Bill > SB5720

This bill, known as the uniform consumer debt default judgments act, aims to enhance consumer protections by imposing stricter requirements on creditors and debt collectors when seeking default judgments in lawsuits to collect consumer debt, which is defined as money owed for personal, family, or household purposes. The act mandates that lawsuits for consumer debt collection must include detailed information in the complaint, such as the consumer's last known address, the creditor's name, account identifiers, dates of transactions or charge-offs, the outstanding balance, and any additional charges. Crucially, it requires a clear notice to the consumer explaining the potential consequences of not responding to the lawsuit, including wage garnishment, property seizure, and long-term impact on credit and employment, and provides information on how to seek legal assistance. The bill also specifies that if a plaintiff fails to comply with these requirements, the court may dismiss the case, and violations by those collecting purchased debt (debt bought for collection purposes) can lead to penalties under the consumer protection act. Any attempt by a consumer to waive these protections is declared void. The act takes effect on January 1, 2027, and supplements existing consumer rights.

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