Oregon Division of Financial Regulation protects consumers, recovers more than $5.6 million in first half of 2024

Aug. 29, 2024

Salem – The Oregon Division of Financial Regulation (DFR), through its consumer advocacy, compliance, and enforcement teams, recovered $5,675,543 for Oregonians in the first half of 2024. DFR's consumer advocates and compliance teams have recovered $5,195,749, while the enforcement team has ordered $479,794 in restitution.

DFR consumer advocates help Oregonians in a variety of ways, depending on the issue. They handle complaints and questions from Oregon consumers who are experiencing difficulties with insurance, mortgages, banking products, securities, student loans, and a variety of other financial services regulated by DFR. Advocates have extensive industry knowledge across many platforms and they analyze and resolve complex issues.

Through the first two quarters of 2024, advocates have received 2,827 complaints, with insurance cases topping the list with 1,733 complaints. Last year, DFR advocates handled 4,852 complaints, including 3,140 insurance cases (by far the largest area of work), and recovered more than $8.3 million. A list of 2024 complaints broken down by subject and quarter is below.

Here are a few examples of work DFR advocates have done this year:

• During the January 2024 ice storm, two seniors suffered damage to their home. Their power was out for a couple of days when a neighbor checked on them. They were suffering from signs of hypothermia due to the 18-degree temperature in their home. They were taken to the hospital and after returning home, they found a water pipe had burst, pouring water onto the floor and causing damage. They filed a claim with their insurer, which denied the coverage, stating that they were responsible for maintaining heat or taking precautions such as draining the water system. DFR's consumer advocates got the company to reverse its decision and the consumers were paid more than $19,000 for their claim.
• A person died within the two-year contestable period of their life insurance policy. The company denied the claim, stating that medical conditions were not disclosed on the application. After reviewing the phone recordings between the agent and the person, there were incomplete medical questions asked during the application process that did not match the questions on the physical application. Because the agent omitted pertinent medical questions, the advocate convinced the insurer to pay the death claim – $304,697, including interest.
• A consumer filed a complaint after the auto insurer wrote a low initial estimate ($1,123) off photos only. The insurer's estimator admitted the estimate was low, but planned to update it as the work was done. After receiving the complaint, our office requested the insurer send an on-site estimator, which resulted in a new estimate for $7,491.90, consistent with the shop's estimate for the known damage.

“These stories illustrate just some of the many issues that come into our office every day and the multitude of ways that our consumer advocates can help," said Andrew R. Stolfi, Oregon insurance commissioner and director of the Oregon Department of Consumer and Business Services. “Our staff work hard to help people sift through insurance and financial issues that are often extremely complex and we encourage the public to reach out to us with questions and concerns."

Oregon Gov. Tina Kotek appreciates how the division helps people in need.

“My administration will always be on the side of Oregonians when they need help," said Gov. Kotek. “The team at Oregon's Division of Financial Regulation works hard every day solving complex cases and putting money back into the pockets of Oregonians."

On average, DFR receives more than 1,200 complaints per quarter. In addition to the nearly 5,000 complaints last year, advocates handled 4,393 in 2022. Consumers sometimes bring issues that are outside of DFR's regulatory authority. In those cases, the advocates refer them to the agency with jurisdiction over the matter.

The compliance teams have opened 86 cases so far in 2024 and recovered nearly $43,000 for Oregon consumers. The enforcement team has taken 49 actions so far this year and ordered nearly a half million dollars in restitution.

“Our team of people looks out for Oregonians. Our employees are extremely knowledgeable in a cross section of industry and believe strongly in what they do," said DFR Administrator TK Keen. “Their work has generated more than $20 million back to consumers in the past two and a half years and the number of complaints continues to rise each year."

Anyone who may need a consumer advocate can call 1-888-877-4894 (toll-free) or email dfr.insurancehelp@dcbs.oregon.gov for insurance-related issues or dfr.financialserviceshelp@dcbs.oregon.gov for financial-related issues.

Here is the list of the first half of 2024 consumer advocacy complaints:

###

About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon's largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.