Inslee Signs Debt Collection Protections Into Law

Washington Gov. Jay Inslee has signed a bipartisan bill into law which aims to make debt collection practices more transparent to the public and the courts. The new legislation, which passed the House and Senate unanimously earlier this month, adds several new protections, most of which require debt collectors to provide more evidence before taking legal action against debtors.

House Democrats call the legislation, Substitute House Bill 2476, "one of the strongest of its kind in the nation."

The new law builds off of last year's Collection Agency Act, adding several new provisions. Under the bill, debt buyers will now have to produce evidence to the court before the court can rule a debt has defaulted. They will also need to provide evidence of the original debt before filing a lawsuit or pursuing any legal action. Finally, complaints will have to include more open information, including which agencies purchased the debt in question.

A 2019 report from the Center for Responsible Lending found that debt collection complaints were the second most common type of complaint for consumers in Washington. That same report also found more than 80 percent of debt buying cases ended in default. Lawmakers say that by adding these new protections will save some residents from an "endless cycle of debt."

The bill was supported by the Statewide Poverty Action Network, Columbia Legal Services, Washington State Association for Justice and Washington Collectors Association.