[Draft 5] - Unscrupulous Debt Collection Practices

[Simone Republic]

This is more based on the UK Financial Conduct Authority debt collection guidelines, rather than the US version.
https://www.handbook.fca.org.uk/handbook/CONC/7/3.html

Category: Regulation / consumer protection

Rationale: debtor protection is still consumer protection in the sense that the borrower is is a client of a financial institution and hence a consumer of a financial product.

Draft 5

The World Assembly (WA),

Noting the WA’s desire to protect the rights of borrowers, such as via GARs 476, 515, and 623;

Anxious that legitimate enforcement of overdue debts is not overshadowed by obnoxious behaviour by debt collectors;

The WA hereby enacts as follows:

1. Definitions.
   
   1. "Creditor" means who owns the debt due from a debtor (defined below), such as a bank.
   2. "Debtor" means anyone owing debts to a creditor and who is under the jurisdiction of a WA state.
2. Debt collector.
   
   1. A debt collector ("collector") means any entity (or employees of that entity) whose business is to enforce overdue debts as an agent on behalf of a creditor.
   2. This definition excludes anyone acting as an attorney for a debtor or a law enforcement officer.
   3. This resolution covers all debt collectors enforcing debts legally recognised as valid by a WA state, regardless of whether the creditor is from a WA state.
3. Authorisation.
   
   1. Anyone who wants to conduct business as a collector must be duly authorised by a WA state (or by its sub-national authorities, according to local laws).
   2. A WA state shall promulgate standards for competence, professionalism and skills for a collector.
   3. A collector must maintain professional indemnity insurance deemed adequate by a WA state.
   4. This clause (3) covers the entity acting as a collector, including sole proprietorships. It also covers any employees, contractors, and agents of that debt collector that usually engages in enforcing overdue debts as part of their regular duties.
   5. A collector needs to be separately authorised to work in each WA state (or in each sub-national division) and to comply separately with the provisions of this clause (3).
   6. Each WA state shall maintain a database of authorised collectors (and individuals authorised for such work) for verification. The said database shall be publicly available through convenient means.
4. Behaviour. Collectors are banned from using the following means to enforce overdue debts, subject to standards set by each WA state and due process of law:
   
   1. take vastly disproportionate action against a debtor relative to the debts outstanding;
   2. harass or threaten the debtor, or family members, or other associates of a debtor, with demands for payment through such means which are likely to subject the said individuals to deep anxiety, distress, or humiliation;
   3. misrepresent themselves to be authorised in some government or WA capacity to claim or enforce payment;
   4. attempt to enforce debts that are known to the collector to be (i) not (or no longer) legally valid, or (ii) not yet overdue.
5. Associates. For the purpose of debt collection:
   
   1. A collector may not contact anyone that agreed to act merely as a referee for the debtor.
   2. A collector may not contact anyone that has no close direct association with the debtor, such as neighbours and acquaintances of the debtor.
   3. A collector may not contact the employer of the debtor (or any other known significant income source of the debtor) unless (i) the other parties can act as a garnishee according to local laws and (ii) the debt collector has obtained all legal permission for garnishment.
   4. A collector may not enforce a debt if the creditor's own expected recovery is less than the estimated cost of enforcement.
   5. A collector may not attempt to enforce debts against anyone after they are discharged from bankruptcy.
6. Guarantors.
   
   1. A collector may only attempt to recover debts from a guarantor of a debt only if it has exhausted all available means of collecting the debt from the debtor, unless the guarantor has explicitly consented to acting as a primary obligor and not merely as a surety.
   2. The protections afforded to a debtor under clauses (5) also applies to a guarantor or the family members or work colleagues of a guarantor.
7. Legal competence.
   
   1. If a debtor is deemed legally incompetent after drawing down the loan as a result of ill health, accidents or other misfortune, no enforcement of debts may take place until a legal guardian is appointed, and the finances of the debtor has been organised pursuant to local laws.
   2. The legal guardian should not be harassed or threatened by a creditor or collector.
8. Jurisdiction.
   
