2017 ORS 697.652¹
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 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director) 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 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director).

(c) A person that claims an exemption from a provision of ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director) has the burden of proof with respect to the claim in a proceeding under ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director).

(d) A circuit court of this state has jurisdiction in equity to restrain and enjoin a violation of ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director).

(e) This subsection does not prohibit a person from enforcing a right provided under ORS 646.608 (Additional unlawful business, trade practices) and 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director) or other applicable law. [1983 c.17 §7; 2009 c.604 §5]

Chapter 697

Atty. Gen. Opinions

Duty of merchant using third party letterhead purchased from collec­tion letter service to obtain license, (1972) Vol 36, p 79

1 Legislative Counsel Committee, CHAPTER 697—Cashing Businesses; Debt Management Service Providers, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors697.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 697, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano697.­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.