HB 801 — 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
 1   Amending Title 42 (Judiciary and Judicial Procedure) of the
 2      Pennsylvania Consolidated Statutes, in civil actions and
 3      proceedings, providing for consumer debt default judgments.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Title 42 of the Pennsylvania Consolidated
 7   Statutes is amended by adding a chapter to read:
 8                                CHAPTER 82
 9              UNIFORM CONSUMER DEBT DEFAULT JUDGMENTS ACT
10   Sec.
11   8201.   Short title of chapter.
12   8202.   Definitions.
13   8203.   Scope of chapter.
14   8204.   Complaint requirements.
15   8205.   Consumer notice.
16   8206.   Waiver void.
17   8207.   Relation to other law.
18   8208.   Uniformity of application and construction.
 1   8209.   Relation to Electronic Signatures in Global and National
 2               Commerce Act.
 3   § 8201.   Short title of chapter.
 4      This chapter shall be known and may be cited as the Uniform
 5   Consumer Debt Default Judgments Act.
 6   § 8202.   Definitions.
 7      The following words and phrases when used in this chapter
 8   shall have the meanings given to them in this section unless the
 9   context clearly indicates otherwise:
10      "Charge off."    A creditor's removal of a consumer debt as an
11   asset from the creditor's financial records.
12      "Consumer."     An individual named as a defendant in an action
13   for collection of a consumer debt to which this chapter applies.
14      "Consumer debt."      An obligation or alleged obligation of an
15   individual to pay money that arises out of a transaction in
16   which the money, property, insurance or service that is the
17   subject of the transaction is primarily for a personal, family
18   or household purpose.
19      "Creditor."     A person to which a consumer debt is owed at the
20   time of charge off or, if the debt was not charged off, at the
21   time of default.
22      "Default."     Except in the term "default judgment," a failure
23   to satisfy a consumer debt that gives rise to an action to which
24   this chapter applies.
25      "Electronic."    Relating to technology having electrical,
26   digital, magnetic, wireless, optical, electromagnetic or similar
27   capabilities.
28      "Finance charge."     The term has the same meaning as in
29   section 106 of the Truth in Lending Act (Public Law 90-321, 15
30   U.S.C. § 1605).

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 1      "Outstanding balance."        The amount owed on a consumer debt:
 2             (1)   at the time of charge off or, if the debt was not
 3      charged off, at the time of default; or
 4             (2)   after disposition of property that secured the debt.
 5      "Person."      An individual, estate, business or nonprofit
 6   entity, government or governmental subdivision, agency or
 7   instrumentality or other legal entity.
 8      "Record."      Information:
 9             (1)   inscribed on a tangible medium; or
10             (2)   stored in an electronic or other medium and
11      retrievable in perceivable form.
12      "Secured consumer debt."       A consumer debt secured by real or
13   personal property.
14      "Sign."      With present intent to authenticate or adopt a
15   record:
16             (1)   execute or adopt a tangible symbol; or
17             (2)   attach to or logically associate with the record an
18      electronic symbol, sound or process.
19      "Unsecured consumer debt."       A consumer debt not secured by
20   real or personal property.
21   § 8203.    Scope of chapter.
22      (a)    Actions covered.--Except as provided in subsection (b),
23   this chapter applies to the award of a default judgment in an
24   action for collection of:
25             (1)   an unsecured consumer debt;
26             (2)   a secured consumer debt if the action is brought
27      solely to obtain a money judgment; or
28             (3)   a deficiency that remains after disposition of
29      property that secured a consumer debt.
30      (b)    Nonapplicability.--This chapter does not apply to:

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 1             (1)   an action to take possession of or dispose of real
 2      or personal property, even if the action includes a request
 3      for a money judgment; or
 4             (2)   an action to collect a debt owed to a government,
 5      governmental subdivision or agency in which the government,
 6      governmental subdivision or agency is the plaintiff.
 7   § 8204.    Complaint requirements.
 8      (a)    Compliance and notice.--A default judgment in an action
 9   to which this chapter applies may be entered only if the
10   complaint or amended complaint complies with this section and
11   includes the notice required under section 8205 (relating to
12   consumer notice).
13      (b)    Contents of complaint.--The complaint or amended
14   complaint must state:
15             (1)   each name and address of the consumer in the records
16      of the creditor at the time of charge off or, if the consumer
17      debt was not charged off, at the time of default;
18             (2)   the name of the creditor, including any merchant
19      brand, affinity brand or facility name associated with the
20      debt;
21             (3)   at least the last four digits of the account number
22      or other account identifier used in communicating with the
23      consumer before charge off or, if the debt was not charged
24      off, before default;
25             (4)   the date and amount of the last payment;
26             (5)   the date of charge off or, if the debt was not
27      charged off, the date of default;
28             (6)   the amount of the outstanding balance;
29             (7)   the amount of the judgment the plaintiff seeks,
30      itemizing the outstanding balance and the following amounts

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 1      not included in the outstanding balance:
 2                   (i)    total finance charges;
 3                   (ii)    total fees or costs;
 4                   (iii)    total attorneys fees; and
 5                   (iv)    total credits and payments;
 6            (8)    a statement whether the amount of the judgment may
 7      increase due to accrued interest, fees or other charges;
 8            (9)    the authority of the plaintiff to commence the
 9      action;
10            (10)    facts sufficient to demonstrate that the action is
11      being commenced in a proper venue;
12            (11)    facts sufficient to demonstrate that the action is
13      being commenced within the statute of limitation period
14      applicable to the debt;
15            (12)    unless the plaintiff is the creditor:
16                   (i)    the name of each person that acquired ownership
17            of the debt after charge off or, if the debt was not
18            charged off, after default; and
19                   (ii)    the date of each acquisition; and
20            (13)    information sufficient to demonstrate that the
21      plaintiff possesses a valid bond if required under law of
22      this Commonwealth.
23      (c)   Records.--Subject to authentication required by other
24   law of this Commonwealth and rules of procedure, the plaintiff
25   must attach to the complaint or amended complaint:
26            (1)    at least one of the following that is sufficient to
27      demonstrate the existence of the consumer debt:
28                   (i)    an agreement signed by the consumer;
29                   (ii)    a record of a purchase, payment or use of an
30            account; or

