Bill Text: NJ A3647 | 2014-2015 | Regular Session | Introduced
Bill Title: Limits late fees assessed by issuer of credit cards.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2014-09-15 - Introduced, Referred to Assembly Consumer Affairs Committee [A3647 Detail]
Download: New_Jersey-2014-A3647-Introduced.html
Sponsored by:
Assemblyman MICHAEL PATRICK CARROLL
District 25 (Morris and Somerset)
SYNOPSIS
Limits late fees assessed by issuer of credit cards.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain credit card fees 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:
"Consumer" means a natural person who is a resident of this State.
"Credit card" means any instrument or device, whether known as a credit card, credit plate, or by any other name, issued with or without fee by an issuer for the use of the credit card holder in obtaining money, goods, services or anything else of value on credit.
"Credit card holder" means a consumer named on the face of a credit card to whom or for whose benefit the credit card is issued by an issuer.
"Issuer" means the person which issues a credit card or a debit card or its duly authorized agent.
"Late fee" means a fee charged to a credit card holder by an issuer when a payment is not received by the due date.
2. An issuer shall not charge a late fee to a credit card holder in an amount that is in excess of the amount that is late.
3. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety 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.
4. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to violate the provisions of this act.
5. This act shall take effect immediately.
STATEMENT
This bill prohibits an issuer of a credit card from charging a late fee to a credit card holder that is in excess of the amount that is late. The bill defines "late fee" as a fee charged to a credit card holder by an issuer when a payment is not received by the due date.
A violation of this bill's provisions is an unlawful practice and a violation of the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). Thus, any person who violates any of the provisions of the bill is liable to a penalty of not more than $10,000 for the first offense and not more than $20,000 for the second and each subsequent offense. In addition, a violation may result in cease and desist orders issued by the Attorney General, and the awarding of treble damages, attorneys' fees and costs of suit to the injured party.
