TRENTON, N.J. — Did you ever get automatically charged by a service for a bill before it was due? Well, New Jersey lawmakers want to put and end to that practice.
New Jersey lawmakers are advancing legislation aimed at stopping utility and telecommunications companies from withdrawing customer payments before official bill due dates without clear consent, following growing consumer complaints tied to autopay and direct debit programs.
Assembly Bill 1959, approved by the Assembly Consumer Affairs Committee with amendments in February, would direct the New Jersey Board of Public Utilities to prohibit electric, gas, cable, and telecommunications providers from charging customers early simply because they use automatic electronic payments.
Under the proposal, companies could not process payments from credit cards or direct debit accounts before the standard billing due date that applies to customers paying by cash, check, or money order unless the customer specifically agrees or requests the earlier withdrawal.
The measure comes as more consumers nationwide report unexpected early autopay deductions that can leave bank accounts short days before anticipated billing deadlines.
Early Autopay Withdrawals Draw Consumer Complaints
The issue has surfaced repeatedly among major telecom and utility providers, where customers enrolled in autopay programs say funds are often withdrawn several days before the due date printed on monthly statements.
Customers of Verizon, AT&T, T-Mobile, Comcast/Xfinity, and multiple utility companies across the country have posted complaints online and through consumer watchdog platforms describing early payment processing tied to autopay systems.
In many cases, customers said they expected payment to occur on the listed due date only to discover withdrawals processed earlier through ACH bank drafts or stored payment methods.
Complaints commonly involve:
- withdrawals occurring two to seven days early,
- overdraft fees,
- paycheck timing conflicts,
- and confusion tied to autopay discount programs.
Verizon customers, for example, have repeatedly complained through consumer forums and Better Business Bureau filings that automatic withdrawals occurred before the due date listed on billing statements.
Some utility providers nationwide similarly use “draft dates” tied to recurring billing programs that process payments before mailed payment deadlines.
Bill Focuses on Fairness Between Payment Methods
The New Jersey legislation seeks to ensure customers using electronic payments are not effectively assigned earlier due dates than customers paying manually.
As amended, the bill would apply to:
- telecommunications companies,
- electric public utilities,
- gas public utilities,
- and cable television companies.
Under the proposal, early processing would still be allowed if:
- the customer agrees to the earlier charge date, or
- the customer requests it by phone or another method approved by the Board of Public Utilities.
The committee also amended the legislation to remove a requirement that customer consent be provided in writing.
Supporters of the measure argue the issue disproportionately affects residents living paycheck-to-paycheck, seniors on fixed incomes, and households carefully timing bill payments around payroll deposits.
Even a withdrawal processed several days earlier than expected can trigger cascading financial consequences, including overdraft fees or bounced transactions.
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Key Points
• New Jersey bill would stop utilities from charging autopay customers before official due dates
• Legislation targets electric, gas, telecom, and cable providers statewide
• Consumer complaints nationwide have focused on early ACH and autopay withdrawals
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Growing Scrutiny of Recurring Billing Practices
The legislation arrives amid broader national scrutiny over recurring payment systems and automated billing practices.
Federal regulators including the Consumer Financial Protection Bureau and Federal Trade Commission have increasingly examined concerns involving:
- unclear autopay disclosures,
- recurring payment authorization,
- and billing practices tied to overdraft risks.
Consumer advocates have argued that some companies blur the distinction between:
- a bill’s printed due date,
- and the actual date electronic payments are withdrawn.
The rise of autopay discount programs has also intensified concerns because customers may feel pressured to enroll in automatic withdrawals to avoid higher monthly rates.
While similar legislation remains uncommon nationwide, New Jersey’s proposal represents a more direct attempt to regulate how companies handle payment timing for electronic billing customers.
Bill Moves Forward in Legislature
Assembly Bill 1959 was reported favorably by the Assembly Consumer Affairs Committee on Feb. 12 with committee amendments following technical review for the 2026-2027 legislative session.
If enacted, the Board of Public Utilities would oversee implementation and enforcement of the new payment timing restrictions.
The bill remains under consideration in the New Jersey Legislature.
