A bill has been introduced in the Pennsylvania legislature that would require collection operations to provide additional documentation when filing collection lawsuits against consumers in The Keystone State.
🧾 The big picture: House Bill 1731, introduced on July 14, and referred to the House Judiciary Committee the same day, aims to enhance transparency and fairness in debt collection litigation. Called the Consumer Debt Collection Fairness Act, the bill seeks to establish strict documentation requirements before a debt collection action can proceed in court.
📋 What the bill would require: Before a debt collector or debt buyer can file a lawsuit to collect a consumer debt, the complaint must include:
- The name of the original creditor and the last four digits of the original account number.
- An itemized breakdown of the debt, including:
- The charge-off balance,
- Any post-charge-off interest or fees, and
- Any payments or credits applied.
- Proof of ownership of the debt, including a chain of title if the debt was purchased.
- A copy of the original contract or the charge-off statement demonstrating the consumer’s liability.
⏳ Time limit to sue: The bill would shorten the statute of limitations for filing a collection lawsuit on consumer debt to three years from the date of the last payment or charge by the consumer.
🚫 No default judgments without proof: Courts would be prohibited from entering a default judgment unless:
- The plaintiff files an affidavit based on personal knowledge of the facts.
- All required documentation is provided.
- Proof of proper service and notification of consumer rights is included.
📄 Consumer rights notice: All lawsuits would have to include a separate “Notice of Consumer Rights” outlining:
- The consumer’s right to dispute the debt,
- The right to request documentation, and
- Where to seek legal assistance.
🗓️ Effective date
