NJ Bill Would Require Collectors to Send Copies of FDCPA to Debtors
A bill introduced recently in the New Jersey General Assembly would require debt collection agencies operating in the state to provide debtors with additional information about their accounts, a copy of the Fair Debt Collection Practices Act (FDCPA), and would increase fines per violation to at least $10,000.
The proposal, A3839, was introduced by Democrat Assemblyman Paul Moriarty of Gloucester. Moriarty said of the bill, "Debt collectors may have a responsibility to get consumers to make good on what they owe, but they also have an obligation to treat consumers with respect and within the rule of law."
Among the provisions that go beyond the federal FDCPA are rules that follow the FTC’s recent recommendations for debt collectors (“FTC Proposes Significant Changes to FDCPA in Workshop Report,” Feb. 27).
The New Jersey bill would require collectors, in their communications with debtors, to provide:
- the amount of the debt owed to the creditor, separately stating any additional fees and charges;
- the name of the creditor to whom the debt is owed;
- verification of the debt or a copy of a judgment against the debtor; and
- a copy of the United States Fair Debt Collections Practices Act.
The bill is enforceable under New Jersey’s Consumer Fraud Act. 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. In addition, a violation can 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.
A3839 has been referred to the Consumer Affairs Committee in New Jersey’s General Assembly.
As if sending letters and verification aren’t expensive enough. Why can’t NJ just make the FDCPA available via the WEB instead of impossing more cost the debt collection agencys.
Are you kidding me? Do you know what the postage would be on that. I have a better idea, why don’t we just sue all New Jersey debtors, that way we can avoid the ridiculous expense of sending mass 17 page documents to people. Why don’t we just shut down the entire credit market for New Jersey. You cannot tax and fine your way into prosperity Assemblyman Paul Moriarty.
I find it interesting that of all states, New Jersey would attempt this. Although not quite the debtor’s paradise like FL, or TX, they are not far behind. Imagine the increase in mailing demands? Postage could nibble at perhaps $1.00 per demand? Better be real sharp on the phone, your overhead just went through the roof.
This law is absurd! Can you imagine the cost of sending all the documentation to the debtor (cost per page and cost for postage).
How would you even prove that you did it?
You would need to have some sort of audit trail or proof of delivery. maybe even proof of “opening” “receiving”. Email?
Once again, a “poor debtor” mind frame. I also hear Ohio is considering a tax on health care. We as a country are heading in the wrong direction and it is scary. I wish we could print money like Obama can!
Will “least sophisticated consumer” understand the FDCPA? Then we will get sued for sending something to debtor that the “least sophisticated consumer” can’t understand.
Law abiding debt collectors have no protections from the harrasment, abuse and deception tactics employed by predatory borrowers. The constant abusive practices used by dishonest debtors are straining the relationships between honest collectors and honest borrowers. Imagine if debtors were not allowed to be deceptive and had to properly identify themselves. Imagine if they could only mention the posibility of filing bankruptcy if they actually intended to do so. How about this for their version of a mini maranda “I have no intentions to pay my debt I am being advised by an attorney to continue to talk to you with the hope that you will commit at least a technical violation and any information obtained will be used for that purpose”. Something has to be done about the abusive tactice of debtors and their threats of violence. Just as bad agencies give the industry a bad name, bad debtors give debtors a bad name. We need to protect the honest debtor and level the playing field among debtors by enacting the FDNPA (FAIR DEBT NONPAYMENT PRACTICES ACT).
this article is fine except for a copy of the United States Fair Debt Collections Practices Act to be mailed to every consumer. Are you kidding me?? If this passes, there will not be one collection agency in New Jersey within a few years. And Collection efforts by us outside New Jersey will cease, meaning we will not “Go after New Jersey debtors” as much as we should.
Maybe we should push for the least sophisticated driver in NJ Tort Law as well, (Oh, that’s what no-fault is and why NJ Auto Insurance rates are the highest in the Country!) – or maybe this guy is just the Least Sophisticated Lawmakerwe’ve ever encountered. Lord knows, we already have the least sophisticated Judges!
If this law is enacted I’m adding the following text to new jersey accounts. “We have chosen to file a lawsuit against you in order to protect your rights. A copy of the FDCPA is enclosed. Unless you can prove that you are not a resident of New Jersey we will not talk to you. Please conduct all correspondence in writing”
How about we stop collecting in New Jersey. Then they become a very high risk to the credit market, the banks will need to charge them higher rates. It is not a very large state anyway. Did anyone ever hear of a web site direction on a letter? Send a letter of the FDCPA to every debtor, just as stupid as my comments were this proposal is just as bad.
If this goes through we will no longer work any accounts in the state. I would love to see the creditors pull out of the state as well. When people can’t get credit someone will take notice.
I would like to see the results of the study if they surveyed 800 credit score people instead of 400. Being one of the consumers that pay my bills, this will just push the cost of those additional people who do not pay there bills onto me, again. This just makes it harder to stay one of the good guys.
