Bill Text: NJ A2465 | 2010-2011 | Regular Session | Introduced
Bill Title: Regulates pay-off of trade-in vehicles and certain vehicle title releases. *
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Engrossed - Dead) 2010-06-28 - Received in the Senate, Referred to Senate Transportation Committee [A2465 Detail]
Download: New_Jersey-2010-A2465-Introduced.html
Sponsored by:
Assemblyman MATTHEW W. MILAM
District 1 (Cape May, Atlantic and Cumberland)
SYNOPSIS
Requires motor vehicle dealer to pay off loan on trade-in within 21 days.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning satisfaction of a security interest in certain motor vehicles and supplementing chapter 10 of Title 39 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Any dealer or used motor vehicle dealer who buys any motor vehicle from a purchaser as a trade-in on which there remains a balance due under a security agreement shall, within 21 days of taking possession of that motor vehicle, send a certified check in the full amount of the remaining loan to the secured party holding a security interest as indicated on the certificate of ownership.
b. Any dealer or used motor vehicle dealer subject to the provisions of subsection a. of this section shall, upon request by the person who transferred title or possession of the motor vehicle to the dealer or used motor vehicle dealer, make available to that person, at the dealer's established place of business where the trade-in occurred, a copy of the certified check that was sent to the secured party of that motor vehicle.
c. A dealer or used motor vehicle dealer who violates the provisions of this section shall be liable to a penalty of not more than $10,000 for the first offense and not more than $20,000 for the second and each subsequent offense. The penalty shall be exclusive of and in addition to any other penalties provided under chapter 10 of Title 39 of the Revised Statutes.
2. This act shall take effect on the first day of the third month following enactment.
STATEMENT
This bill would require all new and used motor vehicle dealers to pay, by certified check, the remaining loan on a customer's trade-in within 21 days of accepting that trade-in. In addition, the dealer would have to make a copy of the certified check used to pay the customer's existing loan available to the consumer, upon request.
If a new or used motor vehicle dealer were to violate the provisions of this bill, it would be liable to a penalty of not more than $10,000 for the first offense and not more than $20,000 for the second and each subsequent offense. In addition, a dealer found in violation of the provisions of this bill would be subject to the existing penalties provided under chapter 10 of Title 39 of the Revised Statutes, which include the possible suspension or revocation of the dealer's license.
