summary
Introduced
03/07/2022
03/07/2022
In Committee
03/07/2022
03/07/2022
Crossed Over
Passed
Dead
01/08/2024
01/08/2024
Introduced Session
2022-2023 Regular Session
Bill Summary
This bill establishes those practices of a creditor, in collecting payment of a debt, that are to be considered unfair, deceptive, and unreasonable. Among those practices are: (1) communications or threats of communications, or implications of the fact of debt or alleged debt to a person other than the person who may reasonably be expected to be liable for the debt; (2) harassing or embarrassing communication by the creditor to the alleged debtor, including, but not limited to, communication at an unreasonable hour, with unreasonable frequency, by threats of violence, by use of offensive language, or by threats of any action which the creditor in the usual course of business does not in fact take; and (3) communications with the alleged debtor using forms or other instruments that simulate the form or appearance of the judicial process. Among other practices considered in the bill to be unfair, deceptive, and unreasonable is the simulation of a law enforcement officer or agent of the government and attempts to join the debtor's social media network. Civil penalties in the bill include $2,500 for a first violation and $5,000 for any subsequent violation. Additionally, any person aggrieved by violation of this act may bring an action in Superior Court to recover damages.
AI Summary
This bill establishes prohibited practices for creditors when collecting debts from natural persons in New Jersey. It considers certain practices, such as communicating with third parties about the debt, harassing or embarrassing the alleged debtor, and using forms that simulate legal processes, to be unfair, deceptive, and unreasonable. The bill also prohibits creditors from impersonating law enforcement or government agents, and from joining a debtor's social media network or communicating through social media for debt collection purposes. Violators face civil penalties of $2,500 for a first offense and $5,000 for subsequent violations, and individuals can also bring lawsuits to recover damages.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Assembly Consumer Affairs Hearing (10:00 6/2/2022 Committee Room 13, 4th Floor, State House Annex, Trenton, NJ) (on 06/02/2022)
Bill Topics
Banking, Finance, and Domestic Commerce
- ‐ Consumer Finance and Credit, including Credit Cards
- ‐ Consumer Safety and Consumer Fraud
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2022/A3131 | 03/01/2022 |
| BillText | https://www.njleg.state.nj.us/Bills/2022/A3500/3131_I1.HTM | 03/08/2022 |
| Bill | https://www.njleg.state.nj.us/Bills/2022/A3500/3131_I1.PDF | 03/08/2022 |
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