AFSA and NCLC Join Forces
It’s rare for AFSA and the National Consumer Law Center (NCLC) to take the same position on legislation, but Oregon’s HB 4141 has brought us together. In a joint opposition letter to the Oregon legislature, we argue that the bill would open the door to for‑profit debt settlement companies operating with too little oversight.
We warn that HB 4141 would accelerate the growth of debt settlement businesses that often leave consumers more disadvantaged while undermining reputable nonprofit credit counselors. The joint-letter points to three common tactics of harmful debt settlement companies:
- Telling consumers to stop paying their bills—even when they’re current—causing credit scores to collapse and debts to grow.
- Instructing consumers to cut off communication with their creditors, even though creditors will often negotiate payment plans directly at no cost.
- Profiting from the settlement process, including steering consumers into consolidation loans offered by affiliates—a serious conflict of interest.
Furthermore, some companies target consumers immediately after a loan is issued, before any payments are missed, using financial distress as a marketing opportunity rather than offering real help.
AFSA and NCLC agree: HB 4141 should be rejected or significantly revised. Without stronger consumer protection, Oregon risks expanding an industry known for misleading practices and financial harm. Both organizations stand ready to work with lawmakers on better solutions but warn that HB 4141 as written is a step in the wrong direction.
States are increasingly passing legislation that opens the door for debt settlement companies to operate with far too little oversight. This alarming trend for consumers was covered in an April 2025 white paper produced by AFSA’s State Government Affairs team. AFSA has also been involved in the debt settlement policy debate at the federal level.
February 9th, 2026
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