Trenton, NJ - On March 13, 2017, the New Jersey Senate passed a bill authorizing the use of payment assurance devices.  Both the Senate and Assembly passed the bill a second time after Governor Christie initially conditionally vetoed the bill signaling to the legislature the changes that would be necessary in order for him to sign it into law.     The original bill would have banned GPS usage for used cars in the state of NJ, halting financing for some subprime borrowers, among other potentially damaging provisions. With some consumers unable to secure financing, many car dealers’ businesses would have been negatively impacted. Paula Frendel, the Executive Director of NJIADA, explains, “The amended bill is now advantageous for both dealers and consumers. It allows transparency for dealers and allows right to cure for consumers, which was never possible in New Jersey before.”


Frendel testified before both the Assembly of Consumer Affairs and Senate Commerce Committees to voice NJIADA’s concerns over the provisions of the legislation that were not beneficial to used car dealers in NJ.  Anthony Bush, Esq. of Eckert Seamans Cherin & Mellott, also worked to protect the businesses of used car dealers in the state during several meetings with the bill’s sponsor.  Bush said, “ it is important to recognize that this bill provides significant new protections to consumers but also allows dealers that sell to economically challenged individuals to continue to operate profitably.”   Not only was the GPS ban deleted from the bill, but other provisions that were neither in the best interest for car dealers nor consumers were eliminated, including a mandated 10 point interest rate reduction regardless of credit history that would have further discouraged subprime lending in the state of New Jersey.   The bill also provides that: the creditor installing the device notify the consumer of its installation and have the consumer acknowledge it in writing; the consumer cannot be charged for installation of the GPS device;  the creditor cannot remotely disable a vehicle until their consumer is five or more days in default; the vehicle cannot be disabled while being operated;  and mandating at least

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hours’ notice before a vehicle can be remotely disable.




Here’s a link to the new Buyers Guide:


Here’s a link to the Automotive News article explaining the changes:


Contact  NJIADA with any further questions.