OREGON PDL LAW CHANGES

Good grief, guess i don't know much about pdl's, thnk goodness for me, but that seems outrageous!
Wonder how much loan sharks charge these days?
Have a happy Monday, (yuck) lol
Ang

Ang, if you think 36% it outrageous ---
the dislosures on a PDL contract usually state an apr somewhere between 400 - 800%

36% sounds outrageous, but you have to understand that is an annual percentage rate applied to a two-week loan...

Take 36% divided by 365 days in a year = .098% per day
On a $500 loan x .098% = 49 cents per day interest , times 14 days = $6.90 interest for a two-week loan

I'm glad to see they are putting caps on these loans in Orgeon. Weren't their laws a little sketchy? I remember someone used to post from Oregon on here and it didn't seem like they were getting a lot of help.

I'm from Oregon, and they used to have no caps, only a law stating you can only rollover 3 times, then wait 1 day before reloaning.

They also passed BILL 2203, which creates a database to track title and payday loans and prohibits debt collection by a lender unless they are licensed by the Department of Consumer and Business Services, and extends consumer protection laws to companies offering loans to Oregon consumers through the mail, the internet or over the telephone.

This has been in the works for a couple years, there has been a ton of industry people working against this!

And the extra good part of this bill - It applies to installement loans too! No more Cash Call or Quick Click Loans in Oregon!

Bill 2204 piggy backs of off Bill 2203. That is the information that was given to me, the legislators did not feel 2203 gave consumers enough protection from these scavengers.

Yep, that's right. They still have to pass the senate, and then get signed by the Gov . . . He hates payday loans, and has really been pushing these bills through.

I know I've posted about these two bills before, but it was a few months ago, and can't find it right now . . . . If I remember correctly, it posted what the exact changes will be, there are a bunch more restrictions besides the interest rate cap. 2203 specifically says that internet based pdl's must follow Oregon's laws, as well as companies that solicit through mail and the phone. It also creates a database to track these loans. 2204 limits interest to 36%, requires that the loan term be at least 31 days, and limit to only 2 rollovers. There will also be a 7 day waiting period between loans.

That's good news :-)

It's great . . . . . Especially since before they were no regulations and these companies could legally charge whatever they wanted to!

Wow, guess i'm just amazed at how HIGH they can charge in interest! Wasn't there a time when this was TOTALLY illegal? Or is that wishful thinking? ANd i guess 36% is a LOT better than the 3 or 400%! YIKES!
Ang

Yes, as it stands right now, they can charge whatever they want to. This change will do a lot of good in Oregon.

You all don't realize but people are coming here, and they are paying attention. Trust me. I know this. More is to come in taking them down.

This is great news. I think the best part of it is that it is also against the installment loans. Cashcall is dangerous and its good to see more states taking action. They cant loan in WV either. Kyside38

Now don't get me started on Cash Call, it sounds to me like West Virginia is a very consumer friendly state who has an attorney general who looks out for its citizens. I feel for anybody who has taken up business with this Cash Call.

That's fantastic news...and I don't live in Oregon!! I wish all the states would follow suit. I feel like copying that info and sending it to our AG here in Indiana!!