The debt collection industry in The Evergreen State — Washington — goes under the microscope in a published report, detailing how the state has among the “most punishing” laws in the nation for people in debt, and how filing lawsuits against individuals is so lucrative that “some of the state’s busiest collection firms have placed quotas on their agents to initiate lawsuits, according to interviews with current and former employees at those companies.”
The operations at three different Washington collection agencies are dissected by current and former employees of the companies, accusing the companies of seeking an individual’s address and current place of employment so that lawsuits can be served and wages can be garnished, of not mentioning that a lawsuit may be filed when speaking with an individual on the phone, and managers rejecting payment plans even if it might “ruin the consumer.”
Owners and attorneys for each of the agencies were given the chance to share their perspectives, although not all chose to do so. Those who did speak denied setting quotas for collectors regarding the number of legal actions that could be initiated by the companies.
Garth Brandt, the owner of one of the agencies, “said his company makes every effort to find reasonable ways for consumers to pay off the debt and often allows payments below what would be allowed during a garnishment,” according to the report. “He said the company makes considerable effort to resolve bills before permitting staff to initiate legal action.”
In addition to their operations, the article also looks at the increasingly active political network the collections industry is building in Washington, and quotes a letter from a state Senator thanking the network for being one of the “top donors” in the 2016 election cycle.
Along with criticizing the practices of collection agencies, the article also points out how state law in Washington allows creditors and judgment holders to charge the most interest on judgments in the country. At 12%, Washington is tied with Vermont, Massachusetts, and Rhode Island at the highest rate in the country. As well, Washington also allows what is known as “pocket service” of lawsuits, which allows a summons to be issued before a lawsuit is filed in state court. The state legislature is working on a measure that would require lawsuits to be filed before a summons could be issued.
