Washington 2017-2018 Regular Session Status: Passed Senate

SB 5043 — Concerning collection agency transaction fees for processing electronic payments.

Last action — By resolution, reintroduced and retained in present status.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017-2018 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

1 added · 1 removed

Plain-language change summary

The amendment to SB 5043 introduces a new provision allowing collection agencies to charge a fee for processing electronic payments via credit cards, which is capped at 2% of the payment amount. This update is significant as it provides clarity on transaction fees that may be applied, ensuring no-cost alternatives for debtors are disclosed, helping protect consumers from unexpected charges. By specifying these fees, the amendment aims to increase transparency in financial transactions related to debt collection.

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S-1397.2SUBSTITUTE SENATE BILL 5043State of Washington65th Legislature2017 Regular SessionBy Senate Financial Institutions & Insurance (originally sponsored by Senators Angel, Mullet, and Hobbs)READ FIRST TIME 02/16/17.AN ACT Relating to payment of debts;
S-0020.1SENATE BILL 5043State of Washington65th Legislature2017 Regular SessionBy Senators Angel, Mullet, and HobbsRead first time 01/11/17.
amending RCW 3.50.100, 3.62.040, 7.21.040, 9.94A.6333, 9.94A.640, 10.82.030, 10.82.040, 10.82.090, 35.20.220, 19.16.100, and 19.16.250;
Referred to Committee on Financial Institutions & Insurance.AN ACT Relating to collection agency transaction fees for processing electronic payments;
reenacting and amending RCW 3.62.020;
and amending RCW 19.16.100 and 19.16.250.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 19.16.100 and 2015 c 201 s 3 are each amended to read as follows:Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:(1) "Board" means the Washington state collection agency board.(2) "Claim" means any obligation for the payment of money or thing of value arising out of any agreement or contract, express or implied.(3) "Client" or "customer" means any person authorizing or employing a collection agency to collect a claim.(4) "Collection agency" means and includes:(a) Any person directly or indirectly engaged in soliciting claims for collection, or collecting or attempting to collect claims owed or due or asserted to be owed or due another person;(b) Any person who directly or indirectly furnishes or attempts to furnish, sells, or offers to sell forms represented to be a collection system or scheme intended or calculated to be used to collect claims even though the forms direct the debtor to make payment to the creditor and even though the forms may be or are actually used by the creditor himself or herself in his or her own name;(c) Any person who in attempting to collect or in collecting his or her own claim uses a fictitious name or any name other than his or her own which would indicate to the debtor that a third person is collecting or attempting to collect such claim;(d) Any person or entity that is engaged in the business of purchasing delinquent or charged off claims for collection purposes, whether it collects the claims itself or hires a third party for collection or an attorney for litigation in order to collect such claims;(e) Any person or entity attempting to enforce a lien under chapter 60.44 RCW, other than the person or entity originally entitled to the lien.(5) "Collection agency" does not mean and does not include:(a) Any individual engaged in soliciting claims for collection, or collecting or attempting to collect claims on behalf of a licensee under this chapter, if said individual is an employee of the licensee;(b) Any individual collecting or attempting to collect claims for not more than one employer, if all the collection efforts are carried on in the name of the employer and if the individual is an employee of the employer;(c) Any person whose collection activities are carried on in his, her, or its true name and are confined and are directly related to the operation of a business other than that of a collection agency, such as but not limited to:
and adding new sections to chapter 9.94A RCW.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  A new section is added to chapter 9.94A RCW to read as follows:(1) No interest shall accrue on nonrestitution legal financial obligations until the date of release from full or partial custody as indicated on the judgment and sentence.(2) If a violation of a condition or requirement of sentence is only for failure to pay legal financial obligations with an unpaid principal of twenty-five thousand dollars or less, the court shall not impose any term of partial or total confinement.NEW SECTION.  Sec. 2.  A new section is added to chapter 9.94A RCW to read as follows:Upon the release of an offender from partial or total confinement, the department must inform the offender, in writing, regarding the amount of legal financial obligation owed, the interest rate, when and how interest will accrue, and how to avoid the payment of interest on the nonrestitution portion of the legal financial obligation.Sec. 3.  RCW 3.50.100 and 2012 c 136 s 3 are each amended to read as follows:(1) Costs in civil and criminal actions may be imposed as provided in district court.
