This bill amends New Jersey's current debt adjustment laws to allow certain for-profit debt adjusters to obtain licenses and conduct business in the state. Previously, only nonprofit social service agencies and nonprofit consumer credit counseling agencies were permitted to operate in this capacity. The bill defines a "for-profit debt adjuster" as an entity that engages in debt adjustment activities but does not hold consumer funds and is regulated by the Federal Trade Commission under the Telemarketing Sales Rule. It also clarifies that for-profit debt adjusters are not subject to the same bonding requirements as their nonprofit counterparts and outlines specific disclosures that must be provided to debtors when agreements are executed.

Additionally, the bill establishes that for-profit debt adjusters will generally follow the same rules as nonprofit entities, with some exceptions, such as not needing to certify salaries and expenses in their annual audits. The Commissioner of the Department of Banking will have the authority to set maximum fees for services provided by for-profit debt adjusters. The bill ensures that the provisions applicable to for-profit debt adjusters align with federal regulations, specifically stating that these provisions will only apply to the extent they do not conflict with the Telemarketing Sales Rule.

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