Bill Text: NJ A4076 | 2020-2021 | Regular Session | Introduced
Bill Title: Requires certain financial institutions to provide schedule of fees, charges, and penalties for deposit accounts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-05-07 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A4076 Detail]
Download: New_Jersey-2020-A4076-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Requires certain financial institutions to provide schedule of fees, charges, and penalties for deposit accounts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning deposit account fee schedules 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 a checking account, savings account, investment account, or other deposit account.
"Commissioner" means the Commissioner of Banking and Insurance.
"Financial institution" means a State chartered bank, savings bank, savings and loan association, or credit union, which accepts deposits of funds.
2. a. A financial institution shall maintain a written schedule of fees, charges, and penalties, applicable to each type of account offered by the institution. The schedule shall contain the following information:
(1) a description of all fees, charges, and penalties which may be charged or assessed against an account or an account holder in connection with the account;
(2) the amount of the fees, charges, or penalties, or the method by which the amount will be calculated;
(3) a description of the conditions under which fees, charges, or penalties will be charged or assessed; and
(4) the minimum balance requirements that affect fees, charges, and penalties, and a description of how minimum balances will be calculated.
b. A financial institution shall provide the schedule required pursuant to subsection a. of this section to:
(1) any person upon request;
(2) a potential customer before an account is opened or a service is rendered; and
(3) a depositor at any other times or under any other circumstances that the commissioner deems appropriate.
3. A financial institution which violates the provisions of this act shall be subject to a civil penalty of not more than $500 for each violation. The commissioner shall collect the penalty 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 shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of this act.
5. This act shall take effect on the 90th day next following enactment.
STATEMENT
This bill requires a State-chartered financial institution to maintain a written schedule of fees, charges, and penalties, applicable to each type of account offered by the institution. It is the sponsor's intent to provide a higher level of transparency for consumers with respect to fees associated with deposit accounts so that meaningful comparisons can be more easily made.
The schedule shall contain the following information:
(1) a description of all fees, charges, and penalties which may be charged or assessed against an account or against an account holder in connection with the account;
(2) the amount of the fees, charges, or penalties, or the method by which the amount will be calculated;
(3) a description of the conditions under which fees, charges, or penalties will be charged or assessed; and
(4) the minimum balance requirements that affect fees, charges, and penalties, and a description of how minimum balances will be calculated.
The bill requires the financial institution to provide the schedule to:
(1) any person upon request;
(2) a potential customer before an account is opened or a service is rendered; and
(3) a depositor at any other times or under any other circumstances that the commissioner deems appropriate.
The bill also provides a civil penalty for each violation, to be collected by the Commissioner of Banking and Insurance in a summary manner pursuant to the "Penalty Enforcement Law of 1999." Finally, the bill requires the commissioner to adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of this act.
