As of the third quarter of 2024, consumers owed nearly $17.94 trillion in consumer debt and a growing numbers of consumers are defaulting on their debt.  The awarding of judgments by default in debt-related judicial proceedings against consumers has raised concerns across the country. Studies on the topic report that default judgments are entered in over half of all debt collection actions. This is due to the lack of a uniform system that provides courts and consumers with clear direction.  

 

This is why I will be introducing legislation to provide a uniform framework in which courts can fairly, efficiently and promptly evaluate the merits of requests for default judgments while balancing the interests of all parties and the court. Plaintiffs would be provided with consistent, uniform, rules for how to obtain a default judgment in consumer debt collection to assure fairness in the process.  

 

Consumer debtors would get better access to information to help them understand the claims being asserted against them and to identify available defenses.  The legislation would advise consumers of the adverse effects of failing to raise defenses or to seek the voluntary settlement of claims and ensure that consumers are aware of assistance that may be available from legal aid organizations.  This legislation would take the guesswork out of court proceedings so that consumers will know what to expect and how to adequately defend their rights, helping them avoid default judgments. This is crucial as the majority of consumers are not represented by an attorney in a debt proceeding. 

 

Please join me in support of Pennsylvania consumers by co-sponsoring this vital legislation.