This bill proposes the elimination of court filing fees for individuals who are defendants in actions to collect consumer debt. Specifically, it states 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 also defines consumer debt as debt incurred primarily for personal, family, or household purposes, which includes consumer credit and medical debt as defined by existing law.

The intent behind this legislation is to reduce the financial burden on individuals facing lawsuits for consumer debt, as many defendants do not respond to such lawsuits, resulting in default judgments that lead to additional fees and wage garnishments. By removing these court fees, the bill aims to encourage more individuals to participate in their legal proceedings and potentially mitigate the negative consequences associated with default judgments. The bill is aligned with recommendations from the National Center for Access to Justice, specifically Benchmark 5 in their 2024 Consumer Debt Litigation Index.