Collector - November 2017 - 44

COMPLIANCE

Licensed to Buy
A new Oregon law establishes requirements for legal actions to collect purchased debts.
By Laura Dadd

F

ollowing a trend in the state-level
regulation of debt purchasers, on
Aug. 2, 2017, Oregon's governor
signed H.B. 2356 into law. The legislation
requires debt buyers to obtain a license
from the Oregon Department of Consumer
and Business Services (DCBS). The new
legislation also includes procedural
requirements for legal actions taken by debt
buyers and debt collectors working on the
debt buyer's behalf and allows enforcement
actions to be taken by the DCBS and the
state attorney general.

LICENSING
Oregon's new law now explicitly defines
a "debt buyer" as "a person that regularly
engages in the business of purchasing
charged-off debt for the purpose of
collecting the charged-off debt or hiring
another person to collect or bring legal
action to collect the charged-off debt." Thus,
both active and passive debt buyers will
likely need to obtain a license.
The DCBS can require applicants to apply
through the Nationwide Multistate Licensing
System (NMLS). Licenses will expire on Dec.
31 of the calendar year in which the license
was issued. Those who wish to continue debt
purchasing activities on or after Jan. 1 of the
next calendar year must renew the license
before its expiration date.

"The legislation requires
debt buyers to obtain
a license from the
Oregon Department of
Consumer and Business
Services."
44

Licensees must designate and maintain a
principal place of business from which the
licensee engages in debt buying in Oregon
(which may be located outside of the state)
and designate a registered agent in Oregon.
The DCBS will become the licensee's
registered agent if one is not designated by
the licensee or the registered agent cannot be
reasonably located.

provides that the creditor may obtain
attorney fees from the consumer in a legal
action or another provision of law allows an
award of attorney fees.
Further, a debt buyer or debt collector
working on their behalf engages in an
unlawful act if the debt buyer or debt
collector takes legal action to collect a debt
that is past the statute of limitations.

LEGAL ACTIONS

ENFORCEMENT

Debt buyers, or debt collectors working
on their behalf, must include in the initial
pleadings, among other things:
* The original creditor's name;
* The name, address and phone number
of the current owner of the debt;
* The last four digits of the original
creditor's account number;
* A detailed itemized statement; and
* The date the debt was purchased.
Debt buyers or debt collectors may only
collect legal fees if they are successful in
the legal action and the contract or writing

Under the new legislation, the DCBS and
its director have supervisory authority and
may investigate and initiate administrative
proceedings relating to licensing and
collection practices of debt buyers. The
DCBS may notify the state's attorney general
if there is reason to believe a person has
engaged in unlawful collection practices.
The law went into effect Oct. 6, 2017, but
is not operative until Jan. 1, 2018.
Laura Dadd is ACA International's
compliance analyst.

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Table of Contents for the Digital Edition of Collector - November 2017

Upfront
Industry News
Best Practices
FYI
Collection Tips
Making the Right Choice
Getting Your Ducks in a Row
Highlight Reel
Putting it all Together
Calendar
Honor Roll
On Call
Hire Purpose
CFPB Pursues Two Student Loan Servicers
Compliance
ACA SearchPoint
Last Word
Collector - November 2017 - Cover1
Collector - November 2017 - Cover2
Collector - November 2017 - 1
Collector - November 2017 - Upfront
Collector - November 2017 - 3
Collector - November 2017 - Industry News
Collector - November 2017 - 5
Collector - November 2017 - 6
Collector - November 2017 - 7
Collector - November 2017 - Best Practices
Collector - November 2017 - 9
Collector - November 2017 - FYI
Collector - November 2017 - 11
Collector - November 2017 - Collection Tips
Collector - November 2017 - 13
Collector - November 2017 - Making the Right Choice
Collector - November 2017 - 15
Collector - November 2017 - 16
Collector - November 2017 - 17
Collector - November 2017 - Getting Your Ducks in a Row
Collector - November 2017 - 19
Collector - November 2017 - 20
Collector - November 2017 - 21
Collector - November 2017 - 22
Collector - November 2017 - 23
Collector - November 2017 - 24
Collector - November 2017 - 25
Collector - November 2017 - Highlight Reel
Collector - November 2017 - 27
Collector - November 2017 - 28
Collector - November 2017 - 29
Collector - November 2017 - 30
Collector - November 2017 - 31
Collector - November 2017 - Putting it all Together
Collector - November 2017 - 33
Collector - November 2017 - 34
Collector - November 2017 - 35
Collector - November 2017 - Calendar
Collector - November 2017 - Honor Roll
Collector - November 2017 - On Call
Collector - November 2017 - 39
Collector - November 2017 - Hire Purpose
Collector - November 2017 - 41
Collector - November 2017 - CFPB Pursues Two Student Loan Servicers
Collector - November 2017 - 43
Collector - November 2017 - Compliance
Collector - November 2017 - 45
Collector - November 2017 - ACA SearchPoint
Collector - November 2017 - 47
Collector - November 2017 - Last Word
Collector - November 2017 - Cover3
Collector - November 2017 - Cover4
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