All fees, costs, fines, forfeitures and other money imposed by any municipal court for the violation of any municipal or town ordinances shall be collected by the court clerk and, together with any other noninterest revenues received by the clerk, shall be deposited with the city or town treasurer as a part of the general fund of the city or town, or deposited in such other fund of the city or town, or deposited in such other funds as may be designated by the laws of the state of Washington.(2) Except as provided in RCW 9A.88.120 and 10.99.080, the city treasurer shall remit monthly thirty-two percent of the noninterest money received under this section, other than for parking infractions, and certain costs to the state treasurer.
"Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state, county, city, or town in the prosecution of the case, including the fees of defense counsel.
Money remitted under this subsection to the state treasurer shall be deposited in the state general fund.(3) The balance of the noninterest money received under this section shall be retained by the city and deposited as provided by law.(4) Except as provided in section 1 of this act, penalties, fines, bail forfeitures, fees, and costs may accrue interest at the rate of twelve percent per annum, upon assignment to a collection agency.
Interest may accrue only while the case is in collection status.(5) Interest retained by the court on penalties, fines, bail forfeitures, fees, and costs shall be split twenty-five percent to the state treasurer for deposit in the state general fund, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the city general fund, and twenty-five percent to the city general fund to fund local courts.Sec. 4.  RCW 3.62.020 and 2012 c 262 s 1, 2012 c 136 s 4, and 2012 c 134 s 6 are each reenacted and amended to read as follows:(1) Except as provided in subsection (4) of this section, all costs, fees, fines, forfeitures and penalties assessed and collected in whole or in part by district courts, except costs, fines, forfeitures and penalties assessed and collected, in whole or in part, because of the violation of city ordinances, shall be remitted by the clerk of the district court to the county treasurer at least monthly, together with a financial statement as required by the state auditor, noting the information necessary for crediting of such funds as required by law.(2) Except as provided in RCW 9A.88.120, 10.99.080, 7.84.100(4), and this section, the county treasurer shall remit thirty-two percent of the noninterest money received under subsection (1) of this section except certain costs to the state treasurer.
"Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state or county in the prosecution of the case, including the fees of defense counsel.
With the exception of funds to be transferred to the judicial stabilization trust account under RCW 3.62.060(2), money remitted under this subsection to the state treasurer shall be deposited in the state general fund.(3) The balance of the noninterest money received by the county treasurer under subsection (1) of this section shall be deposited in the county current expense fund.
Funds deposited under this subsection that are attributable to the county's portion of a surcharge imposed under RCW 3.62.060(2) must be used to support local trial court and court-related functions.(4) Except as provided in RCW 7.84.100(4), all money collected for county parking infractions shall be remitted by the clerk of the district court at least monthly, with the information required under subsection (1) of this section, to the county treasurer for deposit in the county current expense fund.(5) Except as provided in section 1 of this act, penalties, fines, bail forfeitures, fees, and costs may accrue interest at the rate of twelve percent per annum, upon assignment to a collection agency.
Interest may accrue only while the case is in collection status.(6) Interest retained by the court on penalties, fines, bail forfeitures, fees, and costs shall be split twenty-five percent to the state treasurer for deposit in the state general fund, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the county current expense fund, and twenty-five percent to the county current expense fund to fund local courts.Sec. 5.  RCW 3.62.040 and 2012 c 136 s 5 are each amended to read as follows:(1) Except as provided in subsection (4) of this section, all costs, fines, forfeitures and penalties assessed and collected, in whole or in part, by district courts because of violations of city ordinances shall be remitted by the clerk of the district court at least monthly directly to the treasurer of the city wherein the violation occurred.(2) Except as provided in RCW 9A.88.120 and 10.99.080, the city treasurer shall remit monthly thirty-two percent of the noninterest money received under this section, other than for parking infractions and certain costs, to the state treasurer.
"Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state, county, city, or town in the prosecution of the case, including the fees of defense counsel.
Money remitted under this subsection to the state treasurer shall be deposited in the state general fund.(3) The balance of the noninterest money received under this section shall be retained by the city and deposited as provided by law.(4) All money collected for city parking infractions shall be remitted by the clerk of the district court at least monthly to the city treasurer for deposit in the city's general fund.(5) Except as provided in section 1 of this act, penalties, fines, bail forfeitures, fees, and costs may accrue interest at the rate of twelve percent per annum, upon assignment to a collection agency.