   1. Clauses (4) to (7) also apply to creditors, such as banks, who enforce overdue debts themselves.
   2. Each WA state is responsible for interpretation and enforcement of this resolution, including any penalties enforced.
   3. This resolution does not govern anything owed directly to the WA, WA organs, or a WA state, or any debts governed by extant WA resolutions.

Char count: 4,762

[Mesogiria]

5(f) deliberate deployment of a sapient species (such as sapient cars) that is potentially more aggressive in their nature against a debtor of a different sapient species.

I really don't understand what this means or how the example is meant to illustrate it.

[Simone Republic]

5(f) deliberate deployment of a sapient species (such as sapient cars) that is potentially more aggressive in their nature against a debtor of a different sapient species.

I really don't understand what this means or how the example is meant to illustrate it.

It's an in-joke and I've cut it.

[Mesogiria]

It's an in-joke and I've cut it.

Aww, you mean debt collection won't require an official WA ruling as to which races are more aggressive than others?

Sad.

[Simone Republic]

Note that the restrictions on unscrupulous debt collection applies to WA states only, since we can't really extend jurisdiction to non-WA states.

Draft 1

Draft 1

The World Assembly (WA),

Noting that many inhabitants of WA states may have debts outstanding in other WA states, whether due to circumstances or their lifestyle;

Noting the WA’s long-standing interest in protecting the rights of borrowers, such as via GARs 476, 515, and 623;

Anxious that legitimate collection of debts outstanding are not overshadowed by unscrupulous behaviour on the part of some debt collectors;

The WA hereby enacts as follows:

1. Definitions.
   
   1. "Authority" means to one or more government entities designated by a WA state to enforce and interpret this resolution.
   2. "Debtor" means anyone owing debts to a creditor (defined below) and who is under the jurisdiction of a WA state.
   3. "FISA" means to the WA Financial Services Authority.
2. Definition of a debt collector. A “debt collector” is defined as:
   
   1. any entity or any individual that engages in collecting debts on behalf of a third party creditor (such as a bank or a liquidator);
   2. any entity or any individual that manages the debt collection process on behalf of a third party creditor, such as debt administration and the filing of routine documents.
   3. This definition excludes attorneys (and analogous positions), bankruptcy trustees, liquidators, law enforcement officers, as well as creditors (such as banks) collecting for their own account.
   4. The third party must be conducting debt collection business within the jurisdiction of a WA state.
3. Authorization.
   
   1. An entity that wants to conduct business as a debt collector must be duly authorized by an authority prior to starting business, and for such authorizations to be renewed from time to time. All individuals that are employed for the said entity (including sole proprietorships) must also be authorized by the said authority.
   2. The authority is required to set minimum standards for competence, professionalism and skills for both an entity and its employees.
   3. An authorized debt collector (“ADC”) must maintain adequate professional indemnity insurance in accordance with the requirements of the authority.
4. Jurisdiction.
   
   1. An ADCs that collects debts in a WA state must be in full compliance with the laws of that WA state.
   2. The authorization of an ADC is restricted to that WA state only (or to its subdivisions, at the discretion of the WA state).
   3. As an example, if an ADC is authorized to work only in province X of WA state Y, a separate authorization is required for an ADC to work in province A of WA state Y, or in WA state Z.
   4. An ADC may not outsource its work to another debt collector in another WA state (or its subdivisions) unless that debtor is also an ADC.
5. Behavior of ADCs. ADCs may not deploy the following tactics in their debt collection processes, subject to standards set by an authority and due process of law:
   
   1. take disproportionate action against a debtor relative to the debts outstanding;
   2. harass or threaten the debtor with demands for payment through such means which are likely to subject the debtor or other members of the debtor’s household to distress or humiliation;
   3. harass or threaten the legal guardian of a debtor that has become legally incompetent as a result of illness or misfortune;
   4. create excessive publicity with regards to the financial circumstances of the debtor;
   5. falsely represents themselves to be authorized in some government capacity to claim or enforce payment.
6. Guarantors and referees.
   
