New Jersey-2020-S4238-Introduced

An Act concerning persons and financial organizations engaged in trade and business dealings with consumers and amending and supplementing P.L.1980, c.125 (C.56:12-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1980, c.125 (C.56:12-1) is amended to read as follows:

1. As used in this act:

"Consumer contract" means a written agreement in which an individual:

a. Leases or licenses real or personal property;

b. Obtains credit;

c. Obtains insurance coverage, except insurance coverage contained in policies subject to the "Life and Health Insurance Policy Language Simplification Act," P.L.1979, c.167 (C.17B:17-17 et seq.);

d. Borrows money;

e. Purchases real or personal property;

f. Contracts for services including professional services;

g. Enters into a service contract, as defined in section 1 of P.L.2013, c.197 (C.56:12-87), for cash or on credit and the money, property or services are obtained for personal, family or household purposes.

"Consumer contract" includes writings required to complete the consumer transaction. "Consumer contract" does not include a written agreement involving a transaction in securities with a broker-dealer registered with the Securities and Exchange Commission, or a transaction in commodities with a futures commission merchant registered with the Commodity Futures Trading Commission.

"Financial organization" means an institution subject to the provisions of P.L.1977, c.1 (C.17:16F-1 et seq.) or a residential mortgage lender as that term is defined in section 3 of P.L.2009, c.53 (C.17:11C-53).

"Merchandise" shall include any objects, wares, goods, commodities, services or anything offered, directly or indirectly to the public for sale.

"Person" shall include any natural person or that person's legal representative, partnership, corporation, company, trust, business entity or association, and any agent, employee, salesman, partner, officer, director, member, stockholder, associate, trustee or cestuis que trustent thereof.

"Sale" shall include any sale, rental or distribution; offer for sale, rental or distribution; or attempt directly or indirectly to sell, rent or distribute.

(cf: P.L.2013, c.197, s.11)

2. Section 12 of P.L.1980, c.125 (C.56:12-12) is amended to read as follows:

12. The Office of the Attorney General, the Division of Consumer Affairs, the Division of Rate Counsel in, but not of, the Department of the Treasury, the Commissioner of Banking and Insurance, in regard to contracts of insurance provided for in subsection c. of section 1 of [this act] P.L.1980, c.125 (C.56:12-1), or any interested person may seek injunctive relief. The court may authorize reasonable attorney's fees[, not to exceed $2,500.00,] and court costs in such a proceeding.

(cf: P.L.2010, c.34, s.43)

3. (New section) a. Any person who sells, attempts to sell or offers for sale any merchandise and does so primarily in a language other than English, orally or in writing, shall, prior to the execution of a contract or agreement for the sale of merchandise, deliver to the other party to the contract or agreement a copy or translation of the contract or agreement in that language, that includes a translation of every term and condition in that contract or agreement. This section shall apply to the following:

(1) any consumer contract or series of consumer contracts as defined in section 1 of P.L.1980, c.125 (C.56:12-1);

(2) any contract concerning the bailment, lease, conditional sale, conditions or maintenance of a motor vehicle, or rebates, discounts, extensions of the payment due date, deferments of payment or charges related to a motor vehicle;

(3) a loan or extension of credit secured other than by real property, or unsecured, for use primarily for personal, family, or household purposes;

(4) a lease, sublease, rental contract or agreement, or other term of tenancy contract or agreement, for a period of longer than one month, covering a dwelling, an apartment, or mobile home, or other dwelling unit normally occupied as a residence;

(5) a contract or agreement, containing a statement of fees or charges, entered into for the purpose of obtaining legal services, when the person who is engaged in business is currently licensed to practice law; or

(6) a foreclosure consulting contract.

b. Nothing in this section shall be construed to require any person to sell, attempt to sell or offer for sale any merchandise in a language other than English. The requirements of subsection a. of this section shall not apply to a sale, attempt to sell, or offer for sale of any merchandise by which, at the direction of a consumer, the terms of the contract or agreement are translated, orally or in writing, into a language other than English by a third party who is not party to the contract or agreement.

4. (New section) a. Any financial organization that negotiates primarily in a language other than English, whether orally or in writing, in the course of entering into a contract or agreement for a loan or extension of credit secured by residential real property, shall deliver to the other party a copy of the contract or agreement in the language in which the negotiations were conducted, prior to the execution of the contract or agreement, subject to the following:

(1) for a transaction subject to subsection (e) of section 1026.19 of Title 12 of the Code of Federal Regulations, a financial organization shall provide to the applicant, no later than three business days after receipt of the written application, the Loan Estimate form from the federal Consumer Financial Protection Bureau translated in the applicable language. If any of the summarized loan terms materially change after provision of the Loan Estimate form but prior to consummation of the loan, the financial organization shall provide an updated version of the translated form prior to consummation of the loan.

(2) for a transaction subject to subsection (f) of section 1026.19 of Title 12 of the Code of Federal Regulations, a financial organization shall provide to the borrower, at least three business days prior to the consummation of the loan, the Closing Disclosure form from the federal Consumer Financial Protection Bureau translated in the applicable language.

5. (New section) a. Any person that negotiates the modification of any of the terms of a contract or agreement covered by section 3 or 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), that does so primarily in a language other than English, whether orally or in writing, and that offers a final modification in writing, shall deliver to the consumer or borrower, at the time the modification offer is made, a form summarizing the modified terms of the contract or agreement in the same language as the negotiation.

6. (New section) Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to authorize or permit any actions that violate or do not comply with the applicable requirements of any other law, including but not limited to section 6 of P.L.1968, c.223 (C.17:16C-61.6), section 6 of P.L.1968, c.224 (C.17:16C-100), or the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.).

7. This act shall take effect on the first day of the third month after enactment, provided that the Director of the Division of Consumer Affairs may take such anticipatory action as necessary to effectuate the provisions of this act.

STATEMENT

This bill requires certain consumer contracts to include translations to languages other than English.

The bill requires any person who sells, attempts to sell or offers for sale any merchandise and does so primarily in a language other than English, orally or in writing, prior to the execution of a contract or agreement for the sale of merchandise, to deliver to the other party to the contract or agreement a copy or translation of the contract or agreement in that language, that includes a translation of every term and condition in that contract or agreement. This requirement of the bill applies to certain consumer contracts, certain motor vehicle contracts, consumer loans or extensions of credit, leases and other residential rental contracts, contracts for legal services, and foreclosure consulting contracts.

The bill requires financial organizations that negotiate primarily in a language other than English, whether orally or in writing, in the course of entering into a contract or agreement for a loan or extension of credit secured by residential real property, to deliver to the other party a copy of the contract or agreement in the language in which the negotiations were conducted, prior to the execution of the contract or agreement, along with certain forms from the federal Consumer Financial Protection Bureau translated in the applicable language.

The bill also requires any person that negotiates the modification of any of the terms of a contract or agreement covered by the bill, that does so primarily in a language other than English, whether orally or in writing, and that offers a final modification in writing, to deliver to the consumer or borrower, at the time the modification offer is made, a form summarizing the modified terms of the contract or agreement in the same language as the negotiation.

The bill provides it is not to be construed to require any person to sell, attempt to sell or offer for sale any merchandise in a language other than English, and the requirements of the bill do not apply to a sale, attempt to sell, or offer for sale of any merchandise by which, at the direction of a consumer, the terms of the contract or agreement are translated, orally or in writing, into a language other than English by a third party who is not party to the contract or agreement.