The exchange for the debt economySource: site
Being sued for debt can create a lot of stress for people who are already struggling to make ends meet. Add to that the possibility that the lawyer who brought the lawsuit is not reachable because they didn’t include their name or their phone number in court filings.
“Somebody is being sued for debt and they come to see the lawyer, and they want to pay the debt. But it’s this out-of-state debt collection law firm from Maryland or some other place. You can’t get in touch with the folks. They can’t even make payment arrangements or pay the debt,” Jay Speer at the Virginia Poverty Law Center recounts. “You would think this would not be necessary but unfortunately this is happening a lot, and it is the out-of-state firms that are doing this.”
That’s why Senator Angelia Williams Graves, a Democrat from Norfolk, introduced a bill to require lawyers include their name and phone number on paperwork filed with the court.
“This ensures that both the court and the consumer can directly reach the responsible party. The bill establishes a clear consequence for non-compliance. A filing that does not meet these requirements is considered defective and voidable,” according to Williams Graves.
The bill passed the Senate with bipartisan support, and it will soon be considered by the House of Delegates.
Summary As Passed Senate
Consumer debt collection proceedings; signing of pleadings, motions, and other papers. Requires the attorney of record in any civil action to collect or enforce a consumer debt to include in the initial pleading or any subsequent filing such attorney’s (i) full name; (ii) business address; and (iii) and business telephone number. The bill provides that any such pleading, motion, or other paper not in compliance with such provisions is defective and provides that if such defect is not properly cured within 21 days after it is brought to the attention of the pleader or movant, such pleading, motion, or other paper is invalid and shall be stricken. The bill has a delayed effective date of January 1, 2027.
SUMMARY AS INTRODUCED
Virginia Consumer Protection Act; consumer notification in consumer debt collection proceedings. Prohibits failing to provide, in the initial pleading or any subsequent filing by an attorney of record, a consumer in any civil action or legal proceeding to collect or enforce a consumer debt with the attorney of record’s (i) full name and Virginia State Bar number; (ii) business address; (iii) direct telephone number and email address; and (iv) if different, the direct contact information for the office or individual responsible for handling the consumer’s account.
Upcoming Events
The exchange for the debt economy