Following programs established by the Courts of Common Pleas in Luzerne, Lancaster and Blair Counties to handle increasing volumes of cases involving consumer credit card debt, as well as its own mortgage foreclosure diversion program, Philadelphia County, pursuant to General Court Regulation 2026-01, has created a Credit Card Diversion Program to attempt to relieve some of the burden on its arbitration program and provide consumers an opportunity to resolve the case before it proceeds to arbitration or trial.
The program applies to all consumer credit card debt actions filed after June 1, 2026, but will not apply to commercial credit card accounts. According to meetings held with the court prior to implementation of the program, the court’s basis for the program is to attempt to resolve what it believed to be too many cases coming to arbitration when the matter had not yet been served or unready to move forward to arbitration.
Prior to June 1, 2026, all cases filed within the monetary jurisdictional limits for Philadelphia County, which is $50,000.00, were scheduled by the court for an arbitration date approximately nine months from the date of filing. Under the new program, all consumer credit card cases filed after June 1, 2026, will automatically be scheduled for a conciliation conference, and all initial pleading deadlines will be deferred, and no arbitration or other dates will be scheduled. All conciliation conferences will be held by Zoom and plaintiff’s counsel must have authority to discuss settlement.
All cases filed before June 1, 2026, where there is a pending arbitration date, will be subject to review at the time of arbitration to determine if the matter is ready to move forward with arbitration or if an order scheduling a conciliation conference will be necessary.
While not as burdensome with regard to documents necessary to proceed, the new program will require that the Plaintiff also serve the defendant with a certification form, case management order & notice, in addition to the complaint. The notice is a single page notice to the consumer advising them of the program and the opportunity to resolve the case.
The certification form requires counsel for plaintiff to verify:
- The statute of limitations has not expired
- Name of current holder of the debt
- Original agreement date
- Default date
- And that they are in possession of documents including:
- Cardmember agreement containing type of account, original creditor, any merchant or affinity brand, account number, interest rate and any applicable fees;
- Billing statement sent to Defendant showing calculation of balance; and
- Written proof of any assignment of the account
The certification does not require that the above documents be attached to the complaint or provided to the court prior to the conference, just that the plaintiff is in possession of those documents.
If a matter is unable to proceed as of the conference date, or if the plaintiff fails to appear, the court will review for a subsequent conciliation conference or will refer to a judge for a hearing to dismiss the case. If the defendant does not attend, an order scheduling an arbitration date and allowing that matter to proceed in the normal course will be issued. If both parties attend and the matter does not resolve at the conference, then the case will similarly have an order issued scheduling the arbitration date.
In Conclusion:
While the new program creates an additional initial hurdle to the entry of judgment, other counties with these programs have seen success in resolving cases and avoiding the need for matters to thereafter proceed to arbitration or trial. And while the new certification requires verification that documents exist establishing the existence of the debt, these requirements are not so overly burdensome, nor requesting documents that a creditor is not typically otherwise in possession of, that it will prevent a matter from proceeding.
We will continue to monitor and update, as with any new program, adjustments will likely be made and the day-to-day operations worked out. If you have any questions on this topic or would like to learn more about Weltman’s Solutions, feel free to connect with Philadelphia Attorney Scott Best at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
