Sentences with phrase «debt adjuster»
A debt adjuster is a person or company that helps manage and negotiate repayment plans for people who owe money. They work with creditors to reduce monthly payments and interest rates, making it easier for individuals to pay off their debts over time. Full definition
Additionally, only certain non-profit companies can act as debt adjusters in New Jersey in accordance with the Debt Adjustment and Credit Counseling Act.
studentloans.net
The statute also requires that debt adjusters pay at least 85 percent of each payment received by a debtor to their creditors.
Such businesses went by many names: debt adjusters, debt poolers, debt managers.
They were in violation of the act because they were offering student loan consolidation services despite not having a license as a debt adjuster with the New Jersey Department of Banking and Insurance.
A debt adjuster or debt adjusting company can retain no more than 15 percent of the total amount of any payment made by a debtor.
Finally, any payments received by debtors must be placed in a trust account by the debt adjuster and their services billed against the trust account.
The debt adjuster is then required to return all money it received from the debtor and not distributed to creditors.
The statute, the Debt Adjusting Act, defines a debt adjuster or debt adjusting agency as any person or business that engages in the business of debt adjusting for money.
If a debt adjuster violates the Statute, they also violate the Consumer Protection Act, entitling the debtor to treble damages in civil litigation.
If a debt adjuster contracts for, receives, or makes any charges beyond the maximums permitted, the debt adjuster's contract with the debtor is void.
Introduced on February 1, 2017, SB 59 focuses on the need «to amend and establish laws pertaining to consumer litigation funding companies; licensed lenders; money servicers; debt adjusters; and loan servicers.»