N.J. Admin. Code § 3:25-3.1

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:25-3.1 - Penalties

(a) The Commissioner may revoke, suspend or refuse to issue or renew a license, if after notice and hearing conducted in accordance with the Administrative Procedure Act, 52:14B-1 et seq. and the Uniform Administrative Procedure Rules, N.J.A.C. 1:1, the Commissioner determines that the licensee or applicant:

1. Has violated any provision of the Debt Adjuster Act or any order rule or regulation issued pursuant to that Act;

2. Has failed to pay any fee, penalty, or other lawful levy imposed by the Commissioner;

3. Has withheld information or made a material misstatement in an application for a license or in any other submission to the Department;

4. Has been convicted of an offense involving breach of trust, moral turpitude or fraudulent or dishonest dealing, or has had a final judgment entered against him or her in a civil action upon grounds of fraud, misrepresentation or deceit;

5. Is associating with, or has associated with, any person who has been convicted of an offense involving breach of trust, moral turpitude or fraudulent or dishonest dealing, or who has had a final judgment entered against him or her in a civil action upon grounds of fraud, misrepresentation or deceit;

6. Has become insolvent or has acted in a way that indicates that the licensee's debt adjustment and credit counseling business would not be operated in a financially responsible manner; or

7. Has demonstrated unworthiness, incompetence, bad faith or dishonesty in transacting business or otherwise.

(b) The Commissioner may revoke, suspend or refuse registration as a high-cost home loan credit counselor if, after notice and hearing as set forth in (a) above, the Commissioner determines that the registrant, applicant for registration or any officer, director or employee of either the registrant or applicant for registration has:

1. Issued a certification of counseling on a high-cost home loan or of alternate counseling on high-cost home loans without having fully provided the counseling as provided by the Home Ownership Security Act and this chapter;

2. Failed to pay any fee, penalty, or other lawful levy imposed by the Commissioner;

3. Withheld information or made a material misstatement in an application for registration or in any other submission to the Department;

4. Been convicted of an offense involving breach of trust, moral turpitude or fraudulent or dishonest dealing, or has had a final judgment entered against him or her in a civil action upon grounds of fraud, misrepresentation or deceit;

5. Associated with any person who has been convicted of an offense involving breach of trust, moral turpitude or fraudulent or dishonest dealing, or who has had a final judgment entered against him or her in a civil action upon grounds of fraud, misrepresentation or deceit;

6. Demonstrated unworthiness, incompetence, bad faith or dishonesty in transacting business or otherwise;

7. Failed to retain its HUD approval as a Housing Counseling Agency; or

8. Violated any provision of the Home Ownership Security Act or any order, rule or regulation issued pursuant to that Act.

(c) In addition to the penalties in (a) above, any person who violates any provisions of the Debt Adjuster Act or the rules applicable to licensees shall be subject to a penalty of $ 1,000 for the first offense and not more than $ 5,000 for the second and each subsequent offense to be collected in a summary procedure under the "penalty enforcement law," N.J.S.A. 2A:58-1 et seq. and any agency registered as a high-cost home loan credit counselor who violates any provision of the Home Ownership Security Act or the rules applicable to such registrants shall be subject to penalties pursuant to 46:10B-28(d).

(d) Any person who knowingly and willfully engages in the business of debt adjustment without a license in violation of the Debt Adjuster Act shall be guilty of a crime of the fourth degree pursuant to N.J.S.A. 2C:21-19f.

N.J. Admin. Code § 3:25-3.1

Recodified from N.J.A.C. 3:25-2.4 and amended by R.1997 d.336, effective 8/18/1997.
See: 29 N.J.R. 2500(a), 29 N.J.R. 3719(a).
Section name changed; in (a), inserted "or refuse to issue or renew" and "or applicant"; deleted (a)8; and rewrote (b).
Amended by R.2003 d.59, effective 2/3/2003.
See: 34 N.J.R. 2552(a), 35 N.J.R. 607(b).
Added (c).
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 "Debt Adjuster" preceding "Act" and substituted "that" for "the" in 1; added a new (b); recodified existing (b) and (c) as (c) and (d) and rewrote the paragraphs.
Amended by R.2008 d.203, effective 7/21/2008.
See: 40 N.J.R. 837(a), 40 N.J.R. 4311(a).
In (c), substituted "$ 1,000 for the first offense and not more than $ 5,000 for the second and each subsequent offense" for "$ 500.00"; and in (d), deleted "and credit counseling, other than high-cost home loan credit counseling" following "adjustment".