New Jersey § 17:3b-29

§ 17:3b-29.

a. The Legislature finds and declares that: (1) Interest that can be charged by issuers of bank credit cards may depend on the

laws of the state under which a bank is chartered or in which a federally chartered

bank has its principal office, or the laws of the state where such bank has a branch

office; (2) The United States Supreme Court has held, in accordance with the provisions of

federal law, that a national bank issuer of a bank credit card can export the rate

of interest allowed in its home state to other states, and this holding is now equally

applicable to national and state banks; (3) There has been significant and expensive litigation concerning the extent to which

certain related charges constitute part of the exportable rate of interest, but federal

and state courts and the Comptroller of the Currency have taken the expansive view

that related charges constitute a part of the exportable rate of interest; and (4) Consequently, issuers of bank credit cards have located and continue to locate

in states which have the least restrictive laws regarding interest and related charges. b. Therefore, the Legislature proposes to simplify State law with respect to interest

on bank credit cards to make this State as equally attractive as other states for

the location of bank credit card operations. c. Moreover, since the rules applicable to revolving credit plans have been the subject

of disputes by courts and regulators; since the New Jersey Department of Banking

and Insurance has advised New Jersey-based banks that under State parity law there

are no limits on late fees and related charges; and since any retroactive application

of restrictions would impose upon New Jersey-based banks a competitive disadvantage,

the Legislature proposes to “level the playing field” for New Jersey-based banks and

to preclude potentially costly litigation by permitting this act to apply to all revolving

credit plans entered into before and after the effective date of this act.