Borrowing in Oregon: What State Law Allows

The rules every payday loan must follow

Payday lenders in Oregon are licensed by the Division of Financial Regulation (DFR) under chapter 725A of the Oregon Revised Statutes. The core limits are short and strict:

• Interest: no more than 36% a year.
• One fee: a single origination fee of $10 per $100 borrowed or $30, whichever is less, across the loan and all its renewals.
• Term: at least 31 days and no more than 60 days.
• Renewals: no more than two. After that, you repay the balance and interest.
• Cooling-off: no new payday loan within seven days after you repay the last one.

Because the fee is capped in dollars, the cost stays readable. DFR's own examples: borrowing $100 costs at most $113.06 in total, and $300 costs at most $339.17. Spread over a 31-day loan, that's an APR of up to 153.77%, still far more than a credit union loan.

Title loans run on the same rules

A title loan, secured by your car, boat, RV or manufactured home, carries the same 36% interest cap, the same one-time fee, a 31-day minimum term and the same two-renewal limit. A lender may hold only one outstanding title loan per title, and it can't demand your keys.

The car is still at risk. If you default, the lender can repossess it, so treat a title loan as a last resort and compare payday loan alternatives first.

Installment loans from consumer finance lenders

Personal loans of $50,000 or less from non-bank lenders require a consumer finance license under chapter 725. The finance charge, stated as an APR, can't exceed the greater of 36% or a benchmark of 30 percentage points above the Federal Reserve's discount window primary credit rate, which the DFR director sets each December for the following year.

Lenders may also charge reasonable fees the department oversees, such as late fees. Banks chartered in other states can often lend at their home state's rates, so compare the APR on each disclosure; our guide to comparing loan offers shows how.

Debt collection deadlines and garnishment limits

Under ORS 12.080, a creditor has six years to sue on a contract, written or implied, and that period covers credit card debt as well. After the deadline passes, a collector can still ask you to pay but can't win a lawsuit if you raise the time limit. Read how statutes of limitations work before you make a payment on an old account.

If a creditor wins a judgment, Oregon exempts at least 75% of your disposable earnings from garnishment, and ORS 18.385 adds a minimum dollar amount per pay period that can't be taken. Child support and some government debts follow different rules. For what a collector may and may not do before any lawsuit, see debt collectors and your rights.

Before you borrow, and if something goes wrong

1. 1 Look up the lender with DFR's license search. Payday, title and consumer finance lenders each need their own license.
2. 2 Read the written agreement. It must show the fee, the APR, the due date and what happens if you pay late or default.
3. 3 Call or file with DFR through its consumer hotline or online complaint form if a lender adds fees, rolls a loan over more than twice or threatens you.

Common questions