Oregon Payday Loans

Relevant Legal Excerpts for Oregon Payday Loans

Section 725.600 Definitions for ORS 725.600 to 725.630.

As used in ORS 725.600 to 725.630:

(3)

(a) "Payday loan" means a loan, other than a purchase money loan:

(A) Made primarily for personal, family or household purposes;
(B) Made for a period of 60 days or less or for which the lender may demand repayment within 60 days; and
(C) Usually evidenced by a check or electronic repayment agreement provided by or on behalf of the borrower.

(b) "Payday loan" does not include a loan for a period of more than 60 days, the repayment of which the lender may accelerate upon a default by the borrower.

Section 725.602 Loans made to persons with Oregon domicile; application of chapter.

(1) Notwithstanding ORS 725.370, a person that makes a payday loan or title loan is subject to this chapter if in the person’s capacity as a lender the person makes a loan to a consumer who resides in or maintains a domicile in this state and if the consumer:

(a) Negotiates or agrees to the terms of the loan in person, by mail, by telephone or via the Internet while physically present in this state;
(b) Enters into or executes a loan contract with the lender in person, by mail, by telephone or via the Internet while physically present in this state; or
(c) Makes a payment on the loan in this state.

(2) For purposes of this section, a consumer makes a payment on a loan in this state if a lender debits an account the consumer holds in a branch of a financial institution located in this state or if the consumer makes a payment with a negotiable instrument drawn on a branch of a financial institution located in this state.

Section 725.622 Prohibited actions by payday lender.

(1) A lender in the business of making payday loans may not:

(a) Make or renew a payday loan at a rate of interest that exceeds 36 percent per annum, excluding a one-time origination fee for a new loan;
(b) Charge during the term of a new payday loan, including all renewals of the loan, more than one origination fee of $10 per $100 of the loan amount or $30, whichever is less;
(c) Charge a consumer more than the actual amount that the vendor or service provider charges the lender for access to or use of the system described in ORS 725.630;
(d) Make or renew a payday loan for a term of less than 31 days;
(e) Charge a consumer any fee or interest other than a fee or interest described in paragraph (a), (b) or (c) of this subsection or in subsection (2) of this section;
(f) Include in a payday loan contract:

(A) A hold-harmless clause;
(B) A confession of judgment or other waiver of the right to notice and the opportunity to be heard in an action;
(C) 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
(D) 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;

(g) Conduct a payday loan business where liquor or lottery tickets are sold or where gambling devices are located;
(h) Renew an existing payday loan more than two times; or
(i) Make a new payday loan to a consumer within seven days of the day that a previous payday loan expires.

(2)

(a) A lender in the business of making payday loans may not charge the consumer more than one fee per loan transaction for dishonored checks or insufficient funds, regardless of how many checks or debit agreements the lender obtains from the consumer for the transaction. The fee may not exceed $20.
(b) A lender in the business of making payday loans may not collect a fee for a dishonored check under ORS 30.701 or seek or recover statutory damages and attorney fees from a consumer for a dishonored check under ORS 30.701. The lender may recover from the consumer any fee charged to the lender by an unaffiliated financial institution for each dishonored check. For a dishonored check or insufficient funds, the fees described in this subsection are the only remedy a lender may pursue and the only fees a lender may charge.

(3) The provisions of ORS 725.600 to 725.630 do not prevent a lender from recovering amounts associated with the collection of a defaulted loan that are authorized by statute or awarded by a court of law.

Section 725.624 Filing complaint against payday lender; investigation.

(1) A person claiming to be aggrieved by a practice that violates ORS 725.622, or the person’s attorney, may file with the Director of the Department of Consumer and Business Services a verified complaint in writing. The person shall state in the complaint the name and address of the lender alleged to have committed the unlawful practice and the particulars of the alleged unlawful practice. The director may require the person to set forth in the complaint other information that the director considers pertinent. The person may file the complaint no later than one year after the alleged unlawful practice.

(2) After the filing of a complaint under this section, the director may cause an investigation to be made under ORS 725.310.

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