NJ S2198

Invalidates arbitration agreements when a business entity fraudulently created a contractual relationship with a consumer without their consent by unlawfully using their personal identifying information

Prevents businesses from enforcing arbitration clauses in original contracts when the dispute involves accounts or services the consumer never agreed to open

Responds directly to the Wells Fargo scandal where bank employees fraudulently opened accounts in customers' names to meet sales quotas, then forced those customers into arbitration using agreements from their legitimate accounts

Amends New Jersey's arbitration law (P.L.2003, c.95) to add consumer protections against identity-based fraud by trusted entities

Takes effect 30 days after enactment