   1. An ADC may not contact anyone that agreed to act as a referee (as to the character of a debtor) for the purpose of debt collection.
   2. An ADC may not harass or threaten family members, friends, or work colleagues of a debtor as part of a debt collection process.
   3. An ADC may only attempt to recover debts from a guarantor of a debt only if it has exhausted all available means of collecting the debt from the debtor, unless the guarantor explicitly consented to acting as a primary obligor and not merely as a surety.
7. Other provisions.
   
   1. FISA shall provide model standards (and to update these standards from time to time) for WA states to follow as a minimum level of standards for regulating ADCs.
   2. Each WA state shall maintain a publicly-accessible database of ADCs for verification.
   3. This resolution does not govern anything owed directly to the WA, WA organs, or a WA state, such as tax liens, and any other debts governed separately by extant WA resolutions.

Char count: 4,548

[Simone Republic]

Draft 2 has been published.

[Kenmoria]

Ambassador Fortier stands to speak. “I have presented some feedback on the draft for your Excellency’s perusal.”

The World Assembly (WA),

Noting the WA’s long-standing interest in protecting the rights of borrowers, such as via GARs 476, 515, and 623;

Anxious that legitimate collection of debts outstanding are not overshadowed by unscrupulous behaviour by debt collectors; In this clause, “are” should be “is”, agreeing with “collection”. Also, your Excellency should insert “the” prior to “unscrupulous behaviour”.

The WA hereby enacts as follows:

1. Definitions.
   
   1. "Authority" means one or more government entities designated by a WA state to enforce and interpret this resolution.
   2. "Creditor" means who owns the debt due from a debtor (defined below), such as a bank.
   3. "Debtor" means anyone owing debts to a creditor and who is under the jurisdiction of a WA state.
2. Debt collector.
   
   1. A "debt collector" means any entity or employees of that entity that collect debts on behalf of a creditor. “Collect” should “collects” here. I feel as though this clause, though colloquially true, is not actually a true. A debt is simply a right-duty relationship between a creditor and a debtor, in which the creditor has a right to be paid and a debtor has a right to pay. That right-duty relationship cannot be collected. Rather, it can be enforced.
   2. The definition of a debt collector excludes attorneys, bankruptcy trustees, liquidators and law enforcement officers.
   3. This resolution covers all debt collectors conducting business within a WA state, regardless of whether the creditor is from a WA state.
3. Authorisation.
   
   1. An entity that wants to conduct business as a debt collector must be duly authorised by an authority.
   2. All individuals that are employed by a debt collector (including sole proprietorships) must also be authorised by the said authority. This clause inadvertently, through the use of “said”, requires that authorisation for companies and for individuals must come from the same authority. It is legitimate, albeit inefficient, for a member-nation to have two different regulators for that function. Therefore, I recommend using “an authority” rather than “said authority”.
   3. The authority is required to set minimum standards for competence, professionalism and skills for both an entity and its employees. Your Excellency should also mandate that these standards are publicly promulgated.
   4. A debt collector must maintain adequate professional indemnity insurance as required by the authority.
4. Jurisdiction.
   
   1. A debt collector that conducts business in a WA state must be in full compliance with the laws of that WA state.
   2. A debt collector needs to be separately authorised to work in each WA state (or to its subdivisions) with the relevant authority of that WA state (or subdivision).
5. Behavior. Debt collectors may not deploy the following tactics when collecting debts, subject to standards set by an authority and due process of law: Elsewhere in this proposal, “behaviour” is spelt with a u. I suggest standardising to one or the other, preferably “behaviour”. Also, stylistically, none of these subclauses follow euphonically from the main clause. I suggest nominalising each of them, such as “harassment or threats towards the debtor…”, “creation of excess publicity with regards to…”, and “collection on debts that are no…”.
   
   1. take disproportionate action against a debtor relative to the debts outstanding;
   2. harass or threaten the debtor, or family members, or work colleagues of a debtor, with demands for payment through such means which are likely to subject the said individuals to distress or humiliation;
   3. harass or threaten the legal guardian of a debtor that has become legally incompetent as a result of illness or misfortune;
   4. create excessive publicity with regards to the financial circumstances of the debtor; I do not regard this clause as necessary. There is, with all matters, a balance between the rights of the creditor and those of the debtor. Publicity of something which is true and pertinent to the dispute can often be a useful tool to enforce the rights of the creditor, and I do not believe that it is unduly harsh to those of the debtor.
   5. falsely represents themselves to be authorised in some government capacity to claim or enforce payment; It would be useful to also add that false representation as an employee of the General Assembly is prohibited. Though extant legislation does this, slight redundancy does not hurt.
   6. collect on debts that are no longer legally valid, due to the passage of time, the bankruptcy of the debtor, or other factors.
6. Associates.
   
