In one of its last acts before approving the state budget late last month, the Assembly gave its approval to the New Jersey Fair Debt Collection Practices Act by a 60-18 vote. That sent the measure to the state Senate, where it initially 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 act 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 increasing 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 prevent, with defined exceptions, a debt collector from conveying with a debtor earlier than 8 a.m, and later than 9 p.m. At the debtor's place of employment, although the collector is permitted to 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 comprehends that the debtor is represented by an lawyer and can effortlessly determine the attorney's name and address. Defenders of the act 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.
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 act 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 increasing 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 prevent, with defined exceptions, a debt collector from conveying with a debtor earlier than 8 a.m, and later than 9 p.m. At the debtor's place of employment, although the collector is permitted to 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 comprehends that the debtor is represented by an lawyer and can effortlessly determine the attorney's name and address. Defenders of the act 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.
About the Author:
Mallory is employed by a debt collection agency. She also writes articles on business and finance, and collections. .
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