2015 Oregon Revised Statutes
Volume : 15 - Occupations
Chapter 697 - Collection Agencies; Check-Cashing Businesses; Debt Management Service Providers
Section 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]