As one of the most progressive states in the United States of America, Oregon has hit the nail on the head for payday loan laws. Their protection has made sure that many of the consumers in the state are not only protected from predatory lenders, but are also protected from making some of the mistakes that other people make elsewhere in the country. Below we will offer you a unique rundown of what makes the payday loan laws in Oregon so special and effective. Hopefully, it will provide you with some evidence that it is one of the best states to get a payday loan if you are in a position that you really need one.
Payday Loan Laws in Oregon and Licensing
The first great thing that Oregon does in order to protect consumers is require a licensing agreement for online lenders. This makes sure that online lenders are abiding by all the rules set out by the state of Oregon. The payday loan laws in Oregon regarding the licensing are so strict that many of the companies that normally do business online are not even able to get the license. There are, as of now, no payday loan lenders in Oregon that are licensed even though the 2006 S.B. 1105 law states that they must. Obviously there are probably illegal online lenders doing business in the state, but these are something you must watch out for.
New Payday Loan Laws in Oregon
Although published before the financial crisis of 2008, the state of Oregon published S.B. 1105 in 2006 in order to protect the people living in the state from predatory lending. So far, the bill has helped to do the job well. The limit for people borrowing money in Oregon has been capped at 25% of their net monthly income, which means that poorer people in the state cannot bite off more than they can chew. This is a similar approach to some other states in the United States that help to protect the poorest borrowers from online or predatory lenders that want to snag them in the payday loan trap. The payday loan laws in Oregon do just that, protect the residents of this great state.
The minimum and maximum loan days for people borrowing money in Oregon is between 31 – 60, which means that the people have a much more flexible schedule to deal with. This also means that both lenders and borrowers are protected from excessively quick periods that end up with high costs.
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