Amerikaner83

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Howdy to all Washington State residents. Below is a compilation of some handy RCW references that may be of help to you if you want to know "is a CA allowed to..."?

Chapter 63.14 RCW – Retail installment sales of goods and services:

63.14.090

Retail installment contracts, retail charge agreements, and lender credit card agreements — Delinquency or collection charges — Attorney's fees, court costs — Other provisions not inconsistent with chapter are permissible.

(1) The holder of any retail installment contract, retail charge agreement, or lender credit card agreement may not collect any delinquency or collection charges, including any attorney's fee and court costs and disbursements, unless the contract, charge agreement, or lender credit card agreement so provides. In such cases, the charges shall be reasonable, and no attorney's fee may be recovered unless the contract, charge agreement, or lender credit card agreement is referred for collection to an attorney not a salaried employee of the holder.

(2) The contract, charge agreement, or lender credit card agreement may contain other provisions not inconsistent with the purposes of this chapter, including but not limited to provisions relating to refinancing, transfer of the buyer's equity, construction permits, and title reports.

(3) Notwithstanding subsection (1) of this section, where the minimum payment is received within the ten days following the payment due date, delinquency charges for the late payment of a retail charge agreement or lender credit card agreement may not be more than ten percent of the average balance of the delinquent account for the prior thirty-day period when the average balance of the account for the prior thirty-day period is less than one hundred dollars, except that a minimum charge of up to two dollars shall be allowed. This subsection (3) shall not apply in cases where the payment on the account is more than thirty days overdue.

63.14.145

Retail installment contracts and charge agreements — Sale, transfer, or assignment.

(1) A retail seller may sell, transfer, or assign a retail installment contract or charge agreement. After such sale, transfer, or assignment, the retail installment contract or charge agreement remains a retail installment contract or charge agreement.

(2) Nothing contained in this chapter shall be deemed to limit any charge made by an assignee of a retail installment contract or charge agreement to the seller-assignor upon the sale, transfer, assignment, or discount of the contract or agreement, notwithstanding retention by the assignee of recourse rights against the seller-assignor and notwithstanding duties retained by the seller-assignor to service delinquencies, perform service or warranty agreements regarding the property which is the subject matter of the assigned or discounted contracts or charge agreements, or to do or perform any other duty with respect to the contract or agreement assigned or the subject matter of such contract or agreement.

[1993 sp.s. c 5 § 2.]

63.14.170

Violations — Penalties.

Any person who shall wilfully and intentionally violate any provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than six months, or both. Violation of any order or injunction issued pursuant to this chapter shall constitute prima facie proof of a violation of this section.

[1963 c 236 § 17.]

63.14.180

Noncomplying person barred from recovery of service charge, etc. — Remedy of buyer — Extent of recovery.

Any person who enters into a retail installment contract, charge agreement, or lender credit card agreement that does not comply with the provisions of this chapter or who violates any provision of this chapter except as a result of an accidental or bona fide error shall be barred from the recovery of any service charge, official fees, or any delinquency or collection charge under or in connection with the related retail installment contract or purchases under a retail charge agreement or lender credit card agreement; but such person may nevertheless recover from the buyer an amount equal to the cash price of the goods or services and the cost to such person of any insurance included in the transaction: PROVIDED, That if the service charge is in excess of that allowed by RCW 63.14.130, except as the result of an accidental or bona fide error, the buyer shall be entitled to an amount equal to the total of (1) twice the amount of the service charge paid, and (2) the amount of the service charge contracted for and not paid, plus (3) costs and reasonable attorneys' fees. The reduction in the cash price by the application of the above sentence shall be applied to diminish pro rata each future installment of principal amount payable under the terms of the contract or agreement.

[1984 c 280 § 12; 1967 c 234 § 10; 1963 c 236 § 18.]

The above RCWs are in relation to debts such as a Best Buy charge card, Macy's card...etc.

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WA state Consumer Protection Act : *notice the $2,000.00 PER violation!*

Chapter 19.86 RCW – Unfair Business Practices – Consumer Protection Act:

(Collection agencies: RCW 19.16.120, 19.16.440.)

19.86.020

Unfair competition, practices, declared unlawful.

Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.

[1961 c 216 § 2.]

19.86.140

Civil penalties.

