2017 ORS 697.692¹
Fees
  • circumstances in which consumer may void contract
  • prohibition of waiver
  • rules

(1) Subject to subsection (4) of this section, a debt management service provider may charge a consumer only the following fees:

(a) An initial fee of not more than $50.

(b) A fee reasonably calculated to recover the costs that the debt management service provider incurs in providing an initial counseling session or education class. The debt management service provider may charge the fee described in this paragraph in advance, but the fee may not exceed $50.

(c) A monthly fee equivalent to 15 percent of the funds that the debt management service provider receives from a consumer for payment to the consumer’s creditors. The debt management service provider may charge the fee described in this paragraph only if the debt management service provider holds a consumer’s funds, directly or indirectly, on the consumer’s behalf. The fee described in this paragraph may not exceed $65 per month.

(d) A fee equivalent to 15 percent of the amount of debt a consumer owes to one or more creditors at the time the consumer signs the agreement described in ORS 697.652 (Written agreement and budget analysis requirement) and places funds in a bank account that the consumer establishes or maintains in the consumer’s own name with an insured institution, as defined in ORS 706.008 (Additional definitions for Bank Act), and designates specifically for making disbursements in connection with a debt management service. The debt management service provider may charge the fee described in this paragraph only if the debt management service provider does not hold a consumer’s funds directly or indirectly. The debt management service provider may not charge the fee described in this paragraph in amounts or installments that exceed $65 per month.

(e) A fee equivalent to 7.5 percent of the difference between the principal amount of the debt the consumer owed to the consumer’s creditor at the time the consumer signed the agreement described in ORS 697.652 (Written agreement and budget analysis requirement) and the amount the consumer paid to the creditor to settle the debt, exclusive of fees the consumer paid to the debt management service provider under paragraph (a), (b) or (d) of this subsection. The debt management service provider may charge the fee described in this paragraph only if the debt management service provider obtains from the consumer’s creditor a reduction in the principal amount of the consumer’s debt.

(f) A fee of not more than $50 per month during the term of an agreement between the consumer and the debt management service provider under which the debt management service provider improves or preserves, or offers to improve or preserve, a consumer’s credit record, credit history or credit rating but does not conduct a budget analysis for the consumer, act as a broker for another debt management service provider or otherwise engage in any other activity that constitutes a debt management service. A fee that a debt management service provider charges under paragraph (a) of this subsection is the fee for the first month of service under this paragraph.

(2) A debt management service provider may accept payment for a fee described in subsection (1) of this section by means of:

(a) A check, draft or similar paper instrument; or

(b) A transfer of funds through an electronic terminal, telephonic instrument, computer or magnetic tape that transmits an order, instruction or authorization to a financial institution to debit or credit an account.

(3)(a) A consumer may void a contract for debt management services, and a debt management service provider shall return to the consumer all sums the consumer paid to the debt management service provider and reimburse the consumer for reasonable attorney fees the consumer incurred in any action to enforce rights the consumer has under this subsection, if the debt management service provider charges the consumer more than the amounts set forth in this section.

(b) A consumer may not waive any of the rights the consumer has under this subsection, and any provision in any contract or other agreement that purports to waive the consumer’s rights is void.

(4) The director by rule may adjust the fees set forth in this section to reflect changes in the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau of Labor Statistics of the United States Department of Labor. In adjusting fees, the director may consider whether changes in fees that other states charge for similar services warrant a change in fees in this state. [1983 c.17 §11; 1999 c.483 §1; 2005 c.309 §1; 2009 c.604 §§9,9a; 2017 c.465 §1]

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.