New Jersey Assembly Pre-files a Debt Adjusters Bill for the 2020 Session

On July 2, 2020, New Jersey Assemblyman Mckeon, Assemblywoman Decroce, and Assemblywoman Quijano pre-filed for introduction in the 2020 Session, Assembly Bill, No. 2207, “[a]n Act concerning the licensing of debt adjusters and amending.” This bill would allow certain for-profit debt adjustment companies to conduct business in New Jersey, since, “[u]nder New Jersey’s current “debt adjusters law,” which is administered and enforced by the Department of Banking and Insurance, only nonprofit social service agencies and nonprofit consumer credit counseling agencies may operate debt adjustment services in the State.”

The summary of the Bill discusses the proposed changes as, “[t]he 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 commissions ‘Telemarketing Sales Rule.’” Additional information, for example regarding fee caps, have not been fully established in the proposed Bill with merely the mention that, “[t]he commissioner would be authorized to establish maximum fees that may be charged by for-profit debt adjusters.” We will be sure to follow this proposed legislation as it is formally introduced into the New Jersey State Legislature, and throughout its trajectory in the Assembly.

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