Commercial Debt Collection in Oregon

The statute of limitations dictates how long a creditor has to pursue legal action for unpaid debts. In Oregon, the following deadlines apply:

• Written Contracts – 6 years
• Oral Agreements – 6 years
• Promissory Notes – 6 years
• Open Accounts (e.g., unpaid invoices, credit accounts) – 6 years

If the statute of limitations expires, creditors lose the legal right to sue for debt recovery, making early action crucial.

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Oregon follows both state and federal debt collection regulations to protect businesses and creditors. Some key aspects of Oregon’s commercial debt collection laws include:

• No Special Licensing Required – Unlike some states, Oregon does not require a state license for collection agencies, but agencies must comply with the Fair Debt Collection Practices Act (FDCPA) and Oregon Unlawful Trade Practices Act when collecting debts.
• Pre-Judgment Remedies – Creditors may seek writs of attachment to secure assets before obtaining a final judgment in court.
• Post-Judgment Collection – Oregon allows creditors to use wage garnishment, bank levies, and property liens to enforce debt collection judgments.
• Interest on Unpaid Debts – Oregon permits creditors to charge interest on overdue payments based on contractual agreements, or a default statutory rate if no agreement is in place.

While Oregon largely follows federal commercial debt collection laws, there are some key differences:

• Longer Statute of Limitations – Oregon allows six years to pursue debt collection lawsuits, which is longer than many states.
• Strict Consumer Protections – While our focus is on commercial collections, it’s important to note that Oregon has strong consumer debt collection laws that protect businesses from abusive collection practices.
• No Wage Garnishment for Consumer Debts – Unlike other states, Oregon has stricter wage garnishment laws for personal debts, but businesses can still garnish wages for commercial debts under a court order.