Current through Register Vol. 56, No. 18, September 16, 2024
(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.
