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Bill > S1731


NJ S1731

NJ S1731
Establishes prohibited practices for creditors.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 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 collecting debts from individuals in New Jersey for personal, family, or household purposes, deeming certain actions unfair, deceptive, or unreasonable. These prohibited practices include communicating or threatening to communicate about a debt to someone not liable for it, harassing or embarrassing debtors through communication at unreasonable times or with excessive frequency, using threats of violence or offensive language, or threatening actions the creditor doesn't typically take. It also forbids creditors from using forms that look like official court documents, impersonating law enforcement or government officials, failing to clearly identify themselves in written communications, making calls without disclosing the caller's identity and the debtor's name, contacting debtors at their place of employment if it's not their residence, causing debtors to incur expenses for communication to hide the true purpose, and attempting to join a debtor's social media network or contacting them through social media for debt collection. Violators face civil penalties of $2,500 for a first offense and $5,000 for subsequent offenses, and individuals harmed by these practices can sue in Superior Court for damages.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)

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