N.J. Admin. Code § 17:18-3.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:18-3.2 - Dormancy fees; unconscionability; limitations

(a) No dormancy fees may be imposed by a holder unless:

1. There is an enforceable written contract between the holder and the owner of the property pursuant to which the holder may impose such a fee; and

2. The holder regularly imposes charges and does not regularly reverse or otherwise cancel those charges with respect to the property. Also, no additional charges shall be assessed as a result of escheatment of the property.

(b) In addition to the requirements of (a) above, dormancy fees may not be unconscionable. Dormancy fees are not unconscionable when applied where:

1. Holders of money orders pursuant to 46:30B-13:

i. Impose the fees uniformly to all of the issuer's money orders;

ii. Clearly disclose the fees and terms to the purchaser of the money order at the time of the purchase and to the recipient of the money order by:

(1) Written notice of the dormancy fees on the money order or the sales receipt for the money order; and

(2) Written notice on the money order, or the sales receipt for the money order, of a telephone number that the consumer may call for information concerning any dormancy fees;

iii. Are permitted to impose fees by written agreement between the issuer and the purchaser;

iv. Stop accruing fees after the value of the money order is escheated;

v. Impose no fees for money orders issued before April 12, 2008, until three years from the date of purchase, in which case fees may then be imposed retroactively to the date of purchase, not to exceed the sum of $.25 per month per money order or the aggregate amount of $ 9.00 per money order; and

vi. Impose no fees for money orders issued on or after April 12, 2008, for the first year nor retroactively to the date of purchase, and fees shall not exceed the sum of $ 2.00 per month per money order or the aggregate amount of $ 48.00 per money order.

2. Holders of travelers checks pursuant to 46:30B-13:

i. Impose the fees uniformly to all of the issuers travelers checks;

ii. Clearly disclose the fees and terms to the purchaser of the travelers check at the time of the purchase and to the recipient of the travelers check by:

(1) Written notice of the dormancy fees on the travelers check or the sales receipt for the travelers check; and

(2) Written notice on the travelers check, or the sales receipt for the travelers check, of a telephone number that the consumer may call for information concerning any dormancy fees;

iii. Are permitted to charge fees by written agreement between the issuer and the purchaser;

iv. Stop accruing fees after the value of the travelers check is escheated;

v. Impose no fees for the first year nor retroactively to the date of purchase, and beginning the 13th month, an issuer may impose fees not to exceed the sum of $ 2.00 per month per travelers check or the aggregate amount of $ 48.00 per travelers check;

3. Holders of checks, drafts and similar instruments issued or certified by a financial organization pursuant to 46:30B-16 and 17:

i. Impose the fees uniformly to all of the instruments issued by the holder;

ii. Clearly disclose the fees to the owner/payee of the instrument;

iii. Do not accrue the fees until at least one year after the issue date and the fees stop accruing after the value of the instrument is escheated;

iv. Are permitted to do so by contract between the holder or issuer and the owner/payee; and

v. Do not impose fees that exceed the sum of $.25 per month per instrument or the aggregate amount of $ 9.00 per instrument;

4. Holders of demand or savings deposits and any funds paid toward the purchases of shares, mutual fund investment certificates, or any other interests in a financial organization held pursuant to 46:30B-18 and 20:

i. Impose the fees uniformly to all property types referred to in 46:30B-18;

ii. Clearly disclose the fees to the owner of the property;

iii. Do not accrue the fees until at least one year of no activity for the property or of any related property of the owner held by the holder;

iv. Are permitted to do so by contract between the holder and the owner;

v. Do not impose fees that exceed the sum of $ 5.00 per month per property item or the aggregate amount of $ 120.00 per said item; and

vi. For property held in excess of $ 2.00 pursuant to 46:30B-18, no more than three months before the initial imposition of those charges or cessation of interest, have given written notice to the owner of the amount of those charges at the last known address of the owner stating that those charges will be imposed or that interest will cease;

5. Security brokers who are the holders of security accounts:

i. Impose the fees uniformly to all security accounts;

ii. Clearly disclose the fees to the owners of the security accounts;

iii. Do not accrue the fees until at least one year of no activity for the security account held by the security broker;

iv. Are permitted to do so by contract between the security broker and the owner; and

v. Do not impose fees that exceed the sum of $ 5.00 per month per security account or the aggregate amount of $ 120.00 per security account; and

6. Holders of all property not covered under (b)1 through 5 above:

i. Impose the fees uniformly to all property held by the holder;

ii. Clearly disclose the fees to the apparent owner who has a legal or equitable interest in any property generally at the time of the purchase;

iii. Do not accrue the fees until at least one year after the purchase date and the fees stop accruing after the value of the property is escheated;

iv. Are permitted to do so by contract between the holder and apparent owner who has a legal or equitable interest in the property; and

v. Do not impose fees that exceed the sum of $.25 per month per property item or the aggregate amount of $ 9.00 per said item.

N.J. Admin. Code § 17:18-3.2

Amended 46 N.J.R. 1713(a), effective 7/21/2014.