Every person who shall violate the terms of any injunction issued as in this chapter provided, shall forfeit and pay a civil penalty of not more than twenty-five thousand dollars.

Every person, other than a corporation, who violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than one hundred thousand dollars. Every corporation which violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than five hundred thousand dollars.

Every person who violates RCW 19.86.020 shall forfeit and pay a civil penalty of not more than two thousand dollars for each violation: PROVIDED, That nothing in this paragraph shall apply to any radio or television broadcasting station which broadcasts, or to any publisher, printer or distributor of any newspaper, magazine, billboard or other advertising medium who publishes, prints or distributes, advertising in good faith without knowledge of its false, deceptive or misleading character.

For the purpose of this section the superior court issuing any injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the attorney general acting in the name of the state may petition for the recovery of civil penalties.

With respect to violations of RCW 19.86.030 and 19.86.040, the attorney general, acting in the name of the state, may seek recovery of such penalties in a civil action.

[1983 c 288 § 2; 1970 ex.s. c 26 § 7; 1961 c 216 § 14.]

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Finally - CA Prohibited Practices part I

Chapter 19.16 RCW – Collection Agencies

19.16.250

Prohibited practices.

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: PROVIDED, That nothing in this chapter shall prevent a licensee from accepting, as forwardee, claims for collection from a collection agency or attorney whose place of business is outside the state.

(2) Collect or attempt to collect a claim by the use of any means contrary to the postal laws and regulations of the United States postal department.

(3) Publish or post or cause to be published or posted, any list of debtors commonly known as "bad debt lists" or threaten to do so. For purposes of this chapter, a "bad debt list" means any list of natural persons alleged to fail to honor their lawful debts. However, nothing herein shall be construed to prohibit a licensee from communicating to its customers or clients by means of a coded list, the existence of a check dishonored because of insufficient funds, not sufficient funds or closed account by the financial institution servicing the debtor's checking account: PROVIDED, That the debtor's identity is not readily apparent: PROVIDED FURTHER, That the licensee complies with the requirements of subsection (9)(e) of this section.

(4) Have in his possession or make use of any badge, use a uniform of any law enforcement agency or any simulation thereof, or make any statements which might be construed as indicating an official connection with any federal, state, county, or city law enforcement agency, or any other governmental agency, while engaged in collection agency business.

(5) Perform any act or acts, either directly or indirectly, constituting the practice of law.

(6) Advertise for sale or threaten to advertise for sale any claim as a means of endeavoring to enforce payment thereof or agreeing to do so for the purpose of soliciting claims, except where the licensee has acquired claims as an assignee for the benefit of creditors or where the licensee is acting under court order.

(7) Use any name while engaged in the making of a demand for any claim other than the name set forth on his or its current license issued hereunder.

(8) Give or send to any debtor or cause to be given or sent to any debtor, any notice, letter, message, or form which represents or implies that a claim exists unless it shall indicate in clear and legible type:

(a) The name of the licensee and the city, street, and number at which he is licensed to do business;

(B) 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 make a reasonable effort to obtain the name of such person and provide this name to the debtor;

© If the notice, letter, message, or form is the first notice to the debtor or if the licensee is attempting to collect a different amount than indicated in his or its first notice to the debtor, an itemization of the claim asserted must be made including:

(i) Amount owing on the original obligation at the time it was received by the licensee for collection or by assignment;

(ii) Interest or service charge, collection costs, or late payment charges, if any, added to the original obligation by the original creditor, customer or assignor before it was received by the licensee for collection, if such information is known by the licensee or employee: PROVIDED, That upon written request of the debtor, the licensee shall make a reasonable effort to obtain information on such items and provide this information to the debtor;

(iii) Interest or service charge, if any, added by the licensee or customer or assignor after the obligation was received by the licensee for collection;

(iv) Collection costs, if any, that the licensee is attempting to collect;

(v) Attorneys' fees, if any, that the licensee is attempting to collect on his or its behalf or on the behalf of a customer or assignor;

(vi) Any other charge or fee that the licensee is attempting to collect on his or its own behalf or on the behalf of a customer or assignor.

