The debt collection agencies are at it again! This session, they are trying to pass a bill in Washington, SB 5222, that would charge consumers a fee of 50 cents plus 3% of the payment amount for the use of a credit card.
Rather than charging people struggling with debt and poverty these fees, and keeping them from paying off their debts, collections agencies should charge their true customers—the businesses they are collecting for or buying debt from!
Solid Ground urges you to ask your Senators to Oppose SB 5222, for several reasons:
- Unless a person comes in to a collection agency to pay and use a pin, there is no way to distinguish a debit card from credit card so consumers would likely be charged on debit cards as well.
- Adding more fees to vulnerable populations like those with Legal Financial Obligations (LFOs) exacerbates a big problem that is already trapping people into debt.
- Making it easy to use a credit card for debt collection payment does will likely not help anyone’s overall financial situation.
On top of all of that, one of the biggest issues in the debt collection industry is that they collect from people who may not even owe the debt. Debt collectors are not required to show proof, aka “chain of title,” that the debt is really owed by the person they are collecting from. Given the lack of regulations, it is irresponsible to every consumer in Washington state to allow debt collectors to charge them more in fees.
Please call your legislative representatives in Olympia to oppose additional fees on debt collection!
- Call the Washington State Legislative Hotline at 1.800.562.6000.
- Tell the operator your zip code.
- Give the message that you oppose SB 5222. This policy will make it harder for residents trapped by debt to gain economic stability, and only serves to benefit the debt collection industry.
- Your message will be delivered to your legislative district’s representatives and senator.