Bill > HB1731

This bill introduces the Consumer Debt Collection Fairness Act, which aims to protect Pennsylvania consumers from unfair debt collection practices by establishing strict requirements for legal actions seeking to collect consumer debt. The legislation requires debt collectors and debt buyers to provide comprehensive documentation when filing a lawsuit, including the original creditor's name, account details, a breakdown of the owed amount, proof of debt ownership, and the original contract. The bill limits the statute of limitations for debt collection actions to three years from the last payment and prohibits courts from entering default judgments without an affidavit of facts, required documentation, and proof of proper consumer notification. Additionally, each consumer debt lawsuit must include a "Notice of Consumer Rights" informing consumers of their ability to dispute the debt, request documentation, and seek legal assistance. The bill's legislative findings highlight the prevalence of debt collection lawsuits filed without sufficient documentation and seeks to provide consumers with clearer notice and fair opportunities to contest alleged debts, drawing inspiration from New York's consumer protection models. The act will take effect 90 days after its passage, providing a transition period for implementation.

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https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1731