Interest may accrue only while the case is in collection status.(6) Interest retained by the court on penalties, fines, bail forfeitures, fees, and costs shall be split twenty-five percent to the state treasurer for deposit in the state general fund, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the city general fund, and twenty-five percent to the city general fund to fund local courts.Sec. 6.  RCW 7.21.040 and 2011 c 96 s 3 are each amended to read as follows:(1) Except as otherwise provided in RCW 7.21.050 or section 1 of this act, a punitive sanction for contempt of court may be imposed only pursuant to this section.(2)(a) An action to impose a punitive sanction for contempt of court shall be commenced by a complaint or information filed by the prosecuting attorney or city attorney charging a person with contempt of court and reciting the punitive sanction sought to be imposed.(b) If there is probable cause to believe that a contempt has been committed, the prosecuting attorney or city attorney may file the information or complaint on his or her own initiative or at the request of a person aggrieved by the contempt.(c) A request that the prosecuting attorney or the city attorney commence an action under this section may be made by a judge presiding in an action or proceeding to which a contempt relates.
If required for the administration of justice, the judge making the request may appoint a special counsel to prosecute an action to impose a punitive sanction for contempt of court.A judge making a request pursuant to this subsection shall be disqualified from presiding at the trial.(d) If the alleged contempt involves disrespect to or criticism of a judge, that judge is disqualified from presiding at the trial of the contempt unless the person charged consents to the judge presiding at the trial.(3) The court may hold a hearing on a motion for a remedial sanction jointly with a trial on an information or complaint seeking a punitive sanction.(4) A punitive sanction may be imposed for past conduct that was a contempt of court even though similar present conduct is a continuing contempt of court.(5) If the defendant is found guilty of contempt of court under this section, the court may impose for each separate contempt of court a fine of not more than five thousand dollars or imprisonment for up to three hundred sixty-four days, or both.Sec. 7.  RCW 9.94A.6333 and 2008 c 231 s 19 are each amended to read as follows:(1) If an offender violates any condition or requirement of a sentence, and the offender is not being supervised by the department, the court may modify its order of judgment and sentence and impose further punishment in accordance with this section.(2) If an offender fails to comply with any of the conditions or requirements of a sentence the following provisions apply:(a) The court, upon the motion of the state, or upon its own motion, shall require the offender to show cause why the offender should not be punished for the noncompliance.
The court may issue a summons or a warrant of arrest for the offender's appearance;(b) The state has the burden of showing noncompliance by a preponderance of the evidence;(c) If the court finds that a violation has been proved, it may impose the sanctions specified in RCW 9.94A.633(1).
However, if the violation is for failure to pay legal financial obligations with an unpaid principal of twenty-five thousand dollars or less, the court shall not impose any term of partial or total confinement.
Alternatively, the court may:(i) Convert a term of partial confinement to total confinement;
(ii) Convert community restitution obligation to total or partial confinement;
or (iii) Convert monetary obligations, except restitution and the crime victim penalty assessment, to community restitution hours at the rate of the state minimum wage as established in RCW 49.46.020 for each hour of community restitution;(d) If the court finds that the violation was not willful, the court may modify its previous order regarding payment of legal financial obligations and regarding community restitution obligations;
and(e) If the violation involves a failure to undergo or comply with a mental health status evaluation and/or outpatient mental health treatment, the court shall seek a recommendation from the treatment provider or proposed treatment provider.
Enforcement of orders concerning outpatient mental health treatment must reflect the availability of treatment and must pursue the least restrictive means of promoting participation in treatment.
If the offender's failure to receive care essential for health and safety presents a risk of serious physical harm or probable harmful consequences, the civil detention and commitment procedures of chapter 71.05 RCW shall be considered in preference to incarceration in a local or state correctional facility.(3) Any time served in confinement awaiting a hearing on noncompliance shall be credited against any confinement ordered by the court.(4) Nothing in this section prohibits the filing of escape charges if appropriate.Sec. 8.  RCW 9.94A.640 and 2012 c 183 s 3 are each amended to read as follows:(1) Every offender who has been discharged under RCW 9.94A.637 may apply to the sentencing court for a vacation of the offender's record of conviction.
If the court finds the offender meets the tests prescribed in subsection (2) of this section, the court may clear the record of conviction by:
(a) Permitting the offender to withdraw the offender's plea of guilty and to enter a plea of not guilty;
or (b) if the offender has been convicted after a plea of not guilty, by the court setting aside the verdict of guilty;
and (c) by the court dismissing the information or indictment against the offender.(2)(a) An offender may not have the record of conviction cleared if:
