This bill amends New Jersey's current debt adjustment laws to allow certain for-profit debt adjusters to obtain licenses 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 also specifies that for-profit debt adjusters must comply with many of the same rules as their nonprofit counterparts, but with notable exceptions, such as not being required to provide a certification regarding salaries and expenses in their annual audits.

Additionally, the bill outlines specific disclosure requirements for for-profit debt adjusters when entering agreements with debtors, ensuring that consumers are informed about the services provided, fees charged, and potential impacts on their creditworthiness. It also clarifies that for-profit debt adjusters are exempt from certain bonding requirements that apply to nonprofit agencies. Overall, the legislation aims to create a regulated environment for for-profit debt adjustment services while maintaining consumer protections and aligning with federal regulations.

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