The state of Oregon has long been touted as one of the hidden gems of the United States. The state is largely rural with some great population centers that are friendly, economically strong, but also mindful of consumer protection. As many people turn to payday loans in order to fill the gaps between their income and spending, Oregon payday loan laws have started to become a topic of debate. This is great for many of the people in the state who feel that the politicians should defend them from predatory lending. In fact, the following article will help you understand when the latest laws have been enacted in order to protect you and your family.
Oregon Payday Loan Laws in 2006
Even before the economic recession of 2008, the payday loan industry was getting large in the state of Oregon. In 2006 the S.B. 1105 series of Oregon payday loan laws was passed to limit the maximum amount of money that lenders to offer to borrowers. The limit was capped at 25% of the net monthly income. This is a similar approach to Nevada and it prevents poorer people from getting way more money than they can hope to earn. It also stops lenders from offering money to unemployed people who are a definite way to the easy payday loan trap.
Within this S.B. 1105 series of Oregon payday loan laws, the minimum for loans is set at 31 days with the maximum at 60 days. This is one of the highest in the entire country, which makes it the most helpful for consumers of payday loans. However, there are some hiccups when it comes to the interest rates. Many of the lenders have no caps on the limits, which means that rates can be very high. Even though they cannot borrow a lot of money, a high rate can still be detrimental.
Licensing and Oregon Payday Loan Laws
Another issue that Oregon has had to deal with is the prospect of granting licenses to online lenders. A license is required for each company that wants to operate in the state, but none have actually been known to have the license. This means that the restrictions are probably quite strict, which is in the best interest of the consumers. Even though this is the case, there are illegal lenders that are definitely providing ill-advised services that will hurt people immensely in the long run.
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