Oregon Statutes - Chapter 697 - Collection Agencies; Check-Cashing Businesses; Debt Consolidating Agencies - Section 697.662 - Prohibited practices.

(1) A debt consolidating agency commits an improper debt consolidating practice when the debt consolidating agency does any of the following:

(a) Takes a contract, promise to pay or other instrument that has any blank spaces when it is signed by a client.

(b) Takes a negotiable instrument, other than a check or draft, as payment or security for the charges of the debt consolidating agency.

(c) Takes a wage assignment, real estate mortgage, purchase money security interest or other security, all or any part of which is an amount greater than that provided in ORS 697.692, to secure the charges of the debt consolidating agency.

(d) Takes a confession of judgment or a power of attorney to confess judgment against the client or to appear for the client in a judicial proceeding.

(e) Takes a release from a client of an obligation to be performed on the part of the debt consolidating agency.

(f) Makes any contract or agreement with a client that provides for later charges or reserves for liquidated damages.

(g) Commingles a client’s wages, salaries, income, credits or property held by the debt consolidating agency with the property or funds of the debt consolidating agency.

(h) Except as authorized in ORS 697.712, cancels a debt consolidating contract or agreement without a client’s written authorization.

(i) Violates ORS 697.707.

(2) A person commits an improper debt consolidating practice if the person advertises, prints, displays, publishes, distributes or broadcasts, or causes to be advertised, printed, displayed, published, distributed or broadcasted, any false or misleading statement or representation with regard to the rates, terms or services of a debt consolidating agency.

(3) A debt consolidating agency that commits an improper debt consolidating practice under this section is subject to ORS 697.752, 697.762, 697.832 and 697.990 (3).

(4) A person other than a debt consolidating agency that commits an improper debt consolidating practice under subsection (2) of this section is subject to ORS 697.762, 697.832 and 697.990 (3). [1983 c.17 §8; 2005 c.309 §4]

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Last modified: August 7, 2008