(1) A debt consolidating agency improperly makes a contract or an agreement with a client if the debt consolidating agency does not comply with the requirements of subsection (2) or (3) of this section.
(2) A debt consolidating agency shall include the following items in each debt consolidating contract or agreement with a client:
(a) The name and address of the debt consolidating agency and of the client.
(b) A listing of every debt to be consolidated. The listing must disclose the creditor’s name and address and the approximate total of all such debts.
(c) A statement, in precise terms, of payments reasonably within the ability of the client to pay.
(d) A statement, in precise terms, of the rate to be charged by the debt consolidating agency.
(e) A statement of the approximate number of installments and the amount of each installment, in the form of a schedule showing the ratio or other arrangement made to pay the debts in full.
(f) A provision allowing the client to examine the client’s account in the office of the debt consolidating agency during office hours.
(g) A provision that the debt consolidating agency may cancel a debt consolidating contract or agreement without the client’s written authorization while the client is employed and the client’s salary is subject to any wage assignment made to the debt consolidating agency, if the client fails or refuses to make all of the client’s debts subject to the contract or agreement, if the client knowingly enters into new credit obligations while subject to a debt consolidating contract or agreement without the prior approval of the debt consolidating agency or if the client by any means knowingly withholds from the debt consolidating agency any wages that are subject to wage assignment.
(3) A debt consolidating agency shall deliver a legible copy of a contract or agreement between the debt consolidating agency and the client to the client immediately after the client executes it. The client’s copy shall be executed by the debt consolidating agency.
(4) A debt consolidating agency which improperly makes a contract or agreement with a client is subject to ORS 697.752, 697.762, 697.832 and 697.990 (3).
(5) A contract or agreement is not effective until a client has made a payment or a payment has been made under a wage assignment to the debt consolidating agency for distribution to the client’s creditors. [1983 c.17 §7]Section: Previous 697.630 697.632 697.635 697.640 697.642 697.645 697.650 697.652 697.655 697.657 697.660 697.662 697.665 697.670 697.672 Next
Last modified: August 7, 2008