New Jersey Statutes 17:16V-7. Cause of action not created to debtor or third party; remedy; notification; exempt transactions
Terms Used In New Jersey Statutes 17:16V-7
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- person: includes corporations, companies, associations, societies, firms, partnerships and joint stock companies as well as individuals, unless restricted by the context to an individual as distinguished from a corporate entity or specifically restricted to one or some of the above enumerated synonyms and, when used to designate the owner of property which may be the subject of an offense, includes this State, the United States, any other State of the United States as defined infra and any foreign country or government lawfully owning or possessing property within this State. See New Jersey Statutes 1:1-2
(a) if the purchase of collateral protection insurance is the result of error by the creditor; or
(b) as provided in subsection f. of this section.
(2) If the creditor does not substantially comply with the provisions of this act in purchasing collateral protection insurance:
(a) the sole and exclusive remedy of the debtor is that the debtor does not have to pay for the insurance and any associated creditor fees or costs; and
(b) the commissioner may assess an administrative fee as provided in subsection e. of this section.
(3) A creditor is not, by virtue of this act, required to purchase collateral protection insurance or otherwise insure collateral.
b. This act shall not create a cause of action to the debtor or any third party:
(1) for the purchase or placement of collateral protection insurance in substantial compliance with the terms of this act;
(2) for not purchasing collateral protection insurance;
(3) as a result of the amount or level of coverage, geographical scope of coverage or deductible associated with collateral protection insurance purchased by the creditor;
(4) because the creditor purchases collateral protection insurance that protects only the interest of the creditor or less than all of the interest of the debtor; or
(5) nondisclosure of commissions or fees included in costs.
c. The list under subsection b. of this section does not imply that a cause of action is otherwise created by this act.
d. This act shall not apply to credit transactions involving extensions of credit primarily for business, commercial or agricultural purposes, and shall not be deemed to regulate or limit the rights of the parties to a business, commercial or agricultural transaction to contract for terms and provisions regarding insurance otherwise not prohibited by law.
e. (1) A creditor that fails to provide any notice to a debtor required pursuant to section 3 of P.L.1999, c.44 (C. 17:16V-3) shall be liable to an administrative penalty not exceeding $25,000.
(2) A creditor that willfully violates any requirement of P.L.1999, c.44 (C. 17:16V-1 et al.) shall be liable to an administrative penalty not exceeding $50,000.
(3) The administrative penalty authorized pursuant to this section may be recovered in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C. 2A:58-10 et seq.).
f. If a creditor places collateral protection insurance on a debtor or fails to remove collateral protection insurance on a debtor, and the creditor has received evidence of coverage of the debtor as provided in section 3 of P.L.1999, c.44 (C. 17:16V-3), the debtor shall have a civil cause of action in a court of competent jurisdiction for the premium, interest, and all related fees paid by the debtor, including attorney’s fees. If the duplicative charges result in delinquency of the credit agreement or repossession of the collateral, the debtor shall be entitled to treble damages.
L.1999, c.44, s.7; amended 2019, c.312, s.3.