ASSEMBLY REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5619

STATE OF NEW JERSEY

DATED:  MAY 15, 2025

      The Assembly Regulated Professions Committee reports favorably Assembly Bill No. 5619.

     This bill prohibits the revival of time-barred claims for causes of actions for consumer debt.

     Under the bill, the period of time for filing of a claim for any cause of action for any contractual obligation to collect on a consumer debt cannot be paused by any subsequent payment of the debt, acknowledgement of the debt, or promise to pay the debt, if the subsequent payment, acknowledgement, or promise to pay was made after the statute of limitations for filing a claim, which is six years under current law, has expired. The bill defines “consumer debt” to mean debt incurred by an individual primarily for a personal, family, or household purpose, and also includes consumer credit and medical debt as those terms are defined under current law.

     Under State case law, consumer debt claims are subject to revival even after the statute of limitations has expired, including when a debtor makes a subsequent payment toward the debt, explicitly acknowledges the debt, or expresses a new promise to pay the full debt. See Burlington County Country Club v. Midlantic Nat. Bank South, 223 N.J.Super. 227 (Ch.Div.1987) (stating that “a statute of limitations which applies to a presently existing contractual debt or obligation may be tolled by an acknowledgment or a promise to pay” and “if such acknowledgment or promise to pay is made after the statute has run, it will act to revive the debt for the statutory period”). This bill would eliminate the revival of consumer debt claims based on those circumstances.

     This bill is based on Benchmark 10 by the National Center for Access to Justice, in the 2024 “Consumer Debt Litigation Index.”