b'Debt continued from page 14or the primary focus of the acquiredThe Oregon, Texas, and Washingtonto a specific loan, please do not hesitate to portfolio, may fall under the Washingtonstatutes are all remarkably similar to thecontact Robert Finlay at rfinlay@wrightlegal.statute definition of a debt buyer. California law.The expectation is thatnet.Courts will soon clarify the applicably to Like all previous debt-buyer statutes,residential mortgage debt, which will allowDisclaimer: The above information is the Washington law prohibits debtdebt buyers to revise their due diligenceintended for information purposes alone buyers from bringing an action againstand collection processes.The biggerand is not intended as legal advice.Please or initiating arbitration with a consumerquestion is whether even more states willconsult with counsel before taking any for the purpose of collecting debt afterfollow Californias lead, as they so often do,steps in reliance on any of the information the statute of limitations has expired. and establish their own Debt Buyer statute. contained herein.The law prohibits debt buyers fromTakeaways: Zachary Fiene is an Associate Attorney at commencing legal action against1. Prior to buying a pool that consistsWFZs California office.Robert Finlay is a a debtor without attaching to thepredominantly of charged-off consumerfounding Partner of WFZ.complaint a copy of the contract or otherdebt, consult an attorney to determine writing evidencing the original debt thatwhether any of the states where the debt contains the debtors signature.The lawis located have debt buyer statutes; andalso lists a number of disclosures a debt buyer must give to the debtor when2. Prior to reaching out to collect any newly commencing legal action. purchased charged-off consumer debts, consult counsel to make sure you are Washington also prevents debt buyerscomplying with the applicable debt from seeking default judgments on thebuyer laws.debt unless they establish that they are owners of the debt amongst severalIf you have any questions regarding these other conditions. debt buyer statutes or how they may apply Spring 2021 Page 15'