Senate Commerce Committee Statement to Senate, No. 3843 — State of New Jersey (December 6, 2021)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated December 6, 2021, reports favorably Senate Bill No. 3843. The 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. It states the sponsor's view that not requiring disclosure may allow inaccurate financial information to be submitted to lenders so a consumer can qualify for a loan. Such 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 bill is identical to Assembly Bill No. 2635.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
3843

STATE
OF NEW JERSEY

DATED: DECEMBER
6, 2021

The Senate Commerce Committee reports favorably Senate
Bill No. 3843.

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 Assembly Bill
No. 2635, as also reported by the committee.

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