Bill Text: NJ A652 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires debt collector to provide debtor certain information.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Consumer Affairs Committee [A652 Detail]
Download: New_Jersey-2010-A652-Introduced.html
ASSEMBLY, No. 652
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman REED GUSCIORA
District 15 (Mercer)
Co-Sponsored by:
Assemblywomen Lampitt, Quigley, Assemblymen Diegnan and Chiappone
SYNOPSIS
Requires debt collector to provide debtor certain information.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning certain debt collection practices and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Consumer" means a natural person;
"Consumer transaction" means a transaction pursuant to which a consumer becomes obligated to pay for goods, services or anything of value, including money, used primarily for personal, family or household purposes. A consumer transaction shall not include leases of real property;
"Creditor" means a person who extends credit to consumers in connection with consumer transactions;
"Debt" means any obligation or alleged obligation to pay money directly or indirectly arising out of a consumer transaction. The term "debt" shall include, but is not limited to a check, as defined in subsection f. of section N.J.S.12A:3-104, given in a consumer transaction; and
"Debtor" means a person who owes a debt arising out of a consumer transaction.
"Debt collector" means any person who by any direct or indirect action, conduct, or practice, collects or attempts to collect a debt that is owed or due, or alleged to be owed by or due from a debtor in this State as a result of a consumer transaction. The term "debt collector" includes, but is not limited to, an attorney, and any person working under the direction or control of an attorney, who regularly collects or attempts to collect, directly or indirectly, a debt that is owed or due, or alleged to be owed by or due from a debtor in this State as a result of a consumer transaction. The term "debt collector" does not include: any officer or employee of the United States or any state, or agencies or instrumentalities of any state, to the extent that collecting or attempting to collect a debt is in the performance of any official duties; or any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt.
2. In addition to any federal requirements, a debt collector shall, in connection with the collection of any debt, deliver to the debtor a written notice, in 10 point font, containing:
a. The amount of the debt owed to the creditor, separately stating any additional fees and charges;
b. The name of the creditor to whom the debt is owed;
c. Verification of the debt or a copy of a judgment against the debtor; and
d. A copy of the United States Fair Debt Collections Practices Act.
3. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the purposes of this act.
4. It is an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to violate any provision of this act.
5. This act shall take effect on the first day of the third month following enactment.
STATEMENT
This bill would require debt collectors to provide certain information to debtors. Specifically, the bill would require debt collectors to send debtors a written notice, in 10 point font, when trying to collect any debt, containing:
· the amount of the debt owed to the creditor, separately stating any additional fees and charges;
· the name of the creditor to whom the debt is owed;
· verification of the debt or a copy of a judgment against the debtor; and
· a copy of the United States Fair Debt Collections Practices Act.
The bill specifies that violations would be unlawful practices under the consumer fraud act. An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured.
