Payday Loans

Oregon Payday Loan Laws

Though Oregon payday loan laws have made serious attempts to reduce the rate of interest on short-term cash advances to a significantly very low amount as compared to other states, payday loan still do not make a cheap financial option. If you need small amount of money urgently for a short period of time, you are recommended to try better alternatives, such as borrowing an advance from your employer or borrowing a short-term loan from a credit union. If you are anyways considering borrowing a payday loan or if you are someone who is already trapped in payday debt, make sure that you are well aware of the legal provisions applicable in the state of Oregon.

Only Civil Penalties

Criminal penalties are not applicable to those borrowers who fail to repay payday loans in time. Lenders can file only civil lawsuits against such borrowers; they cannot file criminal suits. As per Oregon payday loan laws, criminal lawsuits can be filed only in specific cases where the suspect the borrowers are engaged in some fraudulent activities, such as borrowing loan by providing wrong information.

Non-Sufficient Fund Fee

When you borrow a short-term cash advance in this state, you have to give a post-dated check to the lender; if that check gets dishonored because of non-sufficient fund in your checking bank account, lenders are allowed to charge a NSF fee of up to $20. The state laws allow them to charge additional bank charges as well (no limit specified).

Two Renewals Or Rollovers

Unlike the laws applicable in the majority of other states, Oregon payday loan laws do not prohibited rollovers or renewals. If a borrower fails to repay the loan on the set due date, the loan account can be renewed or rolled over for up to two times. The important point to note here is that additional interest and other finances charges can be charged for the extended period of time.

No Limit On Number Or Amount Of Loan

Unfortunately, the state laws do not specify any maximum limit on how many outstanding loans a borrower can have at one time. Besides that, no restrictions have been imposed on payday lenders regarding the maximum amount of loan that they can issue per loan account.

Basic Loan Terms

The annual percentage rate that lenders can charge in this state on short-term cash advances cannot exceed 156% per annum. Besides that, they can also charge additional fees up to $13 for a $100 of loan issued for a 31-day period. The repayment period offered to the borrowers must not be more than thirty-one days.

The Oregon Department of Consumer & Business Services is the regulatory authority for Oregon payday loan laws. They can be contacted through fax at (503) 947-7862 and through phone at (503) 378-4140. Their office is located at Division of Finance & Corporate Securities, 350 Winter St. NE, Rm. 410 Salem OR 97301. You can contact them to file a complaint against specific lenders (who you think are engaged in unfair and illegal practices).


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Posted in Payday Loan Laws, Payday Loans | 1 Comment »

One Response to “Oregon Payday Loan Laws”

  1. Martin says:

    A very brilliant and nice article giving information on what has been done in the state Oregon to protect the borrower’s right .So many restrictions have been imposed to reduce the high interest rate on small time borrowing of cash. Despite all these enforcements this has not become the cheapest option available to get cash for less time span rather approaching your employer for the same will be best option. You must be aware of the law in the state if you are facing difficulties in paying your loans. As per state law you are not a criminal if you fail to repay .,you can only be prosecuted in civil court , provided you should not have done a forgery in taking loan by means of providing fake documents. You can be charged if your check has been bounced due to insufficient funds in your bank account. Top up and renewal of the loan is allowed here twice only and certain charges can be levied. You can take as many loans as you want but a limit has been fixed for lenders to grant the amount per person. Maximum interest rate has been fixed that can be charged by lending institutions.

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