Washington, DC, January 9, 2024 – The American Association for Debt Resolution (AADR) is pleased that the New Jersey General Assembly followed the lead of the New Jersey Senate and passed Senate Bill 2989, which, if signed into law, will allow New Jersey consumers access to another option to deal with their unmanageable debt.
“With high interest rates and inflation, many New Jerseyans are facing a crisis when it comes to managing their unsecured debt,” said AADR CEO Denise Dunckel Morse. “We urge Governor Murphy to rapidly sign this legislation to give consumers in New Jersey an option other than bankruptcy when facing mounting debt.”
This legislation comes at a key time for many New Jerseyans. Inflation in the state has cost residents an estimated 25 percent more than the national mean, as the average household owes over $9,000 in credit card debt. According to a 2020 report, on average, debt resolution saves consumers $2.64 for every $1.00 in fees assessed, while a separate analysis notes that debt resolution has saved consumers $1.65 Billion.
Senate Bill 2989 and its companion, Assembly Bill 1739, received widespread, near-unanimous, bipartisan support between both the General Assembly and Senate. The legislation now heads to Governor Murphy’s desk.
Debt resolution is an effective option, regulated by the Federal Trade Commission (FTC), for those facing financial difficulties to reduce their debt and avoid bankruptcy. During the process, debt resolution providers negotiate with an enrolled consumer’s creditors to obtain settlements to reduce the amount they owe.
Throughout a debt resolution program, clients do not pay any fees until they agree to and make a payment towards a negotiated settlement. They are also under no obligation to accept any settlement, and can withdraw from the process at any time, for any reason, without penalty.
About the American Association for Debt Resolution
The American Association for Debt Resolution (AADR), formerly the American Fair Credit Council (AFCC), is the national association of the debt resolution industry. The AADR is committed to educating consumers and policymakers about debt resolution and its benefits, holding debt resolution companies to the highest standards, and protecting and expanding access to accredited debt resolution services nationwide. AADR member companies must abide by the organization’s industry standards and be accredited biannually by an independent auditor.
