This bill amends New Jersey's existing laws regarding debt adjusters to allow certain for-profit debt adjustment companies to operate within the state. Previously, only nonprofit social service agencies and nonprofit consumer credit counseling agencies were permitted to provide debt adjustment services. The new legislation defines a "for-profit debt adjuster" and stipulates that these entities must not receive or hold consumer funds and must comply with federal regulations 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 removes bonding requirements for for-profit debt adjusters that apply to nonprofit agencies and allows the commissioner to set maximum fees for services provided by these for-profit entities. It also ensures 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 aims to create a regulated environment for for-profit debt adjustment services while maintaining consumer protections and clarifying the status of legal practitioners in relation to debt adjustment activities.

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