Senate Commerce Committee Statement to Assembly, No. 2635 — State of New Jersey (December 6, 2021)

Summary

Statement of the Senate Commerce Committee, State of New Jersey, dated December 6, 2021, reporting favorably Assembly Bill No. 2635. The bill makes it an unlawful practice under the consumer fraud act for a motor vehicle dealer to fail to give a consumer a copy of any loan application prepared in connection with the sale of a motor vehicle. The statement says it is the sponsor's view that not requiring disclosure may allow inaccurate financial information to be submitted to lenders. An unlawful practice is punishable by a penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. The statement says the bill is identical to Senate Bill No. 3843.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

ASSEMBLY,
No. 2635

STATE
OF NEW JERSEY

DATED: DECEMBER
6, 2021

The Senate Commerce Committee reports favorably
Assembly Bill No. 2635.

This bill makes it an unlawful practice under the consumer fraud act for a motor
vehicle dealer to fail to provide a consumer with a copy of any loan
application prepared in connection with the sale of a motor vehicle.

Under
current law, a motor vehicle dealer is not specifically required to provide a
consumer with a copy of the loan application prepared in connection with the
sale of a motor vehicle. This bill clarifies that a motor vehicle dealership
is required to provide a consumer with a copy of any loan application prepared
in connection with the sale of a motor vehicle. It is the sponsor’s view that
not requiring the disclosure of loan applications prepared by motor vehicle
dealers may allow for the submission of inaccurate financial information to
lenders in order to permit a consumer to qualify for a motor vehicle loan for
which he or she would otherwise be unqualified.

An
unlawful practice under the consumer fraud act is punishable by a monetary
penalty of not more than $10,000 for a first offense and not more than $20,000
for any subsequent offense. Additionally, violations may result in cease and
desist orders issued by the Attorney General, the assessment of punitive
damages, and the awarding of treble damages and costs to the injured party.

As reported, this bill is identical to Senate Bill No.
3843, as also reported by the committee.

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