Bill > HB1599

This bill comprehensively reforms Washington state's regulations for consumer debt adjusters and debt resolution services providers by establishing a new licensing framework and setting detailed operational requirements. The bill creates a two-year licensing system administered by the Department of Financial Institutions, requiring providers to obtain a license before offering debt adjusting or debt resolution services beginning July 1, 2026. Key provisions include mandating detailed contract disclosures, restricting fee collection practices, prohibiting misleading advertising, requiring monthly accounting statements for consumers, and establishing strict guidelines for how providers can interact with consumers and creditors. The bill defines new terms like "debt resolution services" and creates exemptions for certain types of organizations, such as banks, attorneys, and nonprofit entities. The legislation aims to protect consumers by ensuring transparency, preventing deceptive practices, and providing clear guidelines for debt adjustment and resolution services. Providers will now be subject to more rigorous oversight, with the department having the power to investigate, suspend, or revoke licenses for violations of the new regulations.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=1599&Year=2025&Initiative=false