75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
House Bill 2307
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Judiciary for Oregon State Bar Debtor/Creditor Section)
CHAPTER ................
AN ACT
Relating to collection agencies; amending ORS 697.005.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 697.005 is amended to read:
697.005. As used in ORS 697.005 to 697.095:
(1)(a) 'Collection agency' means:
(A) { - Any - } { + A + } person directly or indirectly
engaged in soliciting { - claims - } { + a claim + }for
collection, or collecting or attempting to collect
{ - claims - } { + a claim that is + } owed, due or asserted
to be owed or due to another person or to a public body { + at
the time the person solicits, collects or attempts to collect the
claim + };
(B) { - Any - } { + A + } person { - who - } { +
that + } directly or indirectly furnishes, attempts to furnish,
sells or offers to sell forms represented to be a collection
system even { - though - } { + if + } the forms direct the
debtor to make payment to the creditor and even
{ - though - } { + if + } the forms may be or are actually
used by the creditor in the creditor's own name;
(C) { - Any - } { + A + } person { - who - } { +
that, + } in attempting to collect or in collecting the person's
own claim { + , + } uses a fictitious name or any name other than
the person's own that indicates to the debtor that a third person
is collecting or attempting to collect the claim;
(D) { - Any - } { + A + } person in the business of
engaging in the solicitation of the right to repossess or in the
repossession of collateral security due or asserted to be due to
another person; or
(E) { - Any - } { + A + } person { - who - } { +
that, + } in the collection of claims from another person:
(i) Uses any name other than the name regularly used in the
conduct of the business out of which the claim arose; and
(ii) Engages in any action or conduct that tends to convey the
impression that a third party has been employed or engaged to
collect the claim.
(b) 'Collection agency' does not include:
(A) { - Any - } { + An + } individual engaged in soliciting
claims for collection, or collecting or attempting to collect
claims on behalf of a registrant under ORS 697.005 to 697.095, if
Enrolled House Bill 2307 (HB 2307-INTRO) Page 1
the individual is an employee of the registrant { - ; - }
{ + . + }
(B) { - Any - } { + An + } individual collecting or
attempting to collect claims for not more than three employers,
if all collection efforts are carried on in the name of the
employer and the individual is an employee of the employer
{ - ; - } { + . + }
(C) { - Any - } { + A + } person { - who - } { +
that + } prepares or mails monthly or periodic statements of
accounts due on behalf of another person if all payments are made
to { - that - } { + the + } other person and no other
collection efforts are made by the person preparing the
statements of accounts { - ; - } { + . + }
(D) { - Any - } { + An + } attorney-at-law rendering
services in the performance of the duties of an attorney-at-law
{ - ; - } { + . + }
(E) { - Any - } { + A + } licensed certified public
accountant or public accountant rendering services in the
performance of the duties of a licensed certified public
accountant or public accountant { - ; - } { + . + }
(F) { - Any - } { + A + } bank, mutual savings bank,
consumer finance company, trust company, savings and loan
association, credit union or debt consolidation agency { - ; - }
{ + . + }
(G) { - Any - } { + A + } real estate licensee or escrow
agent licensed under the provisions of ORS chapter 696, as to any
collection or billing activity involving a real estate
transaction or collection escrow transaction of the licensee or
escrow agent { - ; - } { + . + }
(H) { - Any - } { + An + } individual regularly employed as
a credit person or in a similar capacity by one person, firm or
corporation that is not a collection agency as defined in this
section { - ; - } { + . + }
(I) { - Any - } { + A + } public officer or { - any - }
{ + a + } person acting under order of { - any - } { +
a + } court { - ; - } { + . + }
(J) { - Any - } { + A + } person acting as a property
manager in collecting or billing for rent, fees, deposits or
other sums due landlords of managed units { - ; - } { + . + }
(K) { - Any person while the person is - } { + A person
that is + } providing billing services. A person is providing
billing services for the purposes of this subparagraph if the
person engages, directly or indirectly, in the business or
pursuit of collection of claims for { - other persons - } { +
another person + }, whether in the other person's name or any
other name, by any means that:
(i) Is an accounting procedure, preparation of mail billing or
any other means intended to accelerate cash flow to the other
person's bank account or to any separate trust account; and
(ii) Does not include any personal contact or contact by
telephone with the person from whom the claim is sought to be
collected { - ; - } { + . + }
(L) { - Any person while the person - } { + A person
that + } is providing factoring services. A person is providing
factoring services for the purposes of this subparagraph if the
person engages, directly or indirectly, in the business or
pursuit of:
(i) Lending or advancing money to commercial clients on the
security of merchandise or accounts receivable and then enforcing
collection actions or procedures on such accounts; or
Enrolled House Bill 2307 (HB 2307-INTRO) Page 2
(ii) Soliciting or collecting on accounts that have been
purchased from commercial clients under an agreement whether or
not the agreement:
(I) Allows recourse against the commercial client;
(II) Requires the commercial client to provide any form of
guarantee of payment of the purchased account; or
(III) Requires the commercial client to establish or maintain a
reserve account in any form { - ; - } { + . + }
(M) { - Any - } { + An + } individual employed by another
person { - who - } { + that + } operates as a collection
agency if the person does not operate as a collection agency
independent of that employment { - ; - } { + . + }
(N) { - Any - } { + A + } mortgage banker as defined in ORS
59.840 { - ; - } { + . + }
(O) { - Any - } { + A + } public utility, as defined in ORS
757.005, { - any - } { + a + } telecommunications utility, as
defined in ORS 759.005, { - any - } { + a + } people's
utility district, as defined in ORS 261.010, and { - any - }
{ + a + } cooperative corporation engaged in furnishing
electric or communication service to consumers { - ; - }
{ + . + }
(P) { - Any - } { + A + } public body or { - any - }
{ + an + } individual collecting or attempting to collect
claims owed, due or asserted to be owed or due to { - any - }
{ + a + } public body, if the individual is an employee of the
public body { - ; or - } { + .
