ASSEMBLY, No. 5619

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED MAY 5, 2025

 

 

Sponsored by:

Assemblywoman  ELLEN J. PARK

District 37 (Bergen)

Assemblyman  BALVIR SINGH

District 7 (Burlington)

 

 

 

 

SYNOPSIS

     Prohibits revival of certain time-barred consumer debt litigation claims.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Actconcerning statutes of limitations and amending N.J.S.2A:14-1.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1. N.J.S.2A:14-1 is amended to read as follows:

     2A:14-1.  a.  Every action at law for trespass to real property, for any tortious injury to real or personal property, for taking, detaining, or converting personal property, for replevin of goods or chattels, for any tortious injury to the rights of another not stated in N.J.S.2A:14-2 and N.J.S.2A:14-3, or for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents and servants, shall be commenced within six years next after the cause of any such action shall have accrued.

     b.    This section shall not apply to any action for breach of any contract for sale governed by N.J.S.12A:2-725.

     c.     The period of time for the filing of a claim by a condominium association, cooperative corporation, or other planned real estate development association against a developer or any person acting through, on behalf of or at the behest of the developer under subsection a. of this section, shall be tolled until an election is held and the owners comprise a majority of the board pursuant to paragraph (3) of subsection a. of section 5 of P.L.1993, c.30 (C.45:22A-47), or subsection d. of section 2 of P.L.1979, c.157 (C.46:8B-12.1).  Any cause of action involving a condominium, cooperative, or other planned real estate development under the provisions of subsection a. of this section that has not been subject to a final judgment dismissing the claim as of the effective date of P.L.2021, c.379 shall be subject to the terms of this subsection.

     d.    Notwithstanding the provisions of any law, rule, regulation or order to the contrary, the period of time for filing of a claim for any cause of action for any contractual obligation to collect on a consumer debt shall not be tolled by any subsequent payment of debt, acknowledgement of the debt, or promise to pay such debt, if such payment, acknowledgement, or promise to pay was made after the period of time for filing a claim, pursuant to subsection a. of this section, has expired.

     As used in this section, "consumer debt" means debt incurred by an individual primarily for a personal, family, or household purpose. Consumer debt shall also include consumer credit, as that term is defined in section 1 of P.L.1974, c.146 (C.56:11-1), and medical debt, as that term is defined in section 2 of P.L.2024, c.48 (C.56:11-57).    

(cf: P.L.2021, c.379, s.1).

 

     2.  This act shall take effect immediately, and shall apply to any cause of action filed on or after the effective date.

 

 

STATEMENT

 

     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."