Consumer advocates in Oregon are praising recently passed legislation they say changes the landscape on debt collection.
Senate Bill 1595, known as the Family Financial Protection Act, gained approval from lawmakers during this year's short session.
It provides a number of protections for consumers against debt collection practices, including ensuring that collectors don't come after people for debt that isn't theirs or is for the wrong amount.
Executive Director of Oregon Consumer Justice Jagjit Nagra said it also changes the period of time consumers have to file a complaint.
"Originally, it was a one-year statute of limitations - and in many debt collection scenarios that's pretty problematic," said Nagra. "So, if you think about medical billing, it can take a long time for, often, just those bills to be produced and then that clock has already started ticking. So we extended that from one to three years."
The legislation provides other safeguards as well, such as from overwhelming legal fees and more garnishment protections.
Oregon state Rep. Nathan Sosa - D-Hillsboro - said lawmakers heard heartbreaking stories this session about the impact of debt on families.
"Many of the Oregonians who are in debt collection," said Sosa, "are there because of an unexpected medical emergency, or they have suffered from another tragedy - such as the death of a spouse who was the income earner for the family."
Nagra said rural communities in Oregon have the highest share of debt collection in the state.
He also noted that communities of color share a higher burden, with 28% of households in some sort of debt collection, compared with 16% of white households.
"It's an issue that folks are grappling with in the here and now," said Nagra. "So, for us, it was really important to have these fixes advanced because from our purview, quite frankly, they are long overdue."
The bill is awaiting the governor's signature.
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This session, Minnesota lawmakers are expected to take a strong look at preventing more fraud attempts against state government. Meanwhile, consumer advocates hope they do not forget about separate scams increasingly targeting everyday citizens.
Organizations such as AARP said consumer fraud has reached a crisis point, with federal data showing U.S. consumers reported losing more than $10 billion to fraud in 2023, a record high.
Cathy McLeer, state director of AARP Minnesota, said in a digital world, it is getting harder for authorities to clamp down on the threats and give people an avenue to recoup what they lost.
"In many cases, these are bad actors who are overseas," McLeer explained. "You can't track them down. And it's very, very difficult for anyone who has been defrauded to get even some of those resources back."
McLeer pointed out such situations can be especially harder on older adults because their life savings can quickly evaporate.
A proposed bill would create a state-managed restitution fund, where proceeds from civil penalties would be redirected and awarded to fraud victims having trouble getting their money back. The bill is sponsored by lawmakers in both parties but it is unclear whether it will gain traction amid other priorities.
A key provision in the bill said Minnesota's attorney general has to bring a case against the scammers and obtain a court order. McLeer argued the extra tool might prompt more people falling prey to fraud to speak up.
"We also know that so much fraud is underreported," McLeer observed. "We believe that having a Consumer Fraud Restitution Fund would provide the incentive for more individuals to report financial crimes, frauds and scams when they happen."
A handful of other states have created similar funds, including North Dakota in 2023. Meanwhile, AARP Minnesota will host an online discussion on the topic Thursday at 10 a.m. CT. The public is invited to take part.
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Military borrowers pay higher costs and face greater financial risks than civilian borrowers when taking out credit to buy a car - according to a new report from the Consumer Financial Protection Bureau.
The report found service members tend to borrow larger sums, at higher interest rates over longer terms.
Rosemary Shahan, president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety, said yo-yo scams are common - where the victim signs an initial contract on good terms but then the dealer claims the financing fell through.
"And then they say, 'If you don't agree to sign this other contract where we're charging you for a lot of worthless add-ons you don't really want and a higher interest rate,'" said Shahan, "'then we'll report the vehicle stolen, and you'll be in trouble with your command, and it'll ruin your career.' "
The report finds many service members are young and far from family members who might help them negotiate a large purchase.
Last year under former President Joe Biden, the Federal Trade Commission finalized the CARS rule, which would combat dishonest sales tactics. Automakers sued and last month a federal judge put it on hold.
Shahan said the CARS rule would require dealers to tell you the price up front before you even go to the lot.
"It also has additional protections for military service members," said Shahan. "It prohibits car dealers from representing that they're somehow affiliated with the military, or have been approved by the military when that's not true, and would also require them to be more honest about the price of the add-ons and actually get your affirmative approval before adding them."
The Federal Trade Commission under the Trump administration will now have to decide whether to stand behind the rule and fight for it in court, or withdraw it.
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Tax season is in full swing and locations are available across Idaho to assist people with preparing their returns.
The AARP Foundation's Tax-Aide program offers in-person help to people with low and moderate incomes. They don't have to be AARP members.
There are 27 sites available across the Gem State. Tax-aide State Coordinator for AARP Idaho, Karen Cummings, said the program can help people get back money they didn't know they were owed.
"It saves a lot of money and it refunds a lot of money from the IRS," said Cummings. "Some people wouldn't normally, maybe even go get a paid preparer, because it wouldn't be worth their time if they don't have a filing requirement. So, we help a lot of people."
Because filing taxes primarily involves computers now, Cummings said the tax-aide program is especially helpful for people who aren't very computer literate.
Last year in Idaho, volunteers filed more than 14,500 federal returns and nearly 14,000 state returns, with refunds totaling $16.7 million.
Cummings also noted that everyone involved gains something from the experience.
"We both benefit," said Cummings. "Both the volunteers feel good about helping the community and the community is extremely grateful that we're there to help them out."
Volunteers for the program pass IRS-certified tests. The program can help in most cases, although not complex ones.
Most sites will assist people through April 15.
Disclosure: AARP Idaho contributes to our fund for reporting on Consumer Issues, Energy Policy, Health Issues, Senior Issues. If you would like to help support news in the public interest,
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