(Q) A person that receives an assignment of debt in any form
without an obligation to pay the assignor any of the proceeds
resulting from a collection of all or a portion of the debt. + }
{ - (Q) - } { + (R) + } { - Any - } { + A + } person
for whom the Director of the Department of Consumer and Business
Services determines by order or by rule that the protection of
the public health, safety and welfare does not require
registration with the department as a collection agency.
(2) 'Collection system' means a scheme intended or calculated
to be used to collect claims sent, prepared or delivered by:
(a) A person who in collecting or attempting to collect the
person's own claim uses a fictitious name or any name other than
the person's own that indicates to the debtor that a third person
is collecting or attempting to collect the claim; or
(b) A person directly or indirectly engaged in soliciting
claims for collection, or collecting or attempting to collect
claims owed or due or asserted to be owed or due another person.
(3) 'Claim' means { - any - } { + an + } obligation for the
payment of money or thing of value arising out of { - any - }
{ + an + } agreement or contract, express or implied.
(4) 'Client' or 'customer' means { - any - } { + a + }
person authorizing or employing a collection agency to collect a
claim.
(5) 'Debtor' means { - any - } { + a + } person owing or
alleged to owe a claim.
(6) 'Debts incurred outside this state' means { - any - }
{ + an + } action or proceeding that:
(a) Arises out of a promise, made anywhere to the plaintiff or
a third party for the plaintiff's benefit, by the defendant to
perform services outside of this state or to pay for services to
be performed outside of this state by the plaintiff;
(b) Arises out of services actually performed for the plaintiff
by the defendant outside of this state or services actually
performed for the defendant by the plaintiff outside of this
Enrolled House Bill 2307 (HB 2307-INTRO) Page 3
state, if the performance outside of this state was authorized or
ratified by the defendant;
(c) Arises out of a promise, made anywhere to the plaintiff or
a third party for the plaintiff's benefit, by the defendant to
deliver or receive outside of this state or to send from outside
of this state goods, documents of title or other things of value;
(d) Relates to goods, documents of title or other things of
value sent from outside of this state by the defendant to the
plaintiff or a third person on the plaintiff's order or
direction;
(e) Relates to goods, documents of title or other things of
value actually received outside of this state by the plaintiff
from the defendant or by the defendant from the plaintiff,
without regard to where delivery to carrier occurred; or
(f) Where jurisdiction at the time the debt was incurred was
outside of this state.
{ - (7) 'Department' means the Department of Consumer and
Business Services. - }
{ - (8) 'Director' means the Director of the Department of
Consumer and Business Services. - }
{ - (9) - } { + (7) + } 'Out-of-state collection agency'
means a collection agency located outside of this state whose
activities within this state are limited to collecting debts
incurred outside of this state from debtors located in this
state. As used in this subsection, 'collecting debts' means
collecting by means of interstate communications, including
telephone, mail or facsimile transmission from the collection
agency location in another state on behalf of clients located
outside of this state.
{ - (10) - } { + (8) + } 'Person' { - includes - } { +
means + } an individual, firm, partnership, trust, joint venture,
association, limited liability company or corporation.
{ - (11) - } { + (9) + } 'Public body' means:
(a) The state and any branch, department, agency, board or
commission of the state;
(b) { - Any - } { + A + } city, county, district or other
political subdivision or municipal or public corporation
{ - and any - } { + or an + } instrumentality thereof; and
(c) { - Any - } { + An + } intergovernmental agency,
department, council, joint board of control created under ORS
190.125 or other like entity { - , which - } { + that + } is
created under ORS 190.003 to 190.130 and
{ - which - } { + that + } does not act under the direction
and control of any single member government.
{ - (12) - } { + (10) + } 'Registered' or 'registrant'
means { - any - } { + a + } person registered under ORS
697.005 to 697.095 or registered or licensed as a collection
agency under the laws of another state.
{ - (13) - } { + (11) + } 'Statement of account' means a
report setting forth amounts billed, invoices, credits allowed or
aged balance due.
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Enrolled House Bill 2307 (HB 2307-INTRO) Page 4
Passed by House April 16, 2009
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 12, 2009
...........................................................
President of Senate
Enrolled House Bill 2307 (HB 2307-INTRO) Page 5
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled House Bill 2307 (HB 2307-INTRO) Page 6