And to think tax payer money actually paid for Democrat Assemblyman Paul Moriarty of Gloucester to come up with this. Cater to the minority rather than deal with the real problem.
The previous commentors are probably related to the same businesses that lobbied and passed the recent changes in the bankrupcy legislation. First offer the little guy all the credit you can and then screw him for accepting your offer and then turn lose the hounds annoying him with credit collection activities. At least some legislators are looking out for the consumers who also vote. What is wrong with legitmizing your business with proper documentation?
Thanks to the few collection agencies who are out there giving us all a bad name. There is no reason to break any laws while collecting a debt. If you are breaking the law then you deserve to have these types of regulations in place. Unfortunatley you have dragged all of us in with you and ultimately we all will be paying the price. Do us all a favor and get out of the industry and let the “good guys” do it the right way.
How stupid is this…!!!! Are the debtors that stupid that we now have to send them the laws…tell them to look it up on the internet like everyone else. These consumer advocacy groups need to be shot as well as the agency portrayed on Dateline…its always one bad apple will spoil everything!!!!
Providing validation (amount, interest, fees, original creditor, etc.) is a reasonable request, but an actual copy of the FDCPA? WHAT?
Consumer groups- how do you justify that one?
This is absurd. The costs on this will be tremendous. Collection agencies will need to charge higher fees and the creditors will increase their prices to cover the difference. Once again the good paying customers will be forced to “suck it up.”
The language in the fdcpa will surely be considered a violation. It wont take long for an attorney to accuse an agency of confusing the debtor into thinking the agency has an affiliation with the federal government. A consumer will consider it a list of threats and wet himself. “It looked like a court document”
I think the assemblyman is just trying to improve literacy in his state because this is most likely the only thing they will ever read.
Ftc got 97000 complaints last year
there are 196000 collectors in the
US that is one complaint per collector every other year when they
talk to hundreds a day get real!!!!
This is a great idea. If the collectors had been provided a copy to actually read and not toss in the recycle, then this problem would not exist. If this law passes and other states follow, when the abusive debt collector calls the person can ask why the collector doesn’t have a copy in front of them and ask them if they need a copy faxed to them, and tell them, oh by the way, that name you just called me is gonna cost you.
The bad apples won’t worry about the postage because half the time they never mail anything to the debtor in the first place before they call and abuse. And validation? They never have any to mail anyway.
Sites like this need to quit promoting all the profit by those big Debt Buyer/Collection Agencies, running stress-the-debtor-into-submission and fear shops, as most of them are the ones causing the problems and not following the law.
Many of the collectors on this site say they are not bad apples and something should be done about the bad apples, well guess what… NJ is trying and consumer education will.
Doesn’t it just make sense that the New Jersey General Assembly would come up with the logical move that consumers who can’t understand a simple loan agreement would be able to fathom the FDCPA. HEAVEN help us because the New Jersey General Council hasn’t got a clue, but in typical government employee thinking, “we have to do something so let’s throw this idea against the wall”. “HERE’S YOUR SIGN”.
As a NJ resident (not a native), it really is just another in a long line of unreal ideas that force businesses out of the state in the end. The easy way to get it out of the assembly is to dumb tons of money into the election campaigns in exchange to have the language removed. It happens everyday in this state, and its legal to do. for a more insightful look into the crazy business of NJ Politics, read The Soprano State written by the Gannett News bureau chief at the state house. It’s almost an embarrassment when you read about what would never be tolerated in other states, is almost expected and encoraged here. It sounds like the bill would eliminate all lending in this state eventually because collection would be so cost prohibitive.
Before we all get ourselves wound up over this, it is highly unlikely that this will get passed in it’s current form. The people who have to vote are going to realize that A. This is too expensive, B. Debtors won’t read it, and C. They wouldn’t be that stupid to run profit generating collection machines out of the state. Philadelphia would inherit 2 major collection agencies if that happened. I’m sure MRS would not stick around if this passed in it’s current form. Just because someone is proposing this, doesn’t mean it’s happening. Very true that most people will not even understand the wording of the FDCPA. When it comes down to it, the honest people will pay their bills and the dishonest people will keep renting their entire life.
And to think we actually pay people to create these kinds of laws. With probably hundreds of thousands of ‘law makers’ running around in our cities, counties, states and fed gov’t they have nothing to do but try to make up more ‘laws’ to govern us dumb citizens (again how big is the IRS regs??).
When will sanity ever return? Probably not in my lifetime (or Mr Obama’s).
And to think we actually pay people to create these kinds of laws. With probably hundreds of thousands of ‘law makers’ running around in our cities, counties, states and fed gov’t they have nothing to do but try to make up more ‘laws’ to govern us dumb citizens (again how big is the IRS regs??).
When will sanity ever return? Probably not in my lifetime (or Mr Obama’s).
I think we should be required to send the Newark White Pages with each demand. Lol