(9) Communicate or threaten to communicate, the existence of a claim to a person other than one who might be reasonably expected to be liable on the claim in any manner other than through proper legal action, process, or proceedings except under the following conditions:

(a) A licensee or employee of a licensee may inform a credit reporting bureau of the existence of a claim: PROVIDED, That if the licensee or employee of a licensee reports a claim to a credit reporting bureau, the licensee shall upon receipt of written notice from the debtor that any part of the claim is disputed, forward a copy of such written notice to the credit reporting bureau;

(B) A licensee or employee in collecting or attempting to collect a claim may communicate the existence of a claim to a debtor's employer if the claim has been reduced to a judgment;

© A licensee or employee in collecting or attempting to collect a claim that has not been reduced to judgment, may communicate the existence of a claim to a debtor's employer if:

(i) The licensee or employee has notified or attempted to notify the debtor in writing at his last known address or place of employment concerning the claim and the debtor after a reasonable time has failed to pay the claim or has failed to agree to make payments on the claim in a manner acceptable to the licensee, and

(ii) The debtor has not in writing to the licensee disputed any part of the claim: PROVIDED, That the licensee or employee may only communicate the existence of a claim which has not been reduced to judgment to the debtor's employer once unless the debtor's employer has agreed to additional communications.

(d) A licensee may for the purpose of locating the debtor or locating assets of the debtor communicate the existence of a claim to any person who might reasonably be expected to have knowledge of the whereabouts of a debtor or the location of assets of the debtor if the claim is reduced to judgment, or if not reduced to judgment, when:

(i) The licensee or employee has notified or attempted to notify the debtor in writing at his last known address or last known place of employment concerning the claim and the debtor after a reasonable time has failed to pay the claim or has failed to agree to make payments on the claim in a manner acceptable to the licensee, and

(ii) The debtor has not in writing disputed any part of the claim.

(e) A licensee may communicate the existence of a claim to its customers or clients if the claim is reduced to judgment, or if not reduced to judgment, when:

(i) The licensee has notified or attempted to notify the debtor in writing at his last known address or last known place of employment concerning the claim and the debtor after a reasonable time has failed to pay the claim or has failed to agree to make payments on the claim in a manner acceptable to the licensee, and

(ii) The debtor has not in writing disputed any part of the claim.

(10) Threaten the debtor with impairment of his credit rating if a claim is not paid.

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...continued...

(11) Communicate with the debtor after notification in writing from an attorney representing such debtor that all further communications relative to a claim should be addressed to the attorney: PROVIDED, That if a licensee requests in writing information from an attorney regarding such claim and the attorney does not respond within a reasonable time, the licensee may communicate directly with the debtor until he or it again receives notification in writing that an attorney is representing the debtor.

(12) Communicate with a debtor or anyone else in such a manner as to harass, intimidate, threaten, or embarrass a debtor, including but not limited to communication at an unreasonable hour, with unreasonable frequency, by threats of force or violence, by threats of criminal prosecution, and by use of offensive language. A communication shall be presumed to have been made for the purposes of harassment if:

(a) It is made with a debtor or spouse in any form, manner, or place, more than three times in a single week;

(B) It is made with a debtor at his or her place of employment more than one time in a single week;

© It is made with the debtor or spouse at his or her place of residence between the hours of 9:00 p.m. and 7:30 a.m.

(13) Communicate with the debtor through use of forms or instruments that simulate the form or appearance of judicial process, the form or appearance of government documents, or the simulation of a form or appearance of a telegraphic or emergency message.

(14) Communicate with the debtor and represent or imply that the existing obligation of the debtor may be or has been increased by the addition of attorney fees, investigation fees, service fees, or any other fees or charges when in fact such fees or charges may not legally be added to the existing obligation of such debtor.

(15) Threaten to take any action against the debtor which the licensee cannot legally take at the time the threat is made.

(16) Send any telegram or make any telephone calls to a debtor or concerning a debt or for the purpose of demanding payment of a claim or seeking information about a debtor, for which the charges are payable by the addressee or by the person to whom the call is made.

(17) 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.

(18) Collect or attempt to collect in addition to the principal amount of a claim any sum other than allowable interest, collection costs or handling fees expressly authorized by statute, and, in the case of suit, attorney's fees and taxable court costs. A licensee may collect or attempt to collect collection costs and fees, including contingent collection fees, as authorized by a written agreement or contract, between the licensee's client and the debtor, in the collection of a commercial claim. The amount charged to the debtor for collection services shall not exceed thirty-five percent of the commercial claim.

