Oregon Payday Loan Laws

The state of Oregon is one of the least regulated for payday loans in the nation. The Payday laws are as follows:

• Maximum Payday Loan Amount – Unspecified
• Minimum Payday Loan Terms – 31 days
• Maximum Payday Loan Terms – 60 days
• Maximum Quantity of Outstanding Payday Loans – Unlimited
• Maximum Amount of Payday Loan Extensions – Two
• Maximum Payday Annual Percentage Rate (APR) – 156 percent
• Maximum Payday Financing Interest Fees – $13.00 dollars
• Maximum Payday Annual Financing Interest Rates – 25 percent
• Maximum Allotted NSF Check Fees – $20 dollars and court fees
• Maximum Allowed Criminal Actions – None

Senator Jeff Merkley (OR) sent a letter to the director of the Consumer Financial Protection Bureau, Richard Cordray, in Washington D.C. this year urging him to stop the payday lender usury and abuse. The letter in its entirety can be found on the Senator’s website. However, Senator Merkley says the payday lenders in his state are using loopholes to get around the payday laws his state does have, such as using offshore lending sites.

The unscrupulous payday lenders are targeting Oregon residents by portraying these fast loans being short-term cheap loans to help him or her get on their feet. What the unscrupulous leaders are really offering are payday loans with astronomically high Annual Percentage Rates (APR). In some of the some flagrant cases, the lenders were attaching as much as 500 percent or more APR on a loan. This is not illegal, as the state does not cap the amount of interest that can be charged, but it is abusive.

Under Oregon payday laws, the lenders are not to loan more than 25 percent of the customer’s net income on a monthly basis. This percentage has to include the payday loan company’s interest charges and any fees. The laws also state the loans cannot exceed 60 days. Senator Merkley wants the more than 450 payday leaders in Oregon reined in to adhere to the state laws in order to protect his constituents. The reason for the Senator’s concern is because Oregon does not have the regulation like other states. This makes it easier for the payday lenders to find and use loopholes.

However, the lender must still provide the borrower with the full details of the loan, the security agreement, and at any time provide a receipt to the client upon request. This way the customer has a record on all payments made and the balance owed. In addition, only licensed payday companies can legally loan monies to the consumers. The lender also has three business days to respond with the loan payoff amount should their customer request it. In addition, even though there is no regulation on the amount of APR on a payday loan, the law states it must be prominently displayed on the paperwork so the borrower can find is easily. Senator Merkley hopes to see more regulations in his state soon.

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