Bill Text: OR HB2526 | 2013 | Regular Session | Introduced
Bill Title: Relating to debt collection practices.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2526 Detail]
Download: Oregon-2013-HB2526-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1362
House Bill 2526
Sponsored by Representative HOLVEY (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Establishes requirements for debt buyer to bring legal action
to collect debt. Makes failure to meet requirements unlawful
collection practice.
Increases amount of statutory damages available in action for
unlawful collection practice.
A BILL FOR AN ACT
Relating to debt collection practices; creating new provisions;
and amending ORS 646.639 and 646.641.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section:
(a) 'Debt buyer' means:
(A) A person that engages in the business of purchasing, in
order to collect amounts due from, delinquent consumer loans,
delinquent consumer credit accounts or other delinquent consumer
debts, whether the person collects the amounts due directly,
hires a third party to collect the amounts due or hires an
attorney to pursue legal action to collect the amounts due; or
(B) A debt collector that acts as a debt buyer.
(b) 'Legal action' means a lawsuit, mediation, arbitration or
any other legal proceeding.
(2) A debt buyer that takes legal action to collect or attempt
to collect a debt shall:
(a) Notify the debtor in writing, at least 30 days before
beginning the legal action, that the debt buyer intends to take
legal action. The debt buyer must send the written notice to the
debtor's last-known address. If the time period during which the
debt buyer may take legal action to collect the debt under an
applicable statute of limitations will end less than 30 days
before the debt buyer intends to take legal action, the time
period during which the debt buyer may take legal action under
the statute of limitations is extended for the number of days,
not exceeding 30 days, that is necessary for the debt buyer to
notify the debtor in accordance with this paragraph. The written
notice must include, at a minimum:
(A) The debt buyer's name, address and telephone number;
(B) The original creditor's name;
(C) The original account number for the debt;
(D) The balance due on the debt and whether the amount of the
balance due includes interest and fees; and
(E) A clear and conspicuous statement that tells the debtor
that:
(i) A time period during which the debt buyer may take legal
action to collect the debt under an applicable statute of
limitations may apply;
(ii) The debtor may seek legal advice if the debtor has
questions about when the time period during which the debt buyer
may take legal action under the applicable statute of limitations
will end; and
(iii) If the debtor pays any amount after the time period
during which the debt buyer may take legal action under the
applicable statute of limitations ends, the payment affirms the
existence of the debt and begins a new time period during which
the debt buyer may take legal action to collect the debt, subject
to the statute of limitations that specifies the duration of the
new time period.
(b) List, in the initial pleading the debt buyer files to begin
legal action to collect the debt:
(A) The original creditor's name;
(B) The name of the person that now owns the debt;
(C) The last four digits of the original account number for the
debt;
(D) The date of default or charge-off and the amount due on the
debt on the date of default or charge-off;
(E) The balance due on the debt and whether the amount of the
balance due includes interest and fees; and
(F) The relevant terms of the underlying agreement, contract or
instrument that created the debt.
(3) Before a court enters judgment against a debtor in a legal
action that a debt buyer brings to collect a debt, the court
shall require the debt buyer to submit a written affidavit under
oath or affirmation that states:
(a) The balance due on the debt;
(b) The basis for attorney fees, if the debt buyer requests
attorney fees;
(c) That the debt buyer complied with the requirement set forth
in subsection (2)(a) of this section; and
(d) That the time period during which the debt buyer may take
legal action to collect the debt under the applicable statute of
limitations, or any extension of the time period available under
the statute of limitations, has not ended.
(4) A debt buyer's violation of the provisions of this section
through any direct or indirect action, conduct or practice is an
unlawful collection practice. + }
SECTION 2. ORS 646.639 is amended to read:
646.639. (1) As used in { - subsection (2) of - } this
section { + and section 1 of this 2013 Act + }:
(a) 'Consumer' means a natural person who purchases or acquires
property, services or credit for personal, family or household
purposes.
(b) 'Consumer transaction' means a transaction between a
consumer and a person who sells, leases or provides property,
services or credit to consumers.
