Pennsylvania 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.

Bill Text

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 wi