New Jersey Assembly Bill A1539

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Regulates pay-off of trade-in vehicles and certain vehicle title releases.

Impact

This bill amends existing laws under Chapter 10 of Title 39 of the New Jersey Revised Statutes, which governs motor vehicle transactions. By imposing a strict timeline for loan payoffs, the legislation impacts how dealers manage trade-ins and adhere to financial obligations. Failure to comply with the new requirements results in significant penalties, which can range up to $2,000 for repeated offenses and extra costs incurred by customers due to delays. This change is intended to enhance consumer rights and increase transparency in motor vehicle dealings.

Summary

Assembly Bill A1539 introduces regulations regarding the trade-in of used motor vehicles in New Jersey. It mandates that motor vehicle dealers must pay off any remaining loan on a customer's trade-in vehicle within 15 days of accepting that trade-in. This provision aims to protect consumers from potential financial liability that might arise if the dealer fails to settle the outstanding loan promptly. Additionally, the bill requires dealers to provide proof of payment to customers upon request, reinforcing accountability in the transaction process.

Contention

The bill also addresses the release of titles by secured parties, stipulating that a title must be released within 15 days of a dealer's payment. If the payment is made by non-certified check, the secured party has the same time frame from when the check is cleared. Moreover, the bill invalidates any levies on motor vehicles unless a creditor takes actual possession within 30 days, thus protecting subsequent purchasers from being liable for a previous owner’s debts if the vehicle is not actively seized. These elements reflect a more consumer-friendly approach but may raise concerns among dealers and financial institutions regarding the operational adjustments required to comply with the new regulations.