Oregon House Passes Bad Check Collection Bill

The Oregon House of Representatives Friday passed a law that would ban debt collectors from using the letterhead or seals of state agencies in their collection efforts.

The bill, SB 525, passed 47-2 in Oregon’s House. The bill has already been approved by the state’s Senate, but still must be approved again by that chamber due to changes made by representatives in the House.

Specifically, the bill makes the use of the name, seal, or letterhead of a public agency or public official by a debt collector an unlawful collection practice. Originally, the bill targeted district attorneys, but the language was changed to the more broad “public agency or public official” in the House.

Oregon SB 525 does create a framework for district attorneys’ offices to create check diversion and collection programs, but limits what practices can be used in the programs.

The bill has been formally endorsed by a number of state agencies and newspaper The Oregonian. The paper conducted an investigation last year into statewide check diversion programs similar to the ones reported by The New York Times and Boston Globe.