Washington State Credit Collection Law

The Federal Trade Commission is responsible for administering the Fair Debt Collections Practices Act, a federal consumer protection law governing credit agencies and lending institutions. States can enact their own consumer protection laws providing additional rights and protections to their residents. In Washington, the Washington State Legislature enacted Chapter 19.16 of the Revised Code of Washington governing credit and collection agencies.

Washington Law

Since the federal Fair Debt Collection Practices Act governs debt collection procedures used by credit collection agencies hired to collect debts for other companies, the Washington Legislature enacted additional state laws governing prohibited collection procedures used by agencies collecting their own debts. The Washington State Office of the Attorney General is responsible for administering the state's collection laws and investigating consumer complaints.

Prohibited Contacts

The Washington state law prohibits collection agencies from contacting consumers more than three times in one week, and they may only contact consumers at work once per week. They may not contact consumers between 9 p.m. and 8 a.m. The collection agency must disclose its address, name and debt information during its first contact or attempt. The agency must provide a written disclosure of the nature of the debt, interest and collection fees and provide notification to consumers of how to contest debt information. Debt collection agencies are not allowed to use intimidation, harassment or embarrassment during their collection efforts. Furthermore, they cannot threaten criminal prosecution, use offensive language or threaten physical violence.

Consumers' Rights

Consumers have a right to demand the agency to stop contacting them by sending written demand or cease and desist letters. Consumers represented by attorneys have rights against further contact by collection agencies, and collection agencies can only contact their attorneys. Credit agencies are allowed to contact unrepresented debtors and their acquaintances to find an address or place of employment of the debtor. They may not disclose the fact that the debtor owes money to their acquaintances or any other third parties. Collection agencies cannot require consumers to pay their debts using post-dated checks. According to federal law, a consumer who writes a post-dated check written post-dated for at least five days must be given written notice before the agency can deposit the check.

Collection Agency's Rights

A collection agency has a legal right to assess interest, late fees and can demand full debt repayment. The agency has no legal obligation to accept less than full repayment of its debt and can report debtors to local credit bureaus. However, if a consumer files a written dispute letter, the consumer's letter must be incorporated into its report to the credit reporting bureau. Consumer credit agencies can charge reasonable attorneys' fees, legal fees and credit report fees if consumers are contractually liable to pay them.

Considerations

Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.