75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
SA to A-Eng. HB 2191
LC 361/HB 2191-A5
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2191
By COMMITTEE ON CONSUMER PROTECTION AND PUBLIC AFFAIRS
June 2
On page 1 of the printed A-engrossed bill, line 15, after '
performs' insert 'or agrees to perform'.
On page 2, line 10, after 'loan' insert 'or obligation'.
On page 3, line 4, after 'provider' insert 'for the purpose of
arranging the provision of a debt management service'.
In line 42, after '(n)' insert 'An organization or'.
On page 4, line 40, before 'business' insert 'debt management
service'.
Delete lines 42 and 43 and insert:
' (d) The names of any managing members, managing partners,
executive officers, directors, principals or agents the applicant
has;'.
On page 6, line 20, after 'rule' insert a period and delete the
rest of the line and lines 21 and 22.
In line 27, delete 'or (3)'.
In line 28, delete 'that is not a nonprofit entity'.
Delete lines 31 and 32.
In line 33, delete '(b)' and insert '(a)'.
In line 34, delete '(c)' and insert '(b)'.
Delete lines 38 through 45.
On page 7, line 1, delete '(4)' and insert '(3)'.
In line 8, delete '(5)' and insert '(4)'.
On page 8, line 4, delete 'and address'.
In line 5, before the period insert ', if the debt management
service provider holds, directly or indirectly, a consumer's
funds for distribution to creditors'.
Delete lines 16 and 17 and insert:
' (B) Request the debt management service provider to deliver
to the consumer a full and complete written statement of the
consumer's account:
' (i) Within two business days, if the debt management service
provider delivers the statement electronically; or
' (ii) Within seven business days, if the debt management
service provider delivers the statement by mail.'.
Delete line 45.
On page 9, delete lines 1 through 7 and insert:
' (2) Before the consumer and the debt management service
provider sign the agreement described in subsection (1) of this
section, the debt management service provider shall give the
consumer an analysis of the consumer's budget that is separate
from the agreement and that evaluates whether the debt management
services the debt management service provider proposes to perform
are advantageous to the consumer.
' (3) As soon as is practicable after the consumer and the debt
management service provider sign and date the agreement described
in subsection (1) of this section, the debt management service
provider shall provide the consumer with a legible copy of the
signed and dated agreement.'.
On page 10, delete lines 18 through 20 and insert:
' (4) Offer to perform a debt management service without
evaluating as part of the budget analysis the debt management
service provider must perform under ORS 697.652 (2) whether the
debt management service is or would be advantageous to the
consumer.'.
On page 12, line 45, before the period insert 'to the extent
that the interest earned exceeds the fees the financial
institution charges to maintain the trust account'.
On page 13, delete lines 14 through 45.
On page 14, delete lines 1 through 30 and insert:
' { + SECTION 9. + } ORS 697.692 is amended to read:
' 697.692. { - (1) A debt consolidating agency: - }
' { - (a) May charge a client an initial set-up fee of not
more than $25. - }
' { - (b) 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 paragraph until the
first installment under the contract or agreement with the client
is paid to any creditor of the client. - }
' { - (c) 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. - }
' { - (d) Notwithstanding paragraph (c) of this subsection,
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. - }
' { - (2) Notwithstanding subsection (1)(c) of this section, a
debt consolidating agency that is a nonprofit organization may
charge a fee in an amount set by the director by rule to cover
the expenses of credit counseling if: - }
' { - (a) The debt consolidating agency demonstrates to the
director the need for the fee 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. - }
' { - (3) 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). - }
' { - (4) As used in this section, 'nonprofit organization '
means an organization described in section 501(c)(3) of the
Internal Revenue Code that is exempt from income tax under
section 501(a) of the Internal Revenue Code. - }
' { + (1) A debt management service provider may charge a
consumer only the following fees:
' (a) An initial fee of not more than $50.
' (b) A fee reasonably calculated to recover the costs that the
debt management service provider incurs in providing an initial
counseling session or education class. The debt management
service provider may charge the fee described in this paragraph
in advance, but the fee may not exceed $50.
' (c) A monthly fee equivalent to 15 percent of the funds that
the debt management service provider receives from a consumer for
payment to the consumer's creditors. The debt management service
provider may charge the fee described in this paragraph only if
the debt management service provider holds a consumer's funds,
directly or indirectly, on the consumer's behalf. The fee
described in this paragraph may not exceed $65 per month.
' (d) A fee equivalent to 15 percent of the amount of debt a
consumer owes to one or more creditors at the time the consumer
signs the agreement described in ORS 697.652 and places funds in
a bank account that the consumer establishes or maintains in the
consumer's own name with an insured institution, as defined in
ORS 706.008, and designates specifically for making disbursements
in connection with a debt management service. The debt management
service provider may charge the fee described in this paragraph
only if the debt management service provider does not hold a
consumer's funds directly or indirectly. The debt management
service provider may not charge the fee described in this
paragraph in amounts or installments that exceed $65 per month.
' (e) A fee equivalent to 7.5 percent of the difference between
the principal amount of the debt the consumer owed to the
consumer's creditor at the time the consumer signed the agreement
described in ORS 697.652 and the amount the consumer paid to the
creditor to settle the debt, exclusive of fees the consumer paid
to the debt management service provider under paragraph (a), (b)
or (d) of this subsection. The debt management service provider
may charge the fee described in this paragraph only if the debt
management service provider obtains from the consumer's creditor
a reduction in the principal amount of the consumer's debt.
' (f) Additional counseling fees that the Director of the
Department of Consumer and Business Services specifies by rule,
provided that the director limits the counseling fee to:
' (A) $25 per counseling session; and
' (B) $50 for all counseling sessions that occur within a
30-day period.
