VOLUME 41, ISSUE 17
SEPTEMBER 8, 2009
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
Notice of Receipt of Petition for Rulemaking
Money Order Dormancy Fees
Petitioner: MoneyGram Payment Systems, Inc., and The Western Union Company
Take notice that on July 14, 2009, the Division of Consumer Affairs (Division)
received a petition for rulemaking from MoneyGram Payment Systems, Inc. and
its predecessors and affiliates ( MPSI ), by Lonnie Keene, Chief Compliance
Officer and The Western Union Company and its predecessors and affiliates,
(Western Union), by Francis Aaron Henry, Assistant General Counsel. The petitioners
1. A rulemaking process pursuant to N.J.S.A. 52:14B-4 and N.J.A.C. 13:1D to
adopt a rule specifying the circumstances under which retroactive calculation
of money order inactivity fees is permitted by N.J.S.A. 56:8-182, which was
enacted on January 13, 2008 and applies to money orders sold in New Jersey
after April 12, 2008.
2. A rulemaking process pursuant to N.J.S.A. 52:14B-4 to amend N.J.A.C. 18:13
-3.2 to harmonize it with the requirements of N.J.S.A. 56:8-182.
MPSI and Western Union petition the Division "to adopt a [rule] to clarify
that dormancy fees imposed in accordance with [ N.J.S.A. 56:8-182] may be accrued
retroactively to the date of issuance of a money order once the 12-month Initial
Period under [ N.J.S.A.
56:8-182] has lapsed."
The purpose of the petitioners' request is to confirm through a Division rule "that
issuers of money orders in New Jersey may continue to administer money order
inactivity fees, consistent with current industry and regulatory standards,
by determining such fees on a retroactive basis after a 12-month initial period
has expired." Otherwise, "issuers of money orders in New Jersey could
be required to charge higher initial transaction fees in order to maintain
current returns on capital. . . . The rule would maintain reduced costs for
the majority of the petitioners' New Jersey customers whose money orders are
cashed in a timely manner and help maintain the petitioners' current dormancy
n accordance with N.J.A.C. 1:30-4.2, the Division shall subsequently mail to
the petitioners, and file with the Office of Administrative Law, a notice of
action on the petition.