Defenses to debt collection

If you find yourself served with a summons and complaint for an alleged past debt, there are principally four avenues you can take:

1. Statute of Limitations.  The statute of limitations on a breach of contract is six years in Washington State.  See, e.g., 1000 Virginia Ltd. Partnership v. Vertecs Corp., 146 P.3d 423, 158 Wn.2d 566 (Wash. 2006).

1. Dispute the debt. You can ask for a validation or accounting of the debt under the Fair Debt Collection Practices Act, 15 USC 1601 §809.  A debt collector has 30 days to respond to a request for validation of the debt.
   • Note the distinction under the FDCPA of “debt collector” and “creditor.”  Creditors are the entities that extended the credit to the consumer and their activities are not covered under the Act.  Also, note that “consumer” means a natural person and not a business.
   • See also Washington FDCPA, RCW 19.16.250.  Collection agencies have to be licensed through the Department of Licensing in Washington and post a bond.
   • Note interplay with Consumer Protection Act, RCW 19.86.
   • Note Fair Credit Reporting Act meant to ensure the accuracy and fairness of credit reporting.

1. Dispute the assignment.  Debt collectors who are not the original creditors must show that they have a right to attempt to collect on the debt.

1. Motion to vacate a default judgment. If the client was not properly served, then the judgment can be vacated.  However, unless the statute of limitations has run this will likely just put your client back into the same position they were in before, except with added attorney fees to pay.  See, e.g., Little v. King, 160 Wn.2d 696, 703-04, 161 P.3d 345 (Wash. 2007)(four part test provided).

AVOIDANCE OF COLLECTION

1. The easiest ways to garnish funds are to garnish pay or bank accounts.
2. Do not tell a creditor where you bank or work.
3. Change your bank account if the creditor knows where you bank.
4. Change your bank account if you suspect that the creditor knows where you bank.

Of course, you should always seek the representation of a competent attorney before you attempt to defend against a garnishment or complaint.