Chapter 697 — Collection
Agencies; Check-Cashing Businesses; Debt Management Service Providers
2011 EDITION
DEBT COLLECTION & MANAGEMENT; CHECK
CASHING
OCCUPATIONS AND PROFESSIONS
COLLECTION AGENCIES
697.005 Definitions
for ORS 697.005 to 697.095
697.015 Registration
requirement
697.031 Registration
procedure; bond or letter of credit; fees; procedures for out-of-state
collection agencies; rules
697.039 Revocation,
suspension or refusal to issue or renew registration
697.045 Status
of accounts and claims assigned to agency; rights of assignor; appearance in
small claims or justice court; registration as condition of access to courts
697.053 Registration
exclusive regulation; local fees authorized
697.058 Agency
records; business office; trust accounts; reporting requirements; audit of
trust accounts; cost of audit; exemptions
697.063 Status
of business records and bank accounts following revocation of registration;
liquidation; expenses and attorney fees
697.085 Rules
697.086 Rules
for collection of child support payments
697.087 Injunction;
damages; attorney fees; limitation on actions
697.091 Fees
or compensation received in violation of law; disposition
697.093 Enforcement
697.094 Orders
issued under ORS 697.093
697.095 Civil
penalties
697.105 Fee
for collection of debt owed public body; notice to debtor; amount
697.115 Fee
for collection of commercial debt; amount; limit
EXCHANGE FACILITATORS
(Temporary provisions relating to
exchange facilitators are compiled as notes following ORS 697.115)
CHECK-CASHING BUSINESSES
697.500 Definitions
for ORS 697.500 to 697.555
697.502 Exemptions
from licensing and record-keeping requirements
697.504 Licensing
requirement
697.510 License
application form and contents; waiver; rules
697.512 Application
fee and investigation fee; rules
697.514 Application
review and license issuance; expiration and renewal; grounds for denial; rules
697.520 Prohibited
practices; effect on charges for dishonored payment instruments
697.522 Receipt;
contents
697.524 Endorsement
and deposit of payment instruments
697.526 Notice
of fees and charges; filing with department
697.528 Records;
retention; examination costs; rules
697.530 Prohibited
conduct
697.540 Suspension
or revocation of license; grounds; notice and hearing
697.542 Powers
of director; cease and desist order
697.550 Rules
697.555 Civil
penalties; restitution
DEBT MANAGEMENT SERVICE PROVIDERS
697.602 Definitions
for ORS 697.602 to 697.842
697.612 Registration
requirement; exceptions
697.632 Registration
procedure; fees; rules
697.642 Bond
requirement
697.652 Written
agreement and budget analysis requirement; contents and form of agreement;
waiver of requirements void
697.662 Prohibited
practices
697.672 Requirement
to make, keep and maintain records; rules
697.682 Trust
accounts for client funds; statements
697.692 Fees
697.702 Interference
with records of debt management service provider
697.707 Required
disclosures
697.718 Liability
for consumer’s ascertainable loss; limitation on time to commence action
697.722 Execution
or attachment of trust account funds
697.732 Examinations;
investigations; costs; access; public disclosure requirements and exemptions
697.752 Grounds
for denial, revocation or suspension of registration
697.762 Enjoining
violations; attorney fees; damages
697.822 Remedy
not exclusive
697.825 Enforcement;
orders
697.832 Civil
penalties
697.840 Rules
697.842 Disposition
of moneys received by director
PENALTIES
697.990 Penalties
697.992 Jurisdiction
of courts
COLLECTION AGENCIES
697.005 Definitions for ORS 697.005 to
697.095. As used in ORS 697.005 to 697.095:
(1)(a)
“Collection agency” means:
(A)
A person directly or indirectly engaged in soliciting a claim for collection,
or collecting or attempting to collect 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)
A person that directly or indirectly furnishes, attempts to furnish, sells or
offers to sell forms represented to be a collection system even if the forms
direct the debtor to make payment to the creditor and even if the forms may be
or are actually used by the creditor in the creditor’s own name;
(C)
A person 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)
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)
A person 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)
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 the individual is an employee of the registrant.
(B)
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)
A person that prepares or mails monthly or periodic statements of accounts due
on behalf of another person if all payments are made to the other person and no
other collection efforts are made by the person preparing the statements of
accounts.
(D)
An attorney-at-law rendering services in the performance of the duties of an
attorney-at-law.
(E)
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)
A bank, mutual savings bank, consumer finance company, trust company, savings
and loan association, credit union or debt consolidation agency.
(G)
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)
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)
A public officer or a person acting under order of a court.
(J)
A person acting as a property manager in collecting or billing for rent, fees,
deposits or other sums due landlords of managed units.
(K)
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 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)
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
(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)
An individual employed by another person that operates as a collection agency
if the person does not operate as a collection agency independent of that
employment.
(N)
A mortgage banker as defined in ORS 86A.100.
(O)
A public utility, as defined in ORS 757.005, a telecommunications utility, as
defined in ORS 759.005, a people’s utility district, as defined in ORS 261.010,
and a cooperative corporation engaged in furnishing electric or communication
service to consumers.
(P)
A public body or an individual collecting or attempting to collect claims owed,
due or asserted to be owed or due to a public body, if the individual is an
employee of the public body.
(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.
(R)
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 an obligation for the payment of money or thing of value arising
out of an agreement or contract, express or implied.
(4)
“Client” or “customer” means a person authorizing or employing a collection
agency to collect a claim.
(5)
“Debtor” means a person owing or alleged to owe a claim.
(6)
“Debts incurred outside this state” means 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 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)
“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.
(8)
“Person” means an individual, firm, partnership, trust, joint venture,
association, limited liability company or corporation.
(9)
“Public body” means:
(a)
The state and any branch, department, agency, board or commission of the state;
(b)
A city, county, district or other political subdivision or municipal or public
corporation or an instrumentality thereof; and
(c)
An intergovernmental agency, department, council, joint board of control
created under ORS 190.125 or other like entity that is created under ORS
190.003 to 190.130 and that does not act under the direction and control of any
single member government.
(10)
“Registered” or “registrant” means a person registered under ORS 697.005 to
697.095 or registered or licensed as a collection agency under the laws of
another state.
(11)
“Statement of account” means a report setting forth amounts billed, invoices,
credits allowed or aged balance due. [1981 c.85 §2; 1987 c.373 §43; 1993 c.744 §20;
1995 c.622 §1; 1999 c.468 §1; 2001 c.917 §5; 2009 c.134 §1]
697.010
[Amended by 1959 c.525 §1; 1963 c.580 §58; 1975 c.364 §1; 1977 c.185 §4;
repealed by 1981 c.85 §17]
697.015 Registration requirement.
A person shall not operate as a collection agency in this state unless the
person registers with the Department of Consumer and Business Services under
ORS 697.031 and maintains the registration in accordance with that section. [1981
c.85 §3; 1995 c.622 §2]
697.020
[Amended by 1953 c.519 §2; 1959 c.525 §2; 1963 c.558 §1; 1969 c.373 §5; 1973
c.547 §1; 1975 c.364 §2; repealed by 1977 c.185 §5 (697.021 enacted in lieu of
697.020)]
697.021 [1977
c.185 §6 (enacted in lieu of 697.020); repealed by 1981 c.85 §17]
697.025 [1977
c.185 §3; 1981 c.85 §4; 1991 c.86 §1; 1993 c.205 §1; 1993 c.508 §42; repealed
by 1995 c.622 §15]
697.030
[Amended by 1959 c.525 §3; 1975 c.364 §3; 1977 c.185 §7; repealed by 1981 c.85 §17]
697.031 Registration procedure; bond or
letter of credit; fees; procedures for out-of-state collection agencies; rules.
(1) The Director of the Department of Consumer and Business Services shall
establish by rule a program for registration of persons operating as collection
agencies that are required to register with the Department of Consumer and
Business Services under ORS 697.015. The program shall include a requirement
that persons registering with the department file and maintain with the
department current information the department requires by rule. The department
may require any information necessary to carry out the program, including but
not limited to the following:
(a)
The name and address of the person operating as a collection agency.
(b)
The name and address of the collection agency.
(c)
Any assumed names or business names used by the collection agency.
(d)
Names of persons who perform the solicitation or collection of claims or who
perform the solicitation of the right to repossess or the repossession of
collateral security for the collection agency.
(e)
Names of persons who are agents of the collection agency for purposes of
service of legal process.
(2)(a)
The director shall require any person who applies for registration as a
collection agency, other than an out-of-state collection agency, to file with
the director a bond or an irrevocable letter of credit in the sum of $10,000
executed by the applicant as obligor, together with one or more corporate
sureties or financial institutions authorized to do business in this state. The
bond or an irrevocable letter of credit shall be executed to the State of
Oregon and for the use of the state and of any person who may have a cause of
action against the obligor of the bond or an irrevocable letter of credit under
ORS 697.005 to 697.095. The bond or an irrevocable letter of credit shall be
conditioned that the obligor will faithfully conform to and abide by the
provisions of ORS 697.005 to 697.095 and all rules lawfully made by the
director under ORS 697.005 to 697.095, and will pay to the state and to any such
person any and all moneys that may become due or owing to the state or to such
person from the obligor under and by virtue of the provisions of ORS 697.005 to
697.095.
(b)
If any person is aggrieved by the misconduct of a registrant required to file a
bond or an irrevocable letter of credit under paragraph (a) of this subsection
or by the registrant’s violation of any law or rule lawfully made by the
director under ORS 697.005 to 697.095 and recovers judgment therefor,
the person may, after the return unsatisfied either in whole or in part of any
execution issued upon the judgment, maintain an action for the person’s own use
upon the bond or irrevocable letter of credit of the registrant in any court
having jurisdiction of the amount claimed.
(c)
The bond or an irrevocable letter of credit required by this subsection shall
be continuously maintained in the amount required by this subsection. The
aggregate liability of the surety under the bond for claims against the bond
shall not exceed the penal sum of the bond no matter how many years the bond is
in force. No extension by continuation certificate, reinstatement, reissue or
renewal of the bond shall increase the liability of the surety.
(3)
The director may include any of the following in the program for registration
established under this section:
(a)
The director may require any filings with the department that the director
determines to be necessary to maintain current the information required for
registration. Filings required under this subsection may include renewal of
registration at reasonable intervals, filings within a reasonable time after
changes in a collection agency or other filings the director determines to be
necessary. In requiring filings under this subsection, the director shall attempt
to minimize burdens the filings might place on persons required to file.
(b)
Except as provided in subsection (4) of this section, the director may
establish and require persons filing with the department under this section to
pay fees for any registration or filing made with the department. The director
shall not establish fees for more than an amount necessary to cover the
administrative costs of the filing or registration.
(c)
The program may be established in any division of the department the director
determines to be best able to administer the program.
(d)
The director may issue, but may not require, certificates of registration or
other indicia of registration that the director determines will be of
assistance to persons operating as a collection agency in establishing that the
persons are registered with the department.
(4)
An out-of-state collection agency is exempt from the registration fee under
this section if the out-of-state collection agency is registered in another
state and that state does not require payment of an initial fee by a person who
collects debts in that state only by means of interstate communications from
the person’s location in another state.
(5)
If an out-of-state collection agency is not exempt from payment of a registration
fee under this section, the registration fee for the out-of-state collection
agency shall be not less than the fee charged by the state in which the
out-of-state collection agency is located to a person who collects debts in
that state only by means of interstate communications from the person’s
location in another state.
(6)
If the director determines that the state where an out-of-state collection
agency is located and registered, if required to be registered, exempts a
collection agency located and registered in this state from registration
requirements in that state, the director shall exempt out-of-state collection
agencies located in that state from the registration requirements of ORS
697.005 to 697.095.
