News

New Jersey bill seeks restrictions for ATM balance inquiry fees

The bill would impose a penalty of $1K per day for failing to disclose the fee in a prominent on-screen notice and allow the consumer to opt out of the transaction.

October 6, 2014

New Jersey assembly member Vincent Prieto has introduced abillthat would make it illegal under state law for an ATM operator to charge a fee to a consumer for using the ATM to make balance inquiry unless a notice is prominently displayed on the ATM screen, disclosing that a fee will be charged if the consumer chooses to continue the balance inquiry. 

As proposed, the bill requires the operator to state the amount of the fee in the on-screen notice and offer the consumer the option to decline the fee and exit without charge. Any operator in violation of the measure would be charged a civil penalty of up to $1,000 per day. This measure would be enforced by the New Jersey Department of Banking and Insurance.

In an Oct. 2 hearing, the Assembly Financial Institutions and Insurance Committee reported favorably on an amended version of the bill. This version is now eligible for consideration on the assembly floor.

A Stateside Alert offered background information on the bill:

The sponsor is a member of the majority party. The measure has yet to garner the support of cosponsors. A similar measure was introduced by the sponsor during the previous session as A.B. 2247 which was neglected to be taken up in the Assembly Financial Institutions and Insurance Committee before the end of the 2013 session. Committees are not required to hear all bills referred to them. The Democratic Party controls both chambers of the Legislature while the Governor is a member of the Republican Party.