Payday Loan in Oregon
Legal Status: Legal
Citation:
54 Or. Rev. Stat. Ann. § 725.600 et seq.
Loan Terms:
Maximum Loan Amount: Not Specified
Loan Term: Min. 31 days
Maximum Finance Rate and Fees: 36% APR interest, $10/$100 fee up to $30
Finance Charge for 14-day $100 loan: $13 for 31 day loan
APR for 14-day $100 loan: 156% APR for 31 day loan
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: Two (renewals)
Cooling-off Period: 7 days after prior loan expires
Repayment Plan:
Collection Limits:
Collection Fees: One $20 NSF fee + additional bank charges
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: Oregon Department of Consumer & Business Services
Address: Division of Finance & Corporate Securities, 350 Winter St. NE, Rm. 410 Salem OR 97301
Phone: (503) 378-4140
Fax: (503) 947-7862
Applicability: The consumer finance act applies to lenders in the business of making payday loans if at least 10% of all loans made by the lender are payday loans. Otherwise Or. Rev. Stat. § 725.340 applies (rate set by contract).
Exemptions: Financial institutions and trust companies.
Licensing requirements: Payday lenders must obtain a license. The license shall be kept conspicuously posted in the place of business of the licensee and shall not be transferable or assignable.
Required disclosures: Licensees must deliver to the borrower at the time any loan is made a statement in the English language showing in clear and distinct terms: the name and address of the borrower and of the licensee; the amount and the date of the loan and of its maturity or terms of payment; the rate of interest agreed upon or consideration to be charged thereof; the nature of the security for the loan, if a lien on personal property has been taken by chattel mortgage, bill of sale, collateral agreement or otherwise; make available to the borrower upon request a plain and complete receipt for all payments made on account of any such loan at the time such payments are received by the licensee, specifying the amount applied to interest, if any, the date to which the interest is paid, the amount applied to principal, if any, and the unpaid principal balance of such loan, if any remains; permit payment to be made in advance in any amount on any loan at any time; upon repayment of the loan in full or upon renewal thereof, mark indelibly such obligation signed by the borrower with the word “Paid” or “Renewed.”
Loan terms: Paydays loans made primarily for personal, family or household purposes; made for a period of 60 days or less or for which the lender may demand repayment within 60 days.
Permitted charges: The lender may charge one fee per loan transaction for dishonored checks as well as any fee charged to the lender by an unaffiliated financial institution for each dishonored check.
Prohibited acts: No licensee shall take any power of attorney from any borrower, except a power of attorney to effectuate the transfer of the ownership of any motor vehicle at the time of making a loan on a motor vehicle; any note or promise to pay which does not accurately disclose the actual amount of the loan, the time for which it is made, the rate of interest charged or the schedule of payments agreed upon, or any instrument in which blanks are left to be filled in after execution. No licensee or other person shall advertise, print, display, publish, distribute or broadcast or cause or permit to be advertised, printed, displayed, published, distributed or broadcast in any manner whatsoever any statement or representation with regard to the rates, terms or conditions for loans which is false, misleading or deceptive. A lender in the business of making payday loans may not include in a payday loan contract a hold-harmless clause; a confession of judgment or other waiver of the right to notice and the opportunity to be heard in an action; an agreement by the consumer not to assert any claim or defense arising out of the contract against the lender or any holder in due course; or an executory waiver or a limitation of exemption from attachment, execution or other process on real or personal property held by, owned by or due to the consumer, unless the waiver or limitation applies only to property subject to a security interest executed in connection with the loan; conduct a payday loan business where liquor or lottery tickets are sold or where gambling devices are located; renew a payday loan more than 3 times; or make a new payday loan to a consumer on the same day that a previous payday loan expires if the lender has renewed the previous payday loan 3 times. The lender shall wait at least until the next day after the expiration date of the previous loan before making the new loan to the consumer.
Enforcement: The Director of the Department of Consumer and Business Services can issue cease and desist orders, suspend and revoke licenses and issue written orders removing or suspending an officer or director of a licensee who is dishonest, reckless or incompetent. Aggrieved customers may file a written complaint with the Director of the Department of Consumer and Business Services who may investigate.
Penalties: The Director of the Department of Consumer and Business Services may assess against any person who violates any provision of this chapter a civil penalty in an amount determined by the director of not more than $2,500. In addition to any other penalty provided by law, the director may assess against any person who lends money without the license required under this chapter a civil penalty in an amount equal to the interest received that exceeds 9% per annum.
