This week, the State of Oregon launched the application for its new Debt Buyer license. Pursuant to Chapter 625 of the Laws of 2017, Oregon becomes the first state in the nation to adopt a stand-alone licensure requirement for debt buyers. In most states that require a license for debt collection activity, debt buyers are generally considered “debt collectors” or “collection agencies” for that purpose.

Please note, under this bill if you are a debt buyer and also perform third-party collections, you will be required to maintain both a debt buyer and collection agency license in Oregon.

The new law takes effect on January 1, 2018. All debt buyers who have Oregon consumer accounts in their collection portfolios will be required to be licensed as of that date to operate in Oregon. Failure to be licensed could result in a maximum $5,000 penalty for each violation.

Here are the resources you will need as you begin the application process:

  •        Oregon’s Division of Consumer and Business Service (DCBS) Debt Buyer Resource Page
  •        Nationwide Multistate Licensing System (NMLS) Oregon Resource Page
  •        RMA also provided an overview of the new law’s requirements in a July member alert

RMA has four representatives on the Oregon Rulemaking Task Force, which is charged with developing regulations for the implementation of the licensing requirements. We have had some success in our meetings to date in getting low licensing fees and errors and omissions insurance rates adopted in the draft rulemaking with the aim of protecting our membership from unreasonable requirements.

RMA strongly recommends that its members share this member alert with any debt buyer, collection agency, and law firm it transacts business with, as well as those internally responsible for licensure, compliance, purchase/sale, and legal operations.

Help RMA advocate for fair and balanced legislation and regulation by contributing to the Legislative Fund. Donate today.

This alert is intended for members of the Receivables Management Association International and is for informational purposes only and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.