New Jersey § 17:11c-41

§ 17:11c-41.

The following practices shall be prohibited and a violation of the “New Jersey Consumer

Finance Licensing Act,” sections 1 through 49 of P.L.1996, c. 157 ( C.17:11C-1 et seq. ): a. No consumer lender shall make any loan upon security of any assignment of or order

for the payment of any salary, wages, commissions or other compensation for services

earned, or to be earned, nor shall any such assignment or order be taken by a licensee

at any time in connection with any consumer loan, or for the enforcement or repayment

thereof, and any such assignment or order hereafter so taken or given to secure any

loan made by any licensee under this act shall be void and of no effect. b. No consumer lender shall take a lien upon real estate as security for any consumer

loan, except a lien created by law upon the recording of a judgment. c. No licensee shall conduct the consumer loan business within any office, room, or

place of business in which any other business is solicited or engaged in, or in association

or conjunction therewith, except as may be authorized in writing by the commissioner. d. Every multiple installment consumer loan contract, other than an open-end consumer

loan contract or a variable rate closed-end consumer loan contract under subsection

b. of section 32 of this act, 1 shall provide for repayment of principal and interest combined in installments which

shall be payable at approximately equal periodic intervals of time and which shall

be so arranged that no installment is substantially greater in amount than any preceding

installment, except that the repayment schedule may reduce or omit installments when

necessary because of the seasonal nature of the borrower's income. e. No person, except as authorized by this act, shall directly or indirectly charge,

contract for, or receive any interest, discount, or consideration greater than the

lender would be permitted by law to charge if he were not a licensee hereunder upon

the loan, use, or forbearance of money, goods, or things in action, or upon the loan,

use, or sale of credit of the amount of $50,000 or less. This prohibition shall apply to any person who, by any device, subterfuge, or pretense,

shall charge, contract for, or receive greater interest, consideration, or charges

than is authorized by this act for the loan, use, or forbearance of money, goods,

or things in action or for the loan, use, or sale of credit. f. No consumer loans of the amount or value of $50,000 or less for which a greater

rate of interest, consideration, or charge than is permitted by this act has been

charged, contracted for, or received, whenever made, shall be enforced in this State

and any person in any way participating therein in this State shall be subject to the provisions

of this act. The foregoing shall not apply to loans legally made in any state which then has

in effect a regulatory small loan law similar in principle to this act, but an action

to enforce any loan made in any state to a person then residing in this State may

be maintained in this State only if the amount of interest, discount, consideration

or other charge for that loan, demanded to be paid in the action, does not exceed

that permitted to a licensee authorized to engage in the consumer loan business by

this act for a loan of the same amount repayable in the same manner. g. No consumer lender shall make, advertise, print, display, publish, distribute,

electronically transmit, telecast or broadcast, in any manner, any statement or representation

which is false, misleading or deceptive. h. No consumer lender shall make any statement or representation that the licensee

will provide “immediate closing” of a loan or will afford unqualified access to credit. 1

N.J.S.A. § 17:11C-32.