Legislative Update: OSPIRG’s consumer protection agenda

As part of OSPIRG’s work to champion consumer protection in Oregon, we are a member of the Consumer Alliance of Oregon, a coalition that advocates for the rights and interests of consumers across the state by building the power and broad support needed to pass pro-consumer legislation.

We are made up of community-based organizations, nonprofits, subject matter experts, and national advocacy groups, working together to prioritize the needs of communities that have been, and continue to be, most harmed by predatory practices.

For the 2025 legislative session, we have 5 priority bills we are supporting to foster strong consumer protections against predatory practices. 

Transparent auto financing signed into law

House Bill 3178 passed both chambers with broad bi-partisan votes and was signed into law by the Governor on May 14. Once it goes into effect, the law will protect consumers so they can feel confident that car dealers will honor the loan terms they agreed to at the time of purchase.

A car is often one of the most expensive purchases we’ll ever make. Right now, when an Oregon consumer negotiates to buy a car and gets financing at the dealership, the deal can remain open for 14 business days. That means they can leave the lot with their new car, only to find out weeks later that the terms of the loan have completely changed. Once in effect, this bill would shorten that timeline to 10 calendar days.

Bill to limit hidden hospital “facility fees” awaits a vote in the Senate

After passing through the Senate committee on health care with bipartisan support, Senate Bill 539 sits on the President’s desk, awaiting a vote on the Senate floor. The bill would limit hidden facility fees for certain routine services and in outpatient clinics, require prior patient notification before fees are charged. Big hospital systems are tacking on hidden medical fees to patients’ bills just for simply walking in the door– not for actually receiving care. These hidden fees, also known as “facility fees,” can range from hundreds to thousands of dollars and are often not covered by insurance. Many patients are unaware of these fees until the bill arrives, making it difficult for Oregonians to plan for medical expenses even for routine care. 

Bill to end credit reporting on medical debt heads to House floor

In April, Senate Bill 605 passed on the Senate floor in a 18-10 vote. The bill would be an important first step in ending the harmful practice of credit reporting on medical debt. Imagine rushing to the emergency room for a life-saving procedure, only to find out months later that the resulting medical debt has wrecked your credit score. This scenario is a harsh reality for too many Oregonians. 

The bill was voted through committee in the House earlier this week and awaits a vote on the House floor. 

Bills that would have protected consumers against predatory interest rates and added commonsense regulations to insurance did not move forward

House Bill 2561

Online lenders like Check ‘n Go and OppFi who partner with out-of-state banks should not be able to ignore Oregon’s law that caps interest rates for consumer loans at 36%. Interest rates of 160% or more are unacceptable. 

House Bill 2561 would have opted Oregon out of a federal law that allows lenders to bypass Oregon regulations and charge exorbitant interest rates that keep consumers in debt. “For too long, predatory lenders have gotten away with trapping consumers in vicious cycles of debt,” said Brenna Stevens at the bill’s public hearing. HB 2561 passed on the House floor with a vote of 33-23 but failed to move forward in the Senate so will have to be taken up in a future session. 

Senate Bill 174

Oregon’s Unlawful Trade Practices Act (UTPA) is a powerful tool for consumers to hold bad actors accountable when they are harmed by deceptive or fraudulent business practices. Insurance is currently the only major industry not covered by the UTPA. 

Senate Bill 174  will add insurance so that the industry is covered under the UTPA. “When we invest in insurance, we expect companies to uphold their commitments during times of crisis or hardship,” said Stevens. The bill passed out of the Senate committee on judiciary in a 4-2 vote, and now heads to the Senate floor for a full vote.