Collection Under the Oregon Unlawful Debt Collection

Practices Act.

ORS 646.639

Disclaimer:

• This presentation is not intended as legal advice, but is intended to provide you insight of best collection practices, compliant with the Oregon Unlawful Debt Collection Practices statutes.

Important Definitions

• Consumer• Consumer transaction• Commercial creditor• Debt• Debtor• Debt collector

Consumer

• A natural person who purchases or acquires property, services or credit for personal, family or household purposes.

Consumer Transaction

• A transaction between a consumer and a person who sells, leases or provides property, services or credit to consumers.

Unlawful Collection Practices

• Cannot use or threaten the use of force or violence to cause physical harm.– To a debtor.– To the debtor’s family.– To the debtor’s property.

• Threaten arrest or criminal prosecution.

Unlawful Collection Practices (Continued)

• Cannot threaten the seizure, attachment or sale of a debtor’s property.– When such action can only be taken pursuant to

court order without disclosing that prior court proceedings are required.

• Cannot use profane, obscene or abusive language in communicating with a debtor or the debtor’s family.

Unlawful Collection Practices (Continued)

• Cannot communicate with the debtor or any member of the debtor’s family repeatedly or continuously or at times known to be inconvenient to that person with intent to harass or annoy the debtor or any member of the debtor’s family.

• Cannot communicate or threaten to communicate with a debtor’s employer concerning the nature or existence of the debt.

Unlawful Collection Practices (Continued)

• No contact at work, except:– In writing.

• If no home address is reasonably available.• The envelope does not reveal that the

communication is from a debt collector other than a provider of the goods, services or credit from which the debt arose.

Unlawful Collection Practices (Continued)

• No contact at work, except (continued):– By telephone.

• Do not disclose.• Unsuccessful attempt at the debtor’s residence.• Limited to one contact per week.• May not if calls not allowed.

Unlawful Collection Practices (Continued)

• All calls must identify– The name of the debt collector– The name of the person, if any, for whom the

debt collector is attempting to collect the debt

Unlawful Collection Practices (Continued)

• Must disclose within 30 seconds the name of the individual making the contact and the true purpose thereof.

• Cannot cause any expense to the debtor, by concealing the true purpose of the debt collector’s communication.

Unlawful Collection Practices (Continued)

• Cannot attempt to or threaten to enforce a right or remedy with knowledge or reason to know that the right or remedy does not exist, or threaten to take any action which the debt collector in the regular course of business does not take.

Unlawful Collection Practices (Continued)

• Cannot use any form of communication which simulates legal or judicial process when it is not in fact so approved or authorized.

• Cannot represent that an existing debt may be increased by the addition of fees or charges when such fees or charges may not legally be added to the existing debt.

Unlawful Collection Practices (Continued)

• Cannot collect or attempt to collect any interest or any other charges or fees in excess of the actual debt unless they are expressly authorized by the agreement creating the debt or expressly allowed by law.

Unlawful Collection Practices (Continued)

• Cannot threaten to assign or sell the debtor’s account by implying.– That the debtor would lose any defense to the

debt.– Or would be subjected to harsh, vindictive or

abusive collection tactics.

ORS 697.105

• A public body may add a reasonable fee to the amount of the debt, payable by the consumer, to compensate (in whole or in part) for the agency fee incurred or to be incurred.

• Fee may not be added unless, public body has provided a notice to the consumer of:– Existence of the debt– That PB may assign to private collection

agency– The amount of the fee to be added.– Fee added cannot exceed the fee of the

collection agency.

ORS 697.105

ORS 205.125 & 126

• Record an Order or Warrant in County Clerk Lien Record– Establish a lien equal to a judgment lien

• File the recorded copy in the Circuit Court – enforce just as though it was a judgment– Writ of Execution– Garnishment

Culture of Financial Resposibility

• Promote and celebrate a culture of accounts paid off.

• Be open and transparent about your collection efforts– Set goals, train, monitor, evaluate,

communicate results, revise goals, improve – – REPEAT!!

Consumers

• Monitor Consumer Complaints– Fix the consumer’s problem – help them– Use the complaint positively to improve

processes,– Share them with staff

Why it’s great to comply with

Oregon Unlawful Debt Collection Practices Act!

• It’s a Great Law• People are more motivated in a positive

environment• We are all in the business of making the

world a better place.

Change the World!

How to comply?

• Define Process, Define Process, Define Process!!!! (Policies and Procedures)– Letter communications– Phone communications– Email communications– Web communications– Text, IM,Tweeter, etc??????

It’s all about Communication!

Compliance

• Compliance Officer• Management Reporting and Review• Consumer Help Desk• Call Recording• Data Analytics• Logging Complaints• Policies and Procedures - Document Everything!

Quality Control Programs – LEAN

• Formalized Program for Process Control and Evaluation.

• Staffing– Behavioral Sciences– Analytics

Additional Controls

• ISO/IEC - ISMS• PPMS• SSAE 16• Financial Audits