72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2528
A-Engrossed
House Bill 2019
Ordered by the House April 16
Including House Amendments dated April 16
Sponsored by Representative CLOSE (at the request of Jan Amling,
Consumer Credit Counseling)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Authorizes debt consolidating agencies to charge credit
counseling fee under specified conditions. { + Prohibits debt
consolidating agency from receiving fee from client until first
installment is paid to creditor. Requires agency to disclose in
writing maximum charge for services and client
responsibilities. + }
A BILL FOR AN ACT
Relating to debt consolidating agencies; creating new provisions;
and amending ORS 697.662 and 697.692.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 697.692 is amended to read:
697.692. (1) This section specifies fees that a debt
consolidating agency may charge.
(2) A debt consolidating agency may charge a client an initial
set-up fee of not more than $25.
(3) A debt consolidating agency may charge for services
performed for the client in an amount of not more than 15 percent
of the amount actually received by the debt consolidating agency
on behalf of a client for payment to creditors. { + 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. + }
(4) Except as provided in { - subsection (5) - }
{ + subsections (5) and (6) + } of this section, a debt
consolidating agency { - shall - } { + may + } not charge a
person for any discussion with that person that may or may not
result in an agreement for services of a debt consolidating
agency.
{ + (5) A debt consolidating agency may charge a fee in an
amount set by the Director of the Department of Consumer and
Business Services by rule to cover the expenses of credit
counseling if:
(a) The debt consolidating agency demonstrates the need for the
fee to the director or the credit counseling is required by rule
or order of a federal or state agency and the debt consolidating
agency is certified by the federal or state agency to provide the
credit counseling; and
(b) A request to charge the fee has been approved in writing by
the director. + }
{ - (5) - } { + (6) + } A debt consolidating agency may
charge a fee to cover the expenses for education classes if:
(a) The classes are approved by the director { - of the
Department of Consumer and Business Services - } , or the classes
are required by rule or order of a federal or state agency and
the debt consolidating agency is certified by the federal or
state agency to provide the education; and
(b) A request to charge the fee has been approved in writing by
the director.
{ - (6) - } { + (7) + } A debt consolidating agency that
charges a fee not authorized under this section is subject to ORS
697.752, 697.762, 697.832 and 697.990 (3).
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. + }
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