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Oregon Advance Fee Agreement

Oregon Advance Fee Agreement: What You Need to Know

An advance fee agreement is a contract between a client and a service provider where the client agrees to pay the provider in advance for services to be rendered in the future. The agreement specifies what services will be provided and the amount of the fee.

In Oregon, advance fee agreements are regulated by the Oregon Department of Justice (DOJ) and must comply with certain requirements to ensure that consumers are protected from unfair practices.

One of the key requirements is that the service provider must be registered with the DOJ and provide a bond or letter of credit to guarantee that they will perform the services as agreed. This helps to ensure that the client`s money is safe, even if the service provider fails to deliver the agreed-upon services.

Another requirement is that the advance fee agreement must include certain disclosures, such as a statement about the client`s right to cancel the agreement within three business days and information about any refund policies. This is intended to give clients the information they need to make an informed decision about whether to enter into the agreement and to protect them from fraud.

The DOJ also requires that the agreement must be in writing and signed by both the client and the service provider. This helps to ensure that there is a clear understanding of the terms of the agreement and that both parties agree to those terms.

An advance fee agreement can be used for a variety of services, such as debt counseling, credit repair, and mortgage modification. However, it is important to be cautious when entering into these agreements and to do your research to ensure that the service provider is reputable and has a good track record of delivering the services they promise.

In summary, if you are considering entering into an advance fee agreement in Oregon, it is important to understand the requirements and protections that exist under the law. By working with a registered service provider and ensuring that the agreement contains all of the necessary disclosures, you can help to protect yourself from fraud and ensure that you receive the services you need.

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