(19) 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 (18) of this section, and, in the case of suit, attorney's fees and taxable court costs.

(20) 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: (a) Within the previous one hundred eighty days, in response to the licensee's attempt to collect the initial debt assigned to the licensee and arising from the identified series of dishonored checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments, the debtor in writing notified the licensee that the debtor's checkbook or other series of preprinted written instruments was stolen or fraudulently created; (B) the licensee has received from the debtor a certified copy of a police report referencing the theft or fraudulent creation of the checkbook, automated clearinghouse transactions on a demand deposit account, or series of preprinted written instruments; © in the written notification to the licensee or in the police report, the debtor identified the financial institution where the account was maintained, the account number, the magnetic ink character recognition number, the full bank routing and transit number, and the check numbers of the stolen checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments, which check numbers included the number of the check that is the subject of the licensee's collection efforts; (d) the debtor provides, or within the previous one hundred eighty days provided, to the licensee a legible copy of a government-issued photo identification, which contains the debtor's signature and which was issued prior to the date of the theft or fraud identified in the police report; and (e) the debtor advised the licensee that the subject debt is disputed because the identified check, automated clearinghouse transaction on a demand deposit account, or other preprinted written instrument underlying the debt is a stolen or fraudulently created check or instrument.

The licensee is not in violation of this subsection if the licensee initiates oral contact with the debtor more than one time in an attempt to collect debts arising from the identified series of dishonored checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments when: (i) The licensee acted in good faith and relied on their established practices and procedures for batching, recording, or packeting debtor accounts, and the licensee inadvertently initiates oral contact with the debtor in an attempt to collect debts in the identified series subsequent to the initial debt assigned to the licensee; (ii) the licensee is following up on collection of a debt assigned to the licensee, and the debtor has previously requested more information from the licensee regarding the subject debt; (iii) the debtor has notified the licensee that the debtor disputes only some, but not all the debts arising from the identified series of dishonored checks, automated clearinghouse transactions on a demand deposit account, or other preprinted written instruments, in which case the licensee shall be allowed to initiate oral contact with the debtor one time for each debt arising from the series of identified checks, automated clearinghouse transactions on a demand deposit account, or written instruments and initiate additional oral contact for those debts that the debtor acknowledges do not arise from stolen or fraudulently created checks or written instruments; (iv) the oral contact is in the context of a judicial, administrative, arbitration, mediation, or similar proceeding; 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.

[2001 c 217 § 5; 2001 c 47 § 2; (2001 c 217 § 4 expired April 1, 2004); 1983 c 107 § 1; 1981 c 254 § 5; 1971 ex.s. c 253 § 16.]

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And finally:

19.16.110

License required.

No person shall act, assume to act, or advertise as a collection agency or out-of-state collection agency as defined in this chapter, except as authorized by this chapter, without first having applied for and obtained a license from the director.

Nothing contained in this section shall be construed to require a regular employee of a collection agency or out-of-state collection agency duly licensed under this chapter to procure a collection agency license.

[1994 c 195 § 2; 1971 ex.s. c 253 § 2.]

19.16.260

Licensing prerequisite to suit.

No collection agency or out-of-state collection agency may bring or maintain an action in any court of this state involving the collection of a claim of any third party without alleging and proving that he or it is duly licensed under this chapter and has satisfied the bonding requirements hereof, if applicable: PROVIDED, That in any case where judgment is to be entered by default, it shall not be necessary for the collection agency or out-of-state collection agency to prove such matters.

A copy of the current collection agency license or out-of-state collection agency license, certified by the director to be a true and correct copy of the original, shall be prima facie evidence of the licensing and bonding of such collection agency or out-of-state collection agency as required by this chapter.

[1994 c 195 § 8; 1971 ex.s. c 253 § 17.]

19.16.270

Presumption of validity of assignment.

In any action brought by licensee to collect the claim of his or its customer, the assignment of the claim to licensee by his or its customer shall be conclusively presumed valid, if the assignment is filed in court with the complaint, unless objection is made thereto by the debtor in a written answer or in writing five days or more prior to trial.

[1971 ex.s. c 253 § 18.]

19.16.390

Personal service of process outside state.

