Washington Governor Signs Consumer Debt Default Judgments Act

The State of Washington has enacted the Uniform Consumer Debt Default Judgments Act (SB 5720), making it the first state to adopt this Uniform Law Commission model and significantly tightening requirements to obtain default judgments in consumer debt cases.

Status and timing

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• SB 5720 passed the Legislature in early March 2026 and was delivered to Governor Bob Ferguson on March 9, 2026.

• The Governor has signed the bill; it is now law, with an effective date of January 1, 2027.

Scope of the Act

• Applies to default judgments in actions to collect: unsecured consumer debts, secured consumer debts when the case seeks only a money judgment, and deficiencies after disposition of collateral securing a consumer debt.

• Does not apply to actions to foreclose or force sale of real or personal property, or to actions to collect debts owed to a government entity where the government is the plaintiff.

Key requirements for default judgments

• A default judgment can be entered only if the complaint (or amended complaint) includes detailed information about the consumer, the original creditor (including merchant/brand names), the current owner, the chain of title for purchased debt, and an itemization of amounts claimed (principal, interest, fees, costs).

• The plaintiff must attach at least one supporting document demonstrating the existence of the debt, such as a signed agreement or the most recent account statement, meeting business-record authentication standards.

• The complaint must allege facts showing proper venue and that the claim is within the applicable statute of limitations.

Enhanced consumer notice

• The Act requires a specific consumer notice to accompany the complaint, explaining the nature of the lawsuit, identifying the creditor and the debt, and warning of the consequences of inaction, including the impact of a default judgment.

• The notice must inform consumers that an attorney can help them respond and that free or low‑cost legal services may be available.

Remedies and penalties

• If a plaintiff willfully or repeatedly violates the Act’s requirements, the court may deny default judgment or limit recovery to the charge-off balance, disallowing post charge‑off interest, fees, attorney’s fees, and collection costs that would otherwise be recoverable.

• The law extends prior protections that applied only to “debt buyers” so that comparable requirements and remedies now reach all holders of purchased debt and their affiliates in covered actions.

Washington’s position nationally

• The Uniform Law Commission promulgated the Uniform Consumer Debt Default Judgments Act in 2023 to address abusive default judgment practices and promote uniform standards.

• Washington is the first state to enact this uniform act, as noted publicly by the Uniform Law Commission in March 2026.