(7)
The department shall maintain current records of the information required for
registration under this section. [1981 c.85 §5; 1983 c.69 §1; 1991 c.627 §1;
1995 c.622 §3; 1997 c.249 §211]
697.035 [1959
c.525 §10; 1963 c.558 §2; 1971 c.119 §2; 1974 c.25 §2; 1975 c.364 §4; 1977
c.873 §20; repealed by 1981 c.85 §17]
697.038 [1971
c.119 §1; 1973 c.547 §2; 1974 c.25 §3; 1975 c.364 §5; repealed by 1981 c.85 §17]
697.039 Revocation, suspension or refusal
to issue or renew registration. (1) The
Director of the Department of Consumer and Business Services may refuse to
issue or renew or may revoke or suspend any registration under ORS 697.031 if
the director determines that:
(a)
Any information a person files with the director under ORS 697.031 is false or
untruthful;
(b)
A person has violated any of the rules of the director for registration under
ORS 697.031;
(c)
A person has violated the provisions of ORS 697.045 or 697.058;
(d)
A person has failed to maintain in effect the bond or an irrevocable letter of
credit required under ORS 697.031;
(e)
A person has died or become incapacitated;
(f)
A person has engaged in dishonest, fraudulent or illegal practices or conduct
in any business or profession; or
(g)
A person has been convicted of a felony or misdemeanor, an essential element of
which is fraud.
(2)
A revocation or suspension under this section may be for a time certain or upon
condition that certain acts be performed.
(3)
If the director issued an initial order of revocation of a registration before
the expiration of the registration, the director may enter a final order of
revocation even though the registration has expired.
(4)
Actions of the director under this section are subject to the provisions of ORS
chapter 183. [1981 c.85 §6; 1991 c.627 §2; 1995 c.622 §4; 1999 c.413 §1; 2005
c.338 §11]
697.040
[Repealed by 1959 c.525 §36]
697.041 [1959
c.525 §11; 1963 c.558 §3; 1969 c.373 §6; 1973 c.547 §3; 1973 c.827 §79; 1974
c.36 §22; 1975 c.364 §6; repealed by 1981 c.85 §17]
697.045 Status of accounts and claims
assigned to agency; rights of assignor; appearance in small claims or justice
court; registration as condition of access to courts.
(1) A registered collection agency has a property right in any claim or account
assigned to the agency in writing for collection. Except as may be otherwise
provided in writing between the assignor of the claim or account and the
registered collection agency, the registered collection agency as assignee of
the claim or account, in its own name, may:
(a)
Collect the claim or account;
(b)
Compromise or accept settlement of the claim or account;
(c)
Bring and maintain an action to recover the amount owing from the claim or
account; and
(d)
With prior written approval of the assignor, transfer or forward the claim or
account to another collection agency for collection.
(2)
Except as may be otherwise provided in writing between the assignor of the
claim or account and the registered collection agency, the assignor may
withdraw the claim or account from the agency at any time without condition or
charge.
(3)
Notwithstanding ORS 9.160 and 9.320, in any action in the small claims
department of a circuit court or justice court a
registered collection agency may appear as a party without appearance by
attorney for the purpose of recovering the amount owing on a claim or account
assigned to the agency in writing for collection. The provisions of this
subsection apply to any supplementary proceeding in aid of execution after
entry of a judgment in the small claims department.
(4)
No collection agency is entitled to bring or maintain an action involving the
collection of a claim or account on behalf of its customers in any courts of
this state without alleging and proving that it is duly registered under ORS
697.015 and 697.031. A registration certificate or a certification of
registration by the Director of the Department of Consumer and Business
Services for any designated time period shall be received by the court as prima
facie evidence of the collection agency’s registration for the time period designated.
[1981 c.85 §7; 2003 c.78 §1]
697.050
[Repealed by 1959 c.525 §36]
697.051 [1963
c.558 §17; 1977 c.185 §8; repealed by 1981 c.85 §17]
697.053 Registration exclusive regulation;
local fees authorized. The provisions of ORS 697.015
and 697.031 are exclusive and no political subdivision or agency of this state
may require of a collection agency any registration, license or fee for any
collection agency duly registered under ORS 697.015 and 697.031. Nothing in
this section limits the authority of any political subdivision to levy and
collect a general and nondiscriminatory license or registration fee upon all
businesses in the political subdivision or to levy a tax based upon the
business conducted by any registered collection agency within the political
subdivision. [1981 c.85 §8]
697.055 [1975
c.364 §37; 1977 c.185 §9; repealed by 1981 c.85 §17]
697.058 Agency records; business office;
trust accounts; reporting requirements; audit of trust accounts; cost of audit;
exemptions. (1) Except as provided in subsection
(9) of this section, every collection agency shall keep a record of all sums
collected by it, and of all disbursements made by it, and shall maintain and
keep all such records and all customers’ funds within this state. Collection
agencies shall maintain accounting records of collections for and payments to
customers for a period of six years from the date of the last entry thereon.
Collection agencies shall keep other records for a period of two years from the
date of the last entry thereon. Collection agencies, or any employee thereof,
shall not intentionally make any false entry in any collection agency record or
intentionally mutilate, destroy or otherwise dispose of any such record within
the time limits provided in this section. This subsection does not apply to
out-of-state collection agencies.
(2)
Except as provided in subsection (9) of this section, every collection agency
shall establish and maintain a regular, active business office in this state
for the purpose of conducting business in this state. The office shall be open
to the public during reasonable, stated business hours. This subsection does
not apply to out-of-state collection agencies.
(3)
A collection agency shall not commingle the money of customers with other moneys.
(4)
Except as provided in subsection (9) of this section, a collection agency shall
maintain a separate trust account in this state for customers’ funds and shall
keep funds in such trust account until disbursed to the customer. This
subsection does not apply to out-of-state collection agencies.
(5)
Except as provided in subsection (9) of this section, every collection agency
that requires customers to pay an amount for services prior to the time that
the services are rendered shall maintain a separate trust account in this state
for prepayments and shall keep prepayment funds in the trust account for 180
days or until the services for which prepayment is made are performed,
whichever occurs first.
(6)
Every collection agency, within 30 days after the close of each calendar or
fiscal month, shall report and pay to its customers the net proceeds due and
payable of all collections made during that calendar or fiscal month. When the
net proceeds are less than $5 at the end of any calendar or fiscal month,
payments may be deferred for a period not to exceed three months.
(7)
Upon the motion of the Director of the Department of Consumer and Business
Services or upon receipt of a complaint by a customer of the collection agency,
the director may audit the collection agency’s trust accounts with respect to
any violation by the collection agency of this section. If the director finds
any discrepancy in the trust accounts, the director also may audit the
operating account of the collection agency. The collection agency shall pay the
reasonable cost of an audit under this section, as determined by the director.
(8)
If a collection agency does not pay the cost of the audit determined under
subsection (7) of this section, the director may assign the delinquent account
to the Department of Revenue for collection in the manner that other debts are
collected under ORS 293.250.
(9)
The director, by rule or order, may exempt a collection agency from the
requirements of subsection (1), (2), (4) or (5) of this section if the
collection agency:
(a)
Satisfies the director that the books, records and trust accounts of the
collection agency may be examined by the director without undue delay or
expense;
(b)
Provides for timely and convenient remittance of debtor payments and funds owed
to the customer; and
(c)
Complies with all conditions the director may require relating to additional
bonding requirements and to provisions for auditing financial statements of
trust accounts, receiving payments from and communicating with debtors, and
remitting funds to customers. [1981 c.85 §9; 1983 c.69 §2; 1995 c.622 §9; 1999
c.413 §2; 1999 c.468 §2]
697.060
[Repealed by 1959 c.525 §36]
697.061 [1959
c.525 §5; 1963 c.558 §4; 1963 c.580 §59; 1973 c.547 §4; 1975 c.364 §7; repealed
by 1981 c.85 §17]
697.063 Status of business records and
bank accounts following revocation of registration; liquidation; expenses and
attorney fees. (1) When the Director of the Department
of Consumer and Business Services revokes a registration, the director may take
possession of all business records and all bank accounts of the registrant and
retain possession of them pending the further proceedings specified in this
section. The director shall inventory all the business records and all bank
accounts of the registrant. The director shall file one copy of the inventory
in the office of the director and one copy in the office of the clerk of the
circuit court of the county in which the principal place of business of the
registrant is located and shall mail one copy to each shareholder or partner of
the registrant at the last-known address of the shareholder or partner. The
clerk of the court shall file the inventory as a pending proceeding and give it
a case number. The director by rule may delegate the director’s authority under
this section relating to the inventory of business records and bank accounts of
a registrant.
(2)
If any person refuses to permit the director to take possession of business
records and bank accounts under subsection (1) of this section, the director
may apply to the circuit court of the county in which the principal place of
business of the registrant is located for an order appointing a receiver, who
may be the director, to take possession.
(3)
The business records and bank accounts of the registrant shall be liquidated.
If a receiver has not been appointed, the director shall apply for appointment
by the court in which the inventory was filed. The liquidation shall proceed as
provided by law for liquidation of a private corporation in receivership.
(4)
The expenses of the receiver and attorney fees, as well as all expenditures
required in the liquidation proceedings, shall be fixed by the director,
subject to the approval of the court, and, upon certification by the director,
shall be paid out of the funds in the hands of the director as such receiver. [1995
c.622 §6; 2003 c.576 §218]
697.070
[Amended by 1959 c.525 §6; 1961 c.686 §1; 1969 c.373 §7; 1971 c.119 §3; 1973
c.547 §5; 1974 c.25 §4; 1975 c.364 §8; 1977 c.873 §21; repealed by 1981 c.85 §17]
697.075 [1981
c.85 §16; 1991 c.249 §63; repealed by 1995 c.622 §15]
697.080
[Amended by 1959 c.525 §7; 1963 c.558 §5; 1969 c.373 §8; 1975 c.364 §9;
repealed by 1981 c.85 §17]
697.085 Rules.
The Director of the Department of Consumer and Business Services may adopt
rules for the administration and enforcement of ORS 697.005 to 697.095, 697.105
and 697.115. [1983 c.69 §5; 2005 c.338 §12]
697.086 Rules for collection of child
support payments. (1) The Director of the
Department of Consumer and Business Services shall adopt rules that regulate
the practices of a collection agency that enters into an agreement with an obligee to collect child support payments as provided in
ORS 25.020.
(2)
The rules adopted by the director under this section shall be as consistent as
practicable with the provisions of 15 U.S.C. 1692c to 1692f. [2003 c.421 §4]
697.087 Injunction; damages; attorney fees;
limitation on actions. (1) Any person injured as a
result of the violation of any provision of ORS 697.015 or 697.058 or any rule
adopted under ORS 697.031 or 697.085 may bring an action in an appropriate
court to enjoin the practice or to recover actual damages or $200, whichever is
greater. The court or the jury may award punitive damages and the court may
provide such equitable relief as it deems necessary or proper.
(2)
Notwithstanding any other actions provided by law, the Attorney General of the
State of Oregon or the prosecuting attorney of any county may bring an action
in the name of the state against any person to restrain and prevent violation
of any provision of ORS 697.005 to 697.095.
(3)
In any action brought by a person under this section, the court may award, in
addition to the relief provided, reasonable attorney fees at trial and on appeal
and costs. If the defendant prevails, the court may award reasonable attorney
fees at trial and on appeal and costs if it finds the action to be frivolous.
(4)
Actions brought under this section shall be commenced within one year from the
date the violation occurs. [1995 c.622 §7]
697.090
[Repealed by 1959 c.525 §36]
697.091 Fees or compensation received in
violation of law; disposition. (1) A person
who violates any provision of ORS 697.015 or 697.058 or any rule adopted under
ORS 697.031 or 697.085 shall not charge or receive any fee or compensation on
any moneys received or collected while in violation of any provision of ORS
697.015 or 697.058 or any rule adopted under ORS 697.031 or 697.085.