(((a))) (i) There are any criminal charges against the offender pending in any court of this state or another state, or in any federal court;
(((b))) (ii) the offense was a violent offense as defined in RCW 9.94A.030;
(((c))) (iii) the offense was a crime against persons as defined in RCW 43.43.830;
(((d))) (iv) the offender has been convicted of a new crime in this state, another state, or federal court since the date of the offender's discharge under RCW 9.94A.637;
(((e))) (v) the offense is a class B felony and less than ten years have passed since the date the applicant was discharged under RCW 9.94A.637;
(((f))) (vi) the offense was a class C felony, other than a class C felony described in RCW 46.61.502(6) or 46.61.504(6), and less than five years have passed since the date the applicant was discharged under RCW 9.94A.637;
or (((g))) (vii) the offense was a class C felony described in RCW 46.61.502(6) or 46.61.504(6).(b) Subject to the provisions of (a) of this subsection, the court shall clear the offender's record of conviction if the offender has fulfilled all of the conditions of sentence except nonrestitution legal financial obligations.(3) Once the court vacates a record of conviction under subsection (1) of this section, the fact that the offender has been convicted of the offense shall not be included in the offender's criminal history for purposes of determining a sentence in any subsequent conviction, and the offender shall be released from all penalties and disabilities resulting from the offense.
For all purposes, including responding to questions on employment applications, an offender whose conviction has been vacated may state that the offender has never been convicted of that crime.
Nothing in this section affects or prevents the use of an offender's prior conviction in a later criminal prosecution.Sec. 9.  RCW 10.82.030 and 2010 c 8 s 1064 are each amended to read as follows:Except as provided in section 1 of this act and RCW 9.94A.6333, if any person ordered into custody until the fine and costs adjudged against him or her be paid shall not, within five days, pay, or cause the payment of the same to be made, the clerk of the court shall issue a warrant to the sheriff commanding him or her to imprison such defendant in the county jail until the amount of such fine and costs owing are paid.
Execution may at any time issue against the property of the defendant for that portion of such fine and costs not reduced by the application of this section.
The amount of such fine and costs owing shall be the whole of such fine and costs reduced by the amount of any portion thereof paid, and an amount established by the county legislative authority for every day the defendant performs labor as provided in RCW 10.82.040, and a lesser amount established by the county legislative authority for every day the defendant does not perform such labor while imprisoned.Sec. 10.  RCW 10.82.040 and 2010 c 8 s 1065 are each amended to read as follows:Except as provided in section 1 of this act and RCW 9.94A.6333, when a defendant is committed to jail, on failure to pay any fines and costs, he or she shall, under the supervision of the county sheriff and subject to the terms of any ordinances adopted by the county commissioners, be permitted to perform labor to reduce the amount owing of the fine and costs.Sec. 11.  RCW 10.82.090 and 2015 c 265 s 23 are each amended to read as follows:(1) Except as provided in subsection (2) of this section, restitution financial obligations imposed in a judgment shall bear interest from the date of the judgment until payment, at the rate applicable to civil judgments.
Except as provided in subsection (2) of this section, nonrestitution financial obligations imposed in a judgment shall bear interest from the date of release from full or partial custody as indicated on the judgment and sentence until payment, at the rate applicable to civil judgments.
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All nonrestitution interest retained by the court shall be split twenty-five percent to the state treasurer for deposit in the state general fund, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the county current expense fund, and twenty-five percent to the county current expense fund to fund local courts.(2) The court may, ((on motion by the offender,)) following the offender's release from total confinement, reduce or waive the interest on legal financial obligations levied as a result of a criminal conviction as follows:(a) The court shall waive all interest on the portions of the legal financial obligations that are not restitution ((that accrued during the term of total confinement)) for the conviction giving rise to the financial obligations, provided the offender ((shows that the interest creates a hardship for the offender or his or her immediate family)) has paid the principal amount in full within five years after the term of partial or total confinement;(b) The court ((may)), on motion by the offender, shall reduce interest at any time on the ((restitution)) nonrestitution portion of the legal financial obligations ((only)) if the principal has been paid in full;(c) The court may otherwise reduce or waive the interest on the portions of the legal financial obligations that are not restitution or principal if the offender shows that he or she has personally made a good faith effort to pay and that the interest accrual is causing a significant hardship.
For purposes of this section, "good faith effort" means that the offender has either (i) paid the principal amount in full;
