New Jersey Debt Collection Laws
In addition to being regulated by the Fair Debt Collection Practices Act (FDCPA), New Jersey collection agencies are also regulated by New Jersey debt collection laws. Discover: New Jersey collection requirements, bad check laws (NSF), statutes of limitations for both debts and judgments, garnishments plus New Jersey collection agency license and bonding information.
Summary of the New Jersey fair debt collection practices laws:
NEW JERSEY INTEREST RATE
Judgment: No Statutory Provision
NEW JERSEY STATUTE OF LIMITATIONS |in years|
Open Accounts: 6
Sale of Goods: 4
Written Contract: 6
Domestic Judgment: 20
Foreign Judgment: 20
NEW JERSEY BAD CHECK LAWS |NSF|
NEW JERSEY WAGE GARNISHMENT EXEMPTIONS
$142.50 wk. min. 10% of gross earnings $142.50 & Over
NEW JERSEY COLLECTION AGENCY BONDING and LICENSING REQUIREMENTS
Bond: $5000 Surety
Below is the New Jersey debt collection statute:
TITLE 45 PROFESSIONS AND OCCUPATIONS
New Jersey Fair Debt Collection Practices Act 45:18-1. Collection agencies to file bond
No person shall conduct a collection agency, collection bureau or collection office in this state, or engage therein in the business of collecting or receiving payment for others of any account, bill or other indebtedness, or engage therein in the business of soliciting the right to collect or receive payment for another of any account, bill or other indebtedness, or advertise for or solicit in print the right to collect or receive payment for another of any account, bill or other indebtedness, unless such person, or the person for whom he may be acting as agent has on file with the secretary of state sufficient bond as hereinafter specified.
New Jersey Fair Debt Collection Practices Act 45:18-2. Amount, term and provisions of bond; renewal; limitation of actions
The bond shall be in the sum of five thousand dollars and shall provide that the person giving the same shall, upon written demand, pay and turn over to or for the person for whom any account, bill or other indebtedness is taken for collection the proceeds thereof in accordance with the terms of the agreement upon which such account, bill or other indebtedness was received for collection. The board shall be in such form and shall contain such further provisions and conditions as the secretary of state deems necessary or proper for the protection of the persons for whom the accounts, bills or other indebtedness are taken for collection, and shall be for the term of one year from its date and must be renewed annually. No action on the bond shall be begun after two years from the expiration thereof.
New Jersey Fair Debt Collection Practices Act 45:18-3. Execution and approval of bond; sureties
The bond mentioned in sections 45:18-1 and 45:18-2 of this Title shall be executed by the person filing the same to the State of New Jersey for the use of any party aggrieved with sufficient surety, to be furnished by any company or corporation authorized to transact such business in this State. The said bond shall be examined and approved by the Attorney-General and thereafter accepted and filed with the Secretary of State; provided, however, that cash may be accepted in lieu of sureties; and provided, further, that no such bond with individual sureties thereon may be approved, accepted or filed.
New Jersey Fair Debt Collection Practices Act 45:18-4. Record of bonds; filing fee
The Secretary of State shall keep a record of such bonds, with the names, places of residence and places of business of the principals and sureties, and the name of the officer before whom the bond was executed or acknowledged, and the record shall be open to public inspection. There shall be paid a filing fee of $25.00 to the Secretary of State for the filing of each bond.
Amended by L.1971, c. 169, s. 1, eff. June 1, 1971.
New Jersey Fair Debt Collection Practices Act 45:18-5. Penalty
Any person, member of a partnership or officer of an association or corporation who fails to comply with any of the provisions of this chapter shall be subject to a fine of not more than five hundred dollars or to imprisonment for not more than three months, or both.
New Jersey Fair Debt Collection Practices Act 45:18-6. Exemptions
This chapter shall not apply to an attorney at law duly authorized to practice in this state, a national bank, or any bank or trust company duly incorporated under the laws of this state.
New Jersey Fair Debt Collection Practices Act 45:18-6.1. Discontinuance of operation; filing of notice
Any person who shall discontinue the operation of a collection agency, collection bureau or collection office in this State pursuant to the chapter hereby supplemented shall file with the Secretary of State a notice of such discontinuance.
New Jersey Debt Collection LawsKnowing and abiding to the proper New Jersey debt collection laws is important for both creditors and collection agencies alike. There are debtor’s rights attorneys who are just waiting for creditors or collection agencies to slip up. If you mistakenly violate the New Jersey debt collection laws, you could create a liability for your business and even open yourself up to a expensive lawsuit.
Please note: New Jersey debt collection laws can change over time, and you need to consult with an attorney before you use this information.
New Jersey Debt Collection Laws