An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in consumer credit, providing for consumer debt collection fairness.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This act, the Consumer Debt Collection Fairness Act, aims to improve fairness in how consumer debts are collected in Pennsylvania. It requires debt collectors to provide more detailed documentation about the debt, including the original creditor and a breakdown of charges, and prohibits courts from entering default judgments without sufficient proof. The bill also establishes a three-year statute of limitations for debt collection lawsuits and mandates specific notices to consumers regarding their rights.
Key provisions
- Debt collectors must include the original creditor’s name and account number in legal actions.
- Debt collection complaints must itemize the amount owed, including charge-off balance, interest, and payments.
- Debt collectors must provide proof of debt ownership.
- A three-year statute of limitations is established for consumer debt collection lawsuits.
- Courts cannot enter default judgments without personal affidavits, required documentation, and proof of proper service.
- Consumers must receive a ‘Notice of Consumer Rights’ outlining their dispute and request documentation rights.
- The bill defines ‘consumer debt’ as obligations for personal, family, or household purposes.
- Debt buyers are now subject to the same documentation requirements as traditional debt collectors.
Who is affected
- Consumers
- Debt collectors
- Debt buyers
Bill text
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Document of record
- Version
- Pn 2131 Html
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
9 on record
Primary sponsor
Manuel Guzman
Cosponsors
Benjamin Sanchez
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