction after receiving the notice concerning the imposition of a fee for a completed transaction, the consumer may cancel the transaction at that point by the appropriate method, which method shall be specified in the notice, without the imposition of a fee by any person, including any person described in paragraph (2) or (3) of subsection d. of this section, who would have been involved in the transaction if the transaction been completed;

    (4) that if the consumer elects to complete the transaction, upon completion of the transaction, the consumer will receive a statement of the amount of the fee charged for the transaction, itemized by the source of the fee, if more than one source.

    b. (1) The notice required pursuant to subsection a. of this section shall appear alone on the screen of the electronic terminal or on a paper notice issued from the machine or, in the case of an electronic fund transfer by a telephone, as a voice message clearly audible to the consumer after the transaction is initiated and before the consumer is irrevocably committed to completing the transaction.

    (2) The information regarding the amount of the fee charged for a completed transaction required pursuant to paragraph (4) of subsection a. of this section shall be provided to the consumer as part of the transaction record required pursuant to 12 C.F.R. §205.9(a) and shall also be included in the periodic statement provided to the consumer by the financial institution which is the issuer of the access device used by the consumer as an item separate from the amount of the transaction.

    c. No fee may be imposed by any person in connection with any electronic fund transfer initiated by a consumer for which a notice is required pursuant to subsection a. of this section, unless:

    (1) the consumer receives that notice in accordance with subsection b. of this section; and

    (2) the consumer elects to complete the transaction, or otherwise responds in the manner necessary to effect the transaction, after receiving the notice.

    d. The requirement of notice of fees under subsection a. and the prohibition on the imposition of fees under subsection c. of this section shall apply to any fee which is or would be imposed in connection with any electronic fund transfer to which those subsections apply by:

    (1) the person operating or owning the electronic terminal or telephone at which the transaction is initiated by the consumer;

    (2) the financial institution holding the account of the customer;

    (3) any national, regional, or local network utilized to effect the transaction; and

    (4) any other party involved in the electronic funds transfer.

    2. This act shall take effect immediately.

STATEMENT

    This bill requires notice to the consumer about any fees being charged with respect to a completed electronic fund transfer, however made. The notice is required to be provided prior to an action by the consumer which irrevocably commits the consumer to completion of the transaction and which provides the consumer with the option of canceling the transaction at that point without having any fee imposed.        In addition, if a consumer completes an electronic funds transfer transaction, the transaction record must include the transaction fee or fees and indicate the source of each fee charged. The periodic statement that a consumer receives from the financial institution issuing the access device used by the consumer also must contain information on all transaction charges as items separate from the amount of each transaction involving the use of an access device.

Requires certain information with respect to electronic fund transfers.