HB 1311 — Addressing credit repair services performed by a credit services organization.

ENGROSSEDH-0102.2 SUBSTITUTE HOUSE BILL 1311 State of Washington 68th Legislature 2023 Regular Session By House Consumer Protection & Business (originally sponsored by Representatives Reeves, Corry, Chapman, Reed, and Cheney)Cheney READRead FIRSTfirst TIMEtime 02/16/23.01/13/23.

Referred to Committee on Consumer Protection & Business.

1 ESHBHB 1311 (5) "Creditor" has the same meaning as in RCW 62A.1-201.

2 ESHBHB 1311 provide advice or assistance described in (a)(iv) of this subsection as it pertains to (a)(i) and (ii) of this subsection, and that the attorney is not providing those services in connection with a qualified nonprofit legal aid provider;

3 ESHBHB 1311 bond shall be issued on the condition that the principal comply with all provisions of this chapter and fully perform on all contracts entered into with ((buyers)) consumers.

(((3))) (c) Fail to provide a monthly statement to the consumer detailing the services performed,performed including,including if applicable, an accounting of any funds paid by a consumer and held or disbursed on the consumer's behalf and copies of any letters sent by the credit services organization on the consumer's behalf;

(f) Send any communication on behalf of a consumer to a consumer reporting agency, creditor, collection agency, or regulatory entity p.

4 ESHBHB 1311 (f)by Sendimpersonating anythe communicationconsumer toor awithout consumerdisclosing reportingthe agency,sender's creditor,identity, collectionstreet agency,address, ortelephone regulatorynumber, entityfacsimile withoutnumber if any, and, if applicable, the priorname writtenand authorizationstreet address of any parent organization of the consumer.sender;

(g) Send any communication to a consumer reporting agency, creditor, collection agency, or regulatory entity without the prior written authorization of the consumer.

(g)(h) Fail to make a written communication sent on behalf of a consumer to any consumer reporting agency, creditor, collection agency, or regulatory entity, or legal counsel for any of the foregoing available to the consumer;

or (h)(i) Fail to provide along with its first written communication to a consumer reporting agency, creditor, debt collector, or regulatory entity information sufficient to permit the consumer reporting agency, creditor, debt collector, or regulatory entity to investigate the account or accounts that are the subject of the written communication.

(1) Unless otherwise required by law, a consumer reporting agency, creditor, or collection agency that knowshas abeen consumerprovided iswith representedthe by a credit services organizationorganization's name and alsoaddress hasby knowledgethe of,consumer or can readily ascertain, the credit services organization'sorganization name and address shall communicate with the credit services organization unless either of the following circumstances apply:

(2) Notwithstanding subsection (1) of this section, a consumer reporting agency, creditor, or collection agency shall not be required to communicate with a credit services organization p.

5 ESHBHB 1311 (2) Notwithstanding subsection (1) of this section, a consumer reporting agency, creditor, or collection agency shall not be required to communicate with a credit services organization concerning an account that is subject to a dispute if any of the following apply:

Redacting information pursuant to this section shall not be considered a violation of RCW 19.134.020(1)(h).19.134.020(1)(i).

Before the execution of a contract or agreement between the ((buyer)) consumer and a credit services organization or before the receipt by the credit services organization of any money or other p.

6 ESHBHB 1311 Before the execution of a contract or agreement between the ((buyer)) consumer and a credit services organization or before the receipt by the credit services organization of any money or other valuable consideration, whichever occurs first, the credit services organization shall provide the ((buyer)) consumer with a statement in writing, containing all the information required by RCW 19.134.050.

