The Uniform Consumer Debt Default Judgments Act seeks to strengthen consumer protections in Washington State regarding debt collection practices. The bill broadens the scope of existing regulations, extending requirements and remedies that were previously limited to debt buyers to all holders of purchased debt and their affiliates. It introduces new disclosure mandates for debt collection actions, requiring complaints to include detailed information about the debt, such as the creditor's identity, the outstanding balance, and the plaintiff's authority to initiate the action. Additionally, a consumer notice must accompany the complaint, alerting consumers to the potential consequences of failing to respond to the lawsuit.

The legislation also stipulates that if a plaintiff does not adhere to the chapter's requirements, the court may deny their motion for default judgment and dismiss the case unless a compliant amended complaint is submitted within 30 days. It further declares that any consumer waiver of the chapter's requirements is void and ensures that the chapter complements existing consumer rights under other laws. The bill modifies RCW 19.16.260 by removing certain provisions related to debt buyers and establishing new standards for default judgments in consumer debt cases. It includes a severability clause and sets an effective date of January 1, 2027, with Sections 1 through 12 forming a new chapter in Title 4 of the Revised Code of Washington (RCW).

Statutes affected:
Original Bill: 19.16.260
Substitute bill: 19.16.260
Bill as passed Legislature: 19.16.260
Session law: 19.16.260