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Senate Bill Report — SB 6118, Collection Agency Transaction Fees for Electronic Payments (January 21, 2020)

Summary

A Senate Bill Report on SB 6118, as of January 21, 2020, from the Senate Committee on Financial Institutions, Economic Development & Trade. The bill concerns collection agency transaction fees for processing electronic payments, and the sponsors listed are Senators Mullet, Cleveland, Wilson, L., Rivers, Becker and Kuderer. The brief summary states that a collection agency could charge an interchange reimbursement fee on a credit card payment up to 2.35 percent, not to exceed $35, per transaction. The summary of the bill adds the condition that a no-fee payment option is available to the debtor, and that the option must be disclosed to the debtor at the same time and in the same manner as when the debtor's credit card information is taken. The report lists the appropriation as None.

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Issuer
Congressional materials
Document type
Report
Date
2020-01-23
Case
2020 01 23 A26306 D209955 Bill Report 6118 Sba Fiet 20

Cite this document

“Senate Bill Report — SB 6118, Collection Agency Transaction Fees for Electronic Payments (January 21, 2020).” Original at app.leg.wa.gov, dated 2020-01-23. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-23-2020-01-23-a26306-d209955-bill-report-6118-sba-fiet-20/, SHA-256 d7cea14be48363c44894aa537915b8dd9b4d47d980fadb933b8f360b17241ef9.

Full text

                             SENATE BILL REPORT
                                   SB 6118

                                      As of January 21, 2020

Title: An act relating to collection agency transaction fees for processing electronic payments.

Brief Description: Concerning collection agency transaction fees for processing electronic
   payments.

Sponsors: Senators Mullet, Cleveland, Wilson, L., Rivers, Becker and Kuderer.

Brief History:
   Committee Activity: Financial Institutions, Economic Development & Trade: 1/23/20.

                                      Brief Summary of Bill
          Ÿ Allows a collection agency to charge an interchange reimbursement fee on
            a credit card payment up to to 2.35 percent, not to exceed $35, per
            transaction.


SENATE  COMMITTEE                  ON      FINANCIAL          INSTITUTIONS,           ECONOMIC
DEVELOPMENT & TRADE

    Staff: Kellee Gunn (786-7429)

    Background: Interchange Reimbursement Fees. Interchange reimbursement fees are
    applied by credit card companies to financial transactions. The rate of the interchange
    reimbursement fee is dependent on the financial institution.

    Collection Agencies. A collection agency is defined as any person directly or indirectly
    engaged in soliciting claims for collection. Collection agencies are governed under the
    state's Collection Agency Law and the federal Fair Debt Collections Practices Act. These
    laws apply to businesses which collect debts for other businesses. They do not apply to a
    firm which is collecting its own past-due accounts.

    Collection agencies may only collect, or attempt to collect, the principal amount of a claim
    and the following:
         Ÿ any allowable interest, collection costs, or handling fees authorized in statute;
         Ÿ attorney's fees and taxable court costs in the case of a lawsuit; and
––––––––––––––––––––––
    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.

Senate Bill Report                              -1-                                          SB 6118
         Ÿ the collection costs and fees between the licensee's client and the debtor in the case of
           a commercial claim.

    In the case of a commercial claim, the amount charged to the debtor cannot exceed 35
    percent of the claim.

    Summary of Bill: Allows a collection agency to charge an interchange reimbursement fee
    on a credit card payment up to 2.35 percent, not to exceed $35, per transaction, provided a
    no-fee payment option is available to the debtor. The option of a no-fee payment must be
    disclosed to the debtor by the collection agency at the same time and in the same manner as
    when the debtor's credit card information is taken.

    Appropriation: None.

    Fiscal Note: Requested on January 23, 2020.

    Creates Committee/Commission/Task Force that includes Legislative members: No.

    Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                              -2-                                         SB 6118

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2020-01-23_a26306_d209955_bill-report-6118-sba-fiet-20.pdf
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Our copy
2020-01-23_a26306_d209955_bill-report-6118-sba-fiet-20.pdf
Original
app.leg.wa.gov
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