A question regarding a Oregon landlord consigning fees to a collection agency / attorney. ORS 90.100 (15) defines a fee as “a nonrefundable payment of money”.
Oregon revised Statute (ORS) 90.302 (1) states
“A landlord may not charge a fee at the beginning of the tenancy for an anticipated landlord expense and may not require the payment of any fee except as provided in this section. A fee must be described in a written rental agreement.”
ORS 90.302 (8) states
“If a landlord charges a tenant a fee in violation of this section, the tenant may recover twice the actual damages of the tenant or $300, whichever is greater. This penalty does not apply to fees described in subsection (2) of this section.”
The Statute does not have any provision allowing a landlord to charge interest or collection fees other than those allowed by ORS 90.255 dealing with attorney fees at trial and on appeal. However many current standard leases have clauses consigning a debt to a collection agency or attorney for collections.
For example Looking over two different ‘standard’ written rental agreements commonly used in Oregon I see the following sections:
Lease A
“Legal and Collection Fees: Any funds due from Tenant(s) may be consigned to a Collection Agency, Small Claims Court or Circuit Court. Tenant(s) expressly authorizes Owner/Agent to collect any and all costs, fees, expenses, charges, and incurred interest associated with the attempt to collect any debt due under this agreement. Tenant’s financial obligation expressly includes the actual debt and all other costs, fees, expenses, and charges including charges related to collection activity of a Collection Agency. Specifically, this authorization includes charges in excess of the original debt. Interest on the debt to be charged at a rate of 10% per annum, compounded monthly.”
and another lease that contains the following section:
Lease B
“ATTORNEYS' FEES. Should it become necessary for the Landlord to employ an attorney to enforce any of the conditions or covenants hereof, including the collection of rentals or gaining possession of the Premises, Tenant agrees to pay all expenses so incurred, including a reasonable attorneys' fee.”
Say for example a property manger charges a tenant a $50 plus 5% of a 1000.00 rent (a $100 fee) for a third or subsequent noncompliance of a rule as per ORS 90.302 (3)(a)
Say the tenant moves out with all other rents paid other than the outstanding fee.
Per the terms in leases A and B the landlord refers the $100 fee to a collection attorney whom adds a $50 collection fee.
Can the former former tenant peruse relief from the collection fee under ORS 90.302 (8)? Thanks in advance!
