This bill aims to eliminate court filing fees for individuals who are defendants in actions to collect consumer debt. Specifically, it stipulates that no individual sued for consumer debt or associated fees will be charged any court fees when filing an appearance, answer to a complaint, counterclaim, cross-claim, or third-party complaint in the Special Civil Part or Civil Part of the Superior Court, Law Division. The bill defines consumer debt as debt incurred primarily for personal, family, or household purposes, and it includes consumer credit and medical debt as defined by existing law.

The legislation is designed to address the issue of default judgments in consumer debt cases, where defendants often do not respond to lawsuits, resulting in additional financial burdens such as fees, interest, and wage garnishments. By removing the financial barrier of court filing fees, the bill seeks to encourage defendants to engage in the legal process and potentially reduce the number of default judgments. The bill is set to take effect 90 days after its enactment and is informed by findings from the National Center for Access to Justice's 2024 Consumer Debt Litigation Index.