• 21
  • February
    2012

In my Hackensack law office yesterday, I was retained by homeowners to resolve concerns they have with services allegedly performed by an unlicensed loan modification company. The couple paid fees to the loan modification company based on its promise to negotiate with their mortgagee and produce an agreement providing for a reduction in the amount of their payments.

Today, a lot of companies of sprung up that purport to assist people struggling to pay their bills. Whether they label their "services" debt reduction, loan modification, debt relief, etc., unless qualified for an exemption as set forth in N.J.S.A. 17:16G-1(c), they are operating illegally in New Jersey. Only those entities that are licensed to act as a debt adjuster by the Department of Banking and Insurance may perform debt adjustment services as defined therein for New Jersey residents.

Unlicensed Debt Adjusters are Subject to Penalties

If you are working with a debt adjuster within the State of New Jersey, visit the New Jersey Department of Banking and Insurance and verify that they are licensed. I have met with numerous people that have complained of services rendered by these types of companies; and I have yet to find a company that was licensed. Fortunately, I have been successful in having fees charged by these companies returned to my clients in most cases.