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 bill 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 legislation introduces new provisions that require for-profit debt adjusters to obtain a license from the Commissioner of the Department of Banking, similar to their nonprofit counterparts, while also establishing that they are not subject to certain bonding requirements and annual audit certifications that apply to nonprofits.

Additionally, the bill allows the Commissioner to set maximum fees for services provided by for-profit debt adjusters, aligning them with the regulations for nonprofit agencies. It clarifies that the provisions applicable to for-profit debt adjusters will only apply to the extent that they do not conflict with federal regulations. The bill also updates the definition of who is not considered a debt adjuster, specifically excluding individuals engaged in the practice of law. Overall, this legislation aims to create a regulated environment for for-profit debt adjustment services while maintaining consumer protections.

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