HB 1731 — An Act providing for consumer debt collection fairness.

PRINTER'S NO.    2131

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       HOUSE BILL
                       No. 1731
                                              Session of
                                                2025

     INTRODUCED BY GUZMAN, WAXMAN, GIRAL AND D. WILLIAMS,
        JULY 14, 2025

     REFERRED TO COMMITTEE ON JUDICIARY, JULY 14, 2025


                                   AN ACT
 1   Providing for consumer debt collection fairness.
 2      The General Assembly of the Commonwealth of Pennsylvania
 3   hereby enacts as follows:
 4   Section 1.   Short title.
 5      This act shall be known and may be cited as the Consumer Debt
 6   Collection Fairness Act.
 7   Section 2.   Legislative findings.
 8      The General Assembly finds that:
 9          (1)   Many debt collection lawsuits are filed without
10      sufficient documentation of the underlying debt, resulting in
11      default judgments against consumers who may not owe the debt.
12          (2)   Pennsylvania consumers deserve clear notice and fair
13      opportunity to contest debts alleged in court.
14          (3)   Stronger protections, modeled after those in the
15      State of New York, are necessary to prevent abusive debt
16      collection practices and ensure integrity in court
17      proceedings.
 1   Section 3.   Definitions.
 2      The following words and phrases when used in this act shall
 3   have the meanings given to them in this section unless the
 4   context clearly indicates otherwise:
 5      "Consumer debt."     Any obligation or alleged obligation of a
 6   natural person to pay money arising out of a transaction in
 7   which the money, property or services are primarily for
 8   personal, family or household purposes.
 9      "Debt buyer."     A person or entity that is regularly engaged
10   in the business of purchasing charged-off consumer debt for
11   collection purposes.
12   Section 4.   Required documentation for collection actions.
13      A debt collector or debt buyer may not commence a legal
14   action to collect a consumer debt unless the complaint includes:
15          (1)   The name of the original creditor and the last four
16      digits of the original account number.
17          (2)   An itemization of the amount owed, including:
18                (i)    Charge-off balance.
19                (ii)    Post-charge-off interest or fees.
20                (iii)    Payments or credits applied.
21          (3)   Proof of ownership of the debt, including a chain of
22      title if the debt has been sold.
23          (4)   A copy of the original contract or charge-off
24      statement demonstrating the consumer's liability.
25   Section 5.   Statute of limitations.
26      Any legal action to collect a consumer debt must be commenced
27   within three years of the date of the last payment or charge by
28   the consumer.
29   Section 6.   Prohibition of default judgments without proof.
30      No court may enter a default judgment in a consumer debt

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 1   action unless the plaintiff files:
 2          (1)   An affidavit of facts based on personal knowledge.
 3          (2)   All required documentation under section 4.
 4          (3)   Proof that the consumer was properly served and
 5      notified of the consumer's rights.
 6   Section 7.   Notice to consumer.
 7      Each consumer debt lawsuit must include a separate "Notice of
 8   Consumer Rights" stating:
 9          (1)   The consumer's right to dispute the debt.
10          (2)   The right to request documentation.
11          (3)   Where to seek legal help or assistance.
12   Section 8.   Effective date.
13      This act shall take effect in 90 days.




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