(2)
A person shall not charge or receive any fee or compensation on any moneys
received or collected while operating in accordance with any provision of ORS
697.015 or 697.058 or any rule adopted under ORS 697.031 or 697.085 but that is
received or collected as a result of the person’s acts as a collection agency
or out-of-state collection agency operating in violation of any provision of
ORS 697.015 or 697.058 or any rule adopted under ORS 697.031 or 697.085.
(3)
All moneys collected or received in violation of this section shall be
immediately returned to the assignors, or their assigns, of the account on
which the moneys were paid. [1995 c.622 §8]
697.093 Enforcement.
(1) The Director of the Department of Consumer and Business Services may:
(a)
Undertake the investigations, including investigations outside this state, that
the director considers necessary to determine whether a person has:
(A)
Violated, is violating or is about to violate:
(i) ORS 697.015, 697.031, 697.045, 697.058, 697.091, 697.105
or 697.115;
(ii)
A rule adopted under ORS 697.031, 697.085 or 697.086; or
(iii)
An order issued under this section;
(B)
Filed information under ORS 697.031 that is false or untruthful; or
(C)
Failed to maintain in effect the bond or an irrevocable letter of credit
required under ORS 697.031.
(b)
Require a person to file a statement in writing, under oath or otherwise,
concerning the matter being investigated.
(c)
Take evidence from witnesses and compel the attendance of witnesses and the
production of books, papers, correspondence, memoranda, agreements or other
documents or records that the director considers relevant or material to an
investigation or proceeding.
(d)
If the director has reason to believe that a person has:
(A)
Violated, is violating or is about to violate ORS 697.015, 697.031, 697.045,
697.058, 697.091, 697.105 or 697.115 or a rule adopted under ORS 697.031,
697.085 or 697.086, issue an order to cease and desist from the violation.
(B)
Filed information under ORS 697.031 that is false or untruthful, issue an order
to correct the filing.
(C)
Failed to maintain in effect the bond or an irrevocable letter of credit
required under ORS 697.031, issue an order to remedy the failure.
(2)
The authority conferred by this section is in addition to and not in lieu of
any other authority conferred on the director. [2005 c.338 §9]
697.094 Orders issued under ORS 697.093.
(1) The Director of the Department of Consumer and Business Services shall
serve an order under ORS 697.093 on the person named in the order.
(2)
An order issued under ORS 697.093 becomes effective upon service on the person
named in the order.
(3)
ORS 183.413 to 183.470 apply to an order issued under ORS 697.093.
(4)
Notwithstanding subsection (3) of this section, a person may not obtain a
hearing on the order unless the person requests the hearing in writing within
20 days after service of the order.
(5)
A person who does not request a contested case hearing may not obtain judicial
review of the order.
(6)
The director may vacate or modify an order issued under ORS 697.093. A modified
order is effective upon service on the person named in the order. [2005 c.338 §10]
697.095 Civil penalties.
(1) In addition to any other penalty provided by law, a person who violates any
provision of ORS 697.015 or 697.058 or any rule adopted under ORS 697.031,
697.085 or 697.086 is subject to forfeiture and payment of a civil penalty to
the Department of Consumer and Business Services in an amount of not more than
$1,000 for each offense.
(2)
Civil penalties under this section shall be imposed as provided in ORS 183.745.
(3)
All penalties recovered shall be deposited in the Consumer and Business
Services Fund created by ORS 705.145. [1983 c.69 §4; 1987 c.373 §44; 1991 c.734
§87; 2005 c.338 §13]
697.098 [1981
c.267 §2; repealed by 1987 c.373 §85]
697.100
[Amended by 1959 c.525 §8; 1969 c.373 §9; 1975 c.364 §10; repealed by 1981 c.85
§17]
697.105 Fee for collection of debt owed
public body; notice to debtor; amount. (1) Except as
provided in ORS 1.202 and 293.231, if a public body, as defined in ORS 174.109,
uses a private collection agency to collect a debt owed to the public body, the
public body may add a reasonable fee to the amount of the debt, payable by the
debtor, to compensate the public body, in whole or in part, for the collection
agency fee incurred or to be incurred.
(2)
A fee may not be added under subsection (1) of this section unless the public
body has provided notice to the debtor:
(a)
Of the existence of the debt;
(b)
That the debt may be assigned to a private collection agency for collection;
and
(c)
Of the amount of the fee that may be added to the debt under subsection (1) of
this section.
(3)
Except as provided by federal law, the public body may not add a fee under this
section that exceeds the collection fee of the private collection agency. [2003
c.66 §1; 2007 c.204 §1]
697.110
[Repealed by 1959 c.525 §36]
697.111 [1959
c.525 §12; 1961 c.686 §2; 1963 c.558 §15; 1974 c.25 §5; 1975 c.364 §11;
repealed by 1981 c.85 §17]
697.115 Fee for collection of commercial
debt; amount; limit. (1) As used in this section, “commercial
debt” means any obligation for payment of money or thing of value arising out
of an agreement or contract, express or implied, in which the transaction that
is the subject of the agreement or contract is not primarily for personal,
family or household purposes.
(2)
A person using a private collection agency to collect a commercial debt owed to
the person may add a reasonable fee to the amount of the commercial debt,
payable by the debtor, to compensate the person, in whole or in part, for the
collection agency fee incurred or to be incurred. A person may not add a fee
under this section that:
(a)
Exceeds the collection fee of the private collection agency; or
(b)
Was not authorized in the agreement or contract creating the commercial debt. [2003
c.66 §2; 2007 c.204 §2]
EXCHANGE FACILITATORS
Note:
Sections 1 to 7, chapter 858, Oregon Laws 2009, provide:
Sec. 1. Definitions.
As used in sections 1 to 6 of this 2009 Act:
(1)
“Affiliate” means a person that controls, is controlled by or is under common
control with another person, directly or indirectly.
(2)
“Client” means a taxpayer that enters into an agreement with an exchange
facilitator for services.
(3)
“Exchange accommodation titleholder” means an exchange accommodation
titleholder as described in section 4.02(1) of Internal Revenue Service Revenue
Procedure 2000-37.
(4)(a)
“Exchange facilitator” means a person that:
(A)
Is engaged in a business in which, for a fee, the person enters into agreements
with clients for the purpose of performing services as:
(i) A qualified intermediary;
(ii)
An exchange accommodation titleholder;
(iii)
A trustee of a qualified trust; or
(iv)
An escrow holder of a qualified escrow account; or
(B)
Maintains an office in this state for the purpose of soliciting or engaging in
business of the type described in subparagraph (A) of this paragraph.
(b)
“Exchange facilitator” does not include:
(A)
A taxpayer or a disqualified person, as defined in 26 C.F.R. 1.1031(k)-1(k),
that is seeking to qualify for the nonrecognition
provisions of 26 U.S.C. 1031.
(B)
A financial institution, as defined in ORS 706.008, that is not facilitating
exchanges under 26 U.S.C. 1031 and is:
(i) Acting as a depository for exchange funds;
(ii)
Acting solely as a trustee of a qualified trust, notwithstanding the provisions
of paragraph (a)(A)(iii) of this subsection; or
(iii)
Acting solely as an escrow holder of a qualified escrow account,
notwithstanding the provisions of paragraph (a)(A)(iv) of this subsection.
(C)
An escrow agent, as defined in ORS 696.505, title insurance company or other
person that is not facilitating exchanges under 26 U.S.C. 1031 and is:
(i) Acting solely as a trustee of a qualified trust,
notwithstanding the provisions of paragraph (a)(A)(iii) of this subsection; or
(ii)
Acting solely as an escrow holder of a qualified escrow account,
notwithstanding the provisions of paragraph (a)(A)(iv) of this subsection.
(D)
A person that advertises and teaches seminars or classes or that otherwise
makes presentations for the primary purpose of educating professionals in the
field of taxation about tax-deferred exchanges or training persons to act as
exchange facilitators.
(E)
A qualified intermediary that holds funds from the disposition of property
located outside this state and used in an exchange under 26 U.S.C. 1031,
notwithstanding the provisions of paragraph (a)(A)(i)
of this subsection, or an exchange accommodation titleholder that does not hold
title to property located in this state.
(F)
An entity that an exchange facilitator wholly owns and uses to take title to
property in this state.
(5)(a)
“Exchange funds” means moneys, property, instruments or other consideration an
exchange facilitator receives from or on behalf of a client in connection with
an exchange conducted under 26 U.S.C. 1031.
(b)
“Exchange funds” does not include moneys or other consideration the exchange
facilitator receives from a client as compensation for the exchange facilitator’s
services.
(6)
“Fee” means compensation of any nature, direct or indirect, monetary or
in-kind, that a person or another person related to the person in the manner
described in 26 U.S.C. 267(b) or 26 U.S.C. 707(b) receives for services related
or incidental to the exchange of like-kind property under 26 U.S.C. 1031.
(7)
“Financial institution” has the meaning given that term in ORS 706.008.
(8)
“Person” means an individual, corporation, partnership, limited liability
company, joint venture, association, joint stock company, trust or other legal
entity and the agents and employees of the entity.
(9)
“Prudent investor standard” means an exercise of judgment and care under
circumstances then prevailing that investors of prudence, discretion and
intelligence exercise in the management of the investors’ own affairs not in
regard to speculation but in regard to the permanent disposition of the
investors’ funds when considering probable income and the probable safety of
the investors’ capital.
(10)
“Qualified escrow account” has the meaning given that term in 26 C.F.R.
1.1031(k)-1(g)(3)(ii).
(11)
“Qualified exchange accommodation agreement” means a qualified exchange
accommodation agreement as described in section 4.02(3) of Internal Revenue
Service Revenue Procedure 2000-37.
(12)
“Qualified intermediary” has the meaning given that term in 26 C.F.R.
1.1031(k)-1(g)(4)(iii).
(13)
“Qualified trust” has the meaning given that term in 26 C.F.R.
1.1031(k)-1(g)(3)(iii).
(14)
“Relinquished property” means relinquished property as described in 26 C.F.R.
1.1031(k)-1(a).
(15)
“Replacement property” means replacement property as described in 26 C.F.R.
1.1031(k)-1(a). [2009 c.858 §1]
Sec. 2. Notice of change in control of
exchange facilitator. (1) When a change in control occurs
for an exchange facilitator, the exchange facilitator within 10 business days
after the change in control becomes effective shall notify the exchange
facilitator’s clients with relinquished property located in this state or for
which the exchange facilitator holds replacement property under a qualified
exchange accommodation agreement. If the exchange facilitator is a publicly
traded company and remains a publicly traded company after the change in
control, the publicly traded company need not notify existing clients about the
change in control.
(2)
The notice required under subsection (1) of this section must:
(a)
Be delivered by hand, first-class mail, overnight mail, electronic mail or
facsimile;
(b)
Be posted on any website the exchange facilitator maintains for 90 days after
the effective date of the change in control; and
(c)
Set forth the name, address, telephone number and other contact information for
the person that assumes control of the exchange facilitator.
(3)
For purposes of this section, a change in control for an exchange facilitator
occurs if more than 50 percent of the exchange facilitator’s assets or
ownership interests transfer, directly or indirectly, to another person within
12 months. [2009 c.858 §2]
Sec. 3. Exchange facilitator duties and
requirements. (1) An exchange facilitator shall at
all times:
(a)
Maintain one or more fidelity bonds that are issued by a corporate surety
authorized to do business in this state in an aggregate amount of not less than
$1 million;
(b)
Deposit with a financial institution in an interest-bearing deposit account or
money market account, the interest of which accrues to the exchange
facilitator, moneys, securities or irrevocable letters of credit issued by
corporate sureties authorized to do business in this state in an aggregate
amount of not less than $1 million;
(c)
Deposit with a financial institution funds used in an exchange under 26 U.S.C.
1031 in a qualified escrow account or a qualified trust and provide that
withdrawals from the account or trust require both the exchange facilitator’s
and the client’s written authorization; or
(d)
Be listed as a named insured on one or more fidelity bonds that are issued by a
corporate surety authorized to do business in this state in an aggregate amount
of not less than $1 million.
