On September 16, Oregon Governor Tina Kotek announced the signings of three new consumer protection laws: (i) SB 605, which prohibits medical service providers from reporting the amount or existence of medical debt to a consumer reporting agency; (ii) SB 430, which requires disclosure of fees and charges associated with the online purchase of goods or services; and (iii) HB 3178, which enhances consumer protections in motor vehicle transactions.

Specifically, SB 605 amends state law to prohibit the reporting of medical debt to consumer reporting agencies. The amended law states that an individual may not provide “the amount or existence of any medical debt” that an Oregon resident “owes or is alleged to owe” to any consumer reporting agency. The new law further provides that a violation thereof is an “unlawful practice” under Oregon’s Unlawful Trade Practices Act (UTPA). The law bars a consumer reporting agency from including any item it “knows or reasonably should know is medical debt” in a consumer report. In a UTPA action, courts may declare such medical debts void and uncollectible.

SB 430 prohibits online retailers from hiding mandatory fees in advertised prices. The new law provides that a person who offers or sells goods or services online “may not advertise, display or offer a price for the goods and services that does not include all fees or charges that a purchaser must pay to complete a transaction for the goods or services.” Certain mandatory fees are not required to be included in the advertised price, including government-imposed taxes or fees and reasonable shipping charges. Additionally, this law does not apply to financial institutions, mortgage bankers, or mortgage brokers to the extent they must provide disclosures mandated by federal law, such as TILA and RESPA, nor does it apply to broadband internet access service providers.

HB 3178 updates Oregon’s vehicle sales law to require motor vehicle dealers to provide a plain-language disclosure in Oregon’s top six spoken languages (English, Spanish, Vietnamese, Chinese, Russian and Korean) explaining consumers’ rights in motor vehicle purchases. The new law mandates the attorney general provide a model disclosure form in these languages and make it available for download on the attorney general’s website. Dealers are obliged to inform buyers that translated disclosures are available upon request. The disclosure informs buyers of their right to void the transaction — within 10 calendar days after the buyer takes possession of the vehicle — if a lender does not agree to purchase the retail installment contract “on the exact terms” that the buyer and seller negotiated. The law reduces the amount of time in which a dealer may void a retail installment contract or lease agreement for a motor vehicle from 14 days to 10. Dealers must notify buyers within two days if the contract is voided and return all items of value to the buyer.

The new law also prohibits dealers from selling or paying off a trade-in vehicle’s loan before financing is finalized. If a dealer either sells the trade-in vehicle, or sells the trade-in vehicle and pays off the outstanding loan balance before financing is finalized, the dealer may be liable to the buyer for the greater of (i) the payoff balance, (ii) the trade-in value, or (iii) the payment received, less any amount paid on the loan. Further, if the dealer pays off the loan but does not sell the vehicle, the dealer must return it and finance the remaining balance on the same terms as the original loan. If the transaction is voided, the dealer may only charge the buyer for the fair market value of damage and any excessive wear or loss, but only if the contract provides for such a charge in writing.