Push to bounce unsolicited checks in New Jersey

A New Jersey lawmaker is pushing to ban deceptive and unsolicited checks.

Paul Moriarty, a Garden State assemblyman, is spearheading legislation that would bar unsolicited checks. The lawmaker was inspired after a constituent showed him an unsolicited check for $8.25. If cashed, the consumer would have been automatically enrolled in a roadside assistance plan, costing the consumer $15.99 a month.

If turned into law, businesses wouldn't be allowed to send consumers unsolicited checks that in turn automatically charge the consumer monthly fees. Paul Moriarty, the assemblyman who is pushing the ban says, "Right now, consumers are at their most vulnerable to fall for a scheme that appears to offer them instant cash but would end up costing them much more in the long-run."

If a business does send an unsolicited check, under New Jersey's Consumer Fraud Act, the business will be fined $10,000. If the business continues, they will face $20,000.

Businesses will still be able to mail checks to consumers as long as there has been a pre-existing b-to-c relationship and as long as the checks are from legitimate banks.

The proposed legislation will most likely be considered by the Consumer Affairs Committee, according to an article from the Associated Press.