Bill > SB5720

This bill, known as the Uniform Consumer Debt Default Judgments Act, aims to enhance consumer protections when debt collectors seek default judgments, which are court orders granted when a defendant fails to respond to a lawsuit. It expands previous protections, originally for "debt buyers" (companies that purchase debt for collection), to cover all "holders of purchased debt" and their "affiliates" (related companies). The act introduces new requirements for lawsuits aimed at collecting "consumer debt" (money owed for personal, family, or household purposes), including detailed information that must be included in the initial complaint, such as the consumer's address, the creditor's name, account identifiers, dates related to the debt, and the amounts owed. Crucially, it mandates a clear "Consumer Notice" be provided to the defendant, warning them about the consequences of not responding, including potential wage garnishment, bank account seizure, and the long-term impact on credit and housing. Failure to comply with these new rules can lead to dismissal of the case, and violations by debt holders are considered unfair practices, potentially leading to penalties. The bill also clarifies that any attempt by a consumer to waive these rights is void and that these new protections supplement existing consumer laws.

Justice

https://app.leg.wa.gov/billsummary?BillNumber=5720&Year=2025&Initiative=false