ORS 697.652
Written agreement and budget analysis requirement

  • contents and form of agreement
  • waiver of requirements void

(1)

A debt management service provider may not perform a debt management service for a consumer without entering into a written agreement with the consumer that:

(a)

Lists the name and telephone number for the debt management service provider and the consumer and, to the extent the information is available, the facsimile number, electronic mail address and website address or other Internet uniform resource locator for the debt management service provider.

(b)

Lists every debt for which the debt management service provider will provide a debt management service on the consumer’s behalf. The list must disclose the creditor’s name and the approximate total of all of the identified debts.

(c)

States in precise terms how much the consumer can reasonably pay, if the debt management service provider holds, directly or indirectly, a consumer’s funds for distribution to creditors.

(d)

Describes in precise terms the debt management services the debt management service provider will perform, itemizes the fees the debt management service provider will charge and explains how the debt management service provider calculated the amount of the fees.

(e)

Shows in the form of a schedule the approximate number of installments, the amount of each installment and the ratio or other arrangement that will apply to the consumer’s payment or satisfaction of the debts.

(f)

Provides that the consumer may:

(A)

Examine the consumer’s account in the debt management provider’s office during office hours; or

(B)

Request the debt management service provider to deliver to the consumer a full and complete written statement of the consumer’s account:
(i)
Within two business days, if the debt management service provider delivers the statement electronically; or
(ii)
Within seven business days, if the debt management service provider delivers the statement by mail.

(g)

Provides that the debt management service provider may cancel the agreement without the consumer’s written authorization if the consumer fails to make scheduled periodic payments under the terms of the agreement for more than 60 days.

(h)

Estimates the time period necessary to complete the debt management services identified in the agreement.

(i)

Provides that the debt management service provider must deliver to the consumer each calendar quarter a financial statement of the consumer’s funds, if any, that the debt management service provider holds, directly or indirectly.

(j)

Provides that:

(A)

The consumer may cancel the agreement:
(i)
At any time before midnight of the third business day after the consumer entered into the agreement with the debt management service provider; or
(ii)
At any time during the remaining term of the agreement, for any reason, after giving 10 calendar days’ written notice of the cancellation to the debt management service provider;

(B)

The consumer’s cancellation is effective on the date the consumer mails a notice of cancellation or immediately if the consumer sends the cancellation by electronic mail or facsimile; and

(C)

The debt management service provider shall:
(i)
Refund all fees the consumer paid before the cancellation if the consumer cancels the agreement under subparagraph (A)(i) of this paragraph; or
(ii)
Return to the consumer all of the consumer’s funds that the debt management service provider has not expended from among the funds that the debt management service provider holds, directly or indirectly, if the consumer cancels the agreement under subparagraph (A)(ii) of this paragraph.

(k)

Provides that the debt management service provider shall notify the consumer’s creditors in writing that the debt management service provider may negotiate with the creditors concerning the consumer’s debts on the consumer’s behalf.

(2)

Before the consumer and the debt management service provider sign the agreement described in subsection (1) of this section, the debt management service provider shall give the consumer an analysis of the consumer’s budget that is separate from the agreement and that evaluates whether the debt management services the debt management service provider proposes to perform are advantageous to the consumer.

(3)

As soon as is practicable after the consumer and the debt management service provider sign and date the agreement described in subsection (1) of this section, the debt management service provider shall provide the consumer with a legible copy of the signed and dated agreement.

(4)

Intentionally left blank —Ed.

(a)

A consumer’s waiver or an agreement or contract between a debt management service provider and a consumer that purports to waive or otherwise violate a provision of ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director) is void and unenforceable as contrary to public policy.

(b)

A debt management service provider may not induce or attempt to induce a consumer to waive a provision of ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director).

(c)

A person that claims an exemption from a provision of ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director) has the burden of proof with respect to the claim in a proceeding under ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director).

(d)

A circuit court of this state has jurisdiction in equity to restrain and enjoin a violation of ORS 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director).

(e)

This subsection does not prohibit a person from enforcing a right provided under ORS 646.608 (Additional unlawful business, trade practices) and 697.602 (Definitions for ORS 697.602 to 697.842) to 697.842 (Disposition of moneys received by director) or other applicable law. [1983 c.17 §7; 2009 c.604 §5]

Source: Section 697.652 — Written agreement and budget analysis requirement; contents and form of agreement; waiver of requirements void, https://www.­oregonlegislature.­gov/bills_laws/ors/ors697.­html.

697.005
Definitions for ORS 697.005 to 697.095
697.015
Registration requirement
697.031
Registration procedure
697.039
Revocation, suspension or refusal to issue or renew registration
697.045
Status of accounts and claims assigned to agency
697.053
Registration exclusive regulation
697.058
Agency records
697.063
Status of business records and bank accounts following revocation of registration
697.085
Rules
697.086
Rules for collection of child support payments
697.087
Injunction
697.091
Fees or compensation received in violation of law
697.093
Enforcement
697.094
Orders issued under ORS 697.093
697.095
Civil penalties
697.105
Fee for collection of debt owed public body
697.107
Prohibition on use of public agency or public official seal or letterhead
697.115
Fee for collection of commercial debt
697.500
Definitions for ORS 697.500 to 697.555
697.502
Exemptions from licensing and record-keeping requirements
697.504
Licensing requirement
697.510
License application form and contents
697.512
Application fee and investigation fee
697.514
Application review and license issuance
697.520
Prohibited practices
697.522
Receipt
697.524
Endorsement and deposit of payment instruments
697.526
Notice of fees and charges
697.528
Records
697.530
Prohibited conduct
697.540
Suspension or revocation of license
697.542
Powers of director
697.550
Rules
697.555
Civil penalties
697.602
Definitions for ORS 697.602 to 697.842
697.612
Registration requirement
697.632
Registration procedure
697.642
Bond requirement
697.652
Written agreement and budget analysis requirement
697.662
Prohibited practices
697.672
Requirement to make, keep and maintain records
697.682
Trust accounts for client funds
697.692
Fees
697.702
Interference with records of debt management service provider
697.707
Required disclosures
697.718
Liability for consumer’s ascertainable loss
697.722
Execution or attachment of trust account funds
697.732
Examinations
697.752
Grounds for denial, revocation or suspension of registration
697.762
Enjoining violations
697.822
Remedy not exclusive
697.825
Enforcement
697.832
Civil penalties
697.840
Rules
697.842
Disposition of moneys received by director
697.990
Penalties
697.992
Jurisdiction of courts
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