N.J. Bill Improves Debit Card Balance

The increasing use of debit cards has exposed a disparity in consumer protection provisions in New Jersey. Atlantic City-area state assemblyman Matthew Milam fears that identity theft fraud could rise along with debit transactions, and wants to close a legal loophole that leaves these card numbers relatively unprotected, according to a report in the Press of Atlantic City.

The legislator, a Democrat, says prohibiting the inclusion of complete debit card numbers on customer or store-retained receipts would put that information on par with the state’s credit card number law, which conceals all but the last five digits on receipts.

"This bill just makes common sense," Milam says. "In this day and age, when identity theft is proving all too common, there's no reason why a consumer's credit or debit card number should ever be made available to others."

The Federal Trade Commission says credit card fraud made up 20 percent of the 1.2 million identity theft complaints filed in 2008. The totals rose from 246,000 credit card fraud complaints in 2006 to 259,000 in 2007, and to 313,000 in 2008, the most recent annual figure available. The agency said bank fraud complaints, including debit card related problems, made up 11 percent of its identity theft complaints in 2008.

Milam’s bill appears to be on the fast track. The measure—which the New Jersey Assembly passed by a 76-0 vote in February—will face a state Senate vote and would then be subject to Gov. Chris Christie’s approval. Adam Levine, cofounder of Identity Theft 911 and former director of New Jersey Consumer Affairs from 1977 to 1982, said the proposed law would offer increased consumer protection. New Jersey in 2008 reported 8,181 identity theft complaints, with 1,907 involving credit cards and 817 involving bank accounts.