Summary
The Washington Supreme Court answers certified questions concerning whether debt buyers qualify as collection agencies under the Washington Collection Agency Act. The court holds that a debt buyer falls within the statutory definition when it affirmatively solicits claims for collection and therefore may not file collection lawsuits in Washington without a license.
Holdings
- Debt buyers fall within the definition of collection agency under former RCW 19.16.100(2)(a) when they solicit claims for collection, even if they purchase and own the claims and outsource collection activity to an affiliate, third party, or attorney.
- A debt buyer solicits claims for collection only when it takes affirmative steps to obtain claims for collection; a passive market participant that merely accepts unsolicited offers does not solicit claims.
- A person that acts as a collection agency under former RCW 19.16.100(2) may not file collection lawsuits in Washington without first obtaining a license under RCW 19.16.110.
Questions Presented
- Whether the pre-2013 definition of collection agency in former RCW 19.16.100(2)(a) includes a debt buyer that purchases claims, outsources collection activity, and is named as plaintiff in collection lawsuits when the debt buyer solicits claims for collection.
- Whether a debt buyer that qualifies as a collection agency may file collection lawsuits in Washington without first obtaining a collection-agency license.
Disposition
other
Cases Cited (20)
- Evergreen Collectors v. Holt, 60 Wn. App. 151, 155, 803 P.2d 10 (1991)(followed)
- Bradburn v. N. Cent. Reg'l Library Dist., 168 Wn.2d 789, 799, 231 P.3d 166 (2010)(followed)
- In re Elliott, 74 Wn.2d 600, 446 P.2d 347 (1968)(followed)
- State v. Sweany, 174 Wn.2d 909, 914, 281 P.3d 305 (2012)(followed)
- State v. J.P., 149 Wn.2d 444, 450, 69 P.3d 318 (2003)(followed)
- In re Pers. Restraint of Williams, 121 Wn.2d 655, 663, 853 P.2d 444 (1993)(followed)
- State v. Ervin, 169 Wn.2d 815, 820, 239 P.3d 354 (2010)(followed)
- Dep't of Ecology v. Campbell & Gwinn, LLC, 146 Wn.2d 1, 9-10, 43 P.3d 4 (2002)(followed)
- State v. Jim, 173 Wn.2d 672, 689, 273 P.3d 434 (2012)(followed)
- State v. Bunker, 169 Wn.2d 571, 578, 238 P.3d 487 (2010)(followed)
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