b'Debt continued from page 13comply anyway, however, the law seems toThus, it appears that the debt buyerThe Oregon law also prohibits a debt have a greater impact on older, consumerdefinition is intended only to coverbuyer from bringing an action against debt with poor documentation and mostpurchasers of portfolios of charged-offor initiating arbitration with a consumer real estate loans hopefully will includedebt rather than purchasers of portfoliosfor the purpose of collecting a consumer most of, if not all of the information andconsisting primarily of current debts. debt after the statute of limitations has documentation needed to comply with theexpired.The law specifies the notice law.The other requirements are probablyThe bill prohibits a debt buyer fromthat a debt buyer must give to a debtor best practices anyway when seeking tocommencing an action against oras well as the documents the buyer must enforce a charged-off loan in CA.We areinitiating arbitration with a consumergive upon request.seeing more and more cases where thefor the purpose of collecting a consumer borrower files suit to avoid a HELOC or 2nddebt after the statute of limitations hasThe law requires those who engage loan that they thought was charged-offexpired.It provides that if a collectionin debt buying in the state to obtain a years ago.The last thing the collectingaction is barred by this prohibition,license from the Director of Department creditor wants is an actual violation of thethe cause of action is not revived by aof Consumer and Business Services.The FDBPA turning an investment into a loss. payment or oral or written affirmationdirector has authority to order a debt of the consumer debt. buyer to cease and desist from violating Texas Debt Buyer Statute: this law, impose civil penalty or take Texas has also enacted a law that prettyIf a debt buyer is attempting to collectother action to remedy such a violation.closely follows the California equivalent.a debt for which a collection action This law is even newer than CAit has onlyis barred, the debt buyer or a debtWashington Debt-Buyer Statute:been around since 2019, so at this point,collector acting on the debt buyersWashington state has also enacted a debt-we just dont know how Texas Courts willbehalf must provide a specified noticebuyer law.The Washington law passed interpret the law and whether Courts willin the initial written communication within 2020, so it is the most recently passed conclude it applies to residential mortgagethe consumer.The content of the noticedebt-buyer statute of the four discussed in debt. varies depending on whether the FCRAthis article.Since the law just took effect in time period for reporting the debt atthe middle of last year, Washington courts On June 14, 2019, Texas amended Chapterissue has expired and whether the debthave had even less time to interpret the law 392 of the Texas Finance Code dealingbuyer furnishes information about thewith regard to residential mortgage debt.with debt collection.The amendmentsdebt to a consumer reporting agency.are effective September 1, 2019. On March 18, 2020, Washington amended Oregon Debt-Buyer Statute: Chapter 19.16 of the Revised Code of The bill defines a debt buyer as aOregon is another state that has enactedWashington Annotated (RCWA) dealing person who purchases or otherwisea debt-buyer law that similarly follows thewith collection agencies.The amendments acquires a consumer debt from a creditorCalifornia and Texas statutes.The Oregonbecame effective June 11, 2020.or other subsequent owner of thelaw passed in 2017, just three years after consumer debt, regardless of whetherthe California equivalent took effect.LikeThe Washington law defines debt buyer the person collects the consumer debt,the newer Texas statute, Oregon courtssimilarly as the three previous states hires a third party to collect the consumerhave not had long to interpret the lawexcept that it explicitly states that an debt, or hires an attorney to pursuewith regard to residential mortgage debt. entity may also be a debt buyer.collection litigation in connection with the consumer debt. On August 10, 2017, Oregon amendedUnlike the previous debt-buyer laws, the Chapter 646 of the Oregon RevisedWashington statute does not exclude Excluded from this definition is a personStatutes dealing with debt collection.Thefrom the definition buyers who acquire who acquires in-default or charged-offamendments became operative Januarycharged-off debt as an incidental part debt that is incidental to the purchase1, 2018. of acquiring a portfolio of debt that is of a portfolio that predominantlypredominantly not charged-off debt. consists of consumer debt that has notThe Oregon law shares with CaliforniaThe law also does not define charged-been charged off.Charged-off debtand Texas similar definitions for debtoff debt.is defined as a consumer debt that abuyer and charged-off debt.It also creditor has determined to be a loss orsimilarly excludes persons who acquireTherefore, a person that acquires expense to the creditor instead of ancharged-off debt as an incidental partcharged-off debt, regardless of whether asset. of acquiring a portfolio of debt that isthe charged-off debt is incidental to predominantly not charged-off debt.continued on page 15Page 14 Spring 2021'