72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
HA to HB 2019
 
LC 2528/HB 2019-4
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2019
 
      By COMMITTEE ON BUSINESS, LABOR AND CONSUMER AFFAIRS
 
                            April 16
 
  In line 2 of the printed bill, after 'ORS' insert '697.662
and'.
  In line 9, after the period insert 'A debt consolidating agency
may not receive an amount from the client under this subsection
until the first installment under the contract or agreement with
the client is paid to any creditor of the client.'.
  Delete lines 29 and 30 and insert:
  '  { +  SECTION 2. + }  { + Section 3 of this 2003 Act is added
to and made a part of ORS 697.602 to 697.842. + }
  '  { +  SECTION 3. + }  { + (1) Before a debt consolidating
agency provides any credit counseling to a person, the debt
consolidating agency shall disclose in writing to the person on a
separate form:
  ' (a) The maximum amount the debt consolidating agency may
charge for services performed for the person; and
  ' (b) That the person is responsible for payment of the amount
charged.
  ' (2) The form described in subsection (1) of this section must
contain a space for the person to sign the form indicating that
the person has read and understands the information disclosed on
the form. + }
  '  { +  SECTION 4. + } ORS 697.662 is amended to read:
  ' 697.662. (1) A debt consolidating agency commits an improper
debt consolidating practice when the debt consolidating agency
does any of the following:
  ' (a) Takes a contract, promise to pay or other instrument that
has any blank spaces when it is signed by a client.
  ' (b) Takes a negotiable instrument, other than a check or
draft, as payment or security for the charges of the debt
consolidating agency.
  ' (c) Takes a wage assignment, real estate mortgage, purchase
money security interest or other security, all or any part of
which is an amount greater than that provided in ORS 697.692, to
secure the charges of the debt consolidating agency.
  ' (d) Takes a confession of judgment or a power of attorney to
confess judgment against the client or to appear for the client
in a judicial proceeding.
  ' (e) Takes a release from a client of an obligation to be
performed on the part of the debt consolidating agency.
  ' (f) Makes any contract or agreement with a client that
provides for later charges or reserves for liquidated damages.
  ' (g) Commingles a client's wages, salaries, income, credits or
property held by the debt consolidating agency with the property
or funds of the debt consolidating agency.
  ' (h) Except as authorized in ORS 697.712, cancels a debt
consolidating contract or agreement without a client's written
authorization.
  '  { +  (i) Provides credit counseling to a person without
first providing the form required under section 3 of this 2003
Act. + }
  ' (2) A person commits an improper debt consolidating practice
if the person advertises, prints, displays, publishes,
distributes or broadcasts, or causes to be advertised, printed,
displayed, published, distributed or broadcasted, any false or
misleading statement or representation with regard to the rates,
terms or services of a debt consolidating agency.
  ' (3) A debt consolidating agency that commits an improper debt
consolidating practice under this section is subject to ORS
697.752, 697.762, 697.832 and 697.990 (3).
  ' (4) A person other than a debt consolidating agency that
commits an improper debt consolidating practice under subsection
(2) of this section is subject to ORS 697.762, 697.832 and
697.990 (3).
  '  { +  SECTION 5. + }  { + (1) The amendments to ORS 697.692
by section 1 of this 2003 Act apply to fees charged for credit
counseling that occurs on or after the effective date of this
2003 Act.
  ' (2) Section 3 of this 2003 Act and the amendments to ORS
697.662 by section 4 of this 2003 Act apply to credit counseling
provided on or after the effective date of this 2003 Act. + } ' .
                         ----------