Bill

Bill > S3843


NJ S3843

Requires motor vehicle dealers provide loan application to consumers.


summary

Introduced
06/01/2021
In Committee
12/06/2021
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill makes it an unlawful practice under the consumer fraud act for a motor vehicle dealer to fail to provide a consumer with a copy of any loan application prepared in connection with the sale of a motor vehicle. Under current law, a motor vehicle dealer is not specifically required to provide a consumer with a copy of the loan application prepared in connection with the sale of a motor vehicle. This bill clarifies that a motor vehicle dealership is required to provide a consumer with a copy of any loan application prepared in connection with the sale of a motor vehicle. It is the sponsor's view that not requiring the disclosure of loan applications prepared by motor vehicle dealers may allow for the submission of inaccurate financial information to lenders in order to permit a consumer to qualify for a motor vehicle loan for which he or she would otherwise be unqualified. An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.

AI Summary

This bill requires motor vehicle dealers to provide consumers with a copy of any loan application prepared in connection with the sale of a motor vehicle. Under current law, motor vehicle dealers are not specifically required to provide consumers with a copy of the loan application. The bill aims to prevent the submission of inaccurate financial information to lenders, which could allow consumers to qualify for loans they would otherwise not be eligible for. Failure to provide the loan application copy is considered an unlawful practice under the Consumer Fraud Act, punishable by monetary penalties and other enforcement actions.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Reported from Senate Committee, 2nd Reading (on 12/06/2021)

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