   1. A debt collector may not contact anyone that agreed to act merely as a referee (as to the character of a debtor) for the purpose of debt collection.
   2. A debt collector may not contact anyone that is not directly associated with the debtor, such as neighbours and friends of the debtor, for the purpose of debt collection.
7. Guarantors.
   
   1. A debt collector may only attempt to recover debts from a guarantor of a debt only if it has exhausted all available means of collecting the debt from the debtor, unless the guarantor explicitly consented to acting as a primary obligor and not merely as a surety.
   2. The protections afforded to a debtor under clauses (5) also applies to a guarantor or the family members or work colleagues of a guarantor.
8. Other provisions.
   
   1. The conditions in clauses (5) and (7) also apply to creditors, such as banks, who collect for their own account.
   2. Any penalties for breaches of clauses (4) to (7) shall be governed by the laws of the relevant WA state (or subdivision).
   3. Each WA state shall maintain a database of authorised debt collectors for verification. The said database shall be made available free of charge and through convenient physical and electronic means.
   4. This resolution does not govern anything owed directly to the WA, WA organs, or a WA state, or any other debts governed by extant WA resolutions.

[Bananaistan]

"Authority" means one or more government entities designated by a WA state to enforce and interpret this resolution.

"There is a problem with this formula of words (or simular), as it appears here and in other proposals by the proposing delegation. Regulation undertaken at arm's length from the government is not necessarily a bad thing. There could be, for example, independent boards/agencies responsible for it. It might even be done entirely by a professional association, or association of professional associations, completely independent of the government. It's basically cultural imperialism to state that regulation must be done in this format. The old format of "member states must do x" worked just fine for 700 odd resolutions. Leave it to member states to figure precisely how they'll divvy out responsibilities under WA law."

[Simone Republic]

"Authority" means one or more government entities designated by a WA state to enforce and interpret this resolution.

"There is a problem with this formula of words (or simular), as it appears here and in other proposals by the proposing delegation. Regulation undertaken at arm's length from the government is not necessarily a bad thing. There could be, for example, independent boards/agencies responsible for it. It might even be done entirely by a professional association, or association of professional associations, completely independent of the government. It's basically cultural imperialism to state that regulation must be done in this format. The old format of "member states must do x" worked just fine for 700 odd resolutions. Leave it to member states to figure precisely how they'll divvy out responsibilities under WA law."

OOC.

I removed the word "government". So it can be a professional association if desired. I generally dislike self-regulation as it ends up too clubby, so I added the word "government" in there.

One alternative is to formulate it as "[t]his resolution does not regulate how an agency of a WA state is organized, whether it is a public or private body, and whether multiple agencies are employed for different political subdivisions or functions of a WA state" which is what I did with the current resolution at vote, Statistical Data Practice.

Ambassador Fortier stands to speak. “I have presented some feedback on the draft for your Excellency’s perusal.”


[*]Behavior. Debt collectors may not deploy the following tactics when collecting debts, subject to standards set by an authority and due process of law: Elsewhere in this proposal, “behaviour” is spelt with a u. I suggest standardising to one or the other, preferably “behaviour”. Also, stylistically, none of these subclauses follow euphonically from the main clause. I suggest nominalising each of them, such as “harassment or threats towards the debtor…”, “creation of excess publicity with regards to…”, and “collection on debts that are no…”.