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 1                   (iii)   a record otherwise demonstrating the debt was
 2             incurred; and
 3             (2)   if the plaintiff is not the creditor, documentation
 4      sufficient to demonstrate the authority of the plaintiff to
 5      collect the debt.
 6   § 8205.    Consumer notice.
 7      (a)    Warning required.--A default judgment may be entered in
 8   an action to which this chapter applies only if the complaint or
 9   amended complaint served on the consumer is accompanied by a
10   separate notice warning that a default judgment may be awarded
11   against the consumer.
12      (b)    Contents of notice.--The notice must be in a record
13   substantially similar to the form in subsection (c) that states:
14             (1)   if the consumer does not file an answer to the
15      complaint or amended complaint within the time and in the
16      manner indicated in the notice to defend or appear for the
17      hearing referred to in the notice to defend, a default
18      judgment may be entered against the consumer;
19             (2)   if a judgment is entered against the consumer, the
20      amount of the judgment, plus interest on the judgment as
21      provided by other law of this Commonwealth, remains in effect
22      as provided in sections 5526 (relating to five year
23      limitation) and 5529 (relating to twenty year limitation),
24      even if the judgment no longer remains on the consumer's
25      credit report;
26             (3)   after entry of a judgment, the plaintiff may
27      initiate an action to sell real estate owned by the consumer
28      or personal property owned by the consumer and attach the
29      consumer's bank accounts;
30             (4)   entry of a judgment may impair access to employment,

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 1      insurance, credit or housing;
 2            (5)   an attorney may provide assistance in understanding
 3      the complaint or amended complaint and advice about what
 4      action to take in response to the complaint or amended
 5      complaint; and
 6            (6)   the name and contact information for a legal aid or
 7      attorney referral service that may be able to help the
 8      consumer find an attorney and, if the consumer cannot afford
 9      an attorney, may be able to provide free or reduced-cost
10      legal services.
11      (c)    Form of notice.--The following notice meets the
12   requirements of this section:
13                                Consumer Notice
14                                    Warning
15   If You Do Not Act, A Default Judgment May Be Entered Against You
16      1.    Why Am I Getting This      You are getting this notice
17            Notice?                    because (name of plaintiff) says
18                                       you owe money.
19                                       (Name or shortened name of
20                                       plaintiff) has filed a lawsuit
21                                       against you to collect the
22                                       money.
23      2.    What Will Happen If I Do If you do not file a response to
24            Nothing?                   the lawsuit or appear at a
25                                       hearing on (enter date) at
26                                       (time), a judgment may be
27                                       entered against you.
28      3.    What Happens If A          Your personal property may be
29            Judgment Is Entered        taken and sold. Money may be
30            Against Me?                taken directly from your bank

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 1                                 account. A lien may be put on
 2                                 your house or other real estate
 3                                 and the house or real estate may
 4                                 be sold.
 5                                 If the judgment is not paid in
 6                                 full, the amount due may grow
 7                                 because of interest charges.
 8                                 You will owe the amount of the
 9                                 judgment for at least five or
10                                 twenty years, even if it no
11                                 longer appears on your credit
12                                 report.
13                                 The judgment may make it harder
14                                 for you to get a job or
15                                 insurance and more expensive for
16                                 you to get a loan or credit
17                                 card, rent an apartment or buy a
18                                 house or car.
19    4.   Is Help Available?      Talk with a lawyer. A lawyer can
20                                 explain the situation and help
21                                 you decide what to do. The
22                                 following office may be able to
23                                 help you find a lawyer: (insert
24                                 name and contact information for
25                                 legal aid or lawyer referral
26                                 service that may be able to help
27                                 defendant find a lawyer). If you
28                                 cannot afford a lawyer, you may
29                                 be able to obtain one for free
30                                 or reduced cost.

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 1   § 8206.   Waiver void.
 2      A waiver by a consumer of a requirement of this chapter is
 3   void. This section does not prevent a voluntary settlement
 4   agreement or judgment between the parties that does not result
 5   in a default judgment.
 6   § 8207.   Relation to other law.
 7      This chapter supplements rights and remedies available to a
 8   consumer under other law of this Commonwealth.
 9   § 8208.   Uniformity of application and construction.
10      In applying and construing this uniform act, a court shall
11   consider the promotion of uniformity of the law among
12   jurisdictions that enact it.
13   § 8209.   Relation to Electronic Signatures in Global and
14               National Commerce Act.
15      This chapter modifies, limits or supersedes the Electronic
16   Signatures in Global and National Commerce Act (Public Law 106-
17   229, 15 U.S.C. § 7001 et seq.) but does not modify, limit or
18   supersede 15 U.S.C. § 7001(c) (relating to general rule of
19   validity) or authorize electronic delivery of any of the notices
20   described in 15 U.S.C. § 7003(b) (relating to specific
21   exceptions).
22      Section 2.   This chapter applies to an action commenced on or
23   after the effective date of this section.
24      Section 3.   This act shall take effect in 60 days.




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