Committee hears competing views on licensing and consumer protections for debt resolution providers

Lawmakers heard extensive testimony Wednesday on House Bill 1599, a proposal to expand Washington’s regulatory framework to include commercial debt resolution services providers and to move regulatory authority for these services to the Department of Financial Institutions (DFI).

Committee staff Megan Mulvihill summarized the bill’s provisions, telling the panel that beginning July 1, 2026, both debt adjusters and debt resolution service providers would be required to hold licenses issued by DFI. The bill would revise the definition of "debt adjusting" so it no longer includes debt settlement, add record-keeping and contract disclosure requirements, prohibit misleading advertising, and require that providers not charge a fee until a contract is signed, at least one debt has been renegotiated, and at least one payment has been made between the consumer and a creditor.

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