1. take disproportionate action against a debtor relative to the debts outstanding;
2. harass or threaten the debtor, or family members, or work colleagues of a debtor, with demands for payment through such means which are likely to subject the said individuals to distress or humiliation;
3. harass or threaten the legal guardian of a debtor that has become legally incompetent as a result of illness or misfortune;
4. create excessive publicity with regards to the financial circumstances of the debtor; I do not regard this clause as necessary. There is, with all matters, a balance between the rights of the creditor and those of the debtor. Publicity of something which is true and pertinent to the dispute can often be a useful tool to enforce the rights of the creditor, and I do not believe that it is unduly harsh to those of the debtor.
5. falsely represents themselves to be authorised in some government capacity to claim or enforce payment; It would be useful to also add that false representation as an employee of the General Assembly is prohibited. Though extant legislation does this, slight redundancy does not hurt.
6. collect on debts that are no longer legally valid, due to the passage of time, the bankruptcy of the debtor, or other factors.

Everything changed except for 5(d). I changed it to "vastly excessive publicity" although I might drop it altogether (there's a slight cultural issue here). Everything should now grammatically be in sync.


Draft 2

The World Assembly (WA),

Noting the WA’s long-standing interest in protecting the rights of borrowers, such as via GARs 476, 515, and 623;

Anxious that legitimate enforcement of outstanding debts are not overshadowed by unscrupulous behaviour by debt collectors;

The WA hereby enacts as follows:

1. Definitions.
   
   1. "Authority" means one or more entities designated by a WA state to enforce and interpret this resolution.
   2. "Creditor" means who owns the debt due from a debtor (defined below), such as a bank.
   3. "Debtor" means anyone owing debts to a creditor and who is under the jurisdiction of a WA state.
2. Debt collector.
   
   1. A "debt collector" means any entity or employees of that entity that collect debts as an agent on behalf of a creditor.
   2. This definition excludes anyone acting as an attorney or a law enforcement officer, as defined by local laws.
   3. This resolution covers all debt collectors conducting business within a WA state, regardless of whether the creditor is from a WA state.
3. Authorisation.
   
   1. An entity that wants to conduct business as a debt collector must be duly authorised by an authority.
   2. All individuals that are employed by a debt collector (including sole proprietorships) must also be authorised by an authority.
   3. The authority shall promulgate standards for competence, professionalism and skills for both an entity and its employees.
   4. A debt collector must maintain adequate professional indemnity insurance as required.
4. Jurisdiction.
   
   1. A debt collector that conducts business in a WA state must be in full compliance with all the laws of that WA state.
   2. A debt collector needs to be separately authorised to work in each WA state (or to its subdivisions) with the relevant authority of that WA state (or subdivision).
5. Behaviour. Debt collectors may not deploy the following tactics when enforcing outstanding debts, subject to standards set by an authority and due process of law:
   
   1. take disproportionate action against a debtor relative to the debts outstanding;
   2. harass or threaten the debtor, or family members, or work colleagues of a debtor, with demands for payment through such means which are likely to subject the said individuals to deep distress or humiliation;
   3. harass or threaten the legal guardian of a debtor that has become legally incompetent as a result of illness or misfortune;
   4. create vastly excessive publicity with regards to the financial circumstances of the debtor, subject to the status of the debtor and the privacy laws of that WA state;
   5. falsely represents themselves to be authorised in some government or WA capacity to claim or enforce payment;
   6. collect on debts that are no longer legally valid, due to the passage of time, the bankruptcy of the debtor, or other factors.
6. Associates.
   
   1. A debt collector may not contact anyone that agreed to act merely as a referee (as to the character of a debtor) for the purpose of debt collection.
   2. A debt collector may not contact anyone that is not directly associated with the debtor, such as neighbours and acquaintances of the debtor, for the purpose of debt collection.
7. Guarantors.
   
   1. A debt collector may only attempt to recover debts from a guarantor of a debt only if it has exhausted all available means of collecting the debt from the debtor, unless the guarantor explicitly consented to acting as a primary obligor and not merely as a surety.
   2. The protections afforded to a debtor under clauses (5) also applies to a guarantor or the family members or work colleagues of a guarantor.
8. Other provisions.
   
   1. The conditions in clauses (5) and (7) also apply to creditors, such as banks, who collect for their own account.
   2. Any penalties for breaches of clauses (4) to (7) shall be governed by the laws of the relevant WA state (or subdivision).
   3. Each WA state shall maintain a database of authorised debt collectors for verification. The said database shall be made available free of charge and through convenient means.
   4. This resolution does not govern anything owed directly to the WA, WA organs, or a WA state, or any other debts governed by extant WA resolutions.

