Bill Text: NJ S1726 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires motor vehicle dealers provide loan application to consumers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Commerce Committee [S1726 Detail]
Download: New_Jersey-2024-S1726-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
Requires motor vehicle dealers provide loan application to consumers.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning motor vehicle dealers and amending Title 56 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1982, c.98 (C.56:8-2.22) is amended to read as follows:
1. a. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a person in connection with a sale of merchandise to require or request the consumer to sign any document as evidence or acknowledgment of the sales transaction, of the existence of the sales contract, or of the discharge by the person of any obligation to the consumer specified in or arising out of the transaction or contract, unless [he] the person shall at the same time provide the consumer with a full and accurate copy of the document so presented for signature but this section shall not be applicable to orders placed through the mail by the consumer for merchandise.
b. In addition to the requirements of subsection a. of this section, it shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any motor vehicle dealer to fail to provide to a consumer a copy of any loan application prepared in connection with the sale of a motor vehicle.
(cf: P.L.1982, c.98, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill makes it an unlawful practice under the consumer fraud act for a motor vehicle dealer to fail to provide a consumer with a copy of any loan application prepared in connection with the sale of a motor vehicle.
Under current law, a motor vehicle dealer is not specifically required to provide a consumer with a copy of the loan application prepared in connection with the sale of a motor vehicle. This bill clarifies that a motor vehicle dealership is required to provide a consumer with a copy of any loan application prepared in connection with the sale of a motor vehicle. It is the sponsor's view that not requiring the disclosure of loan applications prepared by motor vehicle dealers may allow for the submission of inaccurate financial information to lenders in order to permit a consumer to qualify for a motor vehicle loan for which he or she would otherwise be unqualified.
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. Additionally, violations may 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 party.
