Bill Text: NJ A3412 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires depository institutions to provide paper account statements to elder adults.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed - Dead) 2016-06-30 - Received in the Senate, Referred to Senate Commerce Committee [A3412 Detail]
Download: New_Jersey-2016-A3412-Introduced.html
Sponsored by:
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
Co-Sponsored by:
Assemblywoman Chaparro
SYNOPSIS
Requires depository institutions to provide paper account statements to elder adults.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning depository institutions and account statements and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Account" means an account in a depository institution with respect to which the account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone transfers, or other similar items for the purpose of making payments or transfers to third persons or others, including a demand deposit account, negotiable order of withdrawal account, draft account, savings deposit account subject to automatic transfers, share draft account, and all savings deposit and share accounts other than time deposit accounts. "Depository institution" means a State chartered bank, savings bank, savings and loan association or credit union doing business in this State.
"Elder adult" means an individual who is at least 65 years of age.
"Periodic account statement" means a written statement provided on a regular basis at the end of each periodic cycle by a depository institution to an account holder that reflects all debits and credits to an account held by the account holder during a periodic cycle.
"Periodic cycle" means a period of time which is equal to or shorter than a calendar quarter and, if shorter than a calendar quarter, divides a calendar quarter into approximately equal units of time.
2. Notwithstanding any other law to the contrary, with respect to any account held by an elder adult, a depository institution shall mail periodic account statements in paper form to the account holder without charge.
3. If a depository institution violates this act, the Commissioner of Banking and Insurance may order the depository institution to cease any violation or subject the institution to a fine of not more than $500 for each violation. The fine shall be collected by the commissioner in a summary manner pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
4. The commissioner may 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
on the 90th day next following enactment.
STATEMENT
This bill provides that a State bank, savings bank, savings and loan association or credit union shall mail periodic account statements in paper form to any account holder that is an elder adult without charge.
Under the bill a "periodic account statement" means a written statement provided on a regular basis at the end of each periodic cycle by a depository institution to an account holder that reflects all debits and credits to an account held by the account holder during a periodic cycle. A "periodic cycle" means a period of time which is equal to or shorter than a calendar quarter and, if shorter than a calendar quarter, divides a calendar quarter into approximately equal units of time.
It has come to the sponsor's attention that many seniors are being forced into using "online banking," or accepting electronic account statements, by certain depository institutions charging fees for paper statements. Many seniors do not have access to computers or the computer experience necessary to manage accounts online. Therefore, this bill is intended to help senior citizens continue banking through paper statements by prohibiting depository institutions from charging fees to senior citizens for those paper account statements.