Char count: 4,277

[The Ice States]

Will look at it closer later, but at a first glance this seems fine.

[Desmosthenes and Burke]

Ambassador, is there a reason, pursuant to clause 3(b) that the cleaning staff or IT help desk of a large debt collection firm would need to be authorized?

[Imperium Anglorum]

Elsie Mortimer Wellesley. We agree with our colleagues from D&B that "all individuals that are employed" – consider "all employees", the current draft is excessively verbose, – is far too broad.

[Simone Republic]

Draft 3

The World Assembly (WA),

Noting the WA’s desire to protect the rights of borrowers, such as via GARs 476, 515, and 623;

Anxious that legitimate enforcement of overdue debts is not overshadowed by unscrupulous behaviour by debt collectors;

The WA hereby enacts as follows:

1. Definitions.
   
   1. "Authority" means one or more entities designated by a WA state to enforce and interpret this resolution.
   2. "Creditor" means who owns the debt due from a debtor (defined below), such as a bank.
   3. "Debtor" means anyone owing debts to a creditor and who is under the jurisdiction of a WA state.
2. Debt collector.
   
   1. A "debt collector" means any entity or employees of that entity that enforces overdue debts as an agent on behalf of a creditor.
   2. This definition excludes anyone acting as an attorney or a law enforcement officer, as defined by local laws.
   3. This resolution covers all debt collectors conducting business within a WA state, regardless of whether the creditor is from a WA state.
3. Authorisation.
   
   1. An entity that wants to conduct business as a debt collector must be duly authorised by an authority.
   2. All employees of the entity defined in the preceding sub-clause who engage in debt collection must also be authorised by an authority.
   3. The authority shall promulgate standards for competence, professionalism and skills for both an entity and its employees.
   4. A debt collector must maintain adequate professional indemnity insurance as required.
4. Jurisdiction.
   
   1. A debt collector that conducts business in a WA state must be in full compliance with all the laws of that WA state.
   2. A debt collector needs to be separately authorised to work in each WA state (or to its subdivisions) with the relevant authority of that WA state (or subdivision).
5. Behaviour. Debt collectors may not deploy the following tactics when enforcing outstanding debts, subject to standards set by an authority and due process of law:
   
   1. taking disproportionate action against a debtor relative to the debts outstanding;
   2. harassing or threatening the debtor, or family members, or work colleagues of a debtor, with demands for payment through such means which are likely to subject the said individuals to deep distress or humiliation;
   3. harassing or threatening the legal guardian of a debtor that has become legally incompetent as a result of illness or misfortune;
   4. falsely representing themselves to be authorised in some government or WA capacity to claim or enforce payment;
   5. enforcing debts that are no longer legally valid, due to the passage of time, the bankruptcy of the debtor, or other factors.
6. Associates.
   
   1. A debt collector may not contact anyone that agreed to act merely as a referee (as to the character of a debtor) for the purpose of debt collection.
   2. A debt collector may not contact anyone that is not directly associated with the debtor, such as neighbours and acquaintances of the debtor, for the purpose of debt collection.
7. Guarantors.
   
   1. A debt collector may only attempt to recover debts from a guarantor of a debt only if it has exhausted all available means of collecting the debt from the debtor, unless the guarantor explicitly consented to acting as a primary obligor and not merely as a surety.
   2. The protections afforded to a debtor under clauses (5) also applies to a guarantor or the family members or work colleagues of a guarantor.
8. Other provisions.
   
   1. The conditions in clauses (5) and (7) also apply to creditors, such as banks, who collect for their own account.
   2. Any penalties for breaches of clauses (4) to (7) shall be governed by the laws of the relevant WA state (or subdivision).
   3. Each WA state shall maintain a database of authorised debt collectors for verification. The said database shall be made available publicly through convenient means.
   4. This resolution does not govern anything owed directly to the WA, WA organs, or a WA state, or any other debts governed by extant WA resolutions.

Ambassador, is there a reason, pursuant to clause 3(b) that the cleaning staff or IT help desk of a large debt collection firm would need to be authorized?

