The American Financial Services Association (AFSA) has submitted a comment letter to the New Jersey Senate concerning bill S1310. The proposed legislation would allow specific for-profit debt adjusters to obtain licenses to operate within the state.
AFSA has voiced apprehensions regarding the potential impact of this bill on its members and their customers in New Jersey. According to AFSA, approving such "debt adjusters" could exacerbate financial difficulties for borrowers already facing challenges. These adjusters are criticized for charging high fees without providing additional value beyond what borrowers can achieve independently by negotiating directly with creditors.
"There is substantial and increasing evidence indicating that certain 'debt settlement' companies frequently engage in unethical and predatory practices, collecting fees without ever reaching out to lenders," AFSA stated in its letter.
The comment letter, along with other recent submissions from AFSA's State Government Affairs team, is available on the direct advocacy section of AFSA’s website.
June 21, 2024