| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Judiciary Committee | |
HB 1143
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Title: An act relating to notices of dishonor.
Brief Description: Concerning notices of dishonor.
Sponsors: Representatives Lantz, O'Brien, Williams, Campbell, Rodne, Goodman and Moeller.
Brief Summary of Bill |
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Hearing Date: 1/23/07
Staff: Trudes Tango (786-7384).
Background:
Federal and state laws govern collection agencies. Under the Federal Fair Debt Collection
Practices Act, a debtor has 30 days to dispute a debt from the date he or she receives the notice
of collection. The collection agency may not take certain action within that 30 day period.
Under state law, a collection agency sends a debtor a notice of dishonor. A debtor has 33 days
from the date the notice is postmarked or personally delivered before the debtor becomes liable
for certain costs and fees and before the collection agency may take court action to collect the
debt. If court action is taken, the debtor is also liable for reasonable attorneys' fees plus three
times the face amount of the check or $300, whichever is less.
The notice of dishonor must be in a form prescribed in the statutes. The notice specifies for the
debtor the fees and costs that may be added and a cautionary statement about other consequences
that might occur if the amount is not paid.
Summary of Bill:
The debtor is presumed to have received the notice of dishonor three days from the date the
notice is mailed.
A statement is added to the notice of dishonor form informing the debtor that the amount he or
she may be liable for if court action is taken is advisory only and should not be construed to
mean that legal action is contemplated or intended.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.