Oregon lawmakers are considering a bill that would shield more assets of people in debt.
House Bill 2008 would provide more protection for the wages and possessions of those currently targeted by debt collection. It came to fruition after The National Consumer Law Center produced a report examining whether states have laws to help people facing debt collections continue to have a liveable income.
Oregon received a “D” grade.
Karen Saxe is the policy director at DevNW, a nonprofit designed to financially help the community through counseling, education, and assistance. She sees the bill as a potential pathway out of financial ruin.
“Despite the hard work that clients like ours and people that we know are doing to gain and maintain financial stability, we see a system of predatory practices that continue to trap our clients in a cycle of debt," Saxe said.
Opponents said the bill could make access to safe credit more difficult for consumers, and could negatively affect creditors, collection agencies, and the overall credit-based economy.
Fawn Barrie of the Oregon Liability Reform Coalition was concerned with the combination of new rules and harsher punitive measures against creditors.
"Given the extensive changes proposed in this statute, it does not seem appropriate to also expand statutory damages and allow for a class action when these businesses will be working to understand and comply with what appear to be fairly complicated requirements," she submitted in a written testimony.
The bill is currently in the House Committee on Rules.
