Bill Text: NJ A2475 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires financial institution to notify account holder when information relative to an electronic fund transfer is shared with third party.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-02-04 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A2475 Detail]
Download: New_Jersey-2016-A2475-Introduced.html
Sponsored by:
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
SYNOPSIS
Requires financial institution to notify account holder when information relative to electronic fund transfer is shared with third party.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning disclosure of certain information relative to an electronic fund transfer and amending P.L.1983, c.466.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1983, c.466 (C.17:16K-3) is amended to read as follows:
3. A financial institution may disclose information relative to an electronic fund transfer or account to a third party when:
a. The disclosure is necessary for the completion of an electronic fund transfer;
b. The possessor of the account gives written permission to the financial institution to disclose the information;
c. The disclosure is for the purpose of verifying the existence and condition of an account for a third party, including, but not limited to, a credit bureau or a merchant;
d. The disclosure is necessary to resolve an error or an inquiry as to an alleged error;
e. The disclosure is made to a supervisory agency in the exercise of its supervisory and regulatory examination functions with respect to a financial institution; or
f. The disclosure is made to a government agency in the exercise of its statutory functions with respect to a person applying for or receiving public assistance.
A financial institution shall notify an account holder in writing anytime the financial institution discloses information to a third party pursuant to this section.
(c.f. P.L.1983, c.466, s.3)
2. This act shall take effect immediately.
STATEMENT
Under current law, a financial institution may disclose information relative to an electronic fund transfer or account to a third party in certain limited circumstances. This bill would require a financial institution to notify the account holder in writing anytime a financial institution discloses that information to a third party under these circumstances.
