Bill Text: NJ S1731 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes prohibited practices for creditors.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Commerce Committee [S1731 Detail]
Download: New_Jersey-2024-S1731-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator PAUL D. MORIARTY
District 4 (Atlantic, Camden and Gloucester)
SYNOPSIS
Establishes prohibited practices for creditors.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning prohibited practices of creditors and supplementing P.L.1960, c.39 (C.56:11-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A creditor, an attorney for a creditor, or an assignee of a creditor, of a natural person present or residing in New Jersey who has incurred debt primarily for personal, family, or household purposes shall not collect or attempt to collect debt in an unfair, deceptive, or unreasonable manner.
b. For purposes of this act, collection or attempt to collect shall be considered unfair, deceptive, or unreasonable if the creditor communicates:
(1) or threatens to communicate, or implies the fact of debt or alleged debt to a person other than the person who may reasonably be expected to be liable therefor, or to an authorized user of the account where debt was acquired after the fact if that status is communicated to the creditor in writing, except with the written permission of the alleged debtor. For the purposes of this paragraph, the use of language on an envelope indicating that the communication relates to the collection of a debt shall be deemed a communication of debt or alleged debt. The provisions of this paragraph shall not prohibit a creditor from notifying a debtor of the fact that the creditor may report a debt or alleged debt to a credit bureau or engage an agent or an attorney for the purpose of collecting the debt or alleged debt;
(2) with the alleged debtor in a manner as to harass or embarrass the alleged debtor, including, but not limited to, communication at an unreasonable hour, with unreasonable frequency, by threats of violence, by use of offensive language, or by threats of any action which the creditor in the usual course of business does not in fact take; and
(3) with the alleged debtor through the use of forms or instruments that simulate the form or appearance of the judicial process.
c. Additional offenses that may be considered unfair, deceptive, or unreasonable practices by a creditor include:
(1) simulation in any manner of a law enforcement officer or a representative of any government agency;
(2) use of any written communication that fails to clearly identify the name of the creditor, the name of the person for whom the creditor is attempting to collect, and the creditor's business address;
(3) placing phone calls without disclosure of the name of the individual making the call and the name of the debtor for whom the creditor is attempting to collect, or by using a fictitious name while engaging in the collection of debts;
(4) at the debtor's place of employment if that place is other than the debtor's residence;
(5) causing any expense to the debtor in the form of long-distance telephone calls, telegram fees, or other charges incurred by a medium of communication concealing the true purpose of the communication; and
(6) joining or requesting to join any part of a debtor's social media network, or communicating or attempting to communicate with a debtor using a social media platform for the purpose of collecting or attempting to collect a payment of a debt.
2. a. A person who violates this act shall be subject to a civil penalty of $2,500 for a first violation and $5,000 for any subsequent violation. The penalty prescribed in this section shall be collected in a civil action by a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
b. In addition to the penalties described in this section, any person aggrieved by a violation of this act may bring an action in Superior Court to recover damages.
3. This act shall take effect on the first day of the seventh month next following enactment.
STATEMENT
This bill establishes those practices of a creditor, in collecting payment of a debt, that are to be considered unfair, deceptive, and unreasonable. Among those practices are:
(1) communications or threats of communications, or implications of the fact of debt or alleged debt to a person other than the person who may reasonably be expected to be liable for the debt;
(2) harassing or embarrassing communication by the creditor to the alleged debtor, including, but not limited to, communication at an unreasonable hour, with unreasonable frequency, by threats of violence, by use of offensive language, or by threats of any action which the creditor in the usual course of business does not in fact take; and
(3) communications with the alleged debtor using forms or other instruments that simulate the form or appearance of the judicial process.
Among other practices
considered in the bill to be unfair, deceptive, and unreasonable is the
simulation of a law enforcement officer or agent of the government and attempts
to join the debtor's social media network.
Civil penalties in the bill include $2,500 for a first violation and $5,000 for any subsequent violation. Additionally, any person aggrieved by violation of this act may bring an action in Superior Court to recover damages.
