This bill amends New Jersey's existing laws regarding debt adjusters to allow certain for-profit debt adjustment companies to operate within the state. Currently, only nonprofit social service agencies and nonprofit consumer credit counseling agencies are permitted to provide debt adjustment services. The new legislation defines a "for-profit debt adjuster" as an entity that conducts debt adjustment activities without receiving or holding consumer funds and is regulated by the Federal Trade Commission under the Telemarketing Sales Rule. The bill also clarifies that for-profit debt adjusters will be subject to similar rules and restrictions as their nonprofit counterparts, with specific exceptions, such as not being required to provide a certification regarding salaries and expenses in their annual audits.

Additionally, the bill stipulates that for-profit debt adjusters will not be subject to bonding requirements that apply to nonprofit agencies and allows the commissioner to set maximum fees for services provided by for-profit debt adjusters. The provisions of the debt adjuster act will only apply to for-profit entities to the extent that they do not conflict with federal regulations. The bill also clarifies that individuals engaged in the practice of law are not considered debt adjusters. Overall, this legislation aims to expand the options available for debt adjustment services in New Jersey while maintaining regulatory oversight.

Statutes affected:
Introduced: 17:16G-1, 17:16G-2, 17:16G-5, 17:16G-6