Virginia HB 444: Uniform Consumer Debt Default Judgments Act; established.

Bill Text

2026 SESSION

INTRODUCED

26101027D

HOUSE BILL NO. 444

Offered January 14, 2026

Prefiled January 12, 2026

A BILL to amend the Code of Virginia by adding in Title 8.01 a chapter numbered 17.4, consisting of sections numbered 8.01-465.26 through 8.01-465.34, relating to Uniform Consumer Debt Default Judgments Act established.

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Patron—Simon

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Referred to Committee for Courts of Justice

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Title 8.01 a chapter numbered 17.4, consisting of sections numbered 8.01-465.26 through 8.01-465.34, as follows:

CHAPTER 17.4.

UNIFORM CONSUMER DEBT DEFAULT JUDGMENTS ACT.

§ 8.01-465.26. Definitions.

For purposes of this chapter, unless the context requires a different meaning:

"Charge off" means a creditor's removal of a consumer debt as an asset from the creditor's financial records.

"Complaint" means a warrant in debt or civil claim filed to recover a consumer debt according to the jurisdictional amount.

"Consumer" means an individual named as a defendant in an action for collection of consumer debt.

"Consumer debt" means 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" means a person to which a consumer debt is owed at the time of the charge off or, if the consumer debt was not charged off, at the time of the default.

"Default" means, except as used in the term default judgment, a failure to satisfy a consumer debt that gives rise to an action to which this chapter applies.

"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

"Finance charge" means the same as that term is defined in § 106 of the Truth in Lending Act, 15 U.S.C. § 1605.

"Outstanding balance" means the amount owed on a consumer debt (i) at the time of the charge off or, if the consumer debt was not charged off, at the time of default or (ii) after disposition of property that secured the debt.

"Person" means an individual, estate, business or nonprofit entity, government or governmental subdivision, agency, or instrumentality or other legal entity.

"Record" means information (i) inscribed on a tangible medium or (ii) stored in an electronic or other medium and retrievable in perceivable form.

"Secured consumer debt" means consumer debt secured by real or personal property.

"Sign" means, with present intent to authenticate or adopt a record, to (i) execute or adopt a tangible symbol or (ii) attach to or logically associate with the record an electronic symbol, sound, or process.

"Unsecured consumer debt" means a consumer debt not secured by real or personal property.

§ 8.01-465.27. Scope.

A. Except as provided in subsection B, this chapter shall apply to the award of a default judgment in an action for the collection of (i) an unsecured consumer debt; (ii) a secured consumer debt if the action is brought solely to obtain a money judgment; or (iii) a deficiency that remains after disposition of property that secured a consumer debt.

B. The provisions of this chapter shall not apply to an action to (i) take possession or dispose of real or personal property, even if such action includes a request for a money judgment or (ii) collect a debt owed to a government, governmental subdivision, or agency in which the government, governmental subdivision, or agency is the plaintiff.

§ 8.01-465.28. Complaint requirements.

A. A default judgment in an action to which this chapter applies shall be entered only if the complaint or amended complaint complies with the provisions of this section and includes the notice required pursuant to § 8.01-465.29.

B. The complaint or amended complaint shall 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 consumer debt; 

3. At least the last four digits of the account number or other account identifier used in communicating with the consumer before charge off or, if the consumer debt was not charged off, before default;

4. The date and amount of the last payment;

5. The date of charge off or, if the consumer debt was not charged off, before default;

6. The amount of the outstanding balance; 

7. The amount of the judgment sought by the plaintiff, itemizing (i) the outstanding balance and (ii) any amounts of (a) total finance charges; (b) total fees or costs; (c) total attorney fees; and (d) total credits and payments that are not included in the outstanding balance;

8. A statement whether the amount of the judgment may increase due to accrued interest, fe