or (ii) made at least fifteen monthly payments within an eighteen-month period, excluding any payments mandatorily deducted by the department of corrections;(d) ((For purposes of (a) through (c) of this subsection, the court may reduce or waive interest on legal financial obligations only as an incentive for the offender to meet his or her legal financial obligations.)) The court may grant the motion, establish a payment schedule, and retain jurisdiction over the offender for purposes of reviewing and revising the reduction or waiver of interest.(3) This section only applies to adult offenders.Sec. 12.  RCW 35.20.220 and 2012 c 136 s 7 are each amended to read as follows:(1) The chief clerk, under the supervision and direction of the court administrator of the municipal court, shall have the custody and care of the books, papers and records of the court.
The chief clerk or a deputy shall be present during the session of the court and has the power to swear all witnesses and jurors, administer oaths and affidavits, and take acknowledgments.
The chief clerk shall keep the records of the court and shall issue all process under his or her hand and the seal of the court.
The chief clerk shall do and perform all things and have the same powers pertaining to the office as the clerks of the superior courts have in their office.
He or she shall receive all fines, penalties, and fees of every kind and keep a full, accurate, and detailed account of the same.
The chief clerk shall on each day pay into the city treasury all money received for the city during the day previous, with a detailed account of the same, and taking the treasurer's receipt therefor.(2) Except as provided in RCW 9A.88.120 and 10.99.080, the city treasurer shall remit monthly thirty-two percent of the noninterest money received under this section, other than for parking infractions and certain costs to the state treasurer.
"Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state, county, city, or town in the prosecution of the case, including the fees of defense counsel.
Money remitted under this subsection to the state treasurer shall be deposited in the state general fund.(3) The balance of the noninterest money received under this section shall be retained by the city and deposited as provided by law.(4) Except as provided in section 1 of this act, penalties, fines, bail forfeitures, fees, and costs may accrue interest at the rate of twelve percent per annum, upon assignment to a collection agency.
Interest may accrue only while the case is in collection status.(5) Interest retained by the court on penalties, fines, bail forfeitures, fees, and costs shall be split twenty-five percent to the state treasurer for deposit in the state general fund, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the city general fund, and twenty-five percent to the city general fund to fund local courts.Sec. 13.  RCW 19.16.100 and 2015 c 201 s 3 are each amended to read as follows:Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:(1) "Board" means the Washington state collection agency board.(2) "Claim" means any obligation for the payment of money or thing of value arising out of any agreement or contract, express or implied.(3) "Client" or "customer" means any person authorizing or employing a collection agency to collect a claim.(4) "Collection agency" means and includes:(a) Any person directly or indirectly engaged in soliciting claims for collection, or collecting or attempting to collect claims owed or due or asserted to be owed or due another person;(b) Any person who directly or indirectly furnishes or attempts to furnish, sells, or offers to sell forms represented to be a collection system or scheme intended or calculated to be used to collect claims even though the forms direct the debtor to make payment to the creditor and even though the forms may be or are actually used by the creditor himself or herself in his or her own name;(c) Any person who in attempting to collect or in collecting his or her own claim uses a fictitious name or any name other than his or her own which would indicate to the debtor that a third person is collecting or attempting to collect such claim;(d) Any person or entity that is engaged in the business of purchasing delinquent or charged off claims for collection purposes, whether it collects the claims itself or hires a third party for collection or an attorney for litigation in order to collect such claims;(e) Any person or entity attempting to enforce a lien under chapter 60.44 RCW, other than the person or entity originally entitled to the lien.(5) "Collection agency" does not mean and does not include:(a) Any individual engaged in soliciting claims for collection, or collecting or attempting to collect claims on behalf of a licensee under this chapter, if said individual is an employee of the licensee;(b) Any individual collecting or attempting to collect claims for not more than one employer, if all the collection efforts are carried on in the name of the employer and if the individual is an employee of the employer;(c) Any person whose collection activities are carried on in his, her, or its true name and are confined and are directly related to the operation of a business other than that of a collection agency, such as but not limited to:
