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In a significant development for both debtors and creditors in Oregon, new legislation has been passed that will have a far-reaching impact on how debts are managed in the state. The changes, which were signed into law on September 29, 2025, aim to provide more protection for borrowers while also holding lenders accountable for fair lending practices.One of the key provisions of the new legislation is the establishment of a debt collection licensing requirement for all debt collectors operating in Oregon. Under this new law, debt collectors must obtain a license from the state and adhere to certain guidelines and regulations in order to operate legally. This measure is designed to prevent abusive debt collection practices and ensure that borrowers are treated fairly and respectfully.Additionally, the legislation includes new restrictions on the use of automatic wage garnishments by creditors. Going forward, creditors will be required to obtain a court order before garnishing a debtor's wages, providing debtors with the opportunity to challenge the garnishment and seek a more equitable resolution. This change is seen as a win for borrowers who have been unfairly targeted by aggressive wage garnishment practices in the past.Furthermore, the new legislation includes provisions aimed at increasing transparency in the debt settlement process. Debt settlement companies will now be required to disclose all fees and charges upfront, as well as provide debtors with information about their rights and options for resolving their debts. This measure is intended to prevent deceptive practices and ensure that borrowers have the information they need to make informed decisions about their financial futures.Overall, the new legislation represents a significant step forward in protecting the rights of both debtors and creditors in Oregon. By establishing clearer guidelines for debt collection practices, wage garnishment, and debt settlement, the state is taking proactive measures to promote fairness and accountability in the lending industry. These changes are sure to have a positive impact on the lives of Oregon residents struggling with debt and provide a more level playing field for both borrowers and lenders alike.