Pennsylvania HB 1731: An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in consumer credit, providing for consumer debt collection fairness.

Bill Text

PRIOR PRINTER'S NO. 2131 PRINTER'S NO. 3637
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1731
Session of
2025
INTRODUCED BY GUZMAN, WAXMAN, GIRAL, D. WILLIAMS, HILL-EVANS,
SANCHEZ, CEPEDA-FREYTIZ, MAYES, GREEN AND KINKEAD,
JULY 14, 2025
AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 17, 2026
AN ACT
Providing for consumer debt collection fairness.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Consumer Debt
Collection Fairness Act.
Section 2. Legislative findings.
The General Assembly finds that:
(1) Many debt collection lawsuits are filed without
sufficient documentation of the underlying debt, resulting in
default judgments against consumers who may not owe the debt.
(2) Pennsylvania consumers deserve clear notice and fair
opportunity to contest debts alleged in court.
(3) Stronger protections, modeled after those in the
State of New York, are necessary to prevent abusive debt
collection practices and ensure integrity in court
<--1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

proceedings.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Consumer debt." Any obligation or alleged obligation of a
natural person to pay money arising out of a transaction in
which the money, property or services are primarily for
personal, family or household purposes.
"Debt buyer." A person or entity that is regularly engaged
in the business of purchasing charged-off consumer debt for
collection purposes.
Section 4. Required documentation for collection actions.
A debt collector or debt buyer may not commence a legal
action to collect a consumer debt unless the complaint includes:
(1) The name of the original creditor and the last four
digits of the original account number.
(2) An itemization of the amount owed, including:
(i) Charge-off balance.
(ii) Post-charge-off interest or fees.
(iii) Payments or credits applied.
(3) Proof of ownership of the debt, including a chain of
title if the debt has been sold.
(4) A copy of the original contract or charge-off
statement demonstrating the consumer's liability.
Section 5. Statute of limitations.
Any legal action to collect a consumer debt must be commenced
within three years of the date of the last payment or charge by
the consumer.
Section 6. Prohibition of default judgments without proof.
20250HB1731PN3637 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

No court may enter a default judgment in a consumer debt
action unless the plaintiff files:
(1) An affidavit of facts based on personal knowledge.
(2) All required documentation under section 4.
(3) Proof that the consumer was properly served and
notified of the consumer's rights.
Section 7. Notice to consumer.
Each consumer debt lawsuit must include a separate "Notice of
Consumer Rights" stating:
(1) The consumer's right to dispute the debt.
(2) The right to request documentation.
(3) Where to seek legal help or assistance.
Section 8. Effective date.
This act shall take effect in 90 days.
AMENDING TITLE 12 (COMMERCE AND TRADE) OF THE PENNSYLVANIA
CONSOLIDATED STATUTES, IN CONSUMER CREDIT, PROVIDING FOR
CONSUMER DEBT COLLECTION FAIRNESS.
THE GENERAL ASSEMBLY OF THE COMMONWEALTH OF PENNSYLVANIA
HEREBY ENACTS AS FOLLOWS:
SECTION 1. TITLE 12 OF THE PENNSYLVANIA CONSOLIDATED
STATUTES IS AMENDED BY ADDING A CHAPTER TO READ:
CHAPTER 65
CONSUMER DEBT COLLECTION FAIRNESS
SEC.
6501. SCOPE OF CHAPTER.
6502. FINDINGS AND DECLARATIONS.
6503. DEFINITIONS.
6504. REQUIRED DOCUMENTATION FOR COLLECTION ACTIONS.
6505. STATUTE OF LIMITATIONS.
6506. PROHIBITION OF DEFAULT JUDGMENTS WITHOUT PROOF.
6507. NOTICE TO CONSUMER.
20250HB1731PN3637 - 3 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

§ 6501. SCOPE OF CHAPTER.
THIS CHAPTER PROVIDES FOR CONSUMER DEBT COLLECTION FAIRNESS.
§ 6502. FINDINGS AND DECLARATIONS.
THE GENERAL ASSEMBLY FINDS THAT:
(1) MANY DEBT COLLECTION LAWSUITS ARE FILED WITHOUT
SUFFICIENT DOCUMENTATION OF THE UNDERLYING DEBT, RESULTING IN
DEFAULT JUDGMENTS AGAINST CONSUMERS WHO MAY NOT OWE THE DEBT.
(2) PENNSYLVANIA CONSUMERS DESERVE CLEAR NOTICE AND FAIR
OPPORTUNITY TO CONTEST DEBTS ALLEGED IN COURT.
(3) STRONGER PROTECTIONS, MODELED AFTER THOSE IN THE
STATE OF NEW YORK, ARE NECESSARY TO PREVENT ABUSIVE DEBT
COLLECTION PRACTICES AND ENSURE INTEGRITY IN COURT
PROCEEDINGS.
§ 6503. 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:
"CONSUMER DEBT." ANY OBLIGATION OR ALLEGED OBLIGATION OF A
NATURAL PERSON TO PAY MONEY ARISING OUT OF A TRANSACTION IN
WHICH THE MONEY, PROPERTY OR SERVICES ARE PRIMARILY FOR
PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.
"DEBT BUYER." A PERSON