New Jersey Debt Adjuster Concerns
AFSA’s State Government Affairs team submitted testimony to the New Jersey Senate regarding S1310, which would permit specific for-profit debt adjusters to be licensed for conducting business in the state. These adjusters charge high fees but do not offer any additional value beyond what borrowers can already obtain for free by directly negotiating with their 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 remains concerned for the effect this bill would have on its members and their customers in New Jersey, by approving “debt adjusters” who worsen the situation for struggling borrowers. AFSA had previously submitted a comment letter and testimony on this bill.
This testimony and SGA’s other recent advocacy can be found on the direct advocacy section of AFSA’s website.
December 20th, 2024
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