Oregon Demand Letter

Introduction

Key Things to Know

1. 1

   Oregon does not require a demand letter before you sue for a willful violation of the Unlawful Trade Practices Act, since ORS 646.638(1) lets a consumer sue directly, but Oregon Revised Statutes Section 20.082 still conditions the recovery of attorney's fees on a written demand made at least 20 days before suit, for a contract claim of $10,000 or less where the contract itself contains no attorney's-fee clause, and the claim is not on an insurance contract, a contract where another statute already allows fees, a warranty claim under ORS 20.098, or a dishonored-check claim under ORS 30.701.

2. 2

   A parallel statute, Oregon Revised Statutes Section 20.080, requires the same kind of written demand, but at least 30 days before suit, to recover attorney's fees on a small personal-injury or property-damage tort claim up to $10,000; it does not apply to a contract claim.

3. 3

   Both fee statutes are unavailable if, before you file suit, the other side tenders an amount at least equal to what you would otherwise recover (ORS 20.082(4); ORS 20.080(1)).

4. 4

   If this demand concerns a dishonored check, Oregon Revised Statutes Section 30.701 requires its own written demand made at least 30 days before suit: without a timely tender of the check amount, interest, and a dishonor fee of up to $35, you may recover statutory damages of $100 or three times the check amount, whichever is greater, capped at $500 more than the check amount.

5. 5

   A demand letter must never threaten arrest or criminal prosecution to collect a debt. Oregon's unlawful collection practices statute, ORS 646.639(2)(b), bars threatening arrest or criminal prosecution outright, with no requirement that the threat be false, and its broad debt-collector definition in ORS 646.639(1)(h) contains no exclusion for a creditor collecting its own consumer debt, so a business sending its own past-due invoice may be bound, not only a third-party collection agency.

6. 6

   Oregon gives six years to sue on a written or oral contract, an open account, or for injury to personal property; Oregon Revised Statutes Section 12.080 does not split written and oral contracts into different periods the way some states do.

7. 7

   If the parties never agreed on a rate, Oregon Revised Statutes Section 82.010(1)(a) sets legal interest at 9 percent a year, running from the date the money becomes due, not from the date of a written demand. Oregon's Small Claims Department hears claims up to $10,000, with no attorneys allowed without the judge's consent (ORS 46.405(3); ORS 46.415(4)).

Oregon Requirements for Demand Letter

• No UTPA Pre-Suit Notice Requirement

  Oregon Revised Statutes Section 646.638(1) lets a consumer who suffers an ascertainable loss from a willful Unlawful Trade Practices Act violation sue directly, with no pre-suit demand letter or waiting period as a condition of filing.

• 20-Day Fee Demand on Small Contract Claims

  Oregon Revised Statutes Section 20.082 conditions the recovery of attorney's fees on a written demand made at least 20 days before suit, for a contract claim where the principal and interest due is $10,000 or less and the contract contains no attorney's-fee clause. It does not cover insurance contracts, contracts where another statute already allows fees, ORS 20.098 warranty claims, or ORS 30.701 dishonored-check claims. The fee award is barred if the other side tenders an equal or greater amount before suit (Section 20.082(4)).

• 30-Day Fee Demand on Small Tort Claims

  Oregon Revised Statutes Section 20.080 requires the same kind of written demand, but at least 30 days before suit, to recover attorney's fees on a small personal-injury or property-damage tort claim up to $10,000. It does not apply to a contract claim.

• Dishonored-Check Demand and Statutory Damages

  Oregon Revised Statutes Section 30.701 lets a payee recover statutory damages of $100 or three times the check amount, whichever is greater, capped at $500 more than the check amount, but only if a written demand was made at least 30 days before suit and the maker failed to tender the check amount, interest, and a dishonor fee of up to $35.

• Dishonored-Check Demand Has No Mandated Delivery Method

  Section 30.701 requires a written demand but does not specify certified or registered mail. Sending it by a method that proves delivery and the date still protects the sender if the 30-day period is later disputed.

• Collection Practices May Reach a Creditor's Own Debt

  Oregon Revised Statutes Section 646.639(1)(e) defines a creditor as a business whose consumer transactions leave a consumer owing it a debt, and Section 646.639(1)(h) defines a debt collector broadly, with no exclusion for that creditor collecting its own debt, unlike the federal Fair Debt Collection Practices Act, so such a creditor may be bound. Section 646.639(2)(b) bars threatening arrest or criminal prosecution outright, with no requirement that the threat be false, and Section 646.639(2)(a) separately bars threats of force or violence.

• Six-Year Limit on Contract and Property Claims

  Oregon Revised Statutes Section 12.080(1) gives six years to sue on a written or oral contract or an open account, and Section 12.080(4) gives the same six years for injury to personal property.

• Legal Interest Runs From the Due Date, Not the Demand

  Oregon Revised Statutes Section 82.010(1)(a) sets legal interest at 9 percent a year where the parties have not agreed to a rate, running from the date the money becomes due; an open account bears interest from the date of its last item. A written demand does not itself start interest running.

• Small Claims Limit and No-Attorney Rule

  Oregon's Small Claims Department hears claims up to $10,000, and a claim of $750 or less must be filed there (ORS 46.405(2)-(3)). No attorney may appear for either side without the judge's consent, though a business may appear through a non-attorney representative (ORS 46.415(4)-(5)).