Personal service of any process in an action under this chapter may be made upon any person outside the state if such person has engaged in conduct in violation of this chapter which has had the impact in this state which this chapter reprehends. Such persons shall be deemed to have thereby submitted themselves to the jurisdiction of the courts of this state within the meaning of RCW 4.28.180 and 4.28.185. A holder of an out-of-state collection agency license is deemed to have appointed the director or the director's designee to be the licensee's true and lawful agent upon whom may be served any legal process against that licensee arising or growing out of any violation of this chapter.

[1994 c 195 § 9; 1971 ex.s. c 253 § 30.]

19.16.430

Violations — Operating agency without a license — Penalty — Return of fees or compensation.

(1) Any person who knowingly operates as a collection agency or out-of-state collection agency without a license or knowingly aids and abets such violation is punishable by a fine not exceeding five hundred dollars or by imprisonment not exceeding one year or both.

(2) Any person who operates as a collection agency or out-of-state collection agency in the state of Washington without a valid license issued pursuant to this chapter shall not charge or receive any fee or compensation on any moneys received or collected while operating without a license or on any moneys received or collected while operating with a license but received or collected as a result of his or its acts as a collection agency or out-of-state collection agency while not licensed hereunder. All such moneys collected or received shall be forthwith returned to the owners of the accounts on which the moneys were paid.

[1994 c 195 § 10; 1973 1st ex.s. c 20 § 6; 1971 ex.s. c 253 § 34.]

I know all this may seem confusing, but if you dig through those RCWs, things will start to make sense.

Here is the mian site to look up RCWs on your own:

http://apps.leg.wa.gov/rcw/

Happy Reading!

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LOL How so brother?

Well actually I think you about covered everything (I'm fairly sure you probably knew I was joking)

heh.

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more stuff...

RCW 19.16.440 is the statute that states that violating provisions of the collection agency act (Chapter 19.16) to the Consumer Protection Act (Chapter 19.86)

RCW 19.16.440

Violations of RCW 19.16.110 and 19.16.250 are unfair and deceptive trade practices under chapter 19.86 RCW.

The operation of a collection agency or out-of-state collection agency without a license as prohibited by RCW 19.16.110 and the commission by a licensee or an employee of a licensee of an act or practice prohibited by RCW 19.16.250 are declared to be unfair acts or practices or unfair methods of competition in the conduct of trade or commerce for the purpose of the application of the Consumer Protection Act found in chapter 19.86 RCW.

[1994 c 195 § 11; 1973 1st ex.s. c 20 § 7; 1971

http://apps.leg.wa.gov/RCW/default.aspx?cite=19.16.440

I'l post some other pieces later on...when I have time :p

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From another Washingtonian on debtorboards:

You know what really sucks about WA though? JDBs are NOT covered by the laws governing CAs. It wasn't what the law makers intended if you ask me, or read the definitions, but a small group of people actually interpreted the laws as being written FOR THE PROTECTION OF CREDITORS, and based on that found that it shouldn't include JDBs.

For those of you who would like a little proof of how the government occasionally REALLY screws up, I am including a response to a phonecall I made to the WA state lisencing dept.;

Per our conversation, attached is the Collection Agency Board's July 2004 meeting minutes regarding debt buyers and whether they fall under the state collection agency law (Chapter 19.16 RCW).

<<July 2004 Minutes - Debt Buyer decision.pdf>>

Harumi Tucker Tolbert

Regulatory Program Manager Department of Licensing

htolbert@dol.wa.gov Master License Service

(360) 664-1389 PO Box 9034

Fax: (360) 570-7875 Olympia, WA 98507-9034

And attached;

STATE OF WASHINGTON

DEPARTMENT OF LICENSING

PO 80x 9020 • Olympia, Washington 98507-9020

WASHINGTON STATE

COLLECTION AGENCY BOARD

SPECIAL MEETING MINUTES

A special meeting of the Washington State Collection Agency Board was

scheduled for 9:30 a.m., Wednesday, July 14, 2004, at the Department of

Licensing, 405 Black Lake Boulevard SW, Olympia, Washington. Chair Craig

Nelson called the meeting to order at 9:30 a.m.

Craig Nelson, Chair

Debbie Buxton, Industry Member

Moises Garcia, Jr., Public Member

Joyce Olsen, Public Member

Roy H. Warnick, Industry Member

Harumi Tucker Tolbert, Regulatory Program Manager

Rob Kosin, Assistant Attorney GeneralJProsecutor

Sharon Eckholm, Assistant Attorney General/Advisor

OPEN

SESSION: I. Call to order

A. Approval of Agenda

A motion was made by Debbie Buxton and seconded by Moises

Garcia, Jr. to approve the agenda as presented. The motion was

passed.

