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The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
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DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
DIVISION OF FINANCE AND CORPORATE SECURITIES

 

DIVISION 810

GENERAL

441-810-0000

Definitions

The definitions of terms used in ORS 697.005 to 697.098, 697.990 to 697.992 and the rules of this OAR Chapter 441 Divisions 800 and 810, are:

(1) "Director" means the director of the Department of Consumer and Business Services.

(2) "Employed" means working for a salary or wages.

(3) "Person" means any legal entity, including individuals, corporations, associations, firms and partnerships.

(4) "Repossessor" means a person who takes possession of an item when the installment payment has been defaulted and the creditor has the right to repossess.

(5) "Solicitor" means a person who attempts to obtain clients for a collection agency or payments due a client of a collection agency.

(6) "Trust Account" means a financial institution checking account designated "client trust account" in which all funds received or handled by the collection agency on behalf of the agency's clients are deposited.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.085
Hist.: DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0001; FCS 4-2000, f. & cert. ef. 3-9-00

Registration

441-810-0020

Duration of Registration

(1) All registrations shall be issued on the date all registration qualifications are met and be valid for one year.

(2) If the registration is issued after the first day of a month, the expiration date will be the last day of the month in which the certification of registration was issued.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.031(3)
Hist.: DC 15-1982, f. & ef. 7-26-82; DC 3-1984, f. & ef. 1-16-84; DC 16-1984, f. & ef. 5-1-84; Renumbered from 814-101-0005

441-810-0030

Renewal

A certificate of registration may be renewed on or before the renewal date by payment of the required fee and submission of a current list of solicitors with desk names.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.031(3)
Hist.: DC 7-1981(Temp), f. & ef. 7-1-81; DC 15-1982, f. & ef. 7-26-82; DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0010

441-810-0040

Application

(1) Application for registration shall be on forms provided by the Division of Finance and Corporate Securities and must be accompanied by the required fee.

(2) Applications shall include:

(a) The information required by ORS 697.031(1)(a) through (e);

(b) The name of the collection agency trust account, account number and financial institution name and address;

(c) Telephone number of the collection agency business;

(d) Name of the collection agency business manager; and

(e) Address of all business locations.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.031
Hist.: DC 15-1982, f. & ef. 7-26-82; DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0015; FCS 4-2000, f. & cert. ef. 3-9-00

441-810-0050

Update Filings

At least ten days prior to a change of ownership, business address, business manager, or change in information relating to the trust account, the collection agency business shall notify the Director in writing of the changes.

Stat. Auth.: ORS 697.085
Stats. Implemented: ORS 697.031(3)
Hist.: DC 7-1981(Temp), f. & ef. 7-1-81; DC 15-1982, f. & ef. 7-26-82; DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0020; FCS 9-1988, f. 4-12-88, cert. ef. 5-1-88; FCS 4-2000, f. & cert. ef. 3-9-00

441-810-0060

Assumed Business Name

Before registration or renewal of registration of a collection agency business:

(1) An individual using an assumed business name shall be registered with the Secretary of State.

(2) A corporation must be registered to do business in Oregon with the Secretary of State.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.0031(1)
Hist.: DC 3-1984, f. & ef. 1-16-84; DC 12-1984, f. & ef. 4-17-84; Renumbered from 814-101-0026; FCS 9-1988, f. 4-12-88, cert. ef. 5-1-88

Collection Activities

441-810-0070

Return of Accounts

(1) Immediately upon receipt of a certified mail request from the client, a collection agency business shall cease all collection attempts, unless a written contract requires otherwise.

(2) A collection agency business shall return all accounts to the client within 20 days from the receipt of the certified mail request from the client. Return of accounts shall include an itemized status report for the accounts being closed, showing name, amount assigned, payments collected, and amount still owing.

(3) If a client requests the return of accounts and there are no stipulations otherwise in a written contract, the collection agency must return all documents given it relating to the accounts; however, the collection agency's own work papers, contact sheets, etc., are the sole property of the collection agency, and need not be sent to the client.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.045(2)
Hist.: DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0040; DC 2-1986, f. & ef. 1-3-86; Renumbered from 814-101-0031

441-810-0080

Office Closure

When an agency permanently closes an office, it shall notify the Director, in writing, within five days from closure and provide the following information:

(1) Disposition or location of records and clients' moneys.

