Oregon
Payday Advance Lenders Close Doorts
Sawbucks closed two of its three Klamath Falls locations in anticipation of the new state regulations that cap interest rates for payday loans.
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Payday Loans in Oregon
Payday Loan Laws in Oregon (2026)
Yes — payday loans are legal in Oregon, but a 2007 reform stripped out the debt trap. Interest is capped at 36% a year plus a single one-time origination fee ($10 per $100, up to $30), the term must be at least 31 days, lenders may renew a loan no more than twice, and a 7-day cooling-off period applies after you repay. DFR oversees lenders.
| Status | Legal — reformed (2007) |
|---|---|
| Interest cap | 36% per year |
| Origination fee | One-time: $10 per $100, up to $30 |
| Effective APR | Far below old payday rates (DFR cites ~154% max on a small, short loan) |
| Loan term | Minimum 31 days; maximum 60 days |
| Renewals | No more than two; then the balance is due in full |
| Cooling-off | No new payday loan within 7 days of repaying one |
| Regulator | Division of Financial Regulation (DFR) |
| Law | ORS Chapter 725A |
What Oregon's reform means for you
- Oregon's 2007 reform capped interest at 36% and allows only a single one-time origination fee ($10 per $100, max $30) — no stacking of fees.
- Every payday loan must run at least 31 days, which ended the two-week, due-on-payday trap.
- A loan may be renewed no more than twice; after that, the full balance is due.
- You can't take a new payday loan within 7 days of repaying one — a built-in cooling-off period.
Problem with a lender? File a complaint
Payday lenders in Oregon are licensed by the Division of Financial Regulation. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
Before borrowing, compare a credit-union payday-alternative loan, an employer paycheck advance, or a payment plan with the biller. See our guide to payday loans and alternatives.
Your debt rights in Oregon
A lender can garnish wages in Oregon only after it sues and wins a court judgment, and federal law then caps how much can be taken. Oregon does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
- Can a payday lender sue you?
- Can payday loans garnish your wages?
- Do payday loans affect your credit?
- Payday loan statute of limitations
- How many payday loans can you have?
- How to get out of payday loan debt
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Oregon Division of Financial Regulation (DFR) before borrowing. Last reviewed 2026.
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Frequently asked
Are payday loans legal in Oregon?
Yes, but they are capped at 36% interest plus one small origination fee under ORS Chapter 725A, overseen by the Division of Financial Regulation.
What is the most an Oregon payday lender can charge?
36% annual interest plus a single one-time origination fee of $10 per $100 (up to $30). Repeated fees are not allowed.
How long does an Oregon payday loan last?
At least 31 days and up to 60 days, and it may be renewed no more than twice before the full balance is due.
Is there a waiting period between payday loans in Oregon?
Yes. You cannot take a new payday loan within 7 days of repaying a previous one.
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