NJ Measure Targets Unscrupulous Car Dealers

Legislation designed to protect New Jersey consumers from unscrupulous car dealers has cleared another legislative hurdle. The Assembly recently passed the measure, which targets dealers who fail to pay off loans on trade-in vehicles they accept. When that happens, the person who traded in the vehicle remains responsible for the loan, even though they no longer possess the car.

It now heads to the Senate, where it has been referred to the Transportation Committee. But that panel hasn’t scheduled a hearing on the proposal.

If the measure becomes law, motor vehicle dealers would have to pay the remaining loans on trade-ins within 15 days of acquiring them. The bill also mandates that designated “secured parties” release the vehicle’s title within 15 days of receipt of payment from the dealer.

Violators would face fines of up to $500 for the first offense and up to $1,000 for any subsequent offenses.

“This is common sense consumer protection,” said Assemblyman Matthew W. Milam, D-Cape May Court House, one of the bill’s primary sponsors in that chamber, which passed it June 28.

Milam said the measure stems from an incident in Upper Township, in which a car dealer kept the money from trade-ins they received, then never transferred the title and left families “strapped with loans” from their trade-in vehicle, which they no longer possessed.

“People shouldn’t see their credit and financial future destroyed by sloppy or dishonest business practices,” Milam said. “It’s always unfortunate when we have to legislate matters like this, but this is a step forward for consumers and honest car dealers.”

Other sponsors in the Assembly include Republicans Dawn Marie Addiego and Scott Rudder, both of Medford, and Democrat Paul Moriarty of Turnersville.

Milam served in the Assembly since 2008.

{CBS/Noam Amdurski-Matzav.com Newscenter}