Debt Collection Bill Advances In NJ

In one of its conclusive acts before accepting the state budget late last month, the Assembly gave its green light to the New Jersey Fair Debt Collection Practices Act by a 60-18 vote. That sent the proposal to the state Senate, where it at the beginning will be considered by the Commerce Committee.

Benefactors say the legislation would supplement existing federal protections and restrict collectors’ ability to contact a debtor at work or at “any time and place” known to be untimely. It also will protect consumers from harassing, intimidating or abusive collection routines and give them a way to dispute and verify debt information to ensure its accuracy.

“We’re doing nothing here to relieve a consumer of a rightful debt, but this is a fairness bill that will ensure consumers are not harassed by unscrupulous debt collectors,” said Burzichelli, D-Paulsboro. He sponsored the measure along with Assemblymen Matthew W. Milam, D-Cape May Court House, Wayne P. DeAngelo, D-Hamilton and Paul Moriarty, D-Turnersville.

State consumer affairs officials receive numerous complaints about debt collection tactics each year, and that number appears to be booming in recent months as more people struggle with their finances.

“There are many people who have fallen behind and are in debt, and some (debt collectors) are telling them they could be drug in to court tomorrow if they don’t pay up right away or making other threats,” Burzichelli said. “We want to make sure people are aware of their rights and their responsibilities (about paying debts).

The bill would stop, with particular exceptions, a debt collector from contacting a debtor earlier than 8 a.m, and later than 9 p.m. At the debtor’s place of employment, although the collector can send a single letter or make one phone call per month to the debtor at their place of employment if the debt collector hasn’t been able to contact the debtor at home.

If the debt collector knows the debtor is represented by an attorney and can readily ascertain that attorney’s name and address. Proponents of the measure say it’s important legislation in troubling economic times.”Just because someone is in debt does not mean they forfeit their rights to be treated fairly,” Moriarty said.

Mallory works for a debt collection agency. Also, she writes articles on business and finance, and collections. .