The NJSBA supports A-977/S-3043, which eliminates barriers to qualify for jury service. This is one of a number of recommendations made by the Association to address implicit and explicit bias in the jury selection process. Removing the lifetime bar from jury service of those who have past convictions of an indictable offense is necessary to eliminate the systematic exclusion of disproportionate numbers of persons of color from jury service. The Association cites to the recommendations of the Supreme Court’s Committee of the Judicial Conference on Jury Selection, which compelled reconsideration of this lifetime bar subject to potential challenge for cause or peremptory challenge.
This is a step in the right direction towards eliminating implicit and explicit bias in the jury selection process. The Association urges you to vote yes to A-977/S-3403.
The NJ State Bar Association Opposes A1739,
Which Would Permit Licensing for For-Profit Debt Adjusters to Conduct Business That Is Already Provided By Nonprofits In This State
The NJ State Bar Association urges you to vote against this bill, which would permit for-profit debt adjusters to operate in New Jersey. Currently, consumers – often the most vulnerable due to piling debt – can avail themselves of credit counseling through a nonprofit and pursue the same remedies offered by for profit debt adjusters on their own. By utilizing debt adjustment services, consumers pay a fee for those adjusters to pursue credit card companies to reduce debt and charge fees commensurate to the debt that is paid off. However, if the debtor is unable to continue to pay to resolve all of the debts, that debtor is left with additional interest rates and fees on the balance of the debt and bad credit sometimes years after attempts to resolve the debt because the debt was not addressed holistically. Additionally, debt adjusters are not attorneys and therefore are unable to provide legal advice to these debtors as to when bankruptcy may be a better option than pursuing a reduction in debt (such as the ability to avoid taxation on debt that is written off, for example).
This bill also places stricter regulations on nonprofits over for profit debt adjusters:
• Nonprofit social service agencies or nonprofit consumer credit counseling agencies licensed in New Jersey must post a bond, but for profit debt adjusters are specifically exempt. This is ostensibly because for profit debt adjusters use a third party to hold the money and therefore the consumer would have to go after a bank for these funds, rather than the debt adjuster. (Section 5(a))
• Licensees must have their financial records relating to debt adjustment audited annually by a certified public accountant or a public accountant, to be filed with the Department of Banking and Insurance. For profit companies are specifically exempted from providing these certifications. (Section 5(e))
• Fees for credit counseling already cannot exceed one percent of the gross monthly income of the person to whom the service is rendered and no more than $15 in any one month. This restriction is only imposed on nonprofits, ostensibly because this fee is not sustainable for those for profit debt adjusters. In other words, for profit debt adjusters may charge more than this fee because they need to earn a profit in order to provide services in this state.
In 2012, the New Jersey Law Revision Commission studied debt settlement and proposed language for debt adjusters that would strengthen consumer protections. To the extent there should be regulations for debt adjusters, consideration should be paid to that proposed language as this bill does not provide those same protections. Attached are the NJSBA’s remarks on this issue for your consideration. For these reasons, the Association urges you to vote no to this bill.