ORS 697.612
Registration requirement

exceptions

Text
Annotations 1

(1)

A person that has not registered with the Director of the Department of Consumer and Business Services under ORS 697.632 (Registration procedure) may not engage in business in this state in the course of which the person:

(a)

Performs a debt management service; or

(b)

Receives money or other valuable consideration or expects to receive money or other valuable consideration for:

(A)

Soliciting or receiving an application from a consumer for a debt management service;

(B)

Forwarding or providing a completed application for a debt management service to a debt management service provider;

(C)

Referring a consumer to another debt management service provider, if the person is a debt management service provider;

(D)

Providing a consumer’s name, address or other information that identifies the consumer to a debt management service provider for the purpose of arranging the provision of a debt management service; or

(E)

Providing advice, assistance, instruction or instructional material concerning a debt management service to a consumer.

(2)

A debt management service provider registered under ORS 697.632 (Registration procedure) may negotiate on a consumer’s behalf for a reasonable alternative repayment schedule or to reduce a claim described in 11 U.S.C. 502 if the debt management service provider is a nonprofit budget and credit counseling agency approved in accordance with 11 U.S.C. 111.

(3)

Subsection (1) of this section does not apply to:

(a)

An employee of a debt management service provider, if the debt management service provider is registered under ORS 697.632 (Registration procedure).

(b)

An attorney licensed or authorized to practice law in this state, if the attorney provides a debt management service only incidentally in the practice of law.

(c)

A financial institution or a trust company, both as defined in ORS 706.008 (Additional definitions for Bank Act).

(d)

A consumer finance company licensed under ORS chapter 725.

(e)

An escrow agent licensed under ORS 696.505 (Definitions for ORS 696.505 to 696.590) to 696.590 (Penalty amounts) to the extent that the escrow agent is acting to close an escrow, as defined in ORS 696.505 (Definitions for ORS 696.505 to 696.590), is engaging in activity related to a collection escrow, as defined in ORS 696.505 (Definitions for ORS 696.505 to 696.590), or is serving as a trustee of a trust deed in accordance with ORS 86.713 (Qualifications of trustee). This paragraph does not apply if the escrow agent:

(A)

Assists an unregistered debt management service provider that is not exempt from registration under this subsection in performing a debt management service; or

(B)

Provides escrow services to a consumer in accordance with a debt management services plan executed by an unregistered debt management services provider that is not exempt from registration under this subsection.

(f)

A mortgage banker or mortgage broker licensed under ORS 86A.095 (Short title) to 86A.198 (Materials in languages other than English) or a mortgage loan originator, as defined in ORS 86A.100 (Definitions).

(g)

A broker-dealer registered with the United States Securities and Exchange Commission or the United States Commodity Futures Trading Commission, if the broker-dealer is subject to and acts in accordance with regulations promulgated by either commission.

(h)

A consumer reporting agency, as defined in 15 U.S.C. 1681a(f).

(i)

A public body, as defined in ORS 174.109 (“Public body” defined).

(j)

A person that is obeying or acting in accordance with a court order.

(k)

An accredited educational institution or program that offers or performs a debt management service without receiving money or other valuable consideration, if the institution or program performs the debt management service as an incidental part of a class or a duty the institution or program provides regularly.

(L)

A nonprofit budget and credit counseling agency approved in accordance with 11 U.S.C. 111 that:

(i)

Provides only an individual or group briefing, as described in 11 U.S.C. 109(h), or an instructional course concerning personal financial management, as described in 11 U.S.C. 111; and

(ii)

Does not receive or offer to receive funds from a consumer for the purpose of distributing the funds among the consumer’s creditors in full or partial payment of the consumer’s debts.

(m)

A nonprofit entity that provides advice, assistance, instruction or instructional materials to a consumer in return for a fee that is reasonably calculated to pay the cost of making the advice, assistance, instruction or instructional materials available.

(n)

An organization or a counselor approved by the United States Department of Housing and Urban Development under 12 U.S.C. 1701x. [1983 c.17 §3; 2009 c.604 §2; 2009 c.863 §41; 2013 c.444 §2]

Source: Section 697.612 — Registration requirement; exceptions, https://www.oregonlegislature.gov/bills_laws/ors/ors697.html.

Notes of Decisions

Failure to register is not “status” such that unregistered debt management services provider can violate this section only once for period of time that registration would have been valid if provider had registered. Violation of this section occurs each time, while unregistered, person “engage[d] in business in this state in the course of which the person [p]erform[ed] a debt management service;” thus, debt management services provider violated this section each time provider held initial paid consultation with new Oregon consumer without having registered with Director of Department of Consumer and Business Services. Persels & Associates, LLC v. DCBS, 286 Or App 315, 398 P3d 428 (2017)

California:	Codes
Colorado:	C.R.S.
Nevada:	NRS
New York:	Laws
Oregon:	OAR, ORS
Texas:	Statutes
World:	Rome Statute, International Dictionary

ORS 697.612 Registration requirement

(1)

(a)

(b)

(A)

(B)

(C)

(D)

(E)

(2)

(3)

(a)

(b)

(c)

(d)

(e)

(A)

(B)

(f)

(g)

(h)

(i)

(j)

(k)

(L)

(i)

(ii)

(m)

(n)

Notes of Decisions

ORS 697.612
Registration requirement