Enforcement Actions

See enforcement actions taken by the Division of Consumer Services.

<< Back to Newsletter Home

Legislative Update

Legislative Changes Take Effect June 7

Several bills passed during the legislative session take effect in June and will impact almost all industries regulated by the Division of Consumer Services. Below is a brief summary of the most substantive amendments to existing laws. More information can be found on DFI’s 2012 Legislative Report at www.dfi.wa.gov/about/2012-legislature.htm.

Mortgage Lending & Homeownership, 19.144.020 RCW (One Page Disclosure Summary)

1. 19.144.020 -  Disclosure Requirements
   The amended language says that compliance with RESPA’s requirement for the good faith estimate is deemed compliance and the licensee need not provide the one page disclosure summary in addition to the good faith estimate required under RESPA.

Consumer Loan Act, chapter 31.04 RCW

1. 31.04.025 - Exemptions
   The exemption for the sale of goods and services under RCW 63.14 does not include open loop prepaid access.
2. 31.04.065 - Posting the License
   A licensee is no longer required to conspicuously post the license in the licensee’s place of business.

Mortgage Broker Practices Act, chapter 19.146, RCW

1. 19.146.200 - Posting the License
   A licensee is no longer required to prominently display the company license in the licensee’s place of business.

Uniform Money Services Act, chapter 19.230 RCW

1. Licensing through a multistate licensing system:
   Applicants may be required to apply for a license through a multistate licensing system. Existing licensees may be required to transition on the multistate licensing system.
2. Third Party Account Administrators (TPAAs):
   Engrossed Senate Bill 6155 provides that third party account administrators (TPAAs) must follow specific requirements when work with debt adjusters. TPAAs must also be licensed as money transmitters. For more information visit our website: www.dfi.wa.gov/cs/money-services-providers-tpaa.htm.

Escrow Agent Registration Act, chapter 18.44 RCW

1. Licensing through a multistate licensing system:
   Applicants may be required to apply for a license through a multistate licensing system. Existing licensees may be required to transition on the multistate licensing system.
2. 18.44.021 - Exemptions
   The attorney exemption is amended.

Check Casher & Sellers Act, chapter 31.45 RCW

1. 31.45.010 - Licensing:
   The definition of “licensee” includes a check casher or seller located outside of the state of Washington who fails to obtain a small loan endorsement.
2. Licensing through a multistate licensing system
   Applicants may be required to apply for a license through a multistate licensing system. Existing licensees may be required to transition onto the multistate licensing system.
3. 31.45.105 - Violations of the Act:
   Violations include selling open loop prepaid access in a transaction governed by RCW 63.14. Advertising violations are moved from one section to this section. Additional violations include failing to pay the annual assessment or other fees due to the department.
4. 31.45.110 - Statements of Charges:
   Statements of charges may be issued against directors, officers, sole proprietors, partners or controlling persons of a licensee or applicant. Statements of charges may be issued for violations of state or federal law.