(1) A debt management service provider may not charge or receive from a consumer a fee described in ORS § 697.692 until after the debt management service provider makes the disclosures described in this section.

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(2) A debt management service provider shall give to every consumer for whom the debt management service provider offers to perform a debt management service a document that:

(a) States the maximum amount the debt management service provider may charge the consumer for all debt management services that the debt management service provider will perform;

(b) States that the consumer is responsible for paying the debt management service provider’s charges;

(c) Warns the consumer that canceled debt may constitute income that is subject to state and federal taxation and advises the consumer to consult with a tax professional;

(d) Describes completely and in detail the debt management services that the debt management service provider will perform for the consumer and states the amount the consumer must pay for each service and for all services; and

(e) States that the consumer may bring an action against the bond required under ORS § 697.642 and lists the name and address of the surety that issued the bond.

(3) A debt management service provider that performs a debt management service as defined in ORS § 697.602 (2)(b) or described in ORS § 697.612 (1)(b)(E), in the document required under subsection (2) of this section, shall:

(a) Describe, accurately and completely, the consumer’s right to review consumer credit information about the consumer that a consumer reporting agency, as defined in 15 U.S.C. § 1681a, maintains; and

(b) State the approximate price that a consumer reporting agency will charge a consumer to review the consumer credit information described in paragraph (a) of this subsection and that the consumer may review the information at no charge if the consumer makes a request to the consumer reporting agency within 30 days after the consumer was denied credit.

(4) A debt management service provider that does not hold a consumer’s funds, directly or indirectly, shall include in the document required under subsection (2) of this section these additional statements:

(a) That the debt management service provider does not predict or guarantee specific results and cannot force or require a creditor to accept a specific settlement;

(b) That the debt management service provider does not make scheduled periodic payments to creditors;

(c) That creditors may continue collection efforts, including lawsuits;

(d) That the consumer’s failure to make monthly payments on outstanding debt will likely have a negative impact on the consumer’s credit score;

(e) That the consumer must make regular monthly deposits of funds in an account the consumer establishes and maintains in the consumer’s name with an insured institution, as defined in ORS § 706.008, and designates specifically for making disbursements in connection with a debt management service; and

(f) That the debt management service provider will withdraw fees for debt management services from the account described in paragraph (e) of this subsection only with the consumer’s specific authorization and that the debt management service provider does not have custody, control or separate or additional access to the account.

(5) The document described in this section must provide a space for the consumer to sign the form under a statement that indicates that the consumer has read and understands the disclosures set forth in the document. [2005 c.309 § 3; 2009 c.604 § 11]

[1959 c.635 § 21; repealed by 1981 c.631 § 2]

[1983 c.17 § 13; repealed by 2009 c.604 § 27]

[1959 c.635 § 22; repealed by 1981 c.631 § 2]