Bill
Bill > S1724
NJ S1724
Regulates pay-off of trade-in vehicles and certain vehicle title releases.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 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 subject to a penalty of up to $1,000 for the first offense and up to $2,000 for each subsequent offense. In addition, a dealer would be required to pay any late cost or fee incurred by the customer as a result of the dealer's failure to pay the remaining loan on a customer's trade-in in a timely manner. 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 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 fines up to $1,000 for the first offense and $2,000 for subsequent offenses, as well as any late fees incurred by the customer. The bill also requires secured parties (lenders) to release vehicle titles within 15 days of receiving payment from the dealer. Failure to do so results in civil penalties. Additionally, the bill invalidates vehicle levies (seizures) unless the creditor takes actual possession of the vehicle within 30 days, and exempts subsequent good faith purchasers from responsibility for such levies.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1724 |
BillText | https://pub.njleg.gov/Bills/2024/S2000/1724_I1.HTM |
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