Bill > A4319

Introduced Session

This bill would allow certain for-profit debt adjustment companies to conduct business in the State. A debt adjuster means a person or entity who: acts or offers to act for a consideration as an intermediary between a debtor and his creditors for the purpose of settling, compounding, or otherwise altering the terms of payment of any debts of the debtor; or receives money or other property from the debtor, or on behalf of the debtor, for payment to, or distribution among, the creditors of the debtor. Under current law, only nonprofit social service agencies and nonprofit consumer credit counseling agencies may operate debt adjustment services in the State. The bill would create an exception to the current law to allow for-profit debt adjustment companies to conduct business in the State provided the company (1) does not receive or hold, actually or constructively, consumer funds; and (2) is regulated by the Federal Trade Commission pursuant to the commission's "Telemarketing Sales Rule." These companies would be subject to the same rules and restrictions as non-profit entities licensed to operate debt adjustment services.

AI Summary

Committee Categories

BettyLou DeCroce (R)*,  John McKeon (D)*,  Annette Quijano (D)*,  Ralph Caputo (D),  Mila Jasey (D), 

Assembly Floor Amendment Passed (Johnson) (on 10/29/2018)