Oregon legislature provides consumers with tools to fight bank fraud

Yesterday, the Oregon Senate passed legislation that provides Oregon consumers with a powerful tool to fight bank fraud.  HB 3706 amends the Oregon Unlawful Trade Practices Act so that banking and credit practices are now included in Oregon’s signature anti-fraud law.

The bill previously passed the Oregon House. But there were a few amendments along the way, so I believe that there will need to be a reconciliation process before the governor can consider it.

Rep. Nick Kahl pushed the bill on the house side. He’s proving himself a tireless advocate for working Oregonians. On the senate side, Sen. Suzanne Bonamici (D. Beaverton) championed the bill, continuing her great work for Oregon consumers. News report here. Our Oregon stood up for consumers on this bill. They deserve our appreciation.

The bill is important for consumers because it ends special rights for banks. The Unlawful Trade Practices Act sets modest standards that protects Oregon consumers from fraud. For years, banks and insurance companies have been exempted from it.  Why shouldn’t they be held to the same standards as car dealers and cable TV companies? If a bank engages in fraud, it should have to answer to consumers. This is not particularly difficult.

I’m especially taken by some of the grumbling from those who opposed this legislation. I guess its easy to forget bank bail-outs, CEO salaries, and the lack of meaningful banking reform.  The legislature provides consumers with modest protections against nickel and diming and fraud, and banking industry cheerleaders complain that it will simply cost banks more? Amazing. Maybe they were asleep or comatose when the economy melted down.

So at bottom, it’s a good day for consumers because Salem showed leadership.