B. Approval of Minutes

A motion was made by Debbie Buxton and seconded by Moises

Garcia, Jr. to approve the October 6, 2003 minutes as presented.

The motion was passed.

Collection Agency Board

Special Meeting Minutes

July 14, 2004

Page 2

II. Debt Buyers

Assistant Attorney General Sharon Ecldlolm presented the debt buyer

issue. Discussion was held on whether debt buyers fall under the

definition of"collection agency" as defined in RCW 19.16.IOO(2)(a).

AAG Ecldlohn stated that her legal analysis had determined that debt

buyers are not covered by Chapter 19.16 RCW.

The board and AAG Ecldlolm reviewed the definition found in RCW

19.16.100(2)(a). AAG Ecldlolm stated that the Washington Collection

Agency Act appears to be mainly to protect the creditor. She further

referenced RCW 19.16.IOO(2)©, which also indicates collection by a

"third party." AAG Ecldlolm clarified that the phrase "soliciting claims

for collection" found in RCW 19.16.IOO(2)(a) is interpreted to mean for

another.

They also discussed that debt buyers are covered by the federal Fair Debt

Collection Practices Act (FDCPA) and the Washington Consumer

Protection Act and that the Federal Trade Commission and the Attorney

General's Office Consumer Protection Division could pursue

unscmpulous debt buyers.

AAG Eckholm shared her review of Michigan State law, which is similar

to Washington's collection law. Michigan does not interpret their law as

covering debt buyers. The Michigan court of appeals held that a successor

creditor was not a collection agency. The court also found that the agency

in question was a debt collector under the FDCPA and thus subject to its

protective provisions governing fair practices. [Asset Acceptance Corp. v.

Robinson, 244 Mich. App. 728, 732 (2001)].

AAG Rob Kosin explained his review of the issue and how he would have

to prove his case before the Board and ifthere was an appeal, before

Superior Court. AAG Kosin and the Board discussed a hypothetical case

where the debt buyer collects on claims they own as well as third-party

claims. The question brought forth was whether the debt buyer would be

required to be licensed under this scenario. Consensus was that if the debt

buyer collects on any third-party claims, they would fall under the Board's

jurisdiction and require a license.

A motion was made by Moises Garcia, Jr. and seconded by Debbie Buxton

to accept the following decision: Debt buyers that collect solely on their

own claims and in their own names are not covered by Chapter 19.16

RCW. Motion was passed.

Collection Agency Board

Special Meeting Minutes

July 14, 2004

Page 3

It was mentioned that if the Board wanted to regulate debt buyers,

legislation would have to be proposed to change the existing law. Debbie

Buxton and Roy Warnick agreed to discuss this issue with the Washington

Collectors Association (Association) to see if they are interested in

drafting proposed legislation to include debt buyers to Chapter 19.16

RCW. lfthe Association is interested, Debbie and Roy agreed that the

Association would work with the Department of Licensing.

IV. Telephone Harassment & the Use of Automated Dialers

Hammi Tolbert described the following scenario regarding collection

agencies' use of automated dialers which may fall under RCW

19.16.250(12)(a), (B) and ©:

Many collection agencies use automated dialers that call the

debtor's number on a set schedule, etc. and they can

program the dialer on when and how often to call.

The dialer is calling more than three times during a week,

but the call record sheets might indicate that the call was

connected but was hung up or that the dialer got an

answering machine, but it doesn't indicate whether a

message was left.

Is it only considered a "communication" and thus

harassment when collectors speak to a live body or does the

above scenario violate subsection (12) "unreasonable

Collection Agency Board

Special Meeting Minutes

July 14, 2004

Page 4

frequency" language and also (12)(a) because there are

more than 3 calls per week?

The Board discussed the FDCPA section 15 USC 1692d(5)

regarding causing the telephone to ring.

AAG Eckholm stated that under the scenario described, simply

causing the telephone to ring is not a "communication." She

further stated that multiple calls after the collector talks with a

person even if subsequent calls are not answered could fall under

the "umeasonable frequency" language.

