Bill > A2349

Introduced Session

This bill provides that, in addition to any other remedies and penalties provided by law, it is an unlawful practice under the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), for any person to engage in the business of making deferred deposit or "payday" loans to consumers in this State. In a payday loan, the lender typically cashes a consumer's personal check and agrees to defer presentment or deposit of the check until the consumer's next payday, usually 10 to 30 days later. The amount of the consumer's check includes both the finance charge paid to the lender and the cash proceeds to the customer. Although the annual percentage rates associated with payday loans may violate existing usury statutes and other laws, this bill expressly prohibits payday loans by making this practice a violation of the consumer fraud act. The bill's provisions apply to payday loans made by lenders, wherever located, and made by any means, including, but not limited to: in-person contact, Internet, mail, telephone, print, radio, or television. An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.

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Nancy Muñoz (R)*, 

Introduced, Referred to Assembly Consumer Affairs Committee (on 02/01/2018)