New Jersey Debt Collection Laws

No one wants to have unpaid bills sitting on their desk. Nevertheless, when the economy is strained, many consumers may easily fall behind and face what can sometimes be rude and harassing debt collection agents. However, there are federal protections against such intimidation, in the form of the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. These laws protect consumers from those who would deceive, threaten, and disclose debt information, use profanity and violence, and more in order to induce payment. These federal laws only apply to debt collection agents and agencies. However, states may enact additional laws to strengthen and widen those protections. For those facing impending financial problems, it may be wise to call upon a skilled financial attorney first to help with debt settlement needs and avoid a crisis.

Debt Collection in New Jersey

New Jersey complies with federal debt collection laws in regulations regarding debt collection agents or agencies who regularly collect the payment of bills or claims on behalf of others. In addition, New Jersey requires that all such agents or agencies pay a bond of $5,000 a year in order to carry on such business.

New Jersey Statute of Limitations

  • The New Jersey statute of limitations on filing suit over non-payment of written and oral contracts, promissory notes, and open accounts is 6 years

Collections Practices and Rules for New Jersey

In compliance with all federal laws concerning debt collection, any violations of those laws is reported to and prosecuted by the state Attorney General’s office.

Legal Collections Actions

New Jersey collection agents and agencies have the right to collect bills or payments of debts on behalf of others, solicit accounts to do so, and advertise in order to collect such payments.

Illegal Collections Actions

  • Any form or harassment, intimidation, or use profanity, violence, or the threat of violence in the process of collecting payments for creditors
  • Making repeated phone calls at unusual or inconvenient times for the purpose of collecting debts for their clients
  • Contacting consumers at their place of business if those consumers have informed them that such contact is prohibited by their employer
  • Revealing, posting, or including a consumer in lists of debtors
  • Using misrepresentation, deception, or false information in the process of influencing a consumer to pay the amounts owed to their creditor clients
  • Taking any action that impose additional, unauthorized expenses upon a debtor for unpaid bills
  • Communicating with a consumer once they have been informed that that consumer is being represented by an attorney in these financial matters

Laws for Debt Harassment in New Jersey

New Jersey complies and prosecutes all federal and state laws outlawing debt harassment.

New Jersey Debt Negotiation and Settlement Rules

Many consumers choose debt negotiation or settlement companies to help alleviate past due bills before they reach collection agencies. Moreover, while there are responsible companies providing services to speak to their creditors and reduce or eliminate interest and lower principal payment amounts by significant amounts, there are also illegitimate companies charging high fees and providing little or none of the services promised. This is fraud, and there are laws in New Jersey against such actions.

Borrowers would be wiser to consult with a debt settlement attorney to review any potential contracts with these types of companies or contact the Better Business Bureau to learn their track record. In fact, there are debt settlement attorneys who will provide those same services on a legal and reliable basis that may do more to protect and repair the credit records of such borrowers.

Help from a New Jersey Debt Collection Attorney

Debt settlement attorneys are skilled at analyzing options consumers may need to explore in order to repair, improve, or relieve their debt problems. They can also represent them in any action that a creditor may take to recover monies, helping to ensure their protection and provide the best possible debt relief and credit reporting processes for their circumstances.

Talk to a Lawyer

Need a lawyer? Start here.

How it Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you
Get Professional Help

Talk to an attorney.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you