Oregon Consumer Protection and Prohibited Practices
Domain 3 - Oregon Consumer Protection and Prohibited Practices. The exam probes the Unlawful Trade Practices Act and Oregon's foreclosure-rescue and loan-modification restrictions, and asks you to spot a prohibited practice inside a marketing script or fee schedule.
Unlawful Trade Practices Act
ORS 646.605–646.656 makes it unlawful to use unfair or deceptive acts in trade or commerce, including false or misleading representations about price, terms, approval, or affiliation. The Attorney General enforces it and may seek civil penalties up to $25,000 per violation; borrowers may sue for actual damages and attorney fees. Mortgage advertising, fee quotes, and servicing conduct all fall inside it.
Mortgage rescue and modification rules
Oregon regulates persons who offer to help homeowners avoid foreclosure or modify a loan:
- A written contract is required, and the homeowner may cancel within three business days.
- No fee may be collected before the promised services are fully performed - advance fees are the classic violation.
- Taking title, a deed, or a power of attorney as part of the rescue is prohibited.
- Claiming a government affiliation or approval that does not exist is a violation.
Other prohibited conduct
Charging fees for services never rendered, misrepresenting that a loan is approved, discouraging borrowers from contacting housing counselors, and equity-stripping arrangements.
Worked example
A consultant advertises "government modification program - $1,500 retainer required." Collecting the retainer before performing any service violates the advance-fee ban; naming a government program misrepresents affiliation, which is a UTPA deception. Two independent violations from one advertisement.
Traps
Assuming UTPA covers only goods; believing a federal disclosure satisfies Oregon's rescue-fraud rules; and forgetting the three-day cancellation right cannot be waived in the contract.