A pawned item is considered a loan because the borrower is using the item’s value to get a loan. Pawnbrokers licensed in Oregon can offer loans based on the following criteria:
- Loans must be for a minimum of 60 days.
- A set-up fee of 10 percent of the loan amount, with a minimum of $2 and a maximum of $250, is charged for each item.
- A storage fee of 5 percent of the loan amount, with a minimum of $2 and a maximum of $250, is charged for each item.
- Interest on a pawn is limited to 3 percent a month.
- Loans on firearms are allowed and the fees include the same set-up and storage fee for other pawned items, but there also is a $3 firearm fee and a $10 background check fee that is required before a firearm can be released. The pawnbroker may also charge a $1 fee to renew the loan.
- There are no restrictions on renewing the loan, but the pawnbroker will charge the same interest and fees to extend another 60 days.
Note: There is a 30-day grace period on an initial loan; however, there is no grace period on loan renewals.
When you pawn an item, the pawnbroker will give you a ticket – this is your loan agreement. The ticket describes your pawn, the loan amount, fees, interest, and when the loan is due. Keep your ticket in a safe place until the time your loan is due and you pay it off.
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)