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 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 outlines the requirements for for-profit debt adjusters, including the obligation to disclose detailed information to debtors at the time of agreement execution. It also establishes that these for-profit entities will not be subject to the bonding requirements that apply to nonprofits. The Commissioner of the Department of Banking will have the authority to set maximum fees for services provided by for-profit debt adjusters, ensuring that the provisions of the debt adjuster act align with federal regulations. 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