Oregon bill would require debt resolution providers to register

Providers would have to register with Oregon’s Department of Consumer and Business Services. The rules cover providers serving Oregon consumers with unsecured debts, unless an exemption applies. Several groups are exempt, including attorneys serving clients, creditors resolving debts, and certain people who had no reason to know a consumer lived in Oregon. The rules would apply to agreements entered into on or after January 1, 2027.

Providers would have to give consumers agreements that explain services, fees, and risks, and follow limits on charging fees and handling account money. These rules cover agreements between debt resolution providers and consumers, including services that use a dedicated savings account. A provider could collect a fee only after it resolves at least one debt, the consumer makes a payment under that resolution, and the fee follows one of the stated formulas. A provider could request that a consumer use a dedicated account only if the consumer owns the funds and the account meets the bill’s conditions. A consumer could end services at any time. The rules would apply to agreements entered into on or after January 1, 2027.

Providers would have to give consumers account statements and copies of agreements and records when requested. These duties cover consumers who have or had an agreement for debt resolution services. Providers could make account statements continuously available online or by other electronic means. Providers could limit record requests, including refusing more than one request per month, requests reasonably believed to be meant to harass, and requests made more than six years after an agreement ends. A provider would have to send a final account statement within five days after an agreement ends. The rules would apply to agreements entered into on or after January 1, 2027.