An Act amending Title 42 (Judiciary and Judicial Procedure) of the Pennsylvania Consolidated Statutes, in civil actions and proceedings, providing for consumer debt default judgments.

PRINTER'S NO. 829
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 801
Session of
2025
INTRODUCED BY HANBIDGE, WARREN, KENYATTA, PIELLI, SANCHEZ,
GIRAL, BURGOS, HILL-EVANS, CEPEDA-FREYTIZ, CERRATO AND GREEN,
MARCH 4, 2025
REFERRED TO COMMITTEE ON JUDICIARY, MARCH 4, 2025
AN ACT
Amending Title 42 (Judiciary and Judicial Procedure) of the
Pennsylvania Consolidated Statutes, in civil actions and
proceedings, providing for consumer debt default judgments.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 42 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 82
UNIFORM CONSUMER DEBT DEFAULT JUDGMENTS ACT
Sec.
8201. Short title of chapter.
8202. Definitions.
8203. Scope of chapter.
8204. Complaint requirements.
8205. Consumer notice.
8206. Waiver void.
8207. Relation to other law.
8208. Uniformity of application and construction.
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8209. Relation to Electronic Signatures in Global and National
Commerce Act.
§ 8201. Short title of chapter.
This chapter shall be known and may be cited as the Uniform
Consumer Debt Default Judgments Act.
§ 8202. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Charge off." A creditor's removal of a consumer debt as an
asset from the creditor's financial records.
"Consumer." An individual named as a defendant in an action
for collection of a consumer debt to which this chapter applies.
"Consumer debt." An obligation or alleged obligation of an
individual to pay money that arises out of a transaction in
which the money, property, insurance or service that is the
subject of the transaction is primarily for a personal, family
or household purpose.
"Creditor." A person to which a consumer debt is owed at the
time of charge off or, if the debt was not charged off, at the
time of default.
"Default." Except in the term "default judgment," a failure
to satisfy a consumer debt that gives rise to an action to which
this chapter applies.
"Electronic." Relating to technology having electrical,
digital, magnetic, wireless, optical, electromagnetic or similar
capabilities.
"Finance charge." The term has the same meaning as in
section 106 of the Truth in Lending Act (Public Law 90-321, 15
U.S.C. § 1605).
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"Outstanding balance." The amount owed on a consumer debt:
(1) at the time of charge off or, if the debt was not
charged off, at the time of default; or
(2) after disposition of property that secured the debt.
"Person." An individual, estate, business or nonprofit
entity, government or governmental subdivision, agency or
instrumentality or other legal entity.
"Record." Information:
(1) inscribed on a tangible medium; or
(2) stored in an electronic or other medium and
retrievable in perceivable form.
"Secured consumer debt." A consumer debt secured by real or
personal property.
"Sign." With present intent to authenticate or adopt a
record:
(1) execute or adopt a tangible symbol; or
(2) attach to or logically associate with the record an
electronic symbol, sound or process.
"Unsecured consumer debt." A consumer debt not secured by
real or personal property.
§ 8203. Scope of chapter.
(a) Actions covered.--Except as provided in subsection (b),
this chapter applies to the award of a default judgment in an
action for collection of:
(1) an unsecured consumer debt;
(2) a secured consumer debt if the action is brought
solely to obtain a money judgment; or
(3) a deficiency that remains after disposition of
property that secured a consumer debt.
(b) Nonapplicability.--This chapter does not apply to:
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(1) an action to take possession of or dispose of real
or personal property, even if the action includes a request
for a money judgment; or
(2) an action to collect a debt owed to a government,
governmental subdivision or agency in which the government,
governmental subdivision or agency is the plaintiff.
§ 8204. Complaint requirements.
(a) Compliance and notice.--A default judgment in an action
to which this chapter applies may be entered only if the
complaint or amended complaint complies with this section and
includes the notice required under section 8205 (relating to
consumer notice).
(b) Contents of complaint.--The complaint or amended
complaint must state:
(1) each name and address of the consumer in the records
of the creditor at the time of charge off or, if the consumer
debt was not charged off, at the time of default;
(2) the name of the creditor, including any merchant
brand, affinity brand or facility name associated with the
debt;
(3) at least the last four digits of the account number
or other account identifier used in communicating with the
consumer before charge off or, if the debt was not charged
off, before default;
(4) the date and amount of the last payment;
(5) the date of charge off or, if the debt was not
charged off, the date of default;
(6) the amount of the outstanding balance;
(7) the amount of the judgment the plaintiff seeks,
itemizing the outstanding balance and the following amounts
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not included in the outstanding balance:
(i) total finance charges;
(ii) total fees or costs;
(iii) total attorneys fees; and
(iv) total credits and payments;
(8) a statement whether the amount of the judgment may
increase due to accrued interest, fees or other charges;
(9) the authority of the plaintiff to commence the
action;
(10) facts sufficient to demonstrate that the action is
being commenced in a proper venue;
(11) facts sufficient to demonstrate that the action is
being commenced within the statute of limitation period
applicable to the debt;
(12) unless the plaintiff is the creditor:
(i) the name of each person that acquired ownership
of the debt after charge off or, if the debt was not
charged off, after default; and
(ii) the date of each acquisition; and
(13) information sufficient to demonstrate that the
plaintiff possesses a valid bond if required under law of
this Commonwealth.