{ - (c) 'Commercial creditor' means a person who in the
ordinary course of business engages in consumer transactions. - }
{ - (d) - } { + (c) + } 'Credit' means { - the - } { +
a + } right { - granted by - } { + that + } a creditor { +
grants + } to a consumer to defer payment of a debt, to incur a
debt and defer { - its - } payment { + of the debt + }, or to
purchase or acquire property or services and defer payment
{ - therefor - } { + for the property or services + }.
{ + (d) 'Creditor' means a person that, in the ordinary
course of business, engages in consumer transactions. + }
(e) 'Debt' means { - any - } { + an + } obligation or
alleged obligation
{ - arising - } { + that arises + } out of a consumer
transaction.
(f) 'Debtor' means a consumer who owes or allegedly owes
{ - an obligation arising out of a consumer transaction - }
{ + a debt + }.
(g) 'Debt collector' means { + :
(A) + } { - any - } { + A + } person { - who - } { +
that + } by { - any - } direct or indirect action, conduct or
practice, { - enforces - } { + collects + } or attempts to
{ - enforce an obligation that is owed or due to any commercial
creditor, or alleged to be owed or due to any commercial
creditor, by a consumer as a result of a consumer transaction - }
{ + collect a debt owed, or alleged to be owed, to a creditor;
or
(B) A debt buyer, as defined in section 1 of this 2013 Act + }.
(h) 'Person' means an individual, corporation, trust,
partnership, incorporated or unincorporated association or any
other legal entity.
(2) It { - shall be - } { + is + } an unlawful collection
practice { - for - } { + if + } a debt collector, while
collecting or attempting to collect a debt
{ - to do any of the following - } :
(a) { - Use or threaten the use of - } { + Uses or
threatens to use + } force or violence to cause physical harm to
a debtor or to the debtor's family or property.
(b) { - Threaten - } { + Threatens + } arrest or criminal
prosecution.
(c) { - Threaten the seizure, attachment or sale of - } { +
Threatens to seize, attach or sell + } a debtor's property when
{ - such action can only be taken pursuant to - } { + doing so
requires a + } court order
{ - without disclosing - } { + and the debt collector does
not disclose + } that prior court proceedings are required { +
to seize, attach or sell the debtor's property + }.
(d) { - Use - } { + Uses + } profane, obscene or abusive
language in communicating with a debtor or the debtor's family.
(e) { - Communicate - } { + Communicates + } with the
debtor or any member of the debtor's family repeatedly or
continuously or at times known to be inconvenient to { - that
person - } { + the debtor or any member of the debtor's family
and + } with intent to harass or annoy the debtor or any member
of the debtor's family.
(f) { - Communicate or threaten - } { + Communicates or
threatens + } to communicate with a debtor's employer concerning
the nature or existence of the debt.
(g) { - Communicate - } { + Communicates, + } without the
debtor's permission { + , + } or { - threaten - } { +
threatens + } to communicate with the debtor at the debtor's
place of employment if the place { + of employment + } is other
than the debtor's residence, except that the debt collector may:
(A) Write to the debtor at the debtor's place of employment if
{ - no - } { + a + } home address is { + not + } reasonably
available and if the envelope does not reveal that the
communication is from a debt collector other than { - a
provider of - } { + the person that provided + } the goods,
services or credit from which the debt arose.
(B) Telephone { + + }a debtor's place of employment without
informing any other person of the nature of the call or
identifying the caller as a debt collector but only if the debt
collector in good faith has made an unsuccessful attempt to
telephone the debtor at the debtor's residence during the day or
during the evening between the hours of 6 p.m. and 9 p.m. The
debt collector may not contact the debtor at the debtor's place
of employment more frequently than once each business week and
may not telephone the debtor at the debtor's place of employment
if the debtor notifies the debt collector not to telephone at the
debtor's place of employment or if the debt collector knows or
has reason to know that the debtor's employer prohibits the
debtor from receiving such communication. For the purposes of
this subparagraph, any language in any { + agreement, contract
or + } instrument { - creating - } { + that creates or is
evidence of + } the debt
{ - which - } { + and that + } purports to authorize
telephone calls at the debtor's place of employment { - shall
not be considered as giving - } { + does not give + }
permission to the debt collector to call the debtor at the
debtor's place of employment.
