Eugene City Council Passes Immediate Payday Loan Laws

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

While some citizens in Oregon may be concerned about loopholes in certain ordinances regarding payday loans, the Eugene City Council didn't waste any time in enacting new legislation.

Councilors heard five supporters of a proposed local law regulating payday loan businesses during an open form this week. The respondents talked about the 16 payday advance lenders in Eugene, those that typically charge a fee of $15 to $20 for each $100 borrowed.

If borrowers can't repay the bad credit payday loan after two weeks, payday lenders allow them to renew the loan up to three times, paying another fee each time. But councilors took the rare step of approving the new ordinance after the public hearing.