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Portland Puts Restrictions on Payday Loans

Filed under: Oregon — J.J. Cameron at 3:42 pm on Friday, February 24, 2006

Portland City Commissioners passed the first ordinance in the state this week to protect consumers from some of the lending practices of payday loan businesses. This comes on the heels of recent state legislature criticism on the matter.

A no faxing payday loan can allow people with bad credit to deal with unexpected bills. But a lack of regulation means interest rates on some loans can be astronomical.

Mayor Tom Potter says that, while Portland City cannot cap interest rates, the new ordinance gives consumers 24 hours to cancel a loan, as well as the right to pay down principle and make installment payments.

"I think when you charge 912.5 percent interest annually, that's unconscionable," Potter said. "And I think that our society has to wake up and realize that there are some things that are just unacceptable. And this is one of those things."

Gresham, Troutdale and Eugene are considering similar ordinances - but Oregon remains one of only seven states with no interest rate limit on instant payday loans.



Pingback by Payday Loan Times » Blog Archive » Newspaper Editorial Urges More Oregon Cities to Act Against Payday Cash Loans

Monday, February 27, 2006 @ 5:05 pm

[...] Eugene, Springfield and other cities in Oregon should follow the lead of the city of Portland in regulating payday loans, urges an editorial in the Eugene Register-Guard. [...]


Pingback by Payday Loan Times » Blog Archive » Gresham, Oregon, May Follow Portland’s Lead In Effort to Limit Spead of Payday Cash Loans

Thursday, March 2, 2006 @ 10:45 am

[...] The city’s payday advance lenders say they provide an essential service, a good source of cash for people who need a brief loan fast. But annual interest rates that range from 391 percent to 520 percent have consumer advocates urging action. The Gresham City Council must decide whether to regulate payday loans by mirroring a Portland payday loan law passed last month in the state’s biggest city. [...]


Pingback by Payday Loan Times » Blog Archive » Religious Groups Push Statewide Ballot Measure As Payday Loan Battle Heats Up In Oregon

Thursday, March 9, 2006 @ 11:29 am

[...] Dodd is among a group of local church and social service leaders who have begun meeting on the issue. One idea is work with two sympathetic Lane County legislators, Rep. Debi Farr (R-Eugene), and Sen. Floyd Prozanski (D-Eugene), who head consumer committees considering more rules. Another idea is to ask cities to impose restrictions, as Portland already has proposed. [...]


Pingback by Payday Loan Times » Blog Archive » Oregon Payday Loan Firms Sue to Block New Portland City Ordinance

Thursday, March 23, 2006 @ 11:11 am

[...] According to The Oregonian, four payday loan companies have filed a lawsuit challenging the new Portland law passed to govern them. The suit asks the Multnomah County Circuit Court to declare the city ordinance invalid on grounds it violates the state Constitution. [...]


Pingback by Payday Loan Times » Blog Archive » Oregon Governor Wants to Crack Down on Check Cashing, Payday Advance Services

Thursday, April 13, 2006 @ 10:13 am

[...] Some supporters of such restrictions say they plan to turn next to fighting for caps on check-cashing fees. They also want to see more rules governing car-title lenders, who charge high interest for small short-term loans using car titles as collateral. [...]

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