Bill > S1310

This bill amends existing New Jersey law to make certain for-profit debt adjusters eligible for licensing to conduct business in the state, meaning these for-profit entities can now be officially authorized to operate. A "debt adjuster" is defined as someone who acts as an intermediary between a debtor and their creditors to alter debt payment terms, or who receives money from a debtor to distribute to creditors. Previously, only nonprofit social service agencies or nonprofit consumer credit counseling agencies could act as debt adjusters, and attorneys were excluded unless they were not principally engaged as debt adjusters. This bill introduces the concept of a "for-profit debt adjuster," which is a for-profit entity that helps adjust debts but does not hold or disburse consumer funds and is subject to specific federal regulations (16 C.F.R. 310.4). The bill clarifies that these for-profit debt adjusters will be subject to licensing requirements, but they will be exempt from certain bonding requirements and specific financial audit certifications that apply to nonprofit agencies. Additionally, the bill outlines new disclosure requirements for for-profit debt adjusters when entering into agreements with debtors, detailing the services, fees, estimated resolution timelines, and potential impacts on creditworthiness, and it specifies that the fees charged by these for-profit entities will be established by the Commissioner of Banking. The bill also clarifies that any provisions of the law applicable to for-profit debt adjusters will only apply if they do not conflict with federal regulations.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/S1310