(c) Records.--Subject to authentication required by other
law of this Commonwealth and rules of procedure, the plaintiff
must attach to the complaint or amended complaint:
(1) at least one of the following that is sufficient to
demonstrate the existence of the consumer debt:
(i) an agreement signed by the consumer;
(ii) a record of a purchase, payment or use of an
account; or
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(iii) a record otherwise demonstrating the debt was
incurred; and
(2) if the plaintiff is not the creditor, documentation
sufficient to demonstrate the authority of the plaintiff to
collect the debt.
§ 8205. Consumer notice.
(a) Warning required.--A default judgment may be entered in
an action to which this chapter applies only if the complaint or
amended complaint served on the consumer is accompanied by a
separate notice warning that a default judgment may be awarded
against the consumer.
(b) Contents of notice.--The notice must be in a record
substantially similar to the form in subsection (c) that states:
(1) if the consumer does not file an answer to the
complaint or amended complaint within the time and in the
manner indicated in the notice to defend or appear for the
hearing referred to in the notice to defend, a default
judgment may be entered against the consumer;
(2) if a judgment is entered against the consumer, the
amount of the judgment, plus interest on the judgment as
provided by other law of this Commonwealth, remains in effect
as provided in sections 5526 (relating to five year
limitation) and 5529 (relating to twenty year limitation),
even if the judgment no longer remains on the consumer's
credit report;
(3) after entry of a judgment, the plaintiff may
initiate an action to sell real estate owned by the consumer
or personal property owned by the consumer and attach the
consumer's bank accounts;
(4) entry of a judgment may impair access to employment,
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insurance, credit or housing;
(5) an attorney may provide assistance in understanding
the complaint or amended complaint and advice about what
action to take in response to the complaint or amended
complaint; and
(6) the name and contact information for a legal aid or
attorney referral service that may be able to help the
consumer find an attorney and, if the consumer cannot afford
an attorney, may be able to provide free or reduced-cost
legal services.
(c) Form of notice.--The following notice meets the
requirements of this section:
Consumer Notice
Warning
If You Do Not Act, A Default Judgment May Be Entered Against You
1. Why Am I Getting This
Notice?
You are getting this notice
because (name of plaintiff) says
you owe money.
(Name or shortened name of
plaintiff) has filed a lawsuit
against you to collect the
money.
2. What Will Happen If I Do
Nothing?
If you do not file a response to
the lawsuit or appear at a
hearing on (enter date) at
(time), a judgment may be
entered against you.
3. What Happens If A
Judgment Is Entered
Against Me?
Your personal property may be
taken and sold. Money may be
taken directly from your bank
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account. A lien may be put on
your house or other real estate
and the house or real estate may
be sold.
If the judgment is not paid in
full, the amount due may grow
because of interest charges.
You will owe the amount of the
judgment for at least five or
twenty years, even if it no
longer appears on your credit
report.
The judgment may make it harder
for you to get a job or
insurance and more expensive for
you to get a loan or credit
card, rent an apartment or buy a
house or car.
4. Is Help Available? Talk with a lawyer. A lawyer can
explain the situation and help
you decide what to do. The
following office may be able to
help you find a lawyer: (insert
name and contact information for
legal aid or lawyer referral
service that may be able to help
defendant find a lawyer). If you
cannot afford a lawyer, you may
be able to obtain one for free
or reduced cost.
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§ 8206. Waiver void.
A waiver by a consumer of a requirement of this chapter is
void. This section does not prevent a voluntary settlement
agreement or judgment between the parties that does not result
in a default judgment.
§ 8207. Relation to other law.
This chapter supplements rights and remedies available to a
consumer under other law of this Commonwealth.
§ 8208. Uniformity of application and construction.
In applying and construing this uniform act, a court shall
consider the promotion of uniformity of the law among
jurisdictions that enact it.
§ 8209. Relation to Electronic Signatures in Global and
National Commerce Act.
This chapter modifies, limits or supersedes the Electronic
Signatures in Global and National Commerce Act (Public Law 106-
229, 15 U.S.C. § 7001 et seq.) but does not modify, limit or
supersede 15 U.S.C. § 7001(c) (relating to general rule of
validity) or authorize electronic delivery of any of the notices
described in 15 U.S.C. § 7003(b) (relating to specific
exceptions).
Section 2. This chapter applies to an action commenced on or
after the effective date of this section.
Section 3. This act shall take effect in 60 days.
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