Consumer debt was the target at the legislature and lawmakers took aim and hit their target.
KIRO 7’s Jesse Jones explains how the four bills passed , if signed by the governor, will change the landscape of consumer debt forever.
One of the bills that passed is HB 1730 from Rep. Amy Walen of Kirkland.
It’s what I call zombie debt protection.
Here’s how it works.
The statute of limitation on debt is six years. However, if a debt collector convinces you to make a small payment on that real old debt, the statute of limitation restarts. That means you are back on the hook for the debt for six more years. So, a ten-dollar payment today on a $5,000 debt that 10 years old would mean a consumer would be legally responsible for that debt until 2025.
The bill prevents debt collectors from reviving the statute of limitations on debts once it has ended.
Here’s more on the other three bills that have passed both houses and are heading to the Governor’s desk.