SENATE BILL REPORT

                  SHB 1337

                     As of March 14, 1995

Title:  An act relating to deregulating debt adjusters.

Brief Description:  Deregulating debt adjusters.

Sponsors:  House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Lisk, Cole, Conway, Fuhrman, Sheahan, Romero, Jacobsen and Wolfe; by request of Department of Licensing).

Brief History:

Committee Activity:  Financial Institutions & Housing:  3/16/95.

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & HOUSING

Staff:  Catherine Mele (786-7470)

Background:  Debt adjusters provide advice to persons in debt or help these persons manage or liquidate debts.  Debt adjusters are licensed and regulated by the Department of Licensing.  A debt adjuster must provide a surety bond of $10,000.  Fees charged by the debt adjuster are limited by statute to 15 percent of payments made by or on behalf of the debtor.  Statutory provisions allow the director of the Department of Licensing to revoke a debt adjuster's license under specified conditions.

Summary of Bill:  Statutory provisions requiring that debt adjusters be licensed, obtain a bond, and be regulated by the Department of Licensing are repealed. The consumer protection provisions regarding debt adjustors are maintained.  The Attorney General's Office may investigate complaints regarding debt adjusters.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date of Bill:  Ninety days after adjournment of session in which bill is passed.