(2)
An exchange facilitator shall at all times:
(a)
Maintain errors and omissions insurance issued by an authorized insurer, as
defined in ORS 731.066, in an amount not less than $250,000;
(b)
Deposit with a financial institution in an interest-bearing deposit account or
money market account, the interest of which accrues to the exchange
facilitator, moneys, securities or irrevocable letters of credit issued by
corporate sureties authorized to do business in this state in an aggregate
amount of not less than $250,000; or
(c)
Be listed as a named insured in an errors and omissions insurance policy issued
by an authorized insurer, as defined in ORS 731.066, in an amount of not less
than $250,000.
(3)
An exchange facilitator may maintain bonds or deposits as provided in
subsection (1) of this section or insurance or deposits as provided in
subsection (2) of this section in amounts in excess of the minimum amounts
specified in subsections (1) and (2) of this section. [2009 c.858 §3]
Sec. 4. Exchange facilitator as custodian
of exchange funds. (1) An exchange facilitator
shall act as a custodian for all exchange funds and shall invest the exchange
funds only in investments that:
(a)
Meet a prudent investor standard; and
(b)
Satisfy the investment goals of liquidity and preservation of principal.
(2)
An exchange facilitator fails to invest exchange funds according to a prudent
investor standard if:
(a)
The exchange facilitator knowingly commingles exchange funds with the exchange
facilitator’s operating accounts; or
(b)
Exchange funds are loaned or otherwise transferred to a person or entity, other
than a financial institution, that is an affiliate of or otherwise related to
the exchange facilitator, unless the exchange funds are transferred from an
exchange facilitator to an exchange accommodation titleholder in accordance
with a qualified exchange accommodation agreement.
(3)
Exchange funds are not subject to execution or attachment in any claim against
the exchange facilitator.
(4)
An exchange facilitator may not knowingly keep moneys or cause moneys to be
kept in a financial institution under a name that designates the moneys as
belonging to a client unless the moneys belong to the client and the client
entrusted the moneys to the exchange facilitator. [2009 c.858 §4]
Sec. 5. Prohibitions.
An exchange facilitator may not knowingly:
(1)
Make a materially false statement, material misrepresentation or material
statement intended to mislead a client or another person concerning an exchange
conducted under 26 U.S.C. 1031, or continue a course of material
misrepresentation through advertising or otherwise;
(2)
Fail to account within a reasonable time for moneys or property in the exchange
facilitator’s possession that belongs to another person;
(3)
Engage in conduct that constitutes fraud or dishonesty or commit a crime
involving fraud, misrepresentation, deceit, embezzlement, misappropriation of
funds, robbery or theft; or
(4)
Materially fail to fulfill the exchange facilitator’s contractual duty to
deliver moneys or property to a client, unless the failure results from
circumstances beyond the exchange facilitator’s control. [2009 c.858 §5]
Sec. 6. Liability; right of action.
(1) A person that claims to have suffered damage because an exchange
facilitator violated a provision of section 4 or 5 of this 2009 Act has a right
of action on the bonds or deposits described in section 3 of this 2009 Act. An
action under this subsection does not limit the remedies available to the
person under this section or under other provisions of law.
(2)
An exchange facilitator that violates a provision of section 4 or 5 of this
2009 Act is subject to an action for damages brought in a circuit court of this
state. [2009 c.858 §6]
Sec. 7. Repeal.
Sections 1 to 6 of this 2009 Act are repealed on January 2, 2014. [2009 c.858 §7]
697.120
[Amended by 1953 c.520 §5; 1961 c.686 §3; 1974 c.25 §6; 1975 c.364 §12;
repealed by 1981 c.85 §17]
697.130
[Amended by 1953 c.520 §5; repealed by 1959 c.525 §36]
697.140
[Repealed by 1959 c.525 §36]
697.145
[Amended by 1953 c.520 §5; repealed by 1959 c.525 §36]
697.146 [1959
c.525 §13; 1961 c.686 §4; 1963 c.558 §6; 1971 c.119 §4; 1974 c.25 §7; 1975
c.364 §13; repealed by 1981 c.85 §17]
697.150 [Amended
by 1953 c.520 §5; repealed by 1959 c.525 §36]
697.160
[Amended by 1953 c.520 §5; repealed by 1959 c.525 §36]
697.165
[Amended by 1959 c.525 §16; 1963 c.558 §16; 1963 c.580 §60; 1969 c.591 §300;
1975 c.364 §14; repealed by 1981 c.85 §17]
697.170 [Amended
by 1957 §469 §1; repealed by 1959 c.525 §36]
697.180
[Repealed by 1959 c.525 §36]
697.181 [1959
c.525 §14; 1963 c.580 §61; 1969 c.373 §10; 1975 c.364 §15; repealed by 1981
c.85 §17]
697.190
[Amended by 1959 c.525 §17; 1963 c.558 §7; 1975 c.364 §16; repealed by 1981
c.85 §17]
697.200
[Amended by 1975 c.364 §17; repealed by 1981 c.85 §17]
697.210
[Amended by 1959 c.525 §18; 1963 c.580 §62; 1975 c.364 §18; repealed by 1981
c.85 §17]
697.220
[Amended by 1959 c.525 §19; repealed by 1973 c.794 §34]
697.230
[Amended by 1959 c.525 §20; 1963 c.558 §8; 1963 c.580 §63; 1975 c.364 §19;
repealed by 1981 c.85 §17]
697.235 [1959
c.525 §22; 1975 c.364 §20; 1977 c.185 §10; repealed by 1981 c.85 §17]
697.240
[Amended by 1957 c.429 §2; 1959 c.525 §23; 1963 c.558 §9; 1975 c.364 §21;
repealed by 1981 c.85 §17]
697.245 [1974
c.25 §9; 1975 c.364 §22; repealed by 1981 c.85 §17]
697.250
[Amended by 1959 c.525 §24; 1975 c.364 §23; 1977 c.185 §11; repealed by 1981
c.85 §17]
697.260
[Repealed by 1959 c.525 §36]
697.261 [1959
c.525 §15; 1963 c.558 §10; 1963 c.580 §64; 1969 c.373 §11; 1973 c.547 §6; 1975
c.364 §24; repealed by 1981 c.85 §17]
697.270
[Amended by 1959 c.525 §25; repealed by 1971 c.734 §21]
697.271 [1975
c.364 §33; repealed by 1981 c.85 §17]
697.273 [1975
c.364 §34; repealed by 1981 c.85 §17]
697.275 [1963
c.580 §57; 1975 c.364 §25; repealed by 1981 c.85 §17]
697.280
[Repealed by 1959 c.525 §36]
697.281 [1975
c.364 §36; repealed by 1981 c.85 §17]
697.285 [1963
c.580 §56; repealed by 1975 c.364 §38]
697.290
[Amended by 1959 c.525 §26; 1963 c.558 §11; 1971 c.119 §5; 1975 c.364 §26;
repealed by 1981 c.85 §17]
697.295 [1977
c.185 §2; repealed by 1981 c.85 §17]
697.300 [1969
c.373 §2; 1975 c.364 §27; repealed by 1981 c.85 §17]
697.305 [1969
c.373 §3; 1975 c.364 §28; repealed by 1981 c.85 §17]
697.310 [1969
c.373 §4; 1975 c.364 §29; repealed by 1981 c.85 §17]
697.330 [1975
c.364 §35; repealed by 1981 c.85 §17]
697.400
[Repealed by 1959 c.525 §36]
697.401 [1959
c.525 §29; 1963 c.558 §12; repealed by 1963 c.580 §103]
697.402 [1963
c.580 §52; 1969 c.314 §98; 1971 c.753 §39; 1975 c.364 §30; 1977 c.185 §12;
repealed by 1981 c.85 §17]
697.410
[Repealed by 1959 c.525 §36]
697.411 [1959
c.525 §30; 1963 c.558 §13; repealed by 1963 c.580 §103]
697.412 [1963
c.580 §54; repealed by 1971 c.753 §74]
697.420
[Repealed by 1959 c.525 §36]
697.421 [1959
c.525 §31; repealed by 1963 c.580 §103]
697.422 [1963
c.580 §55; 1975 c.364 §31; 1977 c.185 §13; repealed by 1981 c.85 §17]
697.430
[Amended by 1953 c.518 §2; 1957 c.469 §3; repealed by 1959 c.525 §36]
697.440
[Amended by 1959 c.525 §32; repealed by 1981 c.85 §17]
697.450
[Amended by 1959 c.525 §33; repealed by 1971 c.753 §74]
697.460
[Amended by 1959 c.525 §34; 1963 c.558 §14; 1967 c.216 §1; repealed by 1971
c.753 §74]
697.470
[Repealed by 1981 c.85 §17]
697.480
[Renumbered as part of 697.992]
CHECK-CASHING BUSINESSES
697.500 Definitions for ORS 697.500 to
697.555. As used in ORS 697.500 to 697.555:
(1)
“Check-cashing business” means any person that conducts a business that for a
fee, service charge or other consideration provides money, credit or any other
thing of value in exchange for payment instruments. “Check-cashing business”
does not include a financial institution as defined in ORS 706.008 or an
employee of a licensee.
(2)
“Licensee” means a person licensed as a check-cashing business under ORS
697.514.
(3)
“Payment instrument” means:
(a)
A check, warrant or draft issued by the federal government, a state government,
a county or municipal government, or a federal or state agency;
(b)
A payroll check; or
(c)
A personal check, money order or any other check. [2007 c.358 §1]
697.502 Exemptions from licensing and record-keeping
requirements. (1) ORS 697.510, 697.512, 697.514 and
697.540 do not apply to a person licensed under ORS 717.200 to 717.320.
(2)
ORS 697.510, 697.512, 697.514, 697.528 and 697.540 do not apply to a person
engaged in the bona fide retail sale of goods or services and not purporting to
be a check-cashing business that, as an incident of or independent of a retail
sale or service, from time to time cashes payment instruments for a fee,
service charge or other consideration but does not charge more than $2 or two
percent of the face value of the payment instrument, whichever is greater. [2007
c.358 §2]
697.504 Licensing requirement.
Except as provided in ORS 697.502, a person may not conduct, purport to conduct
or advertise that the person conducts a check-cashing business without first obtaining
a license under ORS 697.514. [2007 c.358 §3]
697.510 License application form and
contents; waiver; rules. (1) An applicant for a license
to conduct a check-cashing business shall apply in writing and in a form that
the Director of the Department of Consumer and Business Services prescribes by
rule.
(2)
An application for a license to conduct a check-cashing business must contain
all of the following:
(a)
The applicant’s name, together with any fictitious name, assumed business name
or trade name the applicant uses in conducting the applicant’s business;
(b)
The name and address of all of the applicant’s members, partners, officers,
directors or principals, as appropriate;
(c)
The name and address of the applicant’s agent for the service of process,
notice or demand, or a power of attorney that the applicant has executed and by
which the applicant appoints the Director of the Department of Consumer and
Business Services as the applicant’s agent for service of process, notice or
demand;
(d)
The applicant’s principal business address, the location of the applicant’s
business records and the addresses for all locations where the applicant
conducts or proposes to conduct a check-cashing business; and
(e)
Other information that the director may require concerning the applicant’s
financial responsibility, background experience and business activities and
those of the applicant’s members, partners, officers, directors and principals.
(3)
The director, for good cause shown, may waive any requirement of this section
with respect to any license application or may allow an applicant to submit
substituted information in a license application in lieu of the information
required under subsection (2) of this section. [2007 c.358 §4]
697.512 Application fee and investigation
fee; rules. (1) Each person who submits an
application under ORS 697.510 shall at the same time pay a nonrefundable
application fee and a nonrefundable investigation fee to the Director of the
Department of Consumer and Business Services in amounts the director prescribes
by rule. If the director approves the application and issues a license under
ORS 697.514, the application fee shall constitute the license fee for the
remaining portion of the first calendar year and the subsequent full calendar
year in which the applicant conducts a check-cashing business.
