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Philadelphia, PA: First Judicial District Announces Consumer Credit Card Collection Diversion Pilot Program
Applies to Consumer Credit Card Collection Matters Filed on or After June 1, 2026
Effective Date: Monday, June 1, 2026
Padgett Contacts:
The First Judicial District of Pennsylvania (Philadelphia County) has announced the implementation of a Consumer Credit Card Collection Diversion Pilot Program, (“Program”). All consumer credit card collection actions filed on or after June 1, 2026, will automatically be subject to participating in this program. The Program is modeled after Philadelphia’s longstanding mortgage foreclosure diversion initiative and introduces new procedural requirements for consumer credit card collection cases. All such actions must now be clearly identified as consumer credit card collection which means that consumer collection complaints must include a required Certification Form. This Certification Form must be served on the defendant(s) together with the complaint at the time of service.
With respect to the treatment of matters filed before and after June 1, 2026, consumer credit card collection actions filed prior to June 1, 2026 will not be automatically diverted upon filing. However, these cases may be referred to the Diversion Program at the time of Arbitration, depending on the issues identified in the required Certification Form (attached as Exhibit A). The First Judicial District has issued guidance indicating that, if the Court determines a matter is ready to proceed, Arbitration will move forward as scheduled. Conversely, if the Court determines that the matter is not ready to proceed, the Arbitration hearing will be canceled, and the Court will issue an Order scheduling a Conciliation Conference.
Clients should understand how this program may impact case timelines and overall expectations. Particularly, court-imposed delays and procedural stays should be anticipated and remain outside of Padgett’s and the Plaintiff’s control. Service-related delays may arise if service of the complaint cannot be effectuated or if a different address is identified than the one listed in the complaint, in which case PLG, on behalf of the Plaintiff, will be required to file a Praecipe to Amend the Address. Additionally, service of the complaint, including all required forms, must be fully completed before a matter is eligible to proceed to conciliation. Plaintiffs or their counsel are also required to attend all court-ordered conciliation conferences, and court-ordered conciliation stays will prevent the Plaintiff from seeking or entering a default judgment until the conciliation process has been completed.
We will continue to closely monitor the implementation of this pilot program and provide updates regarding any procedural changes or additional impacts as they develop. Please do not hesitate to contact us if you have any questions or would like to discuss how this program may affect your current or future matters.