or(f) Any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of the person is not the collection of debts.(6) "Commercial claim" means any obligation for payment of money or thing of value arising out of any agreement or contract, express or implied, where the transaction which is the subject of the agreement or contract is not primarily for personal, family, or household purposes.(7) "Credit card" means a card or device existing for the purpose of obtaining money, property, labor, or services on credit.(8) "Credit card payment" means any payment made by a credit card that incurs a credit card interchange fee to the collection agency.(9) "Debtor" means any person owing or alleged to owe a claim.(((8))) (10) "Director" means the director of licensing.(((9))) (11) "Licensee" means any person licensed under this chapter.(((10))) (12) "Out-of-state collection agency" means a person whose activities within this state are limited to collecting debts from debtors located in this state by means of interstate communications, including telephone, mail, or facsimile transmission, from the person's location in another state on behalf of clients located outside of this state, but does not include any person who is excluded from the definition of the term "debt collector" under the federal fair debt collection practices act (15 U.S.C.
or(f) Any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of the person is not the collection of debts.(6) "Commercial claim" means any obligation for payment of money or thing of value arising out of any agreement or contract, express or implied, where the transaction which is the subject of the agreement or contract is not primarily for personal, family, or household purposes.(7) "Credit card payment" means any payment made by a payment card that incurs a credit card interchange fee to the collection agency, regardless of the type of payment card used.(8) "Debtor" means any person owing or alleged to owe a claim.(((8))) (9) "Director" means the director of licensing.(((9))) (10) "Licensee" means any person licensed under this chapter.(((10))) (11) "Out-of-state collection agency" means a person whose activities within this state are limited to collecting debts from debtors located in this state by means of interstate communications, including telephone, mail, or facsimile transmission, from the person's location in another state on behalf of clients located outside of this state, but does not include any person who is excluded from the definition of the term "debt collector" under the federal fair debt collection practices act (15 U.S.C.
1692a(6)).(((11))) (13) "Person" includes individual, firm, partnership, trust, joint venture, association, or corporation.(((12))) (14) "Statement of account" means a report setting forth only amounts billed, invoices, credits allowed, or aged balance due.Sec. 14.  RCW 19.16.250 and 2016 c 86 s 4 are each amended to read as follows:No licensee or employee of a licensee shall:(1) Directly or indirectly aid or abet any unlicensed person to engage in business as a collection agency in this state or receive compensation from such unlicensed person:
1692a(6)).(((11))) (12) "Person" includes individual, firm, partnership, trust, joint venture, association, or corporation.(((12))) (13) "Statement of account" means a report setting forth only amounts billed, invoices, credits allowed, or aged balance due.Sec. 2.  RCW 19.16.250 and 2016 c 86 s 4 are each amended to read as follows:No licensee or employee of a licensee shall:(1) Directly or indirectly aid or abet any unlicensed person to engage in business as a collection agency in this state or receive compensation from such unlicensed person:
((and))(vi) A statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;(vii) A statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector;(viii) A statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor;
and(vi) Any other charge or fee that the licensee is attempting to collect on his or her or its own behalf or on the behalf of a customer or assignor;(d) If the notice, letter, message, or form concerns a judgment obtained against the debtor, no itemization of the amounts contained in the judgment is required, except postjudgment interest, if claimed, and the current account balance;(e) If the notice, letter, message, or form is the first notice to the debtor, an itemization of the claim asserted must be made including the following information:(i) The original account number or redacted original account number assigned to the debt, if known to the licensee or employee:
and(ix) Any other charge or fee that the licensee is attempting to collect on his or her or its own behalf or on the behalf of a customer or assignor;(d) If the notice, letter, message, or form concerns a judgment obtained against the debtor, no itemization of the amounts contained in the judgment is required, except postjudgment interest, if claimed, and the current account balance;(e) If the notice, letter, message, or form is the first notice to the debtor, an itemization of the claim asserted must be made including the following information:(i) The original account number or redacted original account number assigned to the debt, if known to the licensee or employee:
Nothing in this subsection may be construed to increase the number of communications permitted pursuant to subsection (13)(a) of this section.(19) Intentionally block its telephone number from displaying on a debtor's telephone.(20) In any manner convey the impression that the licensee is vouched for, bonded to or by, or is an instrumentality of the state of Washington or any agency or department thereof.(21) Collect or attempt to collect in addition to the principal amount of a claim any sum other than:(a) Allowable interest, collection costs or handling fees expressly authorized by statute((, and,));(b) A transaction fee for processing a credit card payment in an amount that does not exceed two and one-half percent of the payment amount, provided that a no-cost payment option is available to the debtor and the option is disclosed to the debtor at the same time and in the same manner as the debtor's credit card information is taken;(c) In the case of suit, attorney's fees and taxable court costs((.