(2)
The director shall prescribe fee amounts under subsection (1) of this section
that in the aggregate are sufficient to pay all expenses of the Department of
Consumer and Business Services related to administering ORS 697.500 to 697.555.
The director shall pay all moneys received under this section into the Consumer
and Business Services Fund as provided in ORS 705.145. [2007 c.358 §5]
697.514 Application review and license
issuance; expiration and renewal; grounds for denial; rules.
(1) After an applicant has submitted a complete application, the Director of
the Department of Consumer and Business Services shall review the application
and may investigate the applicant’s financial condition and responsibility,
financial and business experience, character and general fitness to conduct a
check-cashing business. The director may also determine if the applicant has
complied with applicable provisions of ORS 697.500 to 697.555 and of federal
law.
(2)
The director shall issue a license to the applicant to conduct a check-cashing
business at the locations identified in the application if the director finds
that:
(a)
The applicant and the applicant’s members, officers, directors and principals
are financially responsible, have a good character and a good reputation and
are experienced and generally fit to conduct a check-cashing business
efficiently, in the public interest and in accordance with law;
(b)
The applicant has fulfilled the requirements imposed under ORS 697.510; and
(c)
The applicant has paid the license and investigation fees required under ORS
697.512.
(3)
A license issued under this section expires on December 31 of the first full
calendar year following the year in which the license is issued. A licensee may
not assign or transfer a license issued under this section. A licensee may
renew a license upon payment of a license fee in an amount the director
prescribes by rule.
(4)
The director shall deny the application if the applicant does not meet the
requirements set forth in this section. The director’s denial shall be in
writing and shall describe the reasons for the denial.
(5)
If the director denies a license under this section, the applicant may request
a hearing in accordance with ORS 183.435. Upon receiving the applicant’s
request, the director shall grant the applicant a hearing under ORS 183.413 to
183.470. [2007 c.358 §6]
697.520 Prohibited practices; effect on
charges for dishonored payment instruments. (1) A
check-cashing business may not charge or collect, directly or indirectly, an
excessive fee, service charge or other consideration for cashing a payment
instrument. A fee, service charge or other consideration is excessive if the
total amount charged is more than the following amounts:
(a)
For a payment instrument issued by the federal government or an agency of the
federal government, by this state or an agency of this state or by the
government of the municipality in which a person is cashing the payment instrument:
(A)
$5 or two percent of the face value of the payment instrument, whichever is
greater, if the person cashing the payment instrument provides valid and
current government-issued photo identification; or
(B)
$5 or 2-1/2 percent of the face value of the payment instrument, whichever is
greater, if the person cashing the payment instrument does not provide valid
and current government-issued photo identification.
(b)
For a payment instrument issued by any other state or political subdivision thereof
or for a payment instrument that is a payroll check:
(A)
$5 or three percent of the face value of the payment instrument, whichever is
greater, if the person cashing the payment instrument provides valid and
current government-issued photo identification; or
(B)
$5 or 3-1/2 percent of the face value of the payment instrument, whichever is
greater, if the person cashing the payment instrument does not provide valid
and current government-issued photo identification.
(c)
For any other payment instrument, $5 or 10 percent of the face value of the
payment instrument, whichever is greater.
(2)
Notwithstanding the provisions of subsection (1) of this section, a fee,
service charge or other consideration is excessive if the total amount charged
is more than $100.
(3)
This section does not affect fees, statutory damages or other charges a person
may collect under ORS 30.701 in connection with dishonored payment instruments.
[2007 c.358 §7]
697.522 Receipt; contents.
A check-cashing business shall provide a receipt to the individual for whom the
business cashes a payment instrument. The receipt must display at least:
(1)
The name, assumed business name or trade name of the check-cashing business;
(2)
The transaction date;
(3)
The face amount of the payment instrument; and
(4)
The fee charged or collected for cashing the payment instrument. [2007 c.358 §8]
697.524 Endorsement and deposit of payment
instruments. A check-cashing business shall:
(1)
Endorse in the name of the business all payment instruments for which the
business provided money, credit or any other thing of value; and
(2)
Deposit or present for payment each such payment instrument not later than one
business day following the date of the transaction. [2007 c.358 §9]
697.526 Notice of fees and charges; filing
with department. A check-cashing business shall
conspicuously post and at all times display in each business location a notice
that states the fees, services charges or other consideration that the business
charges for cashing payment instruments. A licensee shall also file with the
Director of the Department of Consumer and Business Services a copy of the
notice posted in each of the licensee’s business locations. [2007 c.358 §10]
697.528 Records; retention; examination
costs; rules. (1) A check-cashing business shall
make, keep and maintain all records used in providing money, credit or any
other thing of value in exchange for payment instruments that the Director of
the Department of Consumer and Business Services may reasonably require. The
check-cashing business shall keep and maintain the records that the director
requires under this section separate from records used for any other business
that the check-cashing business conducts. The check-cashing business shall
retain the records the director requires under this section for three years
following the date of the transaction each record describes, or for so long as
the director may prescribe by rule.
(2)
The director may examine the records required to be kept and maintained under
this section to determine whether the check-cashing business is complying with
ORS 697.500 to 697.555 and with rules the director has adopted under ORS
697.500 to 697.555. The check-cashing business shall pay the Department of
Consumer and Business Services for the actual cost of the examination. The
director by rule shall establish rates and charges associated with examinations
made under this section. [2007 c.358 §11]
697.530 Prohibited conduct.
A check-cashing business may not:
(1)
Publish, disseminate or cause to be published or disseminated a communication
that contains a false, misleading or deceptive statement or representation.
(2)
Conduct business at premises or locations other than locations licensed by the
Director of the Department of Consumer and Business Services.
(3)
Engage in unfair, deceptive or fraudulent practices. [2007 c.358 §12]
697.540 Suspension or revocation of
license; grounds; notice and hearing. (1) The
Director of the Department of Consumer and Business Services may by order
suspend or revoke any license issued under ORS 697.514 if the director finds
that any of the following circumstances are true:
(a)
The licensee has violated a provision of ORS 697.500 to 697.555 or of a rule or
order the director has adopted or issued under ORS 697.500 to 697.555.
(b)
The licensee knowingly made a false or misleading statement on the application
for a license under ORS 697.510 or in information the licensee submitted to the
director.
(c)
The licensee refused to permit the director to make an investigation authorized
under ORS 697.528.
(d)
The licensee has engaged in, or has a felony or misdemeanor conviction for,
fraud, misrepresentation or deceit or has demonstrated untrustworthiness or
incompetence in conducting the check-cashing business.
(e)
The licensee has not paid a fee required under ORS 697.512 or examination costs
under ORS 697.528.
(2)
The director may not suspend or revoke any license issued under ORS 697.514
unless the licensee has had notice and an opportunity for a hearing in
accordance with ORS 183.413 to 183.470. [2007 c.358 §13]
697.542 Powers of director; cease and
desist order. The Director of the Department of
Consumer and Business Services may:
(1)
Make such investigations as the director deems necessary to determine whether a
person has violated, is violating or is preparing to violate ORS 697.500 to
697.555 or a rule or order adopted or issued under ORS 697.500 to 697.555.
(2)
Require a person to file a statement in writing, under oath or otherwise as the
director determines, concerning a matter under investigation.
(3)
Take evidence from witnesses and compel the attendance of witnesses and the
production of books, papers, correspondence, memoranda, agreements or other
documents or records that the director considers relevant or material to an
investigation or proceeding.
(4)
Take any affirmative action necessary to carry out the provisions of this
section, including assessing the costs of an investigation.
(5)
Order a person to cease and desist from any action that the director has reason
to believe was, is or is about to become a violation of ORS 697.500 to 697.555,
a rule adopted to implement ORS 697.500 to 697.555 or an order the director
issued to enforce ORS 697.500 to 697.555. [2007 c.358 §14]
697.550 Rules.
The Director of the Department of Consumer and Business Services may adopt
rules for the purpose of carrying out the provisions of ORS 697.500 to 697.555.
[2007 c.358 §16]
697.555 Civil penalties; restitution.
(1) If the Director of the Department of Consumer and Business Services finds
that a person has violated a provision of ORS 697.500 to 697.555 or any rules
adopted under ORS 697.500 to 697.555, the director may impose in the manner
provided in ORS 183.745 a civil penalty in an amount not to exceed $1,000 for
each violation or, in the case of a continuing violation, not more than $1,000
for each day that the violation continues. The total amount of a penalty
imposed for a continuing violation may not exceed $20,000 for each offense. The
director shall pay all moneys received under this section into the Consumer and
Business Services Fund as provided in ORS 705.145.
(2)
The director may order any check-cashing business the director finds in
violation of ORS 697.520 to repay any excessive fee, service charge or
consideration the check-cashing business has collected. [2007 c.358 §15]
DEBT MANAGEMENT SERVICE PROVIDERS
697.602 Definitions for ORS 697.602 to
697.842. As used in ORS 697.602 to 697.842:
(1)
“Consumer” means an individual who is obligated or is allegedly obligated to
pay a debt and on whose behalf a debt management service provider performs or
agrees to perform a debt management service.
(2)
“Debt management service” means an activity for which a person receives money
or other valuable consideration or expects to receive money or other valuable
consideration in return for:
(a)
Receiving or offering to receive funds from a consumer for the purpose of
distributing the funds among the consumer’s creditors in full or partial payment
of the consumer’s debts, whether or not the person holds the consumer’s funds;
(b)
Improving or offering to improve or preserve a consumer’s credit record, credit
history or credit rating;
(c)
Modifying or offering to modify terms and conditions of an existing loan or
obligation; or
(d)
Obtaining or attempting to obtain as an intermediary on a consumer’s behalf a
concession from a creditor including, but not limited to, a reduction in the
principal, interest, penalties or fees associated with a debt.
(3)
“Debt management service provider” means a person that:
(a)
Resides or does business in this state; and
(b)
Provides or performs, or represents that the person can or will provide or
perform a debt management service in return for or in expectation of money or
other valuable consideration.
(4)
“Nonprofit entity” means a person, corporation, organization, board,
association or other entity described in 26 U.S.C. 501(c)(3), as in effect on
June 26, 2009, that is exempt from taxation under 26 U.S.C. 501(a). [1983 c.17 §2;
1987 c.373 §45; 1993 c.744 §21; 2009 c.604 §1]
697.610 [1959
c.635 §1; repealed by 1981 c.631 §2]
697.612 Registration requirement;
exceptions. (1) A person that has not registered
with the Director of the Department of Consumer and Business Services under ORS
697.632 may not engage in business in this state in the course of which the
person:
(a)
Performs a debt management service; or
(b)
Receives money or other valuable consideration or expects to receive money or
other valuable consideration for:
(A)
Soliciting or receiving an application from a consumer for a debt management
service;
(B)
Forwarding or providing a completed application for a debt management service
to a debt management service provider;
(C)
Referring a consumer to another debt management service provider, if the person
is a debt management service provider;
(D)
Providing a consumer’s name, address or other information that identifies the
consumer to a debt management service provider for the purpose of arranging the
provision of a debt management service; or
(E)
Providing advice, assistance, instruction or instructional material concerning
a debt management service to a consumer.
(2)
A debt management service provider registered under ORS 697.632 may negotiate
on a consumer’s behalf for a reasonable alternative repayment schedule or to
reduce a claim described in 11 U.S.C. 502 if the debt management service
provider is a nonprofit budget and credit counseling agency approved in
accordance with 11 U.S.C. 111.
(3)
Subsection (1) of this section does not apply to:
(a)
An employee of a debt management service provider, if the debt management
service provider is registered under ORS 697.632.
(b)
An attorney licensed or authorized to practice law in this state, if the
attorney provides a debt management service only incidentally in the practice
of law.
