As the most populated city in New Jersey, Newark brings a lot of things to the state. As of 2018, the city had a population of more than 280,000. To benefit from the city’s rich economy, there have been several large companies who have settled their headquarters in Newark, including Panasonic Corporation of North America, Audible.com, IDT Corp., Manischewitz, and Prudential. Newark boasts a strong education platform and is home to large universities and schools including Rutgers University, the law school of Seton Hall University, and the New Jersey Institute of Technology (Wikipedia.org). From afar, Newark and its people have accomplished a lot, but where do they stand with commercial debt and debt collection?

Business & Economy

In 2016, the most common industries in Newark were transportation, construction, retail trade, administration waste management, manufacturing, accommodation and food service, and health care. This coincides with top occupations for the same year for industries including transportation, construction, material moving, and office and support. (City-Data.com)

How does Newark deal with its finances and debt issues? One of the biggest issues Newark has dealt with is their experiment with charter schools and charter school buildings. For more than 20 years taxpayers in Newark and New Jersey been spending hundreds of millions to construct and renovate charter school buildings that are owned by private groups (NorthJersey.com). This is a big issue for many residents who don’t even have public access to information detailing how or why their taxes are spent to pay rent, renovation, and construction bills of school buildings.

Debt Collection

There are several important laws in Newark when it comes to commercial debt collection. For example, the face amount of bad check laws equals the check plus three times the face value of the check, with the civil penalty not exceeding $500. The statute of limitations for written contracts is six years and for the sale of products is four years. (PSIcollect.com)

Like in other U.S. states, the federally-created Fair Debt Collections Practices Act governs debt collection practices for consumers, but isn’t an applicable law for commercial debt. In New Jersey, the main organization that governs business debt is the Commercial Collection Agency Association (CCAA). Debt collection companies that are members of the CCAA must make sure they abide by the CCAA guidelines when pursing debtor businesses. Prestige Services, Inc. (PSI Collect) is a top commercial collection agency that specializes in debt collection for medical-based companies and other top corporations around the United States.

Sources

https://en.wikipedia.org/wiki/Newark,_New_Jersey
http://www.city-data.com/city/Newark-New-Jersey.html
https://www.northjersey.com/in-depth/news/watchdog/2019/03/27/nj-charter-schools-nj-tax-money-disappearing/2139903002/
https://psicollect.com/new-jersey/