The proposal in the Oregon legislature will prevent indebted Oregonians from having as much of their cash and property seized as possible, while also giving people new tools to fight back when they are pursued for debt they don’t owe. It provides.
If enacted, suggestion It would be a significant departure from existing state regulations. Currently, debt collection agencies must keep at least $254 of a debtor’s weekly wages untouched and can seize the rest. Under the proposal, the minimum amount a debtor can hold is more than double hers, about $590 per week that cannot be seized. Similar protection is enhanced for vehicles, work tools, and property.
Hillsborough Democratic Rep. Nathan Sosa said at a committee hearing on Thursday, “The idea here is that these people still owe their debts, but we’ve taken away so many wages that they can’t survive. It’s not that they are.” “We’re not putting them in a situation where they’re on the street.”
In addition to limiting the amount of money and property collectors can seize, the bill gives debtors up to six years to sue collection agencies from the time they discover their misconduct.
Sosa, who testified in support of House Bill 2008 at a House Committee on Rules hearing on Thursday, said Oregon’s law update has been significantly delayed.state debt collection laws recently acquired The overall rating from the National Consumer Law Center is a ‘D’, lagging behind both Washington and California, which received a ‘C’ and a ‘B’ respectively. Grades are based on the amount of money and property a person in debt can hold under state law.
Last year, the Oregon Department of Justice received 141 consumer complaints against debt collection firms, according to figures provided by the Justice Department.
The impact on normal Oregonian lives was evident in multiple stories lawmakers heard Thursday from someone in debt. Wally Walls, a Hillsboro resident, said he went into debt after being hospitalized related to diabetes. After his debts were used for collection and he had his wages garnished, he had to quickly find another job to make enough money.
“It’s a full-time job from 9am to 6pm, plus a final shift from 6pm to 1am,” says Walls. “Somehow I did it a whole year. I don’t want that on anyone.
The proposed bill would maintain existing law that protects 75% of a person’s wages from foreclosure and would increase the minimum amount of foreclosure protection to Portland’s minimum wage, or $590 a week. While more than double the amount protected under current law, the proposal is a significant drop from the $1,000 per week protected wages initially proposed by lawmakers.
Despite the proposed amendments, industry representatives warned lawmakers on Thursday that the proposed protections could force lenders to give credit only to the least risky borrowers.
“I am deeply moved by the story I just heard from the panel about the difficult medical debt situation. But this bill goes even further,” said the senior vice president of the American Financial Services Association. . Daniel Arlow“Without the ability to collect and enforce outstanding debt, our loans are effectively unenforceable and the risks associated with providing credit to consumers skyrocket.”
That means the very people the bill is intended to protect may not be able to secure loans, Arlowe argued. He added that he was “encouraged” by the efforts he was making to do so.
Sosa said the revised bill suggests a compromise based on “months of conversations with stakeholders on all sides.”
“This was really a sincere attempt to find a viable solution,” Sosa said.
— Fedor Zahin