Nothing in this subsection may be construed to increase the number of communications permitted pursuant to subsection (13)(a) of this section.(19) Intentionally block its telephone number from displaying on a debtor's telephone.(20) In any manner convey the impression that the licensee is vouched for, bonded to or by, or is an instrumentality of the state of Washington or any agency or department thereof.(21) Collect or attempt to collect in addition to the principal amount of a claim any sum other than:(a) Allowable interest, collection costs or handling fees expressly authorized by statute((, and,));(b) A transaction fee for processing a credit card payment in an amount that does not exceed two percent of the payment amount provided that a no-cost payment option is available to the debtor and the option is disclosed to the debtor at the same time and in the same manner as the debtor's credit card information is taken;(c) In the case of suit, attorney's fees and taxable court costs((.
The amount charged to the debtor for collection services shall not exceed thirty-five percent of the commercial claim.(22) Procure from a debtor or collect or attempt to collect on any written note, contract, stipulation, promise or acknowledgment under which a debtor may be required to pay any sum other than principal, allowable interest, except as noted in subsection (21) of this section, and, in the case of suit, attorney's fees and taxable court costs.(23) Seek a default judgment against a debtor unless the licensee:(a) Has access to a copy of a contract or other document evidencing the debtor's agreement to the debt or documentation demonstrating that the debt was incurred by the debtor;
The amount charged to the debtor for collection services shall not exceed thirty-five percent of the commercial claim.(22) Procure from a debtor or collect or attempt to collect on any written note, contract, stipulation, promise or acknowledgment under which a debtor may be required to pay any sum other than principal, allowable interest, except as noted in subsection (21) of this section, and, in the case of suit, attorney's fees and taxable court costs.(23) Bring an action or initiate an arbitration proceeding on a claim when the licensee knows, or reasonably should know, that such suit or arbitration is barred by the applicable statute of limitations.(24) Upon notification by a debtor that the debtor disputes all debts arising from a series of dishonored checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments, initiate oral contact with a debtor more than one time in an attempt to collect from the debtor debts arising from the identified series of dishonored checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments when:
and(b) Provides the debtor with a notice indicating in clear and legible type:(i) The name of the licensee and the city, street, and number at which he or she is licensed to do business;(ii) The name of the original creditor to whom the debtor owed the claim if such name is known to the licensee or employee:
PROVIDED, That upon written request of the debtor, the licensee shall provide this name to the debtor or cease efforts to collect on the debt until this information is provided;(iii) If the notice is the first notice to the debtor or if the licensee is attempting to collect a different amount than indicated in his or her or its first notice to the debtor, an itemization of the claim asserted must be made including:(A) The debt balance at charge off and an explanation of the amount, nature, and reason for all postcharge-off interest and fees, if any, imposed by the charge-off creditor or any subsequent purchasers of the debt;(B) The date of default or the date of the last payment;(C) The name and an address of the charge-off creditor at the time of charge off, and the charge-off creditor's account number associated with the debt;(D) Amount owing on the original obligation at the time it was received by the licensee for collection or by assignment;(E) Collection costs, if any, that the licensee is attempting to collect;(F) Attorneys' fees, if any, that the licensee is attempting to collect on his or her or its behalf or on the behalf of a customer or assignor;
and(G) Any other charge or fee that the licensee is attempting to collect on his or her or its own behalf or on the behalf of a customer or assignor;(vi) If the notice concerns a judgment obtained against the debtor, the licensee shall include an itemization of the debt balance at charge off;
the date of default or the date of the last payment;
an itemization of any payments made by the debtor after the debt was charged off;
postjudgment interest, if claimed;
and the current account balance;
and(v) If the notice is the first notice to the debtor, an itemization of the claim asserted must be made including the information in (b)(iii) of this subsection and:(A) A separate prominent notice in no smaller than twelve-point type that provides:"You may request records showing the following:
(1) That (insert name of licensee) has the right to seek collection of the debt;
(2) the debt balance, including an explanation of any interest charges and additional fees;
(3) the date of default or the date of the last payment;
(4) the name of the charge-off creditor and the account number associated with the debt;
(5) the name and last known address of the debtor as it appeared in the charge-off creditor's or debt buyer's records prior to the sale of the debt, as appropriate;
