A title loan is a loan that uses the value of your automobile to secure the loan, also known as collateral. You must provide the lender with your automobile title and the lender holds it until the loan is paid. The limits of these loans are:
- Must be for at least 31 days and cannot exceed 60 days. If it exceeds 60 days, it is considered an installment loan.
- A one-time origination fee of $10 per $100 of the loan amount, or $30, whichever is less.
Online title lenders
There are currently no licensed online title lenders in Oregon. Before you agree to a title loan,
make sure the company is licensed in Oregon.
Warning signs
There are numerous title lenders promising quick cash, sometimes in less than 24 hours. If the lender is not licensed in Oregon, you may pay excessive interest rates and fees. What is worse, if you are late making your payment or skip a payment, your car could be repossessed. Do not send your title to a lender who is not licensed in Oregon and beware of any title loan lender who does any of the following:
- Require your personal bank account information, or your Social Security number just to see fees, interest rates, or what your loan payments may be.
- Charge more than 36 percent interest per year.
- Exceed the maximum APR (interest and fees) is 153.77 percent.
- Charge a one-time origination fee that is more than 10 percent of the loan amount with a maximum of $30.
- Offer a loan for less than 31 days, and offer to renew the same loan more than twice.
- Ask for an upfront fee and requests the payment be made with a prepaid card, debit or credit card, wire transfer, or money order.
- Do not explain the fees and interest rates.
- Will not provide a written loan agreement for you to read, agree to and sign.
- Immediately take steps to repossess your automobile if you are late or skip one payment.
You have a right to
file a complaintagainst your lender.
Tribal lenders
Some 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 lending.
To file a complaint against a tribal-run payday lender, contact the following federal agencies:
Federal Trade Commission: 1-877-382-4357 (toll-free)
Consumer Financial Protection Bureau: 1-855-411-2372 (toll-free)