An installment loan is any loan that is longer than 60 days and requires periodic payments. The loan’s length of time most likely depends on the amount; usually, a larger loan has a longer repayment period. Lenders are limited to charging 36 percent annual percentage rate (APR), which includes both fees and interest.
All lenders must provide consumers with a loan document clearly stating the fees and terms of the loan.
Always check to make sure the lender is licensed in Oregon. It is easier to resolve problems with an Oregon-licensed lender than an illegal one. File a complaint if you think you have an illegal loan.
The division regulates personal loans of $50,000 or less at an annual interest exceeding 12 percent. This applies to loans for personal or household use. The division does not regulate business loans, commercial loans, purchase money loans, or retail installment sales contracts. The license requirements extend to agents, brokers, or facilitators of the loan company.
Tribal payday lenders
Some payday and title lenders are owned by, or associated with, federally-recognized Indian tribes, and may explain that they operate under tribal sovereignty. Tribal sovereignty means they are separate from federal or state government and can make loans with higher fees and interest rates than those allowed by state laws. Currently, Oregon tribes are not involved in payday or title lending.
Before you search for, or agree to a loan, check to see that the lender has a license from the state of Oregon. You can check here for a list of lenders that are properly licensed in Oregon.
To file a complaint against a tribal-run payday/title lender, contact the following federal agencies:
Federal Trade Commission: 1-877-382-4357, or online.
Consumer Financial Protection Bureau: 1-855-411-2372 or online.