(c)
A financial institution or a trust company, both as defined in ORS 706.008.
(d)
A consumer finance company licensed under ORS chapter 725.
(e)
An escrow agent licensed under ORS 696.505 to 696.590.
(f)
A mortgage banker or mortgage broker licensed under ORS 86A.095 to 86A.198 or a
mortgage loan originator, as defined in ORS 86A.100.
(g)
A broker-dealer registered with the United States Securities and Exchange
Commission or the United States Commodity Futures Trading Commission, if the
broker-dealer is subject to and acts in accordance with regulations promulgated
by either commission.
(h)
A consumer reporting agency, as defined in 15 U.S.C. 1681a(f).
(i) A public body, as defined in ORS 174.109.
(j)
A person that is obeying or acting in accordance with a court order.
(k)
An accredited educational institution or program that offers or performs a debt
management service without receiving money or other valuable consideration, if
the institution or program performs the debt management service as an
incidental part of a class or a duty the institution or program provides
regularly.
(L)
A nonprofit budget and credit counseling agency approved in accordance with 11
U.S.C. 111 that:
(i) Provides only an individual or group briefing, as
described in 11 U.S.C. 109(h), or an instructional course concerning personal
financial management, as described in 11 U.S.C. 111; and
(ii)
Does not receive or offer to receive funds from a consumer for the purpose of
distributing the funds among the consumer’s creditors in full or partial
payment of the consumer’s debts.
(m)
A nonprofit entity that provides advice, assistance, instruction or
instructional materials to a consumer in return for a fee that is reasonably
calculated to pay the cost of making the advice, assistance, instruction or
instructional materials available.
(n)
An organization or a counselor approved by the United States Department of
Housing and Urban Development under 12 U.S.C. 1701x. [1983 c.17 §3; 2009 c.604 §2;
2009 c.863 §41]
697.615 [1959
c.635 §2; 1969 c.334 §1; 1975 c.761 §1; repealed by 1981 c.631 §2]
697.620 [1959
c.635 §3; repealed by 1981 c.631 §2]
697.622 [1983
c.17 §4; 1997 c.631 §525; repealed by 2009 c.604 §27]
697.625 [1959
c.635 §4; 1973 c.827 §80; repealed by 1981 c.631 §2]
697.630 [1959
c.635 §5; repealed by 1981 c.631 §2]
697.632 Registration procedure; fees;
rules. (1) The Director of the Department of
Consumer and Business Services shall maintain a registry of debt management
service providers and by rule in accordance with ORS chapter 183 shall require
a person that performs a debt management service, unless the person is exempt
under ORS 697.612 (3), to apply to the director to register or to renew a
registration as a debt management service provider. An applicant for
registration or renewal shall provide to the director on a form and in a manner
the director specifies:
(a)
The applicant’s name and address;
(b)
Any assumed business names, trade names or other identities under which the
applicant performs a debt management service;
(c)
A general description of the debt management service business activities the
applicant undertakes or proposes to undertake;
(d)
The names of any managing members, managing partners, executive officers,
directors, principals or agents the applicant has;
(e)
The name of the applicant’s registered agent or the applicant’s agent for the
purpose of receiving service of legal process;
(f)
A signed statement that identifies and describes in detail any incident in
which the applicant or a member, partner, officer, director or principal of the
applicant within the five years before the date on which the applicant applied
to register or renew a registration as a debt management service provider was
subject to:
(A)
A judgment in favor of another person in a circuit court of this state or in an
equivalent court in another state;
(B)
An arbitration award in favor of another person; or
(C)
An adverse final order from an administrative agency in this state or another
state;
(g)
A copy of the corporate surety bond the applicant filed with the director under
ORS 697.642; and
(h)
Other information the director may require concerning the financial
responsibility, training, background, experience and business activities of the
applicant or a member, partner, officer, director or principal of the
applicant.
(2)
At the time an applicant submits an application for registration under this
section, the applicant shall pay a nonrefundable fee in an amount the director
specifies by rule. An applicant who applies to renew a registration shall pay
another fee in an amount the director specifies by rule.
(3)
The director shall specify amounts for the fees described in subsection (2) of
this section that in the aggregate are sufficient to pay the costs of
administering ORS 697.602 to 697.842. The director shall pay all moneys
received under this section as provided in ORS 697.842.
(4)
A registration under this section is valid for two years. In order to continue
to provide a debt management service, a debt management service provider must
renew the registration at the end of the two-year period.
(5)
The director may refuse to register the applicant or may refuse to renew a
registration for a debt management service provider for any of the reasons set
forth in ORS 697.752. [1983 c.17 §5; 1989 c.209 §1; 2009 c.604 §3]
697.635 [1959
c.635 §6; repealed by 1981 c.631 §2]
697.640 [1959
c.635 §7; 1963 c.470 §7; 1975 c.761 §2; repealed by 1981 c.631 §2]
697.642 Bond requirement.
(1) An applicant for registration as a debt management service provider at the
time of application shall file with the Director of the Department of Consumer
and Business Services a bond issued by one or more corporate sureties
authorized to do business in this state. The bond must:
(a)
Be in an amount that is:
(A)
A minimum of $10,000; or
(B)
An amount the director specifies by rule.
(b)
Require the surety company to provide written notice to the director by
registered or certified mail:
(A)
At least 30 days before the surety company cancels or revokes the bond; or
(B)
Whenever the surety company pays for a loss under the bond.
(c)
Satisfy the provisions of subsection (2) of this section.
(2)
The bond that a debt management service provider must file under subsection (1)
of this section, in addition to the requirements set forth under subsection (1)
of this section, must be:
(a)
Payable to the order of the director; and
(b)
Conditioned so that the corporate surety or the debt management service
provider upon the director’s order or a court order pays all amounts due for a
violation of the debt management service provider’s duties and obligations to
consumers under ORS 697.652 to 697.702.
(3)
If a surety cancels, revokes or otherwise terminates a bond required under
subsection (1) of this section or if the amount of the bond is reduced to less
than the amount required under subsection (1) of this section, the debt
management service provider shall immediately:
(a)
File a replacement bond; or
(b)
Surrender the debt management service provider’s registration to the director
and cease operating as a debt management service provider or providing debt
management services.
(4)
A person that has a right of action against a debt management service provider
under ORS 697.718 has a right of action against the bond required under
subsection (1) of this section. [1983 c.17 §6; 1989 c.209 §2; 2009 c.604 §4]
697.645 [1959
c.635 §8; 1963 c.470 §8; repealed by 1981 c.631 §2]
697.650 [1959
c.635 §9; 1963 c.470 §9; 1975 c.761 §3; repealed by 1981 c.631 §2]
697.652 Written agreement and budget
analysis requirement; contents and form of agreement; waiver of requirements
void. (1) A debt management service provider
may not perform a debt management service for a consumer without entering into
a written agreement with the consumer that:
(a)
Lists the name and telephone number for the debt management service provider
and the consumer and, to the extent the information is available, the facsimile
number, electronic mail address and website address or other Internet uniform
resource locator for the debt management service provider.
(b)
Lists every debt for which the debt management service provider will provide a
debt management service on the consumer’s behalf. The list must disclose the
creditor’s name and the approximate total of all of the identified debts.
(c)
States in precise terms how much the consumer can reasonably pay, if the debt
management service provider holds, directly or indirectly, a consumer’s funds
for distribution to creditors.
(d)
Describes in precise terms the debt management services the debt management
service provider will perform, itemizes the fees the debt management service
provider will charge and explains how the debt management service provider
calculated the amount of the fees.
(e)
Shows in the form of a schedule the approximate number of installments, the
amount of each installment and the ratio or other arrangement that will apply
to the consumer’s payment or satisfaction of the debts.
(f)
Provides that the consumer may:
(A)
Examine the consumer’s account in the debt management provider’s office during
office hours; or
(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.
(g)
Provides that the debt management service provider may cancel the agreement
without the consumer’s written authorization if the consumer fails to make
scheduled periodic payments under the terms of the agreement for more than 60
days.
(h)
Estimates the time period necessary to complete the debt management services
identified in the agreement.
(i) Provides that the debt management service provider must
deliver to the consumer each calendar quarter a financial statement of the
consumer’s funds, if any, that the debt management service provider holds,
directly or indirectly.
(j)
Provides that:
(A)
The consumer may cancel the agreement:
(i) At any time before midnight of the third business day
after the consumer entered into the agreement with the debt management service
provider; or
(ii)
At any time during the remaining term of the agreement, for any reason, after
giving 10 calendar days’ written notice of the cancellation to the debt
management service provider;
(B)
The consumer’s cancellation is effective on the date the consumer mails a
notice of cancellation or immediately if the consumer sends the cancellation by
electronic mail or facsimile; and
(C)
The debt management service provider shall:
(i) Refund all fees the consumer paid before the
cancellation if the consumer cancels the agreement under subparagraph (A)(i) of this paragraph; or
(ii)
Return to the consumer all of the consumer’s funds that the debt management
service provider has not expended from among the funds that the debt management
service provider holds, directly or indirectly, if the consumer cancels the
agreement under subparagraph (A)(ii) of this paragraph.
(k)
Provides that the debt management service provider shall notify the consumer’s
creditors in writing that the debt management service provider may negotiate
with the creditors concerning the consumer’s debts on the consumer’s behalf.
(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.
(4)(a)
A consumer’s waiver or an agreement or contract between a debt management
service provider and a consumer that purports to waive or otherwise violate a
provision of ORS 697.602 to 697.842 is void and unenforceable as contrary to
public policy.
(b)
A debt management service provider may not induce or attempt to induce a
consumer to waive a provision of ORS 697.602 to 697.842.
(c)
A person that claims an exemption from a provision of ORS 697.602 to 697.842
has the burden of proof with respect to the claim in a proceeding under ORS
697.602 to 697.842.
(d)
A circuit court of this state has jurisdiction in equity to restrain and enjoin
a violation of ORS 697.602 to 697.842.
(e)
This subsection does not prohibit a person from enforcing a right provided
under ORS 646.608 and 697.602 to 697.842 or other applicable law. [1983 c.17 §7;
2009 c.604 §5]
697.655 [1959
c.635 §10; 1963 c.470 §10; repealed by 1981 c.631 §2]
697.657 [1963
c.470 §11; repealed by 1981 c.631 §2]
697.660 [1959
c.635 §11; repealed by 1981 c.631 §2]
697.662 Prohibited practices.
A debt management service provider or a person required to obtain a
registration as a debt management service provider under ORS 697.612 may not:
(1)
Make, or counsel or advise a consumer to make, a statement that is untrue or
misleading or that the debt management service provider or the person in the
exercise of reasonable care should know is untrue or misleading.
(2)
Represent that the debt management service provider or the person is authorized
or competent to perform a debt management service or to furnish advice
concerning tax, accounting, bankruptcy or legal matters unless the debt
management service provider or the person is actually authorized under the laws
of this state to perform the debt management service or furnish the advice or
the debt management service provider or the person performs the debt management
service or furnishes the advice in compliance with the laws of this state.
(3)
Charge or receive money or other valuable consideration solely to refer a
consumer to another person who may or will extend credit to the consumer on
substantially the same terms that the other person provides to the other person’s
customers.
(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.
(5)
Perform a debt management service without having a good faith belief formed
after conducting an evaluation described in subsection (4) of this section that
the consumer can or will comply with the terms of the agreement described in
ORS 697.652.
(6)
Solicit, accept or receive an agreement, contract, promise to pay or other
instrument that has blank spaces at or after the time the consumer signs the
agreement, contract, promise to pay or instrument.
(7)
Accept or receive from a consumer:
(a)
Payment or security for the debt management service provider’s or person’s fees
or charges other than as provided in ORS 697.692 (2);
(b)
A wage assignment, a mortgage on real estate, a purchase money security
interest or other security, all or any part of which is in an amount larger
than permitted under ORS 697.692, to secure the debt management service
provider’s or person’s fees or charges;
(c)
A confession of judgment or a power of attorney to confess judgment against the
consumer or to appear for the consumer in a judicial proceeding; or
(d)
A release of an obligation that the debt management service provider or person
must perform.
