Bill
Bill > A1483
NJ A1483
Regulates pay-off of trade-in vehicles and certain vehicle title releases.
summary
Introduced
01/14/2020
01/14/2020
In Committee
04/26/2021
04/26/2021
Crossed Over
03/25/2021
03/25/2021
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill requires motor vehicle dealers to pay the remaining loan on a customer's trade-in within 15 days of accepting that trade-in. The bill also requires the dealer to provide proof of the payment to the customer upon request. A dealer who violates the bill's provisions is to be subject to a penalty of up to $1,000 for the first offense and up to $2,000 for each subsequent offense. In addition, the bill requires a secured party to release the title within 15 days of receipt of payment from the motor vehicle dealer. When the balance is paid by non-certified check, the secured parties are required to release the title within 15 days from the date the check is credited to their account. A secured party who fails to comply with these time requirements is to be subject to a civil penalty of up to $500 for the first offense and up to $1,000 for each subsequent offense. Under current law, a creditor that takes actual or constructive possession of a motor vehicle is required to notify the Chief Administrator of the Motor Vehicle Commission. This bill invalidates levies placed on vehicles unless a creditor taking constructive possession of the vehicle seizes and takes actual possession of the vehicle within 30 days of providing notice to the chief administrator. The bill also exempts a subsequent purchaser of a trade-in motor vehicle from financial responsibility for a levy on a motor vehicle that is not in a creditor's actual possession. The chief administrator is to release title transfer restrictions on motor vehicles that have been legally, but not physically, seized after 30 days or upon request of the good faith purchaser.
AI Summary
This bill requires motor vehicle dealers to pay off the remaining loan on a customer's trade-in vehicle within 15 days of accepting the trade-in, and provide proof of payment to the customer upon request. Dealers who violate these provisions face penalties up to $1,000 for the first offense and $2,000 for subsequent offenses. The bill also requires secured parties (lenders) to release the vehicle title within 15 days of receiving payment from the dealer, with penalties up to $500 for the first offense and $1,000 for subsequent offenses if they fail to do so. Additionally, the bill invalidates levies (legal claims) on vehicles unless the creditor seizes and takes actual possession of the vehicle within 30 days, and exempts good faith purchasers from responsibility for such levies.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (4)
Last Action
Received in the Senate, Referred to Senate Commerce Committee (on 04/26/2021)
Official Document
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