Bill To Curb Utility Credit Card Billing Advances [AUDIO]

Legislation in Trenton would put the brakes on a utility and cable company practice of prematurely billing credit card customers before the billing due date for customers who pay by cash or check.

The bill is co-sponsored by Assemblyman Charles Mainor. He says for one thing, it allows utility and cable customers to pay a bill on the date they agreed to and not before. Mainor says for many New Jerseyans on a tight budget...some living paycheck to paycheck,... the practice can upset their delicate finances.

He says that upset can be what he calls, "a major problem." Mainor adds, "when you stop and you think about it, it can force the consumer to go into bank fees if no money was there, and this would try to avoid that."

The legislation directs the Board of Public Utilities ("BPU") to prohibit any telecommunications company, electric public utility, gas public utility or cable television company from charging a credit card customer or direct debit customer for service prior to the actual billing due date that would apply if the customer were to pay by cash, money order or personal check, unless: (1) the customer expressly agrees in writing to be charged for service on an earlier date; or (2) the customer makes such a request to the company or utility by telephone or by other means approved by the BPU.

The legislation unanimously passed the Assembly Telecommunications and Utilities Committee. A representative from Verizon expressed unspecified concerns about the bill, but said they will work with the sponsors to iron them out.