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 (10)(e) of this section.
(4) Have in his or her 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 her 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, other than
through proper legal action, process, or proceedings, 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 or she 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 provide this name to the debtor or cease efforts to collect
on the debt until this information is provided;
(c) 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 her 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 her or its behalf or on the behalf of a
customer or assignor; 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: PROVIDED, That upon written request of the debtor, the
licensee must make a reasonable effort to obtain this information
or cease efforts to collect on the debt until this information is
provided; and
(ii) The date of the last payment to the creditor on the
subject debt by the debtor, if known to the licensee or employee:
PROVIDED, That upon written request of the debtor, the licensee
must make a reasonable effort to obtain this information or cease
efforts to collect on the debt until this information is
provided.
(9) Communicate in writing with a debtor concerning a claim
through a proper legal action, process, or proceeding, where such
communication is the first written communication with the debtor,
without providing the information set forth in subsection (8)(c)
of this section in the written communication.
(10) 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. 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, notify the
credit reporting bureau of the dispute by written or electronic
means and create a record of the fact of the notification and
when the notification was provided;
(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;
(c) 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 or her 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 or her 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 or her 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.
(11) Threaten the debtor with impairment of his or her
credit rating if a claim is not paid: PROVIDED, That advising a
debtor that the licensee has reported or intends to report a
claim to a credit reporting agency is not considered a threat if
the licensee actually has reported or intends to report the claim
to a credit reporting agency.
(12) 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 she or it
again receives notification in writing that an attorney is
representing the debtor.
(13) 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, unless the
licensee is responding to a communication from the debtor or
spouse;
(b) It is made with a debtor at his or her place of
employment more than one time in a single week, unless the
licensee is responding to a communication from the debtor;
(c) 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. A call
to a telephone is presumed to be received in the local time zone
to which the area code of the number called is assigned for
landline numbers, unless the licensee reasonably believes the
telephone is located in a different time zone. If the area code
is not assigned to landlines in any specific geographic area,
such as with toll-free telephone numbers, a call to a telephone
is presumed to be received in the local time zone of the debtor's
last known place of residence, unless the licensee reasonably
believes the telephone is located in a different time zone.
(14) 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.
(15) 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.
(16) Threaten to take any action against the debtor which
the licensee cannot legally take at the time the threat is made.
(17) 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: PROVIDED, That:
(a) This subsection does not prohibit a licensee from
attempting to communicate by way of a cellular telephone or other
wireless device: PROVIDED, That a licensee cannot cause charges
to be incurred to the recipient of the attempted communication
more than three times in any calendar week when the licensee
knows or reasonably should know that the number belongs to a
cellular telephone or other wireless device, unless the licensee
is responding to a communication from the debtor or the person to
whom the call is made.
(b) The licensee is not in violation of (a) of this
subsection if the licensee at least monthly updates its records
with information provided by a commercial provider of cellular
telephone lists that the licensee in good faith believes provides
reasonably current and comprehensive data identifying cellular
telephone numbers, calls a number not appearing in the most
recent list provided by the commercial provider, and does not
otherwise know or reasonably should know that the number belongs
to a cellular telephone.
(c) This subsection may not be construed to increase the
number of communications permitted pursuant to subsection (13)(a)
of this section.
(18) Call, or send a text message or other electronic
communication to, a cellular telephone or other wireless device
more than twice in any day when the licensee knows or reasonably
should know that the number belongs to a cellular telephone or
other wireless device, unless the licensee is responding to a
communication from the debtor or the person to whom the call,
text message, or other electronic communication is made. The
licensee is not in violation of this subsection if the licensee
at least monthly updates its records with information provided by
a commercial provider of cellular telephone lists that the
licensee in good faith believes provides reasonably current and
comprehensive data identifying cellular telephone numbers, calls
a number not appearing in the most recent list provided by the
commercial provider, and does not otherwise know or reasonably
should know that the number belongs to a cellular telephone.
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 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.
(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: (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; (c) 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.
(25) 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.
[2011 1st sp.s. c 29 § 2. Prior: 2011 c 162 § 1; 2011 c 57 § 1; prior: 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.]
NOTES:
Finding -- Intent -- 2011 1st sp.s. c 29: "The legislature finds that a drafting error occurred in Substitute Senate Bill No. 5574 (2011 regular session) and section 1, chapter 57, Laws of 2011, resulting in the unintended deletion of a phrase in RCW 19.16.250. The intent of this legislation is to remedy that error, and retroactively apply this legislation to the effective date of section 1, chapter 57, Laws of 2011." [2011 1st sp.s. c 29 § 1.]
Effective date -- 2011 1st sp.s. c 29: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 22, 2011." [2011 1st sp.s. c 29 § 3.]
Effective date -- 2001 c 217 § 5: "Section 5 of this act takes effect April 1, 2004." [2001 c 217 § 16.]
Expiration date -- 2001 c 217 § 4: "Section 4 of this act expires April 1, 2004." [2001 c 217 § 15.]
Captions not law -- 2001 c 217: See note following RCW 9.35.005.