Story from Bloomberg:
A wave of U.S. state laws that require debt collectors to document exactly who owes what has triggered a state-by-state lobbying battle over rules of evidence that the industry says could slice into profitability.
A 2009 law in North Carolina requiring collectors to provide original contracts and imposing penalties for erroneous litigation has slowed the industry’s work in that state. Other states, including Massachusetts, Florida, California and Oregon, have followed North Carolina’s law with similar proposals. Consumer advocates say the laws are necessary to curb abuses.
Sounds great, right? Sounds like Oregon is going to follow a law that has worked to stop abuses in debt collecting.
Er, um ... not so fast:
The law’s effect in North Carolina emboldened consumer groups and their legislative allies to push ahead in other states, and mobilized industry opposition as well. In December 2010, a similar bill in Oregon faced organized industry opposition at a hearing, and died in committee.
“I was surprised at the degree of lobbying to stop this,” said Angela Martin, executive director of Economic Fairness Oregon, a consumer group. “We thought we had a consensus bill.”