Payday Loan Writer
The Oregon Senate Monday approved new limits and restrictions on high interest-rate lenders. The legislation was inspired by critics of payday loans who loan money for a short time at exhorbitant interest rates.
The bill passed Monday is the second half of a consumer lending protection package which is quickly moving toward final approval. It extends consumer protection laws to companies offering high-interest personal loans to Oregon consumers through the mail, the Internet, or over the telephone.
Passage of the bill follows Senate passage on Friday of a bill that limits the interest rate on title loans to 36% per year.
The new rules also create a database to track title and payday advance loans, and prohibits debt collection by a lender unless they have a state license. There are also limits on fees for dishonored checks.
The House of Representatives originated both bills, and already passed them.
However, because the Senate made some changes, they now go back to the house for reconciliation of the Senate and House versions. That reconciliation is considered likely to happen, and so is approval by Governor Ted Kulongoski, who has been a prime supporter of both fast cash loan ordinances.