Oregon Debt Collection Laws: Know Your Rights and Protections
Oregon's UDCPA and the federal FDCPA protect you from abusive debt collection tactics like harassment, threats, and deception. If a collector violates these laws, you can file complaints or sue within one year. If you're sued for a debt, respond within the deadline to avoid automatic wage garnishment.
Answer Your LawsuitOregon’s Unlawful Debt Collection Practices Act protects you from unfair debt collection tactics. The law prohibits harassment and deception. It requires transparency throughout the collection process. You’re also protected by the federal Fair Debt Collection Practices Act (FDCPA). Both laws apply to third-party debt collectors and debt buyers, not original creditors.
What Are the Debt Collection Laws in Oregon?
The Unlawful Debt Collection Practices Act (UDCPA) is Oregon’s state law against unfair debt collection. Oregon residents also have federal protection under the FDCPA. Together, these laws shield you from abusive collection practices.
Getting Sued by a Debt Collector in Oregon?
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Respond to Your LawsuitHow Does the Oregon Unlawful Debt Collection Practices Act Protect You?
Oregon’s UDCPA regulates third-party debt collectors and buyers. The law ensures collection practices remain fair, legal, and non-harmful to consumers. It prevents harassment, abuse, and deception. It also increases transparency in collector communications.
Under the UDCPA, debt collectors in Oregon cannot:
- Threaten or use violence against you, your family, or property
- Threaten to arrest you
- Threaten to seize your property
- Use obscene or abusive language with you or your family
- Call repeatedly or at inconvenient times
- Publicize your debt or threaten to do so
- Make empty threats about lawsuits or actions they can’t take
- Use fake government or legal letterhead on documents
Under the same law, debt collectors must:
- Tell you their name and company in their first written communication
- Identify themselves and their purpose within 30 seconds on phone calls
- Be properly licensed to collect debts in Oregon
How Does the Federal Fair Debt Collection Practices Act Protect You?
The FDCPA is a federal law that works similarly to Oregon’s UDCPA. Both laws prevent debt collectors from harassing, abusing, deceiving, or misleading consumers.
The FDCPA prohibits debt collectors from:
- Using threats, harassment, or abusive language
- Calling before 8 a.m. or after 9 p.m.
- Contacting you at work if they know your employer prohibits it
- Discussing your debt with third parties
- Misrepresenting the amount you owe
- Falsely claiming to be attorneys or government representatives
- Threatening actions they can’t legally take
The FDCPA requires debt collectors to:
- Send you a written validation notice within five days of first contact
- Provide debt verification if you request it within 30 days
- Stop contacting you if you send a written cease communication letter
- Honor your request to communicate only through your attorney
What Can You Do if a Debt Collector Breaks the Law in Oregon?
If a debt collector violates the Oregon UDCPA, you can file a complaint. Contact the Oregon Attorney General’s office. The attorney general investigates complaints and takes legal action against violators.
You can also file a civil lawsuit under the Oregon UDCPA. You must bring the lawsuit within one year of the violation. If you win, you can recover actual and punitive damages. Actual damages compensate for monetary losses or harm incurred. Punitive damages punish the company for violations.
If you’re being sued by a debt collector, our partner Solo can help you respond properly. They’ve helped over 280,000 people answer debt lawsuits successfully.
What Is the Statute of Limitations for Debt Collection in Oregon?
The statute of limitations limits how long you can be sued. The timeline varies by debt type.
The statute of limitations for contract-based debts is six years. These include:
- Medical bills
- Credit cards
- Car loans
- Personal loans and other contractual debts
Mortgage loans and court judgments have a 10-year statute of limitations.
The clock typically starts when you default on a debt. Making a payment on the debt may restart the clock.
If you’re contacted about an old debt near or over six years, be careful. Don’t take any action until you receive debt verification in writing. Avoid making promises or payments that could restart the statute of limitations.
What Can Debt Collectors Do To Collect Debt in Oregon?
State and federal laws regulate debt collector behaviors. But collectors still have many tactics available to pursue your debt.
Calling you is their most common tactic. You’ll also receive written notices. They may even contact you on social media. If you’re behind on an auto loan, your car can be repossessed.
Ignoring debt collectors won’t make them disappear. Eventually, they may take you to court for the debt. Receiving a lawsuit notice is frightening. You might think you can’t fight without a lawyer.
But responding to a lawsuit just requires filling out paperwork. Then the debt collector must prove you owe the debt. They must prove they’re legally allowed to collect it. If you don’t respond, the collector doesn’t have to prove anything. You lose by default.
Losing puts you at risk of wage garnishment. Debt collectors can take money directly from your paycheck. Oregon law does limit how much they can take.
If you aren’t working, collectors try other tactics. They might attempt a bank account levy or place a property lien.
The bottom line: if you get sued, respond to the lawsuit. Our partner Solo makes responding simple with step-by-step guidance. They offer a 100% money-back guarantee.
Need Help With Debt Relief? Here Are Some Options
16% of all Oregonians have debt in collections. Far more struggle with overwhelming debt. If you’re drowning in debt, get help to take control of your finances.
Not sure where to start? Schedule a free appointment with a nonprofit credit counselor. These financial professionals help everyday people sort out their finances. They create plans to pay down debt. They may even help you save money.
A credit counselor may suggest a debt management plan. They might recommend debt consolidation or bankruptcy, depending on your situation. Our partner Cambridge Credit Counseling offers free consultations to review your options.
Credit counseling helps you understand all available paths forward. Counselors analyze your income, expenses, and debt. They recommend solutions tailored to your specific situation. Many people reduce their monthly payments through professionally managed debt plans.