Unfair lending: Key House committee OKs consumer-protection

Kirby says first bill goes after predatory-lending practices

January 16, 2007

OLYMPIA -- In a spirit of bipartisanship, a key House panel has endorsed legislation aimed at putting a stop to predatory lending that exploits Washington consumers.

State Rep. Steve Kirby, D-Tacoma, who chairs the House Insurance, Financial Services & Consumer Protection Committee in which House Bill 1027 was unanimously approved, co-sponsored the legislation.

The bill was introduced by state Rep. Chris Strow, R-Clinton, at the request of the Department of Financial Institutions.

Kirby explained that "the bill we passed will prevent folks who use unfair, fraudulent, or misleading practices in their so-called loan operations from collecting or enforcing a transaction that violates the new state policy we’re proposing."

The measure criminalizes a loan-activity that is found to:

* Directly or indirectly defraud or mislead any borrower, lender, or person.

* Directly or indirectly engage in any unfair or deceptive practice.

* Directly or indirectly obtain property by fraud or misrepresentation.

* Or make a small loan to any person physically located in Washington through the use of the internet, facsimile, telephone, kiosk, or other means without first obtaining a small-loan endorsement.

"This is the first bill our committee has passed this session," Kirby said.

"I’m hoping that the measure is just the start of continuing bipartisan work in the 2007 session."

The bill is now in the House Rules Committee awaiting the scheduling of floor action.

###