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Credit Repair Laws New Jersey

by | May 12, 2022

The credit repair business is a booming industry. The state of New Jersey credit repair law protects its residents against unfair and deceptive business practices. If you are planning to open a credit repair company in New Jersey, it is critical to learn the law to avoid being labeled as a scam and involved in illegal issues.

New Jersey is one of the wealthiest states in the USA. It is ranked 4th with the highest median household income in the country which is $85,751 and ranked 7th richest state in terms of GDP which is $6.26 trillion. Despite being small, the state is ranked 11th as the most populated in the country with 9.24 million residents. 9.1% of these people are living below the poverty line.

The state of New Jersey has an average credit score of 725 which means that many of the residents are good borrowers. However, it is undeniable that New Jerseyans hold more debt than the rest of the country. It has the second-highest average credit card debt in the USA which is $7,084. It is the 5th state with the highest average mortgage debt of $270,329. It has an average auto loan debt of $15,930. And1.3 million New Jersey residents contribute to the state’s $33,563 average student loan debt.

New Jersey Average Credit Score

Building a credit repair company in New Jersey has great opportunities. Many people seek for credit fix services to maintain and improve their credit score. Here are some of the most important things you should learn when it comes to New Jersey Credit Repair Laws.

Prohibited Acts under Credit Repair Law New Jersey


  1. No person or a credit repair company is allowed to erase any accurate negative information in the consumer’s credit history.
  2. It is illegal to create a new identity for the consumer to hide the consumer’s true credit worthiness.
  3. A credit repair company or any person providing the service is not allowed to receive any payment prior to the completeness of the services to be performed.
  4. Before conducting a business, the consumer and the credit repair company must have a written contract. Dated and signed by the consumer.
  5. The credit repair business and consumer contract shall contain complete and accurate details about the services to be performed.
  6. The contract should have the statements of the consumer’s legal right.
  7. The consumer can cancel the credit repair service contract within 3 business days after the agreement have been signed by the buyer.
  8. Credit repair companied are prohibited from making deceptive claims about the services they offer.

Statute of Limitations in New Jersey

In general, the state of New Jersey has 6 years statute of limitations for all types of debt except in auto loan debt which has only 4 years. Statute of limitations means the amount of time the debt collector can file a lawsuit from the maturity date in the loan note.

Statute of Limitations in New Jersey

**Disclaimer: The information regarding the New Jersey credit repair laws in this page should not be considered as legal advice. We aim to provide the most accurate information to assist you in starting a credit repair business. However, the rules and regulations of the state may change anytime. We encourage doing more research or seeking an attorney’s advice. **

What are The Requirements to Start a Credit Repair Business in New Jersey?

How to Start a Credit Repair Business in New Jersey?

  1. Review the credit repair law in New Jersey

    This is very important to avoid being labelled as scam and getting involved in any illegal issues. This industry has been abused and used to scam people. That is why the government backed the residents with credit services organization act to protect them.

  2. Find do-it-all credit repair software like the Credit Money Machine to make business processes fast and easy.


    This software have all the tools you need to run a credit repair software. Like a CRM program, emailing system, auto responder, ability to extract derogatories automatically, assign the letters and dispute reasons, detect discrepancies, and maintain the history of communication with Creditors and Credit Bureaus, to mention a few.

  3. Learn to pull credit reports.


    This includes making dispute letters for your clients to get credit reports from the bureaus.

New Jersey Credit Repair Laws FAQ:

What is the surety bond for credit repair business in New Jersey?

New Jersey does not require a surety bond to open a credit repair business in the state. This means that there is no way you can charge a client with upfront cost of the services to be provided. You, as the credit service provider can only charge and receive payment after the services have been completed.