Bill Text: NJ A2653 | 2010-2011 | Regular Session | Introduced
Bill Title: Creates a credit card do-not-solicit list.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-05-13 - Introduced, Referred to Assembly Consumer Affairs Committee [A2653 Detail]
Download: New_Jersey-2010-A2653-Introduced.html
Sponsored by:
Assemblyman REED GUSCIORA
District 15 (Mercer)
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
Creates a credit card do-not solicit list.
CURRENT VERSION OF TEXT
As introduced.
An Act prohibiting 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:
"Credit card" means any card, plate, coupon book, or other single credit device that may be used from time to time to obtain credit.
"Credit card company" means any business, corporation, bank, other financial institution, agent or representative engaged in issuing credit cards.
"Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.
"Do-not-solicit list" means the credit card do-not-solicit list created pursuant to section 2 of this act.
2. The division shall establish and maintain a do-not-solicit list for consumers. The division may contract with a private vendor to establish and maintain the do-not-solicit list. The contract shall require the vendor to provide the list in a printed hard copy format, and in any other format as prescribed by the division.
The do-not-solicit list shall be confidential, and shall only be released to or used by entities engaged in the implementation, compliance, and enforcement of P.L. , c. (C. ) (pending before the Legislature as this bill). Any information contained in the list shall not be used for any purpose other than such implementation, compliance, and enforcement. Nothing in P.L.1963, c.73 (C.47:1A-1 et seq.) shall be construed to require the division to disclose any information acquired or any records created, except as provided by this act.
3. After a consumer is registered on the do-not-solicit list established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) for more than 30 days, no credit card company shall:
a. Solicit the consumer by mail, telephone or electronic mail for the issuance of a credit card;
b. Grant a credit card in the name of the consumer, notwithstanding that the company receives an application for the credit card and approves the application; or
c. Mail to the consumer a fully functional credit card.
4. No consumer shall be liable for any amount resulting from the use of an unsolicited credit card issued in violation of the provisions of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. a. The division shall provide notice to the general public of the establishment of the do-not-solicit list pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). Any consumer who wishes to submit his name to the list shall notify the division by calling a toll-free telephone number provided by the division, or in any other manner as the division may prescribe, including internet notification, provided that the consumer shall certify, under penalty of perjury, the truth of his identity.
b. A consumer may have his name removed from the registry upon written request to the division. The division shall update the do-not-solicit list not less than quarterly and the division shall make the do-not-solicit list available to credit card companies for a fee that the division shall prescribe.
6. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be construed to prohibit:
a. The granting or mailing of a credit card to a consumer in cases when such credit card is approved at a point of sale; or
b. The solicitation of a consumer, or the granting or mailing of a credit card to a consumer in cases where such solicitation, granting, or mailing is solely related to the renewal of a previously existing credit card issued in that consumer's name.
7. A violation of any provision of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be an unlawful practice subject to the penalties pursuant to P.L.1960, c.39 (C.56:8-1 et seq.), except that a credit card company may not be held liable for violating P.L. , c. (C. ) (pending before the Legislature as this bill) if:
a. The credit card company has obtained a copy of, and updated quarterly, the do-not-solicit list and has established and implemented written policies and procedures related to the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill);
b. The credit card company has trained its personnel, or telemarketers in the company's employ, in the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill);
c. The credit card company maintains records demonstrating compliance with subsections a. and b. of this section and the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill); and
d. Any subsequent unsolicited credit card marketing is the result of a bona fide error.
8. This act shall take effect on the first day of the seventh month following enactment, but the Director of the Division of Consumer Affairs may take such anticipatory administrative actions in advance of that date as may be necessary for the timely implementation of this act upon its effective date.
STATEMENT
The bill requires the Division of Consumer Affairs in the Department of Law and Public Safety to establish and maintain a credit card do-not-solicit list containing the names of consumers in this State who are not to be solicited for credit cards.
The bill authorizes the division to contract with a private vendor to establish and maintain the do-not-solicit list, provided the contract requires the vendor to provide the list in a printed hard copy format, and in any other format as prescribed by the division.
Under the bill, credit card companies may not:
C solicit registered consumers by mail, telephone or electronic mail;
C grant a credit card in the name of the registered consumer; or
C mail to the registered consumer a fully functional credit card.
The bill also specifies that no registered consumer shall be liable for any amount resulting from the use of an unsolicited credit card. The bill also exempts credit cards granted at point of sale or as renewals from its provisions.
Under the bill, the division is required to notify the public of the establishment of the do-not-solicit list. The bill specifies that a consumer who would like to submit his name to the list must notify the division through a toll-free telephone number provided by the division, or other manner prescribed by the division and certifies, under penalty of perjury, the truth of his identity. To remove oneself from the list, the consumer is required to submit a written request.
Although the bill specifies that any violation of its provisions is an unlawful practice under the Consumer Fraud Act, P.L.1960, c.39 (C.56:8-1 et seq.), it states that a credit card company could not be held liable if it was operating in compliance with the requirements of the bill and any unsolicited credit card marketing was the result of a bona fide error. An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured party.
