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. Full story in Star Ledger.