(1)(a) A conspicuouscomplete statementand inaccurate boldfacestatement 10-point type at the top of the statement((buyer's)) thatconsumer's clearlyright outlines to areview consumerany howfile on the credit((buyer)) servicesconsumer organizationmaintained willby actany onconsumer behalfreporting ofagency, theas consumer,provided includingunder that with explicit approval, the creditfederal servicesFair organizationCredit mayReporting useAct, the15 consumer'sU.S.C. signature;

(b) A complete and accurate statement of the ((buyer's)) consumer's right to review any file on the ((buyer)) consumer maintained by any consumer reporting agency, as provided under the federal Fair Credit Reporting Act, 15 U.S.C.

(((b)))(b) (c) A statement that the ((buyer)) consumer may review his or her consumer reporting agency file at no charge if a request is made to the consumer ((credit)) reporting agency within ((thirty)) 30 days after receiving notice that credit has been denied;

((and((and)) (c)))(c) (d) The approximate price the ((buyer)) consumer will be charged by the consumer reporting agency to review his or her consumer reporting agency file;

and (e)(d) The following notice:

"If you have a complaint about the services provided by this credit services organization or the fees charged by this credit services organization, you may submit that complaint to the Washington state Attorney General's OfficeOffice, electronically at https:// www.atg.wa.gov/file-complaint or by mail to Attn:

......, 800P.O. 5th Avenue, Suite 2000, Seattle, WA 98104-3188." p.

7Box ESHB40100, 1311Olympia, WA 98504-0100." The information statement shall be printed in at least 10-point boldface type and shall include the following statement:

4 "CONSUMER CREDIT FILE RIGHTS UNDER STATE AND FEDERAL LAW 6p. You have a right to obtain a free copy of your credit report from a consumer reporting agency.

7 HB 1311 2 You have a right to obtain a free copy of your credit report from a consumer reporting agency.

(2) A complete and accurate statement of the ((buyer's)) consumer's right to dispute the completeness or accuracy of any item contained in any file on the ((buyer)) consumer maintained by any consumer reporting agency;

8 ESHBHB 1311 (2)(3) A complete and accuratedetailed statementdescription of the ((buyer's))services consumer'sto rightbe toperformed disputeby the completenesscredit orservices accuracyorganization offor anythe item((buyer)) containedconsumer inand anythe filetotal onamount the ((buyer)) consumer maintainedwill byhave anyto consumerpay, reportingor agency;become obligated to pay, for the services;

(3) A complete and detailed description of the services to be performed by the credit services organization for the ((buyer)) consumer and the total amount the ((buyer)) consumer will have to pay, or become obligated to pay, for the services;

(b) ExplicitThe writtenterms approvaland fromconditions theof consumerpayment, thatincluding the credittotal servicesof organizationall maypayments useto thebe consumer'smade signatureby inthe order((buyer)) consumer, whether to facilitatethe credit repairservices services;organization or to some other person;

(c) TheA termsfull and conditionsdetailed description of payment,the includingservices theto totalbe ofperformed allby paymentsthe tocredit beservices madeorganization byfor the ((buyer)) consumer, whetherincluding toa list of the information appearing on the consumer's credit report that the credit services organization orwill toseek somea otherreasonable person;reinvestigation of, as described in 15 U.S.C.

(((c)))1681(i), (d) A full and detailed description of the services to be performed by the credit services organization for the ((buyer)) consumer, including all guarantees and all promises of full or partial refunds, and the estimated date by which the services are to be performed, or estimated length of time for performing the services, not to exceed 180 days;days, or a shorter period consistent with the purposes of this section as may be prescribed by the attorney general;

(d) The credit services organization's principal business address, mailing address if different, email address, facsimile number if applicable, website address if applicable, and the name and p.

9 ESHBHB 1311 (((d))) (e) The credit services organization's principal business address, mailing address if different, email address, facsimile number if applicable, website address if applicable, and the name and address of its agent in the state authorized to receive service of process;

The credit services organization shall provide easily understood and easily exercised p.cancellation instructions on its website if a website is maintained by the credit services organization.

10p. ESHB 1311 cancellation instructions on its website if a website is maintained by the credit services organization.

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11 ESHBHB 1311