Payday Lending and Title Lending

ORS 725A

Payday loans are primarily for personal, family, or household purposes. They can be made in amounts less than $50,000, are typically repaid with a single payment, and the term of such loans may not exceed 60 days. Repayment is usually by a check or automatic withdrawal from a checking or savings account. If a person acts as an agent, broker, or facilitator for an entity that makes such loans must also be licensed as a payday lender. Interest rates are limited to 36% per annum. An origination fee of the lesser of $10 per $100 loan or $30 is also allowed.

Title loans are made where a motor vehicle, recreational vehicle, boat, or mobile home is provided as security for a loan. This lending includes sale-leaseback arrangements where the title and all rights to the vehicle are not transferred to the purchaser in a bona fide sale of the item, if the consumer retains equity in the vehicle or the consumer has an option to repurchase the vehicle for a nominal price.

Title loans are limited to 60 days or less, for amounts of less than $50,000, and typically require the borrower to repay the entire amount in a single payment. A person who acts as an agent, broker, or facilitator for an entity that makes such loans must also be licensed as a title lender. Interest rates are limited to 36% per annum. An origination fee of the lesser of $10 per $100 loan or $30 is also allowed.

As of March 31, 2013, there were 68 payday or title loan licensees.