Pennsylvania House Bill HB801

Pennsylvania 2025-2026 Regular Session

• Introduced: 3/4/25
• Refer: 3/4/25

Caption

In civil actions and proceedings, providing for consumer debt default judgments.

Impact

The implementation of this bill would significantly impact state laws governing civil actions related to consumer debt. It will establish clear guidelines for what constitutes an acceptable complaint when seeking a default judgment, including detailed requirements for creditors to provide comprehensive information regarding the debt in question. The legislation aims to enhance transparency and fairness in debt collection practices, intending to protect consumers from potential exploitation and misunderstandings that often arise in judicial processes surrounding consumer debts.

Summary

House Bill 801 proposes the introduction of a Uniform Consumer Debt Default Judgments Act to amend Title 42 (Judiciary and Judicial Procedure) of the Pennsylvania Consolidated Statutes. The bill aims to standardize the process for obtaining default judgments in consumer debt collection cases, thereby ensuring that consumers are adequately informed about their rights and the procedures involved when a creditor sues them for unpaid debts. Key components include specified complaint requirements that creditors must meet before a judgment can be awarded, ensuring that consumers receive proper notice of the legal actions taken against them.

Sentiment

Overall, the sentiment surrounding HB 801 is largely supportive, particularly among consumer rights advocates and legal reform groups who view it as a critical step towards protecting vulnerable consumers from predatory practices often employed in debt collection actions. However, there may be reservations from some creditors and collections agencies who might be concerned about the additional requirements and hurdles imposed on them under this new framework, fearing that it could complicate the collections process and extend the timeline for recouping debts.

Contention

One notable point of contention surrounding HB 801 involves the balance between creditor rights and consumer protections. While proponents argue that stringent requirements for complaint submissions and consumer notices are necessary to protect individuals from unjust defaults, opponents might contend that such measures could hinder creditors’ ability to efficiently collect owed debts. This tension reflects broader debates on financial responsibility and consumer protection, illustrating the challenges in creating legislation that equitably addresses the interests of both parties.