Debt collectors would have to document consumer debt lawsuits

Debt collectors and debt buyers would have to include specific information and records with a lawsuit seeking consumer debt. This would cover debts owed or allegedly owed by individuals for personal, family or household purposes. The lawsuit would have to identify the original creditor and the last four digits of the account. The filing would have to list the charge-off balance, later interest or fees, and payments or credits. The plaintiff would have to show ownership of the debt, including the chain of title when the debt was sold, and provide the original contract or charge-off statement. The requirement would apply 90 days after enactment.

Courts would have to reject a default judgment unless the plaintiff filed an affidavit, the required debt records and proof of proper notice. This would apply to consumer debt lawsuits, including cases where the consumer does not respond. The affidavit would have to be based on personal knowledge. The plaintiff would have to prove that the consumer was served and told about the consumer's rights. A lawsuit would have to be filed within three years of the consumer's last payment or charge. The filing limit and default-judgment rules would apply 90 days after enactment.

Plaintiffs would have to give consumers a separate notice explaining key rights in every consumer debt lawsuit. The notice would go to consumers sued over personal, family or household debts. The notice would have to explain the right to dispute the debt and request supporting records. It would have to tell consumers where to seek legal help or assistance. The notice requirement would apply 90 days after enactment.