(h) { - Communicate - } { + Communicates + } with the
debtor in writing without clearly identifying the name of the
debt collector, the name of the person, if any, for whom the debt
collector is attempting to collect the debt and the debt
collector's business address, on all initial communications. In
subsequent communications involving multiple accounts, the debt
collector may eliminate the name of the person, if any, for whom
the debt collector is attempting to collect the debt, and the
term ' various' may be substituted in { - its - } place { +
of the person's name + }.
(i) { - Communicate - } { + Communicates + } with the
debtor orally without disclosing to the debtor within 30
seconds { + after beginning the communication + } the name of
the individual { - making the contact - } { + who is
initiating the communication + } and the true purpose
{ - thereof - } { + of the communication + }.
(j) { - Cause - } { + Conceals the true purpose of a
communication in such a way as to cause + } any expense to the
debtor in the form of long distance telephone calls, telegram
fees or other charges
{ - incurred by a - } { + a debtor might incur by using a + }
medium of communication { - , by concealing the true purpose of
the debt collector's communication - } .
(k) { - Attempt to or threaten - } { + Attempts or
threatens + } to enforce a right or remedy { - with knowledge
or reason to know - } { + while knowing or having reason to
know + }that the right or remedy does not exist, or
{ - threaten - } { + threatens + } to take any action
{ - which - } { + that + } the debt collector in the regular
course of business does not take.
(L) { - Use any - } { + Uses a + } form of communication
{ - which - } { + that + } simulates legal or judicial process
or { - which - } { + that + } gives the appearance of being
authorized, issued or approved by a governmental agency, { +
a + } governmental official or an attorney at law
{ - when it is not in fact so approved or authorized - } { +
if a governmental agency, a governmental official or an attorney
at law has not in fact approved or authorized the
communication + }.
(m) { - Represent - } { + Represents + } that an existing
debt may be increased by the addition of attorney fees,
investigation fees or any other fees or charges when
{ - such - } { + the + } fees or charges may not legally be
added to the existing debt.
(n) { - Collect or attempt - } { + Collects or attempts + }
to collect
{ - any - } interest or { - any - } other charges or fees
in excess of the actual debt unless { - they are expressly
authorized by - } the agreement { + , contract or instrument + }
{ - creating - } { + that creates + } the debt { + expressly
authorizes + } or { - expressly allowed by - } { + a + }
law { + expressly allows the interest or other charges or
fees + }.
(o) { - Threaten - } { + Threatens + } to assign or sell
the debtor's account with an attending misrepresentation or
implication that the debtor would lose any defense to the debt or
would be subjected to harsh, vindictive or abusive collection
tactics.
(3) It { - shall be - } { + is + } an unlawful collection
practice for a debt collector, by use of any direct or indirect
action, conduct or practice, to enforce or attempt to enforce an
obligation made void and unenforceable by the provisions of ORS
759.720 (3) to (5). { + + }
SECTION 3. ORS 646.641 is amended to read:
646.641. (1) { - Any - } { + A + } person { + that is + }
injured as a result of { + another person's + }willful use or
employment { - by another person - } of an unlawful collection
practice may bring an action in an appropriate court to enjoin
the practice or to recover actual damages or { - $200 - } { +
$500 + }, whichever is greater. The court or the jury may award
punitive damages, and the court may provide such equitable relief
as { - it - } { + the court + } deems necessary or proper.
(2) In any action { - brought by - } a person { +
brings + } under this section, the court may award reasonable
attorney fees to the prevailing party.
(3) { - Actions brought - } { + A person that brings an
action + } under this section { - shall be commenced - } { +
must bring the action + } within one year { - from - } { +
after + } the date of the injury.
SECTION 4. { + Section 1 of this 2013 Act and the amendments
to ORS 646.639 and 646.641 by sections 2 and 3 of this 2013 Act
apply to legal actions that begin on or after the effective date
of this 2013 Act. + }
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