On April 8, Virginia enacted the Uniform Consumer Debt Default Judgments Act (H 444), which, effective July 1, 2027, establishes new pleading and disclosure requirements on plaintiffs seeking default judgments in consumer debt collection actions. The law applies to default judgments in actions to collect unsecured consumer debts, secured consumer debts pursued solely for money judgments, and deficiency balances, but excludes actions seeking possession or disposition of property, as well as actions to collect debts owed to a government entity.

For covered actions, complaints must include key information about the debt and account, including the creditor’s name, account identifier, outstanding balance, dates of last payment and charge-off or default, and an itemized breakdown of the judgment amount including finance charges, fees, attorney fees, and credits. Complaints must also disclose whether the judgment amount may increase due to accrued interest, fees, or other charges, and plaintiffs must allege proper venue and compliance with the applicable statute of limitations. If the plaintiff is not the original creditor, the complaint must identify each subsequent debt owner and the date of each transfer or acquisition. Plaintiffs are also required to attach documentation demonstrating the existence of the debt — such as a signed agreement, a purchase or payment record, or other evidence — and, if applicable, documentation demonstrating authority to collect.

The law also requires that complaints be accompanied by a separate consumer notice advising that a default judgment may be entered. The notice must explain that a default judgment remains in effect for at least 10 years, that the plaintiff may pursue remedies including judicial sale of property, seizure of personal property, or garnishment, and that a judgment may impair access to employment, insurance, credit, or housing. The notice must also include contact information for legal aid or attorney referral services. The law further provides that any consumer waiver of its requirements is void, while permitting voluntary settlement agreements.