(8)
Agree or form a contract with a consumer, the terms of which provide for later
charges or reserves for liquidated damages.
(9)
Commingle any of the consumer’s wages, salary, income, credits or other funds
or property that the debt management service provider or person holds with the
debt management service provider’s or person’s funds or property.
(10)
Cancel an agreement with a consumer without the consumer’s written
authorization, except as provided in ORS 697.652 (1)(g).
(11)
Violate a provision of ORS 697.602 to 697.842.
(12)
Publish, distribute or broadcast or cause to be published, distributed or
broadcast an advertisement, presentation or other communication or promotional
material that:
(a)
Contains a false, misleading or deceptive statement or representation,
including a statement or representation that the debt management service
provider or person can alter or remove factually correct information from a
consumer’s credit report;
(b)
Identifies the debt management service provider or person by a name other than
the name that appears on the registration that the Director of the Department
of Consumer and Business Services issued or the assumed business name that the
debt management service provider or person registered under ORS chapter 648;
(c)
Displays an emblem, logo or other sign or device that is similar to an emblem,
logo, sign or device that a government agency uses to identify the government
agency or a product or service the government agency provides, including but
not limited to an eagle, flag or crest; or
(d)
Misrepresents, directly or indirectly:
(A)
The nature of a service the debt management service provider or person will
perform;
(B)
The time within which the debt management service provider or person will
perform a service;
(C)
The debt management service provider’s or person’s ability to improve a
consumer’s credit report or credit rating;
(D)
The amount, type or quality of credit a consumer may or
will receive as a result of a service the debt management service provider or
person performs or offers to perform; or
(E)
The debt management service provider’s or person’s qualifications, training or
experience or the qualifications, training or experience of the debt management
service provider’s or the person’s employees, agents or affiliates. [1983 c.17 §8;
2005 c.309 §4; 2009 c.604 §6]
697.665 [1959
c.635 §12; 1963 c.546 §3; 1977 c.873 §22; repealed by 1981 c.631 §2]
697.670 [1959
c.635 §13; repealed by 1981 c.631 §2]
697.672 Requirement to make, keep and
maintain records; rules. (1) A debt management service
provider shall make, keep and maintain accounts, correspondence, memoranda,
papers, books and other records that the Director of the Department of Consumer
and Business Services by rule determines are necessary to ensure that the debt
management service provider is complying with the provisions of ORS 697.602 to
697.842.
(2)
A debt management service provider shall maintain records for each consumer
with which the debt management service provider does business in a form and
with contents the director specifies by rule. The debt management service
provider shall maintain each consumer record for a period of three years after
the date of the last entry in the record. The debt management service provider
may dispose of the record in accordance with applicable law after the
three-year period described in this subsection has expired.
(3)
A debt management service provider shall record all disbursements that the debt
management service provider makes, if any, to a consumer’s creditors.
(4)
The director may at any reasonable time examine the debt management service
provider, the records described in subsection (1) of this section or the debt
management service provider’s activities in connection with performing a debt
management service. [1983 c.17 §9; 2009 c.604 §7]
697.675 [1959
c.635 §14; 1963 c.470 §12; 1971 c.743 §410; repealed by 1981 c.631 §2]
697.680 [1959
c.635 §17; repealed by 1981 c.631 §2]
697.682 Trust accounts for client funds;
statements. (1) A debt management service provider
that holds a consumer’s funds, directly or indirectly, shall establish a trust
account in this state with an insured institution, as defined in ORS 706.008,
in which to keep the consumer funds that the debt management service provider
holds.
(2)
The debt management service provider may establish a separate trust account for
each consumer with whom the debt management service provider does business, or
may establish a single trust account in which the debt management service
provider keeps all consumer funds. If the debt management service provider
establishes a single trust account, the debt management service provider shall
maintain a separate ledger or other record of receipts and disbursements for
each consumer on whose behalf the debt management service provider holds funds
in the account. The debt management service provider in the financial statement
required under subsection (4) of this section and the agreement described in
ORS 697.652 shall disclose the amount of interest earned on the consumer’s
funds in the separate trust account or the amount attributable to the consumer’s
share of the single trust account to the extent that the interest earned
exceeds the fees the financial institution charges to maintain the trust
account.
(3)
The debt management service provider shall deposit into the trust account all
wages, salary, income, credits or proceeds from property that the debt
management service provider receives from the consumer or the consumer’s
property and shall disburse from the trust account all payments the debt
management service provider makes on the consumer’s behalf, including payments
of the debt management service provider’s fees or charges.
(4)
The debt management service provider without charge shall provide to the
consumer in accordance with the terms of the agreement described in ORS
697.652, or at the consumer’s request for the period of time the consumer
specifies, a statement of the funds or property that the debt management
service provider received from or on behalf of the consumer and the
disbursements that the debt management service provider made from the trust
account under the terms of the agreement.
(5)
A debt management service provider may not deposit in a trust account on a
single consumer’s behalf more than $250,000 in consumer funds. [1983 c.17 §10;
2009 c.604 §8]
697.685 [1959
c.635 §15; repealed by 1981 c.631 §2]
697.690 [1959
c.635 §16; repealed by 1981 c.631 §2]
697.692 Fees.
(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.
(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. [1983 c.17 §11; 1999
c.483 §1; 2005 c.309 §1; 2009 c.604 §§9,9a]
697.695 [1959 c.635
§18; 1969 c.591 §301; repealed by 1981 c.631 §2]
697.700 [1959
c.635 §19; repealed by 1981 c.631 §2]
697.702 Interference with records of debt
management service provider. (1) A person
commits the offense of interfering with records of a debt management service
provider if, with respect to a record to which ORS 697.672 applies, the person
intentionally:
(a)
Makes a false entry in the record; or
(b)
Mutilates, destroys or otherwise disposes of the record.
(2)
Subsection (1)(b) of this section does not apply to a debt management service
provider that disposes of a record after the retention period set forth in ORS
697.672 expires. [1983 c.17 §12; 2005 c.338 §16; 2009 c.604 §10]
697.705 [1959
c.635 §20; repealed by 1981 c.631 §2]
697.707 Required disclosures.
(1) A debt management service provider may not charge or receive from a
consumer a fee described in ORS 697.692 until after the debt management service
provider makes the disclosures described in this section.
(2)
A debt management service provider shall give to every consumer for whom the
debt management service provider offers to perform a debt management service a
document that:
(a)
States the maximum amount the debt management service provider may charge the
consumer for all debt management services that the debt management service
provider will perform;
(b)
States that the consumer is responsible for paying the debt management service
provider’s charges;
(c)
Warns the consumer that canceled debt may constitute income that is subject to
state and federal taxation and advises the consumer to consult with a tax
professional;
(d)
Describes completely and in detail the debt management services that the debt
management service provider will perform for the consumer and states the amount
the consumer must pay for each service and for all services; and
(e)
States that the consumer may bring an action against the bond required under
ORS 697.642 and lists the name and address of the surety that issued the bond.
(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.
(4)
A debt management service provider that does not hold a consumer’s funds,
directly or indirectly, shall include in the document required under subsection
(2) of this section these additional statements:
(a)
That the debt management service provider does not predict or guarantee
specific results and cannot force or require a creditor to accept a specific
settlement;
(b)
That the debt management service provider does not make scheduled periodic
payments to creditors;
(c)
That creditors may continue collection efforts, including lawsuits;
(d)
That the consumer’s failure to make monthly payments on outstanding debt will
likely have a negative impact on the consumer’s credit score;
(e)
That the consumer must make regular monthly deposits of funds in an account the
consumer establishes and maintains in the consumer’s name with an insured
institution, as defined in ORS 706.008, and designates specifically for making
disbursements in connection with a debt management service; and
(f)
That the debt management service provider will withdraw fees for debt
management services from the account described in paragraph (e) of this
subsection only with the consumer’s specific authorization and that the debt
management service provider does not have custody, control or separate or
additional access to the account.
(5)
The document described in this section must provide a space for the consumer to
sign the form under a statement that indicates that the consumer has read and
understands the disclosures set forth in the document. [2005 c.309 §3; 2009
c.604 §11]
697.710 [1959
c.635 §21; repealed by 1981 c.631 §2]
697.712 [1983
c.17 §13; repealed by 2009 c.604 §27]
697.715 [1959
c.635 §22; repealed by 1981 c.631 §2]
697.718 Liability for consumer’s
ascertainable loss; limitation on time to commence action.
(1) A debt management service provider or a person required to obtain a
registration as a debt management service provider under ORS 697.612 is liable
to a consumer who suffers an ascertainable loss of money or property, real or
personal, in connection with the debt management service provider’s or person’s
violation of a provision of ORS 697.652, 697.662, 697.682, 697.692 or 697.707.
(2)
Except as provided in this subsection, an action or suit may not be commenced
under this section more than three years after the date on which the debt
management service provider or person enters into an agreement for a debt
management service with the consumer that suffered the ascertainable loss of
money or property or more than three years after the debt management service
provider or person performs a debt management service that violates ORS
697.652. An action under this section may be commenced within three years after
the transaction that is the subject of the action or within two years after the
facts on which the action is based were or should have been discovered, but an
action may not be commenced more than five years after the transaction. Failure
to commence an action on a timely basis is an affirmative defense.
(3)
A consumer that has a right of action against a debt management service
provider under this section has a right of action against the bond required
under ORS 697.642.
(4)
A court may award reasonable attorney fees to the prevailing party in an action
brought under this section. [2009 c.604 §20]
697.720 [1959
c.635 §23; repealed by 1981 c.631 §2]
697.722 Execution or attachment of trust
account funds. Funds in a trust account that a debt
management service provider maintains under ORS 697.682 are not subject to
execution or attachment on a claim against the debt management service
provider. [1983 c.17 §14; 2009 c.604 §12]
697.725 [1959
c.635 §24; repealed by 1973 c.794 §34]
697.730 [1959
c.635 §25; repealed by 1981 c.631 §2]
697.732 Examinations; investigations;
costs; access; public disclosure requirements and exemptions.
(1) To enforce the provisions of ORS 697.612 and 697.642 to 697.702, the
Director of the Department of Consumer and Business Services may:
(a)
Examine a debt management service provider or a person required to obtain a
registration as a debt management service provider under ORS 697.612 and the
debt management service provider’s or the person’s accounts for the purpose of
investigating a violation of ORS 697.642 to 697.702.
(b)
Undertake an investigation, including an investigation outside this state, that
the director considers necessary to:
(A)
Determine whether a debt management service provider or a person required to
obtain a registration as a debt management service provider under ORS 697.612
violated, is violating or is about to violate ORS 697.612 or 697.642 to 697.702
or a rule the director adopted under ORS 697.632; or
(B)
Aid in enforcing the provisions of ORS 697.612 and 697.642 to 697.702 and in
formulating rules for adoption under ORS 697.632.
(c)
Require a debt management service provider or a person required to obtain a
registration as a debt management service provider under ORS 697.612 to file a
written statement, under oath or otherwise, that addresses a matter the
director is investigating.
(d)
Administer oaths and affirmations, subpoena witnesses, compel the witnesses to
attend, take evidence and require a person that the director is investigating
to produce books, papers, correspondence, memoranda, agreements or other
documents or records that the director deems relevant or material to the
investigation. A witness who appears before the director under a subpoena shall
receive the fees and mileage described in ORS 44.415 (2).
(e)
Charge and require a debt management service provider or a person required to
obtain a registration as a debt management service provider under ORS 697.612
to pay for the reasonable cost of an examination or investigation conducted
under this section in an amount the director specifies.
(2)
If a person does not comply with a subpoena that the director issues under this
section, a circuit court in this state upon the director’s application shall
begin contempt proceedings to compel compliance in the same manner in which the
court would compel compliance with a subpoena in a civil action.
