An unlicensed online payday or title lender may charge extremely high fees and interest rates.
Payday loans are also known as a cash advance or check loan because the loan is typically paid off at the next payday. Oregon requires payday loans to be for at least 31 days. The legal limits on payday loans include:
- A one-time 10 percent loan origination fee, up to a maximum of $30 for a new loan
- Interest rates are limited to 36 percent annually. The maximum APR (interest and fees) is 153.77 percent
- No more than two renewals, or roll overs, are allowed on an existing loan. After two renewals, you must pay the loan amount and interest in full
- The payday or title loan must be for at least 31 days and not longer than 60 days
Here is the most you should pay for a payday or title loan.
||Origination Fee and Interest
||Total Loan Cost
Payday or title lenders must give you a written loan agreement clearly explaining the fees, percentage rate, payment due dates, and what happens if you are late with your payments or you default.
All payday or title lenders, including those online, must be licensed by the State of Oregon.
*The annual percentage rate (APR) – the total of all interest and fees calculated on an annual basis – will be 153.77 percent if the lender charges the maximum interest rate (36 percent) and the maximum origination fees allowed.
Seeking a payday loan
Before you search for or agree to a loan, make sure the lender is licensed in Oregon. Many people look for payday lenders online, but be careful. There are only a few legal online payday lenders.
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.