Bill

Bill > A4598


NJ A4598

NJ A4598
Makes certain for-profit debt adjusters eligible for licensing to conduct business in State.


summary

Introduced
06/17/2024
In Committee
04/10/2025
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

Makes certain for-profit debt adjusters eligible for licensing to conduct business in State.

AI Summary

This bill expands New Jersey's existing debt adjuster licensing regulations to include for-profit debt adjusters, creating a new category of debt adjustment service providers. The bill defines a "for-profit debt adjuster" as an entity that assists debtors in negotiating or settling debts, but does not directly hold consumer funds and must comply with specific federal regulations. The legislation requires for-profit debt adjusters to obtain a license from the Commissioner of the Department of Banking and establishes new disclosure requirements for their service agreements. These agreements must now include detailed information such as the services provided, fee calculation methodology, estimated time to resolve debts, potential impacts on creditworthiness, tax implications, and a clear explanation that specific debt resolution results cannot be guaranteed. While for-profit debt adjusters will be subject to most existing regulations for debt adjusters, they will be exempt from certain requirements like bonding and financial audits that apply to nonprofit agencies. The bill also authorizes the commissioner to establish maximum fees for for-profit debt adjustment services and requires these entities to file annual reports with specific consumer and financial data. The new regulations will take effect 180 days after the bill's enactment, giving for-profit debt adjusters time to prepare for the new licensing and disclosure requirements.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Reported out of Assembly Comm. with Amendments, 2nd Reading (on 04/10/2025)

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