Commercial Debt Collection Statutes for Oregon

You are here:
  1. Home
  2. Collection Laws by State
  3. Commercial Debt Collection Statutes for Oregon

Commercial-Debt Collection Statutes for OREGON:

Note: Oregon’s Unlawful Debt Collection Practices statutes (See Or. Rev. Stat. § 646.639) do not apply to collectors of commercial debt. However, commercial collectors are subject to the state collection agency registration requirements (See Or. Rev. Stat. §§ 697.005-697.095).

OREGON-Definitions

[Applicable to Unlawful Debt Collection Practices] (1) As used in subsection (2) of this section:

  • (a) “Consumer” means a natural person who purchases or acquires property, services, or credit for personal, family, or household purposes.
  • (b) “Consumer transaction” means a transaction between a consumer and a person who sells, leases, or provides property, services, or credit to consumers.
  • (c) “Commercial creditor” means a person who in the ordinary course of business engages in consumer transactions.
  • (d) “Credit” means the right granted by a creditor to a consumer to defer payment of a debt, to incur a debt and defer its payment, or to purchase or acquire property or services and defer payment therefor.
  • (e) “Debt” means any obligation or alleged obligation arising out of a consumer transaction.
  • (f) “Debtor” means a consumer who owes or allegedly owes an obligation arising out of a consumer transaction.
  • (g) “Debt collector” means any person who by any direct or indirect action, conduct, or practice enforces or attempts to enforce an obligation that is owed or due to any commercial creditor by a consumer as a result of a consumer transaction.
  • (h) “Person” means an individual, corporation, trust, partnership, incorporated or unincorporated association, or any other legal entity.

Or. Rev. Stat. § 646.639(1) (West, WESTLAW through End of the 2003 Reg. Sess.).

OREGON-Exemptions

Collection agency does not include:

  • Employees of a registered collection agency collecting on behalf of their employer.
  • Attorneys-at-law rendering services in the performance of duties as an attorney.
  • Banks, trust companies, or financial institutions collecting their own debts.
  • Real estate agents and escrow agents involved in real estate transactions.
  • Public officers or persons acting under the order of a court.

Or. Rev. Stat. § 697.005(1)(b) (West, WESTLAW through 2009 Reg. Sess.).

What is the Fair Debt Collection Practices Act?

The U.S. Congress enacted the FDCPA in 1977 and added it to the Consumer Credit Protection Act in 1978. Its purpose is to eliminate abusive practices of third-party debt collectors. To that end, the Act establishes guidelines for the conduct of debt collectors, defines the rights of consumers, and prescribes penalties for violations.

The FDCPA defines “debt collectors” as “any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debt … asserted to be owed or due another.”

“Consumers” and “debt” covered under the FDCPA are defined as specifically referring to personal, family or household transactions. Therefore, debts owed by businesses or by individuals for business purposes (commercial debts) are not subject to the FDCPA.

So, if the FDCPA does not apply to commercial debt collection by third parties, how are commercial collectors regulated?

There are no U.S. federal laws, similar to the FDCPA, that regulate third-party commercial (business-to-business) debt collection or provide guidelines for the conduct of commercial debt collectors.

Who is protecting the rights of commercial creditors and debtors?

Commercial Collection Agency Association

The premier body governing the activities of commercial debt collectors is the Commercial Collection Agency Association (CCAA), an arm of the Commercial Law League of America (CLLA). These organizations are not government bodies, nor do they have any jurisdiction over non-members. However, both require high standards of practice and ethics in order for a commercial collection agency to become a certified member.

The Commercial Collection Agency Association was established in 1972 to “improve the quality and reputation of the commercial collection industry.” It currently has more than 200 members. Approximately 100 core members represent the most prestigious commercial collection agencies in the United States.

The CCAA is an arm of the Commercial Law League of America (CLLA), the oldest creditor’s rights organization in the country established in 1895.

Membership in the CCAA

  • The agency must have been in business at least four years prior to application for membership.
  • 80% of the agency’s business must be commercial (business-to-business).
  • The agency must maintain a separate Trust Account into which all monies belonging to creditors are placed. This Trust Account is reviewed twice annually by the Executive Director of the CCAA.
  • The agency must agree to abide by the CCAA Code of Ethics, which sets ethical standards for dealing with creditors, debtors and attorneys.
  • Executives of the agency must meet continuing educational requirements and attend regular CCAA meetings. The member agency must complete sixty continuing educational credits annually.
  • The agency must post a surety bond of at least $300,000 for the protection of the creditors it serves.
  • One person in the agency must also be a member of the Commercial Law League of America.
  • The agency must agree to random periodic site visits from the CCAA Executive Director.
  • The agency must be in compliance with all local and state licensing requirements and regulations governing commercial collection firms.

Burt And Associates is a member of both CCAA and CLLA. Also, we are licensed and bonded in all 50 states (where required).