and (6) the names of all persons or entities that have purchased the debt.
You may also request from us a copy of the contract or other document evidencing your agreement to the debt.
A request for these records may be addressed to:
(insert licensee's active mailing address and email address, if applicable).";(B) Certification that the itemization of the claim was made based on a personal review of account level documentation provided by the original creditor;
and(C) A copy of the account level documentation reviewed by the licensee pursuant to (b)(v)(B) of this subsection (23).(24) Bring an action or initiate an arbitration proceeding on a claim when the licensee knows, or reasonably should know, that such suit or arbitration is barred by the applicable statute of limitations.(((24))) (25) Upon notification by a debtor that the debtor disputes all debts arising from a series of dishonored checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments, initiate oral contact with a debtor more than one time in an attempt to collect from the debtor debts arising from the identified series of dishonored checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments when:
or (v) the oral contact is made for the purpose of investigating, confirming, or authenticating the information received from the debtor, to provide additional information to the debtor, or to request additional information from the debtor needed by the licensee to accurately record the debtor's information in the licensee's records.(((25))) (26) Bring an action or initiate an arbitration proceeding on a claim for any amounts related to a transfer of sale of a vehicle when:(a) The licensee has been informed or reasonably should know that the department of licensing transfer of sale form was filed in accordance with RCW 46.12.650 (1) through (3);(b) The licensee has been informed or reasonably should know that the transfer of the vehicle either (i) was not made pursuant to a legal transfer or (ii) was not voluntarily accepted by the person designated as the purchaser/transferee;
or (v) the oral contact is made for the purpose of investigating, confirming, or authenticating the information received from the debtor, to provide additional information to the debtor, or to request additional information from the debtor needed by the licensee to accurately record the debtor's information in the licensee's records.(25) Bring an action or initiate an arbitration proceeding on a claim for any amounts related to a transfer of sale of a vehicle when:(a) The licensee has been informed or reasonably should know that the department of licensing transfer of sale form was filed in accordance with RCW 46.12.650 (1) through (3);(b) The licensee has been informed or reasonably should know that the transfer of the vehicle either (i) was not made pursuant to a legal transfer or (ii) was not voluntarily accepted by the person designated as the purchaser/transferee;
and(c) Prior to the commencement of the action or arbitration, the licensee has received from the putative transferee a copy of a police report referencing that the transfer of sale of the vehicle either (i) was not made pursuant to a legal transfer or (ii) was not voluntarily accepted by the person designated as the purchaser/transferee.(((26))) (27) Submit an affidavit or other request pursuant to chapter 6.32 RCW asking a superior or district court to transfer a bond posted by a debtor subject to a money judgment to the licensee, when the debtor has appeared as required.--- END ---
and(c) Prior to the commencement of the action or arbitration, the licensee has received from the putative transferee a copy of a police report referencing that the transfer of sale of the vehicle either (i) was not made pursuant to a legal transfer or (ii) was not voluntarily accepted by the person designated as the purchaser/transferee.(26) Submit an affidavit or other request pursuant to chapter 6.32 RCW asking a superior or district court to transfer a bond posted by a debtor subject to a money judgment to the licensee, when the debtor has appeared as required.--- END ---
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Action History

  1. By resolution, reintroduced and retained in present status.

  2. By resolution, reintroduced and retained in present status.

  3. By resolution, reintroduced and retained in present status.

  4. By resolution, reintroduced and retained in present status.

  5. By resolution, reintroduced and retained in present status.

  6. By resolution, reintroduced and retained in present status.

  7. By resolution, reintroduced and retained in present status.

  8. By resolution, reintroduced and retained in present status.

  9. On motion, referred to Ways & Means.

  10. On motion, referred to Ways & Means.

  11. FI - Majority; 1st substitute bill be substituted, do pass.

  12. FI - Majority; 1st substitute bill be substituted, do pass.

  13. First reading, referred to Financial Institutions & Insurance.

Sponsors

  • Hobbs · Cosponsor
  • Mullet · Cosponsor
  • Angel · Primary

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 148 not signed on

Sponsors (1)

  • Angel

Co-sponsors (2)

  • Hobbs
  • Mullet

Not signed on (148)

148 members have not signed on to this bill.

Show all 148 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 5043?
SB 5043 is sponsored by Hobbs, Mullet, and Angel.
What is the current status of SB 5043?
This bill died with 2017-2018 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 5043?
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