Uniform debt-default bill would require notice and information before default judgments
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
SB 5720 adopts a uniform act to limit default judgments by requiring plaintiffs to include specific information about creditors and debts in complaints, obliging a consumer notice and allowing courts to deny defaults where requirements are unmet; sponsors said work with stakeholders yielded broad agreement.
Committee staff briefed members on substitute SB 5720 on Feb. 18, legislation that would adopt the Uniform Consumer Debt Default Judgment Act in Washington.
Staff said the measure requires a complaint that seeks a default judgment to include specific information about the consumer, creditor and underlying debt, mandates a consumer notice in a substantially prescribed form warning of potential consequences of inaction, and gives courts discretion to deny a default judgment if a plaintiff does not comply. The bill also attaches Consumer Protection Act (CPA) liability for violations when debt buyers attempt to collect purchase debt without required information and limits recovery to the original claim (excluding interest or fees) for those violators.
Sen. Jamie Peterson (43rd Legislative District), the prime sponsor, described the bill as straightforward and the result of negotiation with stakeholder groups, including the collection and debt-buying industries and consumer advocates, to integrate existing consumer protections from the 2021 debt-buyer statute.
Kelsey Hamilton (Northwest Collectors Association) testified she supports the bill and commended the sponsor for convening stakeholders to reach a balanced solution that preserves consumer notice while recognizing operational needs.
No committee action was recorded during the hearing; the sponsor asked members to remain engaged for potential technical changes.