' (2) A debt management service provider may accept payment for
a fee described in subsection (1) of this section by means of:
' (a) A check, draft or similar paper instrument; or
' (b) A transfer of funds through an electronic terminal,
telephonic instrument, computer or magnetic tape that transmits
an order, instruction or authorization to a financial institution
to debit or credit an account. + }
' { + SECTION 9a. + } ORS 697.692, as amended by section 9 of
this 2009 Act, is amended to read:
' 697.692. (1) A debt management service provider may charge a
consumer only the following fees:
' (a) An initial fee of not more than $50.
' (b) A fee reasonably calculated to recover the costs that the
debt management service provider incurs in providing an initial
counseling session or education class. The debt management
service provider may charge the fee described in this paragraph
in advance, but the fee may not exceed $50.
' (c) A monthly fee equivalent to 15 percent of the funds that
the debt management service provider receives from a consumer for
payment to the consumer's creditors. The debt management service
provider may charge the fee described in this paragraph only if
the debt management service provider holds a consumer's funds,
directly or indirectly, on the consumer's behalf. The fee
described in this paragraph may not exceed $65 per month.
' (d) A fee equivalent to 15 percent of the amount of debt a
consumer owes to one or more creditors at the time the consumer
signs the agreement described in ORS 697.652 and places funds in
a bank account that the consumer establishes or maintains in the
consumer's own name with an insured institution, as defined in
ORS 706.008, and designates specifically for making disbursements
in connection with a debt management service. The debt management
service provider may charge the fee described in this paragraph
only if the debt management service provider does not hold a
consumer's funds directly or indirectly. The debt management
service provider may not charge the fee described in this
paragraph in amounts or installments that exceed $65 per month.
' (e) A fee equivalent to 7.5 percent of the difference between
the principal amount of the debt the consumer owed to the
consumer's creditor at the time the consumer signed the agreement
described in ORS 697.652 and the amount the consumer paid to the
creditor to settle the debt, exclusive of fees the consumer paid
to the debt management service provider under paragraph (a), (b)
or (d) of this subsection. The debt management service provider
may charge the fee described in this paragraph only if the debt
management service provider obtains from the consumer's creditor
a reduction in the principal amount of the consumer's debt.
' { - (f) Additional counseling fees that the Director of the
Department of Consumer and Business Services specifies by rule,
provided that the director limits the counseling fee to: - }
' { - (A) $25 per counseling session; and - }
' { - (B) $50 for all counseling sessions that occur within a
30-day period. - }
' (2) A debt management service provider may accept payment for
a fee described in subsection (1) of this section by means of:
' (a) A check, draft or similar paper instrument; or
' (b) A transfer of funds through an electronic terminal,
telephonic instrument, computer or magnetic tape that transmits
an order, instruction or authorization to a financial institution
to debit or credit an account.'.
On page 15, delete lines 20 through 27.
In line 28, delete '(e)' and insert '(c)'.
In line 30, delete '(f)' and insert '(d)'.
In line 33, delete '(g)' and insert '(e)'.
After line 34, insert:
' (3) A debt management service provider that performs a debt
management service as defined in ORS 697.602 (2)(b) or described
in ORS 697.612 (1)(b)(E), in the document required under
subsection (2) of this section, shall:
' (a) Describe, accurately and completely, the consumer's right
to review consumer credit information about the consumer that a
consumer reporting agency, as defined in 15 U.S.C. 1681a,
maintains; and
' (b) State the approximate price that a consumer reporting
agency will charge a consumer to review the consumer credit
information described in paragraph (a) of this subsection and
that the consumer may review the information at no charge if the
consumer makes a request to the consumer reporting agency within
30 days after the consumer was denied credit.'.
In line 35, delete '(3)' and insert '(4)'.
On page 16, line 8, delete '(4)' and insert '(5)'.
On page 18, line 29, after 'Filed' insert ', knowingly or
negligently,'.
On page 20, delete lines 3 through 5 and insert:
' (a) Violated, is violating or is about to violate ORS
697.612, 697.642 to 697.702 or 697.752, a rule adopted under ORS
697.632 or an order issued under ORS 697.652 or 697.732, issue an
order to cease and desist from the violation.'.
On page 21, delete lines 11 through 16 and insert:
' (4) A court may award reasonable attorney fees to the
prevailing party in an action brought under this section.'.
On page 31, line 1, delete '1 to 18' and insert '1 to 9, 10 to
18'.
In line 11, delete '18' and insert '9, 10 to 18'.
After line 11, insert:
' { + SECTION 29. + } { + Sections 20 and 21 of this 2009
Act, the amendments to ORS 192.502, 646.608, 646A.110, 646A.628,
697.602, 697.612, 697.632, 697.642, 697.652, 697.662, 697.672,
697.682, 697.692, 697.702, 697.707, 697.722, 697.732, 697.752,
697.762, 697.822, 697.825, 697.832 and 705.137 by sections 1 to
9, 10 to 18 and 22 to 26 of this 2009 Act and the repeal of ORS
646A.250, 646A.252, 646A.254, 646A.256, 646A.258, 646A.260,
646A.262, 646A.264, 646A.266, 646A.268, 646A.270, 697.622,
697.712, 697.742, 697.772, 697.782, 697.792, 697.802 and 697.812
by section 27 of this 2009 Act apply to a contract for debt
management services entered into on or after the effective date
of this 2009 Act. + }
' { + SECTION 30. + } { + The amendments to ORS 697.692 by
section 9a of this 2009 Act become operative on January 1,
2012. + } ' .
In line 12, delete '29' and insert '31'.
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