SALEM, Ore. – Oregon laws allow debt collectors to take more than they should, according to a new report that compares state laws based on whether they make it possible for people in financial trouble to recover when they've fallen behind on bills.
The report, No Fresh Start, gives Oregon failing grades for minimal protection of a debtor's home, car and household goods, and for allowing paychecks to be garnished for amounts over the minimum wage.
Angela Martin, executive director of Economic Fairness Oregon, says the laws can make it tough to live, let alone repay a debt.
"If you're a minimum-wage earner in Oregon, working 40 hours a week, a debt collector can garnish your wages down to $268 a week,” she explains. “That's less than the federal poverty level for a two-person family."
Oregon is one of about 20 states that got failing grades in the report for the amounts debt collectors are allowed to garnish from wages.
Robert Hobbs, deputy director of the National Consumer Law Center, which released the report, says it includes a sample law that allows a person to keep enough of his or her property to hold a job and keep from falling further behind.
"What we're trying to do with this model law is raise the platform in terms of property that's exempt,” he says, “So that somebody – when they are re-employed – is not bombarded by debt collectors. So that they have the tools they need to move up and eventually pay off their creditors in an orderly way."
Hobbs says some states' exemption laws date back centuries and need to be modernized.
Martin adds last year, more than 30,000 Oregonians found themselves dealing with lawsuits from debt buyers, third-party companies that are the sources of many debt-collection complaints.
"These are companies that purchase old credit card debt, old medical debt, for pennies on the dollar,” she explains. “Too often, the individual doesn't even understand that they're being sued until they're presented with a garnishment letter from their employer."
Martin says the Oregon Legislature already increased the wage and property exemptions for people in bankruptcy. She thinks similar changes should be made for those dealing with collection agencies.
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Lawmakers in Olympia this session moved to add more protections for consumers against predatory loans.
Washington state lawmakers passed Senate Bill 6025 unanimously in both chambers, closing a loophole companies were using to evade caps on the amount of interest charged on loans.
Sam Leonard, an attorney in Seattle, said tech companies providing financial services such as loans would charter out of state banks, especially in Utah, where lenders can charge unlimited interest rates.
"These fintech lenders a lot of times will charge 150, 200% interest on relatively small dollar loans, $3,000, $5,000 and the like," Leonard explained.
Washington state has a set of protections called the Consumer Loan Act to shield people from predatory loans. Leonard said capping interest rates at the federal level would help people across the country.
However, he emphasized the bill goes a long way to increase protections for Washingtonians.
"Not a lot of states at this time have passed similar legislation," Leonard pointed out. "Washington is out in front of the curve with regard to protecting low-income Washingtonians or other Washingtonians that might enter into these predatory loan products."
Leonard added the issue with predatory loans is they keep people in continuous debt cycles.
"Loan products like these essentially strip low-income individuals' ability to improve their economic situation," Leonard noted.
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While there's snow in the immediate forecast, the spring storm season has arrived in Minnesota and state officials said with complaints related to homeowner insurance claims on the rise, it is important to monitor changes in policies.
The Minnesota Commerce Department said complaints from policyholders, largely stemming from their claims being denied, have more than doubled since 2020.
Julia Dreier, deputy commissioner of insurance for the Minnesota Department of Commerce, said under a changing climate, the nation is seeing plenty of extreme weather events resulting in wind and hail damage, and insurance companies are adjusting to what's happening.
"Insurance costs are going to increase," Dreier pointed out. "We do want to make sure that Minnesotans are prepared."
As some carriers narrow what is covered or require higher deductibles, Dreier urged consumers to carefully review their policy when it is up for renewal, to avoid surprises when they have to file a claim. The department acknowledged changes can slip under the radar when consumers rely on paperless statements sent via email, or with busy schedules preventing them from reading all the fine print in documents they receive.
The department emphasized it is a complicated process in getting complaints resolved, noting some can be partially reversed in favor of the homeowner. Dreier noted they work closely with the industry to make sure a company's actions are within the letter of the law.
"One of our jobs is to make sure that insurance companies aren't doing something unethical when they're submitting their policy forms to us and their rates to us for review," Dreier added.
The department does have a new video on its YouTube channel, which offers more details on how to better prepare yourself ahead of any future claims, including knowing whether your policy offers flood protection and assessing the value of items in your home.
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Wisconsin has announced a big development in trying to establish more digital equity around the state.
Gov. Tony Evers and the Public Service Commission say Wisconsin's blueprint for digital equity has been accepted by the National Telecommunications and Information Administration.
That means the state is eligible for up to $30 million to implement its approach over the next five years.
Martha Cranley - state director for AARP Wisconsin - called it a robust plan, noting that older populations continue to face challenges in being connected to the digital world.
"We know that at least 15% of people 50-plus in Wisconsin are not connected," said Cranley, "either because the wires simply don't come to their house, or they don't have a device, or they don't know how to use it."
Cranley said the lack of connection is especially concerning in rural areas across northern Wisconsin, where aging communities have limited resources.
Stakeholders also note an infusion of new aid is helpful with the federal government's Affordable Connectivity Program - which provides discounts on monthly internet bills for eligible households - in danger of running out of money.
Cranley said the state's plan came together following extensive public outreach, in which her organization helped convey the need for improved internet access for those 50 and older.
"They certainly heard from older people about how important this is to connect to their doctor," said Cranley, "and to connect to government services, and frankly, find employment."
Overall, Evers says the plan's federal approval means more than 410,000 homes and businesses will be better positioned to be connected to new or improved high-speed internet service.
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