A motion was made by Roy Warnick and seconded by Debbie

Buxton that harassment cases received by the program that include

the use of automated dialers should be handled on a case-by-case

basis. The motion was passed.

VI. Standardized Collection Forms

Prior to the meeting, Hammi Tolbert surveyed other states to

determine ifthey provide standard collection form letters or

approve letters used by agencies. She received a response from

Arkansas, Colorado, Connecticut, Maine, Massachusetts,

Michigan, Minnesota, Nebraska, Utah and Wyoming. Connecticut,

Maine and Massachusetts review all collection letters during the

application process and subsequent forms used after an agency

becomes licensed. Wyoming requests the collection letters at

application, but they are not reviewed but simply filed. All the

states agree that the process is time consuming and most states

don't have the staff it would take to continually review and

approve letters.

Collection Agency Board

Special Meeting Minutes

July 14,2004

Page 5

Joyce Olsen motioned that the Board not provide sample form

letters or approve those used by agencies. Debbie Buxton

seconded the motion. Motion was passed.

VII. Review Charging Documents - New Format

AAG Rob Kosin presented the new formats used for the following

charging documents so the Board could familiarize themselves

with the new formats:

• Statement of Charges;

• Answer to Statement of Charges and Request for

Settlement and Hearing;

• Notice of Intent to Issue Cease and Desist Order;

• Demand for Hearing and Response to Notice of Intent to

Issue Cease and Desist Order;

• Temporary Cease and Desist Order;

• Demand for Prompt or Regularly Schedule Hearing and

Response to Temporary Cease and Desist Order; and

• Cover letter for each charging document.

VIII. Adjournment

There being no further business or discussion, the meeting was adjourned

at 2:15 p.m. by Craig Nelson, Chair.

Submitted by:

~~<j~~\y~

Hammi Tucker Tolbert

Regulatory Program M,mager

Collection Agency Section

Approved by:

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19.86.140

Civil penalties.

Every person who shall violate the terms of any injunction issued as in this chapter provided, shall forfeit and pay a civil penalty of not more than twenty-five thousand dollars.

Every person, other than a corporation, who violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than one hundred thousand dollars. ****Every corporation which violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than five hundred thousand dollars.

Every person who violates RCW 19.86.020 shall forfeit and pay a civil penalty of not more than two thousand dollars for each violation

Whats Important here is the word CORPORATION, if INC or Corp.is behind that name you CAN sue for More than 2000

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19.86.140

Civil penalties.

Every person who shall violate the terms of any injunction issued as in this chapter provided, shall forfeit and pay a civil penalty of not more than twenty-five thousand dollars.

Every person, other than a corporation, who violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than one hundred thousand dollars. ****Every corporation which violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than five hundred thousand dollars.

Every person who violates RCW 19.86.020 shall forfeit and pay a civil penalty of not more than two thousand dollars for each violation

Whats Important here is the word CORPORATION, if INC or Corp.is behind that name you CAN sue for More than 2000

perhaps... but IF AND ONLY IF they violate any INJUNCTION issued under that chapter. They have to be sued first and lost. THEN they have to violate an injunction listed under that chapter. For the CA/JDB world, that particular provision is not really used, it's mainly for the other parts of the consumer protection Act.

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Great resources, but I have to comment on your signature line, "

Is a Collector licenced in WA? They HAVE TO BE!".

There is one big exception to this rule. JDBs do not have to be licensed, as they are considered the owner of the debt, and not a "collection agent". If they have BOUGHT the debt, as opposed to just having it placed with them for collection, they do not have to be licensed.

This comes directly from the board of licensing, to response to my asking this about a JDB contacting me who was not on their list.

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notice my signature says nothing about JDBs being licensed in our state. :wink:

you are correct, JDBs need not be licensed in our state.....hence my post a few above on 5/2008.

but, if taken to court, you can have them prove they bought this particular debt....for X amount....chain of custody...etc.

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Now I am a confused. Does not a JDB have to follow the same rules as a CA?

Does not the FDCPA apply to a JDB?

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this thread has NOTHING to do with FDCPA. THIS particular thread is specifically dealing with Washington State law.

But since you asked, yes the FDCPA applies to JDBs as well. But I reiterate: This thread deals specifically with Washington State laws as they apply to CAs and JDBs and everyone else.

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