2017 ORS 646A.646¹
License application
  • requirements
  • application through Nationwide Multistate Licensing System
  • fee
  • insurance
  • license renewal
  • director’s investigation
  • license term
  • suspension or revocation
  • rules

(1)(a) A person that is subject to the requirement to obtain or renew a license under ORS 646A.643 (License requirement to engage in debt buying) (1) shall submit an application to the Director of the Department of Consumer and Business Services in the manner the director specifies by rule. The director by rule shall specify the format and contents of the application form. At a minimum, the rules must require an applicant or licensee to:

(A) List the applicant’s or licensee’s name and address and all assumed business names or other names the applicant or licensee has used in the course of engaging in debt buying or otherwise purchasing debt.

(B) List the name and address of the applicant’s or licensee’s registered agent in this state or another person that serves as the applicant’s or licensee’s agent for accepting service of process in this state.

(C) List the names and addresses of the applicant’s or licensee’s directors, members, officers, managers, partners and controllers.

(D) Provide a history of all enforcement actions or administrative, civil or criminal proceedings that involved a failure by the applicant or licensee or a director, member, officer, manager, partner or controller of the applicant or licensee to comply with federal or state law, regulations or rules.

(E) List all instances in which the applicant or licensee had a license, registration or other equivalent authorization to engage in debt buying denied, suspended, conditioned or revoked, unless the revocation was later rescinded, in this or another state.

(F) Disclose for the applicant or licensee and each of the applicant’s or licensee’s directors, members, officers, managers, partners and controllers all violations and arrests and all no contest pleas, guilty pleas and convictions, other than convictions that were later pardoned, in a federal, state, military or foreign court that involved a felony or a misdemeanor, if an element of the misdemeanor was a false statement or dishonesty, and that occurred:

(i) In the seven years before the date of an application under this section; or

(ii) At any time before the date of an application under this section if the conviction or plea involved a felony, an element of which was an act of fraud, dishonesty, a breach of trust or laundering a monetary instrument.

(b) The director by rule may require an applicant to apply for a license through the Nationwide Multistate Licensing System and may conform the practices, procedures and information the Department of Consumer and Business Services uses to issue or renew a license under this section with the practices, procedures and information the Nationwide Multistate Licensing System requires.

(c) The director by rule may require an applicant or licensee to submit fingerprints for any of the applicant’s directors, members, officers, managers, partners or controllers and to undergo a criminal records check as part of an application under this section.

(2) An applicant or licensee shall pay, when applying to obtain or renew a license, a nonrefundable fee in an amount that the director specifies by rule. The director shall specify an amount for the fee that is sufficient, when aggregated with all other fees collected under this section, to:

(a) Pay the expenses of administering and enforcing ORS 646.639 (Unlawful collection practices), 646A.640 (Definitions) to 646A.673 (Rules) and 646A.670 (Legal action to collect debt); and

(b) Establish and maintain a reasonable emergency fund.

(3) In addition to the requirements set forth in subsections (1) and (2) of this section, an applicant or licensee shall file with the director proof that the applicant or licensee maintains an errors and omissions insurance policy from an insurer that the department has authorized to transact insurance in this state with limits that the director determines by rule.

(4)(a) The director shall issue or renew a license under this section if the director finds that:

(A) The application is complete and accurate;

(B) The applicant or licensee paid any fees required under this section;

(C) The applicant or licensee filed and maintains an errors and omissions insurance policy as provided in subsection (3) of this section;

(D) The applicant or licensee has not filed for bankruptcy within the seven years before the date of the application;

(E) The applicant or licensee, or a director, member, officer, manager, partner or controller of the applicant or licensee, has not been indicted for or convicted of a criminal offense and otherwise satisfies the director’s standard for passing a criminal background check;

(F) A licensee that seeks to renew a license has complied with any orders the director issued and paid any penalties the director assessed against the licensee under ORS 646.639 (Unlawful collection practices) (4), 646A.640 (Definitions) to 646A.673 (Rules) and 646A.670 (Legal action to collect debt); and

(G) The applicant or licensee, or a director, member, officer, manager, partner or controller of the applicant or licensee, has not, within the seven years before the date of the application, been subject to or has cooperated or complied with:

(i) A final order to cease and desist from a violation of any law, regulation, rule or order that governs a debt buyer or debt buying in this or another state;

(ii) A suspension or revocation of a license, registration or other authorization to engage in debt buying in this or another state; or

(iii) Any other formal or informal enforcement action in this state or another state in which the governing body found that the applicant or licensee or the director, member, officer, manager, partner or controller violated an applicable law, regulation, rule or order.

(b) In addition to reviewing an applicant’s or licensee’s application under this section, the director may conduct an investigation to determine whether the applicant or licensee, and any of the applicant’s or licensee’s directors, members, officers, managers, partners or controllers have the financial responsibility, experience, character and general fitness necessary to command the confidence of the community and warrant a belief that the applicant or licensee will engage in debt buying honestly, fairly, efficiently and in compliance with ORS 646.639 (Unlawful collection practices) (4), 646A.640 (Definitions) to 646A.673 (Rules) and 646A.670 (Legal action to collect debt).

(5)(a) A license the director issues or renews under this section:

(A) Must display a unique identifying number or other designation that specifically identifies the licensee in the director’s records; and

(B) Expires on December 31 of the calendar year in which the director issues the license. If a licensee intends to engage in debt buying on or after January 1 of the succeeding calendar year, the licensee shall renew the license before the expiration date.

(b) A licensee’s directors, members, officers, managers, partners, controllers, employees and agents have authority to engage in debt buying solely under the terms of a license the director issues under this section, and, for the purposes of ORS 646.639 (Unlawful collection practices) (4), 646A.640 (Definitions) to 646A.673 (Rules) and 646A.670 (Legal action to collect debt), an action of a licensee’s director, member, officer, manager, partner, controller, employee or agent while engaging in debt buying is an action of the licensee.

(6) The director may suspend or revoke a license issued under this section if the director finds after a hearing in accordance with ORS chapter 183 that:

(a) The licensee failed or refused to comply with the director’s written request to respond to a complaint that the licensee violated a provision of ORS 646.639 (Unlawful collection practices) (4) or of ORS 646A.640 (Definitions) to 646A.673 (Rules) and 646A.670 (Legal action to collect debt);

(b) The licensee engaged in an intentional course of conduct to violate state or federal law or a course of conduct that constitutes fraudulent, deceptive or dishonest dealings; or

(c) The licensee failed or refused to comply with a final order the director issued. [2017 c.625 §5]

Law Review Cita­tions

52 WLR 451 (2016)

(formerly 646.315 to 646.375)

Notes of Decisions

Where purchaser fails to provide notice of condi­tion requiring repair, presump­tion does not arise that repair time exceeding 30 business days demonstrates inability of manufacturer to conform vehicle. Pavel v. Winnebago Industries, Inc., 127 Or App 16, 870 P2d 856 (1994)

Repair time exceeding 30 business days as evidence of inability to conform vehicle applies only to presently existing defect. Pavel v. Winnebago Industries, Inc., 127 Or App 16, 870 P2d 856 (1994)

Law Review Cita­tions

19 WLR 329 (1983)

1 Legislative Counsel Committee, CHAPTER 646A—Trade Regulation, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors646A.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 646A, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano646A.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.