(3)
A debt management service provider or a person required to obtain a
registration as a debt management service provider under ORS 697.612 shall
provide the director for the purpose of investigating a violation of ORS 697.612
or 697.642 to 697.702 with free access to the debt management service provider’s
or the person’s offices, places of business, books, accounts, records, papers,
files, safes and vaults.
(4)(a)
The director shall maintain for public inspection a record of any order the
director issued that:
(A)
Suspended, revoked or refused to renew a person’s registration as a debt
management service provider; or
(B)
Imposed a civil penalty under ORS 697.832.
(b)
The record that the director maintains of the director’s order shall show:
(A)
The form of the order that the director issued;
(B)
The name of the person that is the subject of the order; and
(C)
The grounds for the action that the director took in the order.
(c)
The director shall maintain as a public record any notice or other information
that indicates that a collection on a deposit or on the bond required under ORS
697.642 has occurred.
(d)
Except as provided in this subsection, records, reports and other information
that the director receives or compiles as a result of an investigation
conducted under this section are exempt from the disclosure required under ORS
192.420. [1983 c.17 §15; 2005 c.338 §17; 2009 c.604 §13]
697.733 [1963
c.470 §4; repealed by 1981 c.631 §2]
697.737 [1963
c.470 §5; repealed by 1981 c.631 §2]
697.740 [1959
c.635 §26; 1963 c.470 §13; repealed by 1981 c.631 §2]
697.742 [1983
c.17 §17; repealed by 2009 c.604 §27]
697.743 [1963
c.470 §§2,3; repealed by 1981 c.631 §2]
697.745 [1959
c.635 §27; 1963 c.470 §14; repealed by 1981 c.631 §2]
697.750 [1959
c.635 §30; 1963 c.470 §15; repealed by 1981 c.631 §2]
697.752 Grounds for denial, revocation or
suspension of registration. The Director of the Department
of Consumer and Business Services may deny, suspend, condition, revoke or
refuse to issue or renew a registration as a debt management service provider
if the director determines that an applicant or debt management service
provider:
(1)
Cannot meet financial obligations as the obligations mature, has liabilities
that exceed assets or is in a financial condition that prevents the applicant
or debt management service provider from continuing in business with safety to
consumers;
(2)
Engaged in dishonest, fraudulent or illegal practices or conduct in a business
or profession, or unfair or unethical practices or conduct in connection with a
debt management service;
(3)
Filed, knowingly or negligently, false or untruthful information with the
director under ORS 697.632;
(4)
Violated a provision of ORS 697.642 to 697.702 or a rule the director adopted
under ORS 697.632;
(5)
Filed an application for registration that on the date the director issued a
registration or on the date the director denied, suspended, conditioned or
revoked a registration was incomplete in a material respect or contained a
statement that was false or misleading with respect to a material fact in light
of the circumstances in which the applicant or debt management service provider
made the statement;
(6)
Failed to account to interested persons for money or property the applicant or
debt management service provider received;
(7)
Was temporarily or permanently enjoined from engaging in or continuing a
conduct or practice involving a debt management service by a court of competent
jurisdiction;
(8)
Is subject to a director’s order that denied, suspended, conditioned or revoked
a registration as a debt management service provider, or a license or
registration that the director issued under another provision of law;
(9)
Is subject to a cease and desist order that the director entered within the
previous five years after giving the applicant or debt management service
provider notice and an opportunity for a hearing;
(10)
Demonstrated negligence or incompetence in performing a debt management service
or an act, the performance of which requires the applicant or debt management
service provider to obtain a registration or license;
(11)
Failed to supervise diligently and control an employee’s or agent’s actions
related to a debt management service that the applicant or debt management
service provider performed;
(12)
Was convicted of a felony or of a misdemeanor for which an essential element is
fraud, either as an individual that is subject to the requirement to register
as a debt management service provider or as a member, partner, officer,
director or principal of an applicant or debt management service provider;
(13)
Reduced the amount of the bond required under ORS 697.642 or allowed the bond
to lapse;
(14)
Knowingly made a false entry in a consumer’s record; or
(15)
Knowingly mutilated, destroyed or otherwise disposed of a consumer’s record
unless the record concerns a consumer that no longer receives a debt management
service from the applicant or debt management service provider or the record is
not subject to the retention requirement set forth in ORS 697.672. [1983 c.17 §16;
1989 c.209 §3; 2005 c.338 §18; 2009 c.604 §14]
697.755 [1959
c.635 §28; repealed by 1963 c.470 §17]
697.760 [1959
c.635 §29; repealed by 1971 c.734 §21]
697.762 Enjoining violations; attorney
fees; damages. (1) If the Director of the Department
of Consumer and Business Services determines that a person has engaged in, is
engaging in or is about to engage in an act or practice that the director
believes is in violation of ORS 697.612, 697.642 to 697.702 or 697.752, in
addition to actions the director may take under ORS 697.752 the director may
bring suit in the name of the State of Oregon in a circuit court of this state
to enjoin the act or practice. Upon a proper showing, the court shall grant a
permanent or temporary injunction or restraining order and may appoint a
receiver or conservator for the defendant or the defendant’s assets. The court
may not require the director to post a bond. The court may award reasonable attorney
fees to the director if the director prevails in an action under this section.
The court may award reasonable attorney fees to a defendant if the defendant
prevails in an action under this section and the court determines that the
director did not have an objectively reasonable basis for asserting the claim
or a reasonable basis for appealing an adverse decision of the trial court.
(2)
The director may include in a suit authorized by subsection (1) of this section
a claim for damages on behalf of a person injured by an act or practice against
which the director sought an injunction or restraining order. The court may
award appropriate relief to the person if the court finds that enforcing the
person’s right by private civil action or suit, whether by class action or
otherwise, would be so burdensome or expensive as to be impracticable. [1983
c.17 §18; 1995 c.696 §46; 2005 c.338 §19; 2009 c.604 §15]
697.765 [1959
c.635 §31; 1963 c.470 §16; repealed by 1981 c.631 §2]
697.770 [1959
c.635 §32; repealed by 1981 c.631 §2]
697.772 [1983
c.17 §19; 1989 c.209 §4; repealed by 2009 c.604 §27]
697.775 [1959
c.635 §33; repealed by 1981 c.631 §2]
697.780 [1959
c.635 §34; 1961 c.309 §7; 1967 c.216 §2; 1977 c.41 §4; repealed by 1981 c.631 §2]
697.782 [1983 c.17
§20; 1989 c.209 §5; repealed by 2009 c.604 §27]
697.783 [1963
c.470 §6; repealed by 1981 c.631 §2]
697.785 [1959
c.635 §35; repealed by 1981 c.631 §2]
697.790 [1965
c.190 §2; repealed by 1981 c.631 §2]
697.792 [1983
c.17 §21; 1995 c.696 §47; repealed by 2009 c.604 §27]
697.802 [1983
c.17 §22; repealed by 2009 c.604 §27]
697.810 [1971
c.734 §163; repealed by 1981 c.631 §2]
697.812 [1983
c.17 §23; 1989 c.209 §6; repealed by 2009 c.604 §27]
697.820 [1973
c.548 §2; 1977 c.185 §14; 1981 c.85 §12; repealed by 1981 c.631 §2]
697.822 Remedy not exclusive.
The remedy provided for in ORS 697.718:
(1)
Is in addition to and not exclusive of other remedies provided by law.
(2)
Does not limit a person’s statutory or common-law right to bring an action in
any court for an act of a debt management service provider, or the right of the
state to punish a person for violating a law. [1983 c.17 §24; 2009 c.604 §16]
697.825 Enforcement; orders.
(1) The Director of the Department of Consumer and Business Services may, if
the director has reason to believe that a person:
(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.
(b)
Filed information under ORS 697.632 that is false or untruthful, issue an order
to correct the filing.
(c)
Failed to maintain in effect the bond required under ORS 697.642, issue an
order to remedy the failure.
(2)(a)
The director shall serve an order under this section on the person named in the
order.
(b)
An order issued under this section becomes effective upon service on the person
named in the order.
(c)
ORS 183.413 to 183.470 apply to an order issued under this section.
(d)
Notwithstanding paragraph (c) of this subsection, a person may not obtain a
hearing on the order unless the person requests the hearing in writing within
20 days after service of the order.
(e)
A person who does not request a contested case hearing may not obtain judicial
review of the order.
(f)
The director may vacate or modify an order issued under this section. A
modified order is effective upon service on the person named in the order.
(3)
The authority conferred by this section is in addition to and not in lieu of
any other authority conferred on the director. [2005 c.338 §15; 2009 c.604 §17]
697.830 [1977
c.41 §6; 1981 c.85 §13; repealed by 1981 c.631 §2]
697.832 Civil penalties.
(1) In addition to any other liability or penalty provided by law, the Director
of the Department of Consumer and Business Services may impose a civil penalty
on a person in an amount not to exceed $5,000 for each violation of ORS 697.612
or 697.642 to 697.702, rules adopted under ORS 697.632 or order issued under
ORS 697.825.
(2)
The director shall impose a civil penalty on a person under this section in the
manner provided in ORS 183.745.
(3)
Notwithstanding ORS 183.745, the person to whom the notice is addressed has 10
days from the date on which the notice was mailed in which to apply for a
hearing before the director.
(4)
Paying or tendering payment for a civil penalty imposed under this section does
not relieve a person from the obligation to comply with the applicable statute
or rule.
(5)
All penalties recovered under this section shall be paid into the State
Treasury and credited to the General Fund and are available for general
governmental expenses. [1983 c.17 §24a; 1989 c.706 §25; 1991 c.734 §88; 2005
c.338 §20; 2009 c.604 §18]
697.840 Rules.
The Director of the Department of Consumer and Business Services may adopt,
amend and repeal rules that are necessary to carry out the provisions of ORS
697.602 to 697.842. [2009 c.604 §21]
697.842 Disposition of moneys received by
director. All moneys received by the Director of
the Department of Consumer and Business Services or the department under ORS
697.005 to 697.095 or 697.602 to 697.842, excepting any penalties received
under ORS 697.832, shall be paid into the State Treasury, deposited in the
Consumer and Business Services Fund created by ORS 705.145 and used exclusively
for the purposes of ORS 697.005 to 697.095 and 697.602 to 697.842. [1983 c.17 §25;
1987 c.373 §46; 2001 c.319 §§5,6]
PENALTIES
697.990 Penalties.
(1) Violation of ORS 697.015 or 697.058 by an individual is a Class A
violation.
(2)
Violation of ORS 697.015 or 697.058 by a corporation or association is a Class
A violation. Any officer or agent of a corporation or association who
personally participates in any violation of ORS 697.015 or 697.058 by the
corporation or association is subject to the penalty prescribed in subsection
(1) of this section.
(3)
Violation of ORS 697.612 or 697.642 to 697.702 is punishable, upon conviction,
as a Class A misdemeanor. [Amended by 1959 c.525 §35; subsection (1) derived
from subsection (1) of 697.990 (1957 Replacement Part) and subsection (1) of
1959 c.635 §37; subsection (2) derived from subsection (2) of 697.990 (1957
Replacement Part) and subsection (2) of 1959 c.635 §37; subsection (3) derived
from subsection (3) of 1959 c.635 §37; 1981 c.85 §14; 1983 c.17 §31; subsection
(3) enacted as 1983 c.17 §26; 1983 c.69 §6; 1999 c.1051 §219; 2005 c.338 §21]
697.992 Jurisdiction of courts.
Justice courts have concurrent jurisdiction with circuit courts in all criminal
prosecutions for violation of ORS 697.015, 697.058, 697.612 and 697.642 to
697.702. [Derived from 697.480 (1957 Replacement Part) and 1959 c.635 §36; 1983
c.17 §32; 1995 c.622 §10; 2005 c.338 §22]
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