Third Party Account Administrators
Third Party Account Administrators (TPAA) must license under the Uniform Money Services Act, chapter 19.230 RCW.
The provisions of ESB 6155 become effective June 7, 2012.
Pursuant to the legislation, a TPAA is:
an independent entity that holds or administers a dedicated bank account for fees and payments to creditors, debt collectors, debt adjusters, or debt adjusting agencies in connection with the renegotiation, settlement, reduction, or other alteration of the terms of payment or other terms of a debt. "Third-party account administrator" does not include an entity that is otherwise exempt from this chapter under RCW 19.230.020.
Some of the requirements for TPAAs include:
(a) A debtor's funds must be held in an account at an insured financial institution;
(b) A debtor owns the funds held in the account and must be paid accrued interest on the account, if any;
(c) A third-party account administrator may not be owned or controlled by, or in any way affiliated with, a debt adjuster under chapter 18.28 RCW;
(d) A third-party account administrator may not give or accept any money or other compensation in exchange for referrals of business involving a debt adjuster.
Other requirements are:
(1) A third-party account administrator shall maintain the following records for at least five years:
(a) All contracts the third-party account administrator has entered into with debtors and debt adjusters;
(b) Account statements identifying and itemizing deposits, transfers, disbursements, and fees; and
(c) Any other records required in rule by the director.