New Jersey Bill bans "unsolicited credit offers"

WASHINGTON - Friday, June 25, 2004 - Unsolicited credit cards could be a thing of the past in New Jersey. This bill makes the mailing or delivery of an unsolicited credit card or check an unlawful practice under the consumer fraud law, P.L.1960, c.39 (C.56:8-1 et seq.)

Bill S622 was introduced by Assemblymen Larry Chatzidakis and Francis L. Bodine in January of this year. On the 21st, Bill S622 passed the Senate by a 40-0 vote and now is proceeding to the Assembly.

L.E. Tighe with ACCESS said "This type of legislation is long overdue. It's obvious that our Federal Government, with their recent changes to the FCRA, is not going to protect the consumer. So it really is up to the states."

Tighe went on to say, "The aggressive marketing of "preapproved credit offers" has caused numerous problems, from identity theft to inaccurate credit reports."

"By stopping "pre-approved credit" offers, states may also indirectly improve the accuracy of their citizen’s credit reports. Over the last 10 years, credit grantors in fear of their best customer's being poached by a competitor have limited the information they provide to the national credit bureaus. This partial reporting of information causes credit reports to be inaccurate. If every state could cease the marketing of this information, then credit grantors might regain trust in reporting complete and accurate information," Tighe stated.

Additionally, the New Jersey bill exempts a person from liability for unauthorized use of an unsolicited credit card or check issued in that person's name. Liability rests with the company that issued the card, not the person who received it in the mail.

A violation is punishable by a fine of up to $10,000 for a first offense and up to $20,000 for a subsequent offense and possibly be subject to injunctive relief and triple damages.

To read the New Jersey Bill S622 click here.

###

About ACCESS:

ACCESS is a non-profit 501(c) (3) organization dedicated to the privacy of individual consumers’ financial information, and to assisting victims of incorrect credit reporting, identity theft and financial fraud. ACCESS website is designed to serve as a source of news, information and community for both victims and those who would like to avoid becoming a victim of current practices within the credit industry. The access website can be found at http://www.GuardMyCreditFile.org , and currently has offices in Washington, DC, Nebraska and California.

For further information, contact:

Jim Malmberg
(818) 728-1100 phone
(818) 986-6156 facsimile