Elsie Mortimer Wellesley. We agree with our colleagues from D&B that "all individuals that are employed" – consider "all employees", the current draft is excessively verbose, – is far too broad.

Sloppy drafting on my part (yes I am aware that for (say) a Series 7 broker-dealer, not all staff are licensed/regulated).

This has gone to draft 4.

[Simone Republic]

Draft 4,

The World Assembly, WA, Noting the WA’s desire to protect the rights of borrowers, such as via GARs 476, and 623, Anxious that legitimate enforcement of overdue debts is not overshadowed by obnoxious behaviour by debt collectors, The WA hereby enacts as follows:,

,
1. Definitions.,
   ,
   1. "Authority" means an entity designated by a WA state to enforce and interpret this resolution.,
   2. "Creditor" means who owns the debt due from a debtor, defined below, such as a bank.,
   3. "Debtor" means anyone owing debts to a creditor and who is under the jurisdiction of a WA state.
   ,
2. Debt collector.,
3. "Debt collector" means any entity, or employees of that entity, whose business is to enforces overdue debts as an agent on behalf of a creditor. Where applicable, this definition covers employees of that entity that engage in enforcing overdue debts as part of their regular duties. This includes entities that are sole proprietorships.,
4. This definition excludes anyone acting as an attorney or a law enforcement officer, as defined by local laws.,
5. This resolution covers all debt collectors enforcing debts legally recognised as valid by a WA state, regardless of whether the creditor is from a WA state.

, [*]Authorisation., [*]Anyone who wants to conduct business as a debt collector must be duly authorised by an authority., [*]The authority shall promulgate standards for competence, professionalism and skills for a debt collector., [*]A debt collector must maintain professional indemnity insurance deemed adequate by an authority.[/list], [*]Jurisdiction., [*]A debt collector that conducts business in a WA state must be in full compliance with all local laws., [*]A debt collector needs to be separately authorised to work in each WA state, or to its subdivisions, according to local laws., [*]No debt collector may accept business from a creditor, nor may a creditor hire a debt collector, if the expected recovery from enforcing the debt is less than the cost of enforcement.[/list], [*]Behaviour. Debt collectors may not use the following means to enforce overdue outstanding debts, subject to standards set by an authority and due process of law:, [*]take vastly disproportionate action against a debtor relative to the debts outstanding, [*]harass or threaten the debtor, or family members, or work colleagues of a debtor, with demands for payment through such means which are likely to subject the said individuals to deep anxiety, distress or humiliation, [*]contact the employer of the debtor unless the employer is able to act as a garnishee according to local laws, [*]harass or threatening the guardian of a debtor that is deemed legally incompetent due to illness or misfortune, [*]misrepresent themselves to be authorised in some government or WA capacity to claim or enforce payment, [*]attempt to enforce debts that are known to the collector to be no longer legally valid.[/list], [*]Associates., [*]A debt collector may not contact anyone that agreed to act merely as a referee, as to the character of a debtor, for the purpose of debt collection., [*]A debt collector may not contact anyone that has no direct association through family or employment relations with the debtor, such as neighbours and acquaintances of the debtor, for the purpose of debt collection.[/list], [*]Guarantors., [*]A debt collector may only attempt to recover debts from a guarantor of a debt only if it has exhausted all available means of collecting the debt from the debtor, unless the guarantor consented to acting as a primary obligor and not merely as a surety., [*]The protections afforded to a debtor under clauses, 5, also applies to a guarantor or the family members or work colleagues of a guarantor.[/list], [*]Other provisions., [*]The conditions in clauses, and, 7, also apply to creditors, such as banks, who enforce overdue debts themselves., [*]Any penalties for breaches of clauses, 4, to, shall be governed by local laws., [*]Each WA state shall maintain a database of authorised debt collectors for verification. The said database shall be publicly available through convenient means., [*]This resolution does not govern anything owed directly to the WA, WA organs, or a WA state, or any other debts governed by extant WA resolutions.[/list][/list]

Some further edits. There's also now a section on legal competence in case the debtor suddenly becomes legally incompetent.