N.J. Admin. Code § 3:1-19.4

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

Section 3:1-19.4 - Closing New Jersey Consumer Checking Accounts

(a) A depository institution may refuse to open or may close a New Jersey Consumer Checking Account for the following reasons:

1. For fraudulent activity or overdrafts, or to protect the customers or employees of the depository institution from physical harm, under the same standards which it applies to holders of its regular checking accounts:

2. If the consumer has a regular checking account or another New Jersey Consumer Checking Account in that depository institution or in any other depository institution;

3. If the consumer makes an intentional material misrepresentation to the depository institution in connection with the account; or

4. If the fees and other revenue obtained from the account are less than the cost to the depository institution to provide the account, provided that the depository institution complies with the requirements of (b) through (d) below.

(b) No depository institution is required to offer a New Jersey Consumer Checking Account at a cost to a customer which is less than the cost to the depository institution to provide the account. In computing the cost of the account, the depository institution shall deduct the investment value of deposits in the account.

(c) A depository institution that determines that the revenue it obtains through fees that it charges to the account holder is less than its cost of offering a New Jersey Consumer Checking Account, and which intends to discontinue offering the account on that basis, shall notify the Department 30 days prior to such discontinuance, and shall submit with such notice the data supporting its determination regarding cost.

(d) A depository institution which discontinues an account pursuant to (c) above shall not thereby be relieved from its statutory obligation to provide a New Jersey Consumer Checking Account to consumers unless it provides data supporting a conclusion by the Commissioner that the depository institution would lose money on any account that would satisfy the requirements of 17:16N-3.

N.J. Admin. Code § 3:1-19.4

Amended by R.1996 d.168, effective 4/1/1996.
See: 28 New Jersey Register 3(a), 28 New Jersey Register 1830(a).
In (a)1 added physical harm.
Amended by R.2001 d.112, effective 4/2/2001.
See: 33 New Jersey Register 213(a), 33 New Jersey Register 1087(a).
In (c), substituted "that" for "which" throughout; in (d), substituted "that" for "which" and substituted "N.J.S.A. 17:16N-3" for "P.L. 1991, c.210".