This bill amends New Jersey's current debt adjustment laws to allow certain for-profit debt adjusters 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" as an entity that conducts debt adjustment activities without receiving or holding consumer funds and is regulated under federal law. The bill establishes that for-profit debt adjusters must obtain a license from the Commissioner of the Department of Banking and Insurance, similar to nonprofit entities, but with specific exceptions regarding bonding requirements and annual audit certifications.

Additionally, the bill mandates that for-profit debt adjusters provide debtors with a detailed agreement outlining the services to be performed, fee structures, timelines for debt resolution, and potential impacts on the debtor's creditworthiness. It also clarifies that the provisions applicable to for-profit debt adjusters will only apply to the extent they do not conflict with federal regulations. Overall, the bill aims to create a regulated environment for for-profit debt adjustment services while ensuring consumer protection through required disclosures and adherence to established guidelines.

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