- New Jersey has pending legislation, A4214/S2876, “The Foreclosure Rescue Fraud Prevention Act”. As of 11.17.08, amendments to the bill had passed the Assembly. The Bill proposes to regulate foreclosure consultants and any other form of debt, budget or financial counseling services (See http://www.njleg.state.nj.us/2008/Bills/A0500/281_I1.HTM for full text of the current bill.
- The Bill proposes:
- To require foreclosure consultants to obtain a bond from a surety company authorized to do business in the State in a form and an amount to be prescribed by the Director of the Division of Consumer Affairs by regulation and to file the bond; the contract shall be written in plain language and shall fully disclose the exact nature of the foreclosure consultant’s services and the total amount and terms of compensation through statute specific notices included conspicuously in the contract; requires attached notices of cancellation; require foreclosure consultants to file executed contracts with county clerk; rescission and cancellation of contract any time until full performance by consultant;
- Prohibits up-front fees; power of attorney; security in lieu of payment; consideration from any interested third party; waivers of rights;
- The Bill exempts licensed NJ attorneys from the definition of foreclosure consultant.
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