May 21, 2009

Salem, Oregon—Oregon War Veterans Association (OWVA) urges a "do pass" recommendation on the SB 731A version of the bill that is now in the House Committee on Consumer Protection. This important legislation will help disabled veterans better protect their disability pensions from illegal collections. SB 731A implements the policy and principle behind state and federal exemption laws by ensuring that protection is offered up front, at the bank account level, rather than requiring an expensive and delayed court hearing.

OWVA's director, Greg Warnock, told a group of OWVA supporters on Wednesday that some legislators feel that the banks have had a difficult time trying to understand regulations regarding funds that are exempt from garnishments. They feel that the burden to help their disabled customers is too great.

Warnock, who is a former banker with US Bank, provided public testimony and said, "Banks and Credit Unions are not burdened at all by protecting legally exempt funds from garnishment, especially when affidavits of the protected funds are on file, and when additional fees have been paid to help the banks process the necessary forms. Frankly, most banks and credit unions prefer to bend over backward for their disabled veteran customers, instead of supporting illegal debt collections."

OWVA put off an amendment to SB731 to fine institutions which violate the rights of disabled veterans on the illegal garnishment issue. This decision was a compromise to see the bill get through this year's session as it is currently written.

"We have all compromised enough on this legislation, and it is time to move the bill forward," Warnock said.