WA HB1599

Requires debt adjusters and debt resolution services providers to obtain a license from the Department of Financial Institutions beginning July 1, 2026, with a surety bond of up to $50,000 and two-year license terms

Creates a new regulatory framework for "debt resolution services providers" who negotiate debt settlements, prohibiting them from collecting fees until at least one debt is renegotiated and the consumer has made at least one payment under that agreement

Caps debt adjusting fees at 15% of total debt listed in the contract, with an initial charge of up to $25 allowed, and prohibits fees on rent and utility payments for housing

Mandates extensive consumer disclosures in contracts, including that debt resolution may not be suitable for all individuals, may harm creditworthiness, could result in creditor lawsuits, and may create taxable income from forgiven debt

Prohibits deceptive advertising practices, bans providers from operating websites presenting rankings or reviews of themselves, and requires monthly statements of accounting to consumers enrolled in debt resolution programs