(2) Name and address of a contact person for future inquiries.

Stat. Auth.: ORS 697.085
Stats. Implemented: ORS 697.031(3)
Hist.: DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0036; FCS 9-1988, f. 4-12-88, cert. ef. 5-1-88; FCS 4-2000, f. & cert. ef. 3-9-00

441-810-0090

Joint Trust Accounts

A trust account may not be used jointly as a trust account and an operating account.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.058
Hist.: DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0050

441-810-0100

Audits

Collection agencies being audited shall provide working space in their office for the auditor or, if office space is not available, submit the records being audited to the Director within ten working days of the request for records.

Stat. Auth.: ORS 697.085
Stats. Implemented: ORS 697.632
Hist.: DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0055; FCS 4-2000, f. & cert. ef. 3-9-00

441-810-0110

Audit Charges Collection Agencies Pay to the Director

(1) Audit charges shall be paid upon receipt of the invoice.

(2) The rate of charge payable by a collection agency is $75 an hour for each person used in performance of the audit conducted under ORS 697.058(5).

(3) Notwithstanding section (2) of this rule:

(a) If a person from the Collection Agency Program is required to travel out of state to perform the work described by section (2) of this rule, the rate of charge is $75 per hour plus cost to the Program of travel and subsistence for each such person;

(b) If the work described in section (2) of this rule is performed by a consultant hired by contract for the particular work, the charge payable by the collection agency is the actual cost to the Program of the contract consultant.

Stat. Auth.: ORS 697.085
Stats. Implemented: ORS 697.058(5)
Hist.: DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0060; FCS 9-1988, f. 4-12-88, cert. ef. 5-1-88; FCS 8-2008, f. & cert. ef 8-28-08

441-810-0120

Claims

(1) Persons having a claim against a collection agency may notify the Director by mail. The information shall include:

(a) Name, address and telephone number of the claimant;

(b) Name, address and telephone number of the collection agency;

(c) The amount of money involved;

(d) A brief statement of the nature of the claim;

(e) A copy of the contract with relevant documents attached.

(2) If a court judgment is the basis for the claim, a copy of the judgment shall be attached.

Stat. Auth.: ORS 697.085
Stats. Implemented: ORS 697.058(5)
Hist.: DC 12-1984, f. & ef. 4-17-84; Renumbered from 814-101-0070; FCS 9-1988, f. 4-12-88, cert. ef. 5-1-88; FCS 4-2000, f. & cert. ef. 3-9-00

441-810-0130

Response to Claims

(1) A copy of a claim received by the Director shall be sent to the collection agency.

(2) The collection agency is required to respond in writing to the Director within 15 working days.

Stat. Auth.: ORS 697.085
Stats. Implemented: ORS 697.058(5)
Hist.: DC 12-1984, f. & ef. 4-17-84; Renumbered from 814-101-0072; FCS 9-1988, f. 4-12-88, cert. ef. 5-1-88; FCS 4-2000, f. & cert. ef. 3-9-00

441-810-0140

Civil Penalties

Civil penalties shall be $400 for the first offense and $1,000 for each subsequent offense.

Stat. Auth.: ORS 697
Stats. Implemented: ORS 697.095
Hist.: DC 12-1984, f. & ef. 4-17-84; Renumbered from 814-101-0075

441-810-0150

Fees

(1) Fees established for the Program are:

(a) Initial registration, $350;

(b) Registration renewal, $120;

(c) Duplicate registration, $10;

(d) Certification of registration, $5.

(2) The director may by order reduce the fees assessed for any specific year.

Stat. Auth.: ORS 697.031
Stats. Implemented: ORS 697.031
Hist.: DC 7-1981(Temp), f. & ef. 7-1-81; DC 15-1982, f. & ef. 7-26-82; CD 22-1983(Temp), f. 10-14-83, ef. 11-1-83; DC 3-1984, f. & ef. 1-16-84; Renumbered from 814-101-0035; Renumbered from 814-101-0100; FCS 9-1988, f. 4-12-88, cert. ef. 5-1-88; FCS 9-2000, f. & cert. ef. 9-13-00; FCS 3-2005, f. & cert. ef. 9-6-05

441-810-0160

Office and Trust Account Location

(1) The provisions of ORS 697.058(1), (2), (4), and (5) requiring that a registrant maintain an office location and client trust account in this state are waived provided the registrant submits a written request for waiver; and,

(a) Has been registered by the State of Oregon for the two years immediately preceding the request; or

(b) Has been subject to regulation of the registrant's collection agency activities by another state with laws substantially similar to Oregon's Collection Agency Act for at least five years immediately preceding the request.

(2) Persons who do not qualify for a waiver pursuant to subsection 1 of this section may qualify for a waiver provided they:

(a) Submit a written request for waiver;

(b) Agree to pay the cost of out of state audits; and

(c) Submit an additional $5,000 bond, which is in addition to the bonding requirements of ORS 697.031(2)(a).

Stat. Auth.: ORS 697.058(9)
Stats. Implemented: ORS 697.058(5)
Hist.: FCS 4-2000, f. & cert. ef. 3-9-00

441-810-0200

Applicability of Rules, Definition

(1) OAR 441-810-0200 to 441-810-0250 apply to the practices of a collection agency that enters into an agreement with an obligee to collect child support payments as provided in ORS 25.020.

(2) For the purposes of OAR 441-810-0200 to 441-810-0250, the term "debtor" includes the debtor's spouse, parent (if the debtor is a minor), guardian, executor, or administrator.

Stat. Auth.: ORS 697.085, Ch. 421, Sec. 4, 2003 OL
Stats. Implemented: ORS 25.020, Ch. 421, Sec. 4, 2003 OL
Hist.: FCS 6-2003, f. 12-30-03 cert. ef. 1-1-04

441-810-0210

Acquisition of Location Information

Any collection agency communicating with any person other than the debtor for the purpose of acquiring location information about the debtor shall:

(1) Identify himself, state that he is confirming or correcting location information concerning the debtor, and, only if expressly requested, identify his employer;

(2) Not state that such debtor owes any debt;

(3) Not communicate with any such person more than once unless requested to do so by such person or unless the collection agency reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information;

(4) Not communicate by post card;

(5) Not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the collection agency is in the debt collection business or that the communication relates to the collection of a debt; and

(6) After the collection agency knows the debtor is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney's name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to communication from the collection agency.

Stat. Auth.: ORS 697.085, Ch. 421, Sec. 4, 2003 OL
Stats. Implemented: ORS 25.020, Ch. 421, Sec. 4, 2003 OL
Hist.: FCS 6-2003, f. 12-30-03 cert. ef. 1-1-04

441-810-0220

Communication In Connection With Debt Collection

(1) Without the prior consent of the debtor given directly to the collection agency or the express permission of a court of competent jurisdiction, a collection agency may not communicate with a debtor in connection with the collection of any debt:

(a) At any unusual time or place or a time or place known or which should be known to be inconvenient to the debtor. In the absence of knowledge of circumstances to the contrary, a collection agency shall assume that the convenient time for communicating with a debtor is after 8 a.m. and before 9 p.m., local time at the debtor's location;

(b) If the collection agency knows the debtor is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the collection agency or unless the attorney consents to direct communication with the debtor; or

(c) At the debtor's place of employment if the collection agency knows or has reason to know that the debtor's employer prohibits the debtor from receiving such communication.

(2) Except as provided in OAR 441-810-0210, without the prior consent of the debtor given directly to the collection agency, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a collection agency may not communicate, in connection with the collection of any debt, with any person other than the debtor, his attorney, a consumer reporting agency if otherwise permitted by law, the obligee, the attorney of the obligee, or the attorney of the collection agency.

(3) If a debtor notifies a collection agency in writing that the debtor refuses to pay a debt or that the debtor wishes the collection agency to cease further communication with the debtor, the collection agency shall not communicate further with the debtor with respect to such debt, except:

(a) To advise the debtor that the collection agency's further efforts are being terminated;

(b) To notify the debtor that the collection agency or obligee may invoke specified remedies which are ordinarily invoked by such collection agency or obligee; or

(c) Where applicable, to notify the debtor that the collection agency or obligee intends to invoke a specified remedy.

If such notice from the debtor under this section (3) is made by mail, notification shall be complete upon receipt.

Stat. Auth.: ORS 697.085, Ch. 421, Sec. 4, 2003 OL
Stats. Implemented: ORS 25.020, Ch. 421, Sec. 4, 2003 OL
Hist.: FCS 6-2003, f. 12-30-03 cert. ef. 1-1-04

441-810-0230

Harassment or Abuse

A collection agency may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this rule:

(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.

(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.

(3) The publication of a list of debtors who allegedly refuse to pay debts, except to a consumer reporting agency.

(4) The advertisement for sale of any debt to coerce payment of the debt.

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

(6) Except as provided in OAR 441-810-0210, the placement of telephone calls without meaningful disclosure of the caller's identity.

Stat. Auth.: ORS 697.085, Ch. 421, Sec. 4, 2003 OL
Stats. Implemented: ORS 25.020, Ch. 421, Sec. 4, 2003 OL
Hist.: FCS 6-2003, f. 12-30-03 cert. ef. 1-1-04

441-810-0240

False or Misleading Representations

A collection agency may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this rule:

(1) The false representation or implication that the collection agency is vouched for, bonded by, or affiliated with the United States or any state, including the use of any badge, uniform, or facsimile thereof.

(2) The false representation of:

(a) The character, amount, or legal status of any debt; or

(b) Any services rendered or compensation which may be lawfully received by any collection agency for the collection of a debt.

(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.

(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the collection agency or obligee intends to take such action.

(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.

(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the debtor to:

(a) Lose any claim or defense to payment of the debt; or

(b) Become subject to any practice prohibited by OAR 441-810-0200 to 441-810-0250.

(7) The false representation or implication that the debtor committed any crime or other conduct in order to disgrace the debtor.

(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any state, or which creates a false impression as to its source, authorization, or approval.

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a debtor.

(11) The failure to disclose in the initial written communication with the debtor and, in addition, if the initial communication with the debtor is oral, in that initial oral communication, that the collection agency is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a collection agency, except that this section shall not apply to a formal pleading made in connection with a legal action.

(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.

(13) The false representation or implication that documents are legal process.

(14) The use of any business, company, or organization name other than the true name of the collection agency's business, company, or organization.

(15) The false representation or implication that documents are not legal process forms or do not require action by the debtor.

(16) The false representation or implication that a collection agency operates or is employed by a consumer reporting agency.

Stat. Auth.: ORS 697.085, Ch. 421, Sec. 4, 2003 OL
Stats. Implemented: ORS 25.020, Ch. 421, Sec. 4, 2003 OL
Hist.: FCS 6-2003, f. 12-30-03 cert. ef. 1-1-04

441-810-0250

Unfair Practices

A collection agency may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this rule:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

(2) The acceptance by a collection agency from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the collection agency's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.

(3) The solicitation by a collection agency of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.

(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.

(5) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.

(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if:

(a) There is no present right to possession of the property claimed as collateral through an enforceable security interest;

(b) There is no present intention to take possession of the property; or

(c) The property is exempt by law from such dispossession or disablement.

(7) Communicating with a debtor regarding a debt by post card.

(8) Using any language or symbol, other than the collection agency's address, on any envelope when communicating with a debtor by use of the mails or by telegram, except that a collection agency may use his business name if such name does not indicate that he is in the debt collection business.

Stat. Auth.: ORS 697.085, Ch. 421, Sec. 4, 2003 OL
Stats. Implemented: ORS 25.020, Ch. 421, Sec. 4, 2003 OL
Hist.: FCS 6-2003, f. 12-30-03 cert. ef. 1-1-04

441-810-0260

Compliance with Fair Debt Collection Practices Act

A collection agency that is subject to and in compliance with the requirements of the Fair Debt Collection Practices Act (Public Law 95-109, 15 U.S.C. 1692 et seq.) shall also be considered to be in compliance with the requirements of OAR 441-810-0200 through 441-810-0250.

Stat. Auth.: ORS 697.085
Stats. Implemented: ORS 25.020, 697.085, Ch 421 Sec 4, 2003 OL
Hist.: FCS 6-2003, f. 12-30-03 cert. ef. 1-1-04

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