N.J. Admin. Code § 3:25-2.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 3:25-2.2 - Application for license as a debt adjuster or registration as a high-cost home loan credit counselor

(a) Prior to acting as a debt adjuster, a nonprofit social services or nonprofit consumer counseling agency shall obtain a license from the Department. The license application shall be on a form approved by the Commissioner and shall include the following information:

1. A Certificate of Incorporation bearing the New Jersey Division of Revenue's dated filing stamp or its equivalent. For non-New Jersey state nonprofit corporations, a copy of the Certificate of Authority to do business in New Jersey bearing the New Jersey Division of Revenue's dated filing stamp or its equivalent;

2. If the corporation uses a doing business as name, a copy of the registration of alternate corporate name bearing the New Jersey Division of Revenue's dated filing stamp or its equivalent;

3. A completed certified consent certificate authorizing a criminal record check for each corporate director or trustee;

4. A completed biographical information form and personal financial statement for each director or trustee;

5. Information on whether any director, trustee or member of an advisory or other similar committee has ever had a license, permit or other authorization, other than a driver's license, been suspended or revoked by this or any other state or has been affiliated directly or indirectly with any other organization that has had such a license suspended or revoked;

6. An unqualified financial statement prepared by a certified public accountant or a public accountant demonstrating the financial condition of the corporation;

7. A copy of the annual report of the nonprofit agency most recently filed with the New Jersey Division of Revenue pursuant to N.J.S.A. 15A:4-5, or an equivalent report for non-New Jersey state nonprofit corporations;

8. The applicant's balance sheet and profit and loss statement for the last fiscal period, if available;

9. If the primary source of operating funds is obtained from outside sources such as financial institutions, retail merchants, industrial concerns, labor unions, trade associations, religious organizations, foundations, etc., a schedule citing the names and addresses of all such individual contributors and the amount contributed and the amount anticipated for the current fiscal period;

10. A list of salaries or compensation paid to individual directors, trustees, officers, members of the advisory council or other persons in managerial positions during the last fiscal period or if the applicant is recently incorporated, the estimated amounts to be paid to all such individuals during the current fiscal period;

11. A schedule citing the types and amounts of insurable risks including:

i. Fidelity bonds covering every director, trustee, officer, employee or anyone who will have authority to act on the licensee's behalf;

ii. Indemnity insurance covering robbery, burglary, holdup, embezzlement or fraud by insiders, outsiders, forgery, errors and omissions, misplacement, etc.; and

iii. Fire and extended coverage on the office(s), furniture, fixtures and equipment, etc.;

12. Proof of the surety bond required by N.J.A.C. 3:25-2.5;

13. The address of all offices conducting debt adjustment activities on behalf of debtors residing in New Jersey;

14. The license application fee required by N.J.A.C. 3:23-2.1; and

15. Additional information, which may be specifically requested by the Commissioner from a particular applicant.

(b) Upon determination that an applicant is qualified for licensure under the Debt Adjuster Act, the Commissioner shall issue a license for each location where the licensee may conduct debt adjustment activities on behalf of debtors residing in New Jersey.

(c) A licensee shall advise the Department of a change of any legal name, business name or a change of the address that appears on the license by noting the change on the current original license and returning it to the Department for cancellation and reissuance of a new license containing updated information. No fee shall be required for such changes. If the notice is to change a legal or business name, the request shall be accompanied by a copy of the document filed in the office of the Division of Revenue or other authority evidencing that the change has been properly recorded.

(d) Applicants for registration as a high-cost home loan credit counseling service shall not be affiliated with any lender of high-cost home loans and shall furnish acceptable proof of approval by the United States Department of Housing and Urban Development as a Housing Counseling Agency.

(e) Prior to providing high-cost home loan credit counseling services, a nonprofit social service or nonprofit credit counseling agency shall be registered by the Department. The registration application shall be on a form approved by the Commissioner and shall include the following information:

1. A Certificate of Incorporation bearing the New Jersey Division of Revenue's dated filing stamp or its equivalent or, for non-New Jersey state corporations, a copy of the Certificate of Authority to do business in New Jersey bearing the New Jersey Division of Revenue's dated filing stamp or its equivalent;

2. If the corporation uses a doing business as name, a copy of the registration of alternate corporate name bearing the New Jersey Division of Revenue's dated filing stamp or its equivalent;

3. Information on whether any director, trustee or member of an advisory or other similar committee has ever had a license, permit or other authorization, other than a driver's license, suspended or revoked by this or any other state or has been affiliated, directly or indirectly, with any organization that has had such a license suspended or revoked;

4. An unqualified financial statement prepared by a certified public accountant or a public accountant demonstrating the financial condition of the corporation;

5. A copy of the annual report of the nonprofit agency most recently filed with the New Jersey Division of Revenue pursuant to N.J.S.A. 15A:4-5, or an equivalent report for non-New Jersey state nonprofit corporations;

6. The applicant's balance sheet and profit and loss statement for the fiscal period preceding the filing of the application, if available;

7. The registration application fee required by N.J.A.C. 3:23-2.1; and

8. A copy of the current HUD Certificate of Approval of the agency as a Housing Counseling Agency and a certified statement affirming that, as of the date of the application, the agency's approval by HUD as a Housing Counseling Agency remains in full force and effect.

(f) The Commissioner may request from a particular applicant any additional information that is necessary to determine an applicant's eligibility for registration.

(g) Upon determination that an applicant is qualified for registration as a high-cost home loan credit counselor, the Commissioner shall register each office location from which the high-cost home loan credit counselor provides credit counseling to debtors residing in New Jersey. Such registration shall be deemed approval pursuant to N.J.S.A. 46:10B-26g.

(h) The Department shall post on the Department's website at http://www.state.nj.us/dobi/, a list of the office locations of all registered credit counseling agencies approved to counsel borrowers on high-cost home loans.

(i) A registrant shall advise the Department of a change of business address. No fee shall be required for such changes.

N.J. Admin. Code § 3:25-2.2

New Rule, R.1997 d.336, effective 8/18/1997.
See: 29 N.J.R. 2500(a), 29 N.J.R. 3719(a).
Former section recodified to N.J.A.C. 3:25-2.4.
Amended by R.2004 d.81, effective 2/17/2004.
See: 35 N.J.R. 4187(a), 36 N.J.R. 943(a).
In (a), inserted "other than high-cost home loan credit counseling," following "counseling services" in the introductory paragraph, amended the N.J.A.C. references in 11 and 13; in (b), inserted "for licensure under the Debt Adjuster Act" preceding "the Commissioner"; added (d) through (i).
Amended by R.2006 d.235, effective 6/19/2006.
See: 38 N.J.R. 10(a), 38 N.J.R. 2674(a).
In (a)13 and (e)7, inserted "application" and substituted "3:23-2.1" for "3:25-2.4".
Amended by R.2008 d.203, effective 7/21/2008.
See: 40 N.J.R. 837(a), 40 N.J.R. 4311(a).
Section was "Application for license or registration". Rewrote the introductory paragraph of (a), and (a)1 and (a)2; added new (a)7; recodified former (a)7 through (a)14 as (a)8 through (a)15; in (b), substituted "the licensee may conduct" for "credit counseling and" and deleted "will take place" following "activities"; in (c), substituted "Division of Revenue" for "Secretary of State, County Clerk"; in the introductory paragraph of (e), substituted the first occurrence of "nonprofit" for "non-profit" and inserted the second occurrence of "nonprofit"; throughout (e)1 and in (e)2, substituted "Division of Revenue's" for "Secretary of State's" and inserted "or its equivalent"; in (e)1, substituted "non-New Jersey state" for "foreign (out-of-State)"; in (e)2, substituted "alternate" for "fictitious"; and in (e)5, inserted "most recently" and "state nonprofit", substituted "Division of Revenue" for "Secretary of State" and updated the N.J.S.A. reference.
Amended by R.2009 d.322, effective 10/19/2009.
See: 41 N.J.R. 2370(a), 41 N.J.R. 3897(a).
In (a)13, substituted "conducting debt adjustment activities on behalf of debtors residing in New Jersey" for "to be located in this State"; in (b), deleted "in this State" following "location" and deleted the last sentence, and inserted "on behalf of debtors residing in New Jersey"; and in (g), deleted "in this State" following "location" and substituted "provides credit counseling to debtors residing in New Jersey" for "shall operate".