Changes to Oregon Debt Collection Laws Under the Family Financial Protection Act

In a move aimed at bolstering consumer protections and easing the burden of debt collection practices, Oregon has taken significant strides with the enactment of the Family Financial Protection Act (SB 1595).

The FFPA, signed into law on March 4, 2024, introduces several key provisions designed to ensure fairness and transparency in debt collection processes. One notable aspect of the law is its emphasis on safeguarding consumers from abusive and harassing debt collection practices.

The FFPA will protect Oregon families while paying off debt or fighting unfair collections by:

• Increasing the amount of wages that are protected from garnishment;
• Protecting $2,500 in someone’s bank account so they can pay for their basic needs, like rent, while paying off debt;
• Increasing protections to prevent Oregonians from losing their homes during debt collections;
• Extending the amount of time consumers have to file a complaint against a debt collector to 3 years from the date of injury;
• Protecting consumers from unfair attorney fees resulting from civil lawsuits for unlawful collections practices.

Before the enactment of the FFPA, Oregonians did not have adequate protections to ensure that bank account balances could be available to pay for necessities, had to go through a difficult and expensive court process to get debt collectors to verify that they were going after the right person or the right amount, and only had one year to file a complaint but were often unaware of an unlawful debt collection practice until after the statute of limitations had run out. Meanwhile, collectors had six or more years to collect on a debt.

As an Oregon attorney, it’s imperative to stay informed about these changes to debt collection laws. By familiarizing yourself with the Family Financial Protection Act, you can effectively advocate for your clients’ rights and navigate the evolving landscape of debt collection practices in Oregon.

• Press Release, Office of the House Speaker (March 6, 2024)
• SEIU Letter in Support of SB 1595
• SB 1595 Enrolled

To learn more about FFPA, register for the May 3, 2024 Consumer Law CLE Series: Changes to Debt Collection Laws Under the Family Financial Protection Act from 12 – 1 pm here.

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