Pennsylvania Advances Consumer Debt Collection and Telemarketing Rules

Pennsylvania is seeing significant changes affecting the accounts receivable management industry, with new court procedures aimed at speeding up credit card debt collection cases in Philadelphia and lawmakers approving sweeping updates to the state’s telemarketing law.

The developments address different areas of consumer finance, but both place greater compliance responsibilities on creditors, collection firms, and companies that communicate with consumers.

Philadelphia Launches Credit Card Collection Diversion Program

The Philadelphia County Court of Common Pleas launched its Consumer Credit Card Diversion Pilot Program on June 1 under General Court Regulation No. 2026-01.

The initiative is designed to reduce delays in consumer credit card collection cases, which court officials say have accounted for roughly one-third of the civil arbitration docket during the past five years.

Rather than allowing cases to sit on the docket for months before arbitration, the program introduces new filing requirements and an early conciliation process intended to resolve cases sooner.

Under the new program, plaintiffs filing credit card collection lawsuits must certify several key facts before filing, including:

• The applicable statute of limitations has not expired.
• The identity of the current debt owner.
• The date the original credit agreement was executed.
• The date of default.
• That documentation supporting the debt exists and is in the plaintiff’s possession.

The certification must also be served on the defendant along with the complaint.

After the filing review, eligible cases are diverted to an early conciliation conference before mandatory arbitration. Court case managers oversee these conferences, which may be conducted remotely and are intended to encourage negotiated resolutions and payment plans before additional litigation occurs.

Judge Joshua Roberts, who oversees the program, has said the initiative is intended to reduce court congestion while helping parties resolve straightforward collection matters more efficiently.

Program Builds on Other Pennsylvania Efforts

Philadelphia is not the first Pennsylvania jurisdiction to adopt a debt diversion model.

Lancaster County implemented a similar consumer credit card diversion program in 2022 that combines court-supervised conciliation with credit counseling resources.

According to data cited by the American Arbitration Association, more than half of Lancaster County’s consumer credit card cases filed between January and August 2024 were resolved through settlements, voluntary dismissals or court dismissals before returning to the regular court docket.

Other Pennsylvania counties, including Butler and Luzerne, have also adopted consumer debt diversion initiatives using court conferences, counseling services and enhanced notice requirements.

Philadelphia’s pilot currently applies only to credit card collection actions, although court officials have indicated the framework could eventually expand to additional consumer debt cases.

For creditors and collection law firms, the program places greater emphasis on having complete account documentation before filing suit and locating defendants earlier in the litigation process.

Pennsylvania Legislature Approves Broad Telemarketing Changes

Separately, the Pennsylvania General Assembly has unanimously approved Senate Bill 992, a comprehensive update to the state’s Telemarketer Registration Act.

The legislation has been sent to Gov. Josh Shapiro for consideration. If signed, most provisions would take effect 90 days later.

The bill modernizes Pennsylvania’s telemarketing statute to address technologies that were not contemplated when the original law was enacted in 1996.

Among its major provisions, SB 992 would:

• Expand the definition of telephone solicitation to include text messages, ringless voicemail and voicemail messages.
• Prohibit telemarketing calls, texts and voicemails on Sundays, while restricting communications between 7 p.m. and 9 a.m. on weekdays.
• Require prior express written consent before placing robocalls to residential, business or wireless telephone numbers, subject to certain exemptions.
• Prohibit misleading AI-generated messages and caller ID spoofing.
• Strengthen protections surrounding Pennsylvania’s Do Not Call list.
• Extend potential liability to businesses that hire third-party telemarketing vendors.

The legislation also establishes civil penalties of up to $1,000 per violation, increasing to $3,000 when the affected consumer is age 60 or older. Violations would also constitute violations of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, potentially allowing private civil actions.

Safe Harbors and Compliance Considerations

SB 992 includes exemptions for communications based on prior express written consent and certain established business relationships.

The legislation also codifies standard opt-out keywords for text messaging programs, including STOP, END, CANCEL, and UNSUBSCRIBE.

For companies conducting outbound communications in Pennsylvania, the legislation may require updates to dialing platforms, consent management systems, vendor oversight procedures and record retention practices before the law takes effect.

Why It Matters

While the Philadelphia diversion program and SB 992 address different aspects of consumer finance, both signal Pennsylvania’s continued focus on consumer protection and procedural reforms.

The court initiative emphasizes earlier documentation and faster dispute resolution in credit card collection litigation, while SB 992 expands regulatory expectations for companies using telemarketing, texting and automated outreach.

Together, the developments underscore the growing importance of documentation, compliance controls and vendor oversight for creditors, collection agencies and financial services companies operating in Pennsylvania.