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A 5406

Prohibits self-service storage facilities from charging certain punitive fees to consumers paying with vouchers under certain circumstances.

2024-2025 Regular Session Introduced by Linda Carter and 2 co-sponsors

New Jersey A-5406 bars self-storage owners from charging late or unlock fees when voucher payments from government programs are delayed, with penalties for violations.

Introduced in the Assembly, Referred to Assembly Consumer Affairs Committee
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Bill Summary · A 5406

Summary: New Jersey Assembly Bill A-5406 (Introduced Feb. 13, 2025)

Overview

A-5406 would prohibit self-service storage facilities from charging certain punitive fees when a payment is delayed because the payer is using a voucher issued by a government or income-assistance program (e.g., Work First New Jersey). The bill supplements New Jersey’s consumer protection and storage-lease framework and establishes penalties for violations. It takes effect immediately upon enactment.

Purpose

  • Protect voucher-reliant consumers from punitive charges when voucher payments are delayed by the issuing authority.
  • Ensure that delay caused by the voucher program does not result in penalties that could jeopardize access to stored belongings.

Key Provisions

Definitions

  • “Owner” and “Self-service storage facility” align with existing New Jersey statutory definitions.
  • “Voucher” refers to payments provided by a government entity under Work First New Jersey or any other income-assistance program established by law.

Prohibitions

  • No owner may charge:
    • a late fee,
    • a pre-foreclosure fee, or
    • a fee to unlock access to a storage unit when the voucher payment is delayed by the issuing authority.

Penalties and Enforcement

  • First violation: a civil penalty of $1,000, collected by the Director of Consumer Affairs in a summary proceeding under the Penalty Enforcement Law of 1999.
  • Subsequent violations: treated as an unlawful practice under the Consumer Fraud Act (CFA).
    • CFA penalties: up to $10,000 for a first CFA offense and up to $20,000 for any subsequent CFA offense.
    • Additional consequences may include cease and desist orders by the Attorney General, treble damages, and costs to the injured party.

Effective Date

  • Immediate (no future waiting period).

Affected Parties

  • Self-service storage facility owners/operators in New Jersey.
  • Consumers paying with vouchers under Work First New Jersey or other income-assistance programs issued by law.
  • Government entities issuing vouchers (indirectly affected, insofar as voucher delays impact fee assessments).

Legislative Status and Sponsors

  • Introduced in the Assembly on February 13, 2025.
  • Referred to Assembly Consumer Affairs Committee (also noted in Economic Development actions).
  • Primary sponsor: Keith Brown; cosponsor: Jodi Giglio.

Potential Impacts

  • Consumer protections: strengthens safeguards for voucher-reliant tenants by preventing punitive storage-fee charges tied to voucher delays.
  • Compliance and costs for storage facilities: may require policy updates to ensure no prohibited charges are assessed when voucher delays occur.
  • Legal landscape: reinforces CFA enforcement in the context of self-storage fees and voucher payments.

Next Steps

  • As a bill introduced and referred to committee, its passage would require committee approval, floor votes in both chambers, and signature by the Governor